Telecom Argentina S.A. announces preliminary results for Fiscal Year 2012

  Telecom Argentina S.A. announces preliminary results for Fiscal Year 2012

PR Newswire

BUENOS AIRES, Argentina, Feb. 5, 2013

BUENOS AIRES, Argentina, Feb. 5, 2013 /PRNewswire/ -- Telecom Argentina
("Telecom") - (NYSE: TEO; BASE: TECO2), one of Argentina's leading
telecommunications companies, announced that the Board of Directors (BoD)
during the meeting held on February 4, 2013, was presented with certain
summarized preliminary non audited financial information for the period ended
December 31, 2012 and in consideration of anticipated disclosure needs, the
BoD has authorized the immediate release of such information. It is worth
mentioning that this information has been prepared under International
Financial Reporting Standards ("IFRS").

Preliminary Consolidated Financial Information for the fiscal year ended
December 31, 2012:

                                                    2012   2011   Δ $   Δ %
Consolidated Revenues (MM$)                        22,117 18,498 3,619 19.6%
Operating income before Depreciation & Amortization 6,570  5,993  577   9.6%*
Investment in PP&E and intangible assets (Capex)    3,257  3,192  65    2.0%
Net Financial Position (Cash)                       3,648  2,684  964   35.9%

*It is noted that the annual comparison of the Operating Income is affected by
a one-time charge (P$90 million), that impacted in 2012 and relates to
incurred and provisioned costs to implement a program to improve efficiency in
the corporate structure of the Company. Without this effect, the percentage
increase compared to 2011 would have been 11.1%.

The evolution of the main indicators of the business for the same period was

Key Performance Indicators as of December 31, 2012:

                                                   2012   2011   Δ $     Δ %
Mobile customers Telecom Personal (in thousands)   18,975 18,193 782     4.3%
MOU Telecom Personal (in minutes/month)            99     99     -       -
TOU Telecom Personal (in SMS/month)                309    322    -13     -4.0%
Average Revenue per user (ARPU) Telecom Personal   57.7   51.4   6.3     12.3%
(in P$/month)
Postpaid customers share of Net-adds               58%    n.a    n.a     n.a
Share of Postpaid customers port-ins with MNP      83%    n.a    n.a     n.a
Share of Smartphones / 3G handset sales (*)        >90%   n.a    n.a     n.a
Third parties revenues of Telecom Personal (in     13,312 10,983 2,329   21.2%
million P$)
Value added Services Revenues to third parties of  7,013  5,256  1,757   33.4%
Telecom Personal (in million P$)
Fixed Services revenues to third parties (in       5,942  5,240  702     13.4%
million of P$)
Wireline Broadband accesses (in thousands)         1,629  1,550  79      5.1%
Wireline Broadband Average Revenue per user (ARPU) 102.3  87.0   15,3    17.6%
(in P$/month)
Wireline Broadband accesses / fixed lines in       39%    37%    210 bp  n.a
Wireline Broadband monthly churn                   1.4%   1.2%    20 bp n.a
                                                   2012   2011   Δ $     Δ %
Mobile customers in Paraguay (in thousands)        2,301  2,149  152     7.1%
Fixed lines in service (in thousands)              4,128  4,141  -13     -0.3%
Telecom Argentina total headcount (temporary and   16,808 16,346 462     2.8%
eventual included)

(*) Data corresponds to 4Q12

On February 27, 2013, the Board of Directors will consider the Complete
Financial Statements as of December 31, 2012 and for twelve month period ended
December 31, 2012, according to article 62 of the Bolsa de Comercio de Buenos
Aires Regulation and article 1, chapter XXIII, of the Comision Nacional de
Valores Rules. Consequently, after that, the usual disclosure to the market
will take place.

It is worth mentioning, that final results and the general statements are
subject to final year-end accounting adjustments and will consider other
significant events that may occur up to the date of approval of each Complete
Financial Statements. The Company does not assume any obligation to update the
information included in this press release for events that occur after this
day and until the financial results mentioned in the preceding paragraph are

Telecom is the parent company of a leading telecommunications group in
Argentina, where it offers, either itself or through its controlled
subsidiaries local and long distance fixed-line telephony, cellular, data
transmission and Internet services, among other services. Additionally,
through a controlled subsidiary, the Telecom Group offers cellular services in
Paraguay. The Company commenced operations on November 8, 1990, upon the
Argentine government's transfer of the telecommunications system in the
northern region of Argentina.

Nortel Inversora S.A. ("Nortel"), which acquired the majority of the Company
from the Argentine government, holds 54.74% of Telecom's common stock. Nortel
is a holding company whose common stock (approximately 78% of capital stock)
is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock
is comprised of preferred shares that are held by minority shareholders.

As of December 31, 2012, Telecom continued to have 984,380,978 shares

For more information, please contact the Investor Relations Department:

                 Solange Barthe Horacio Nicolas   Gustavo Tewel Ruth Fuhrmann
Pedro Insussarry Dennin         del Campo
                                                   (5411)        (5411)
(5411) 4968 3743 (5411) 4968    (5411) 4968 6236   4968-3718     4968-4448

Voice Mail: (5411) 4968 3628
Fax: (5411) 4968 3616

For information about Telecom Group services, visit:


This document may contain statements that could constitute forward-looking
statements, including, but not limited to, the Company's expectations for its
future performance, revenues, income, earnings per share, capital
expenditures, dividends, liquidity and capital structure; the effects of its
debt restructuring process; the impact of emergency laws enacted by the
Argentine Government; and the impact of rate changes and competition on the
Company's future financial performance. Forward-looking statements may be
identified by words such as "believes," "expects," "anticipates," "projects,"
"intends," "should," "seeks," "estimates," "future" or other similar
expressions. Forward-looking statements involve risks and uncertainties that
could significantly affect the Company's expected results. The risks and
uncertainties include, but are not limited to, the impact of emergency laws
enacted by the Argentine government that have resulted in the repeal of
Argentina's Convertibility law, devaluation of the peso, various changes in
restrictions on the ability to exchange pesos into foreign currencies, and
currency transfer policy generally, the "pesification" of tariffs charged for
public services, the elimination of indexes to adjust rates charged for public
services and the Executive branch announcement to renegotiate the terms of the
concessions granted to public service providers, including Telecom. Due to
extensive changes in laws and economic and business conditions in Argentina,
it is difficult to predict the impact of these changes on the Company's
financial condition. Other factors may include, but are not limited to, the
evolution of the economy in Argentina, growing inflationary pressure and
evolution in consumer spending and the outcome of certain legal proceedings.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as the date of this document. The Company
undertakes no obligation to release publicly the results of any revisions to
forward-looking statements which may be made to reflect events and
circumstances after the date of this press release, including, without
limitation, changes in the Company's business or to reflect the occurrence of
unanticipated events. Readers are encouraged to consult the Company's Annual
Report on Form 20-F, as well as periodic filings made on Form 6-K, which are
filed with or furnished to the United States Securities and Exchange
Commission for further information concerning risks and uncertainties faced by

SOURCE Telecom Argentina S.A.

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