Q2 2026 Cablevision Holding SA Earnings Call
Operator: Hello everybody. The call will begin shortly. Please stand by. Good afternoon, and welcome to Cablevision Holding's conference call. Today, the team will discuss Cablevision Holding's H1 and Q2 2026 results, as detailed in the earnings release distributed on 10 August. My name is David, and I will be your conference operator today. This call is intended for investors and analysts only. Questions from the media will not be taken at this time. Members of the media with inquiries may contact FTI Corporate Communications. Comments made during today's call may contain forward-looking statements regarding Cablevision Holding's future performance, plans, strategies, and targets. Such statements involve risks and uncertainties that could cause actual results or operations to differ materially.
Operator: Hello everybody. The call will begin shortly. Please stand by. Good afternoon, and welcome to Cablevision Holding's conference call. Today, the team will discuss Cablevision Holding's H1 and Q2 2026 results, as detailed in the earnings release distributed on 10 August 2026. My name is David, and I will be your conference operator today. This call is intended for investors and analysts only. Questions from the media will not be taken at this time. Members of the media with inquiries may contact FTI Corporate Communications. Comments made during today's call may contain forward-looking statements regarding Cablevision Holding's future performance, plans, strategies, and targets. Such statements involve risks and uncertainties that could cause actual results or operations to differ materially.
Speaker #1: Hello, everybody. The call will begin shortly. Please stand by.
Speaker #2: Good afternoon, and welcome to Cablevisión Holding S.A.'s conference call. Today, the team will discuss Cablevisión Holding's first half and second quarter 2026 results, as detailed in the earnings release distributed on August 10.
Speaker #2: My name is David, and I will be your conference operator today. This call is intended for investors and analysts only. Questions from the media will not be taken at this time.
Speaker #2: Members of the media with inquiries may contact FIG Corporation Communications. Comments made during today's call may contain forward-looking statements regarding Cablevision Holdings' future performance, plans, strategies, and targets.
Speaker #2: Such statements involve risks and uncertainties that could cause actual results or operations to differ materially. These uncertainties include, but are not limited to, the impact of industry and economic regulations.
Operator: These uncertainties include, but are not limited to, the impact of industry and economic regulations, changes in demand for Cablevision Holding's products and services, and broader market economic or regulatory conditions. Please refer to the disclaimer in the earnings report or presentation for additional information regarding forward-looking statements. If you have not received the report or require assistance during today's call, please contact FTI Corporate Communications in New York at 1-917-691-4047 or Cablevision Holding in Buenos Aires at 5411-4309-3417. The webcast presentation is available at www.cablevisionholding.com/investors. I would now like to introduce today's speakers, Ms. Samantha Olivieri, Head of Investor Relations, Mr. Ignacio Solari, Senior Analyst. For the Q&A session, they will be joined by Mr. Ignacio Driollet, Executive Director and Chairman. It is now my pleasure to turn the call over to Ms. Olivieri.
Operator: These uncertainties include, but are not limited to, the impact of industry and economic regulations, changes in demand for Cablevision Holding's products and services, and broader market economic or regulatory conditions. Please refer to the disclaimer in the earnings report or presentation for additional information regarding forward-looking statements. If you have not received the report or require assistance during today's call, please contact FTI Corporate Communications in New York at 1-917-691-4047 or Cablevision Holding in Buenos Aires at 5411-4309-3417. The webcast presentation is available at www.cablevisionholding.com/investors. I would now like to introduce today's speakers, Ms. Samantha Olivieri, Head of Investor Relations, Mr. Ignacio Solari, Senior Analyst. For the Q&A session, they will be joined by Mr. Ignacio Driollet, Executive Director and Chairman. It is now my pleasure to turn the call over to Ms. Olivieri.
Speaker #2: Changes in demand for Cablevision Holdings' products and services, and broader market, economic, or regulatory conditions. Please refer to the disclaimer in the earnings report or presentation for additional information regarding forward-looking statements.
Speaker #2: If you have not received the report or require assistance during today's call, please contact FIG Corporation Communications in New York at 1-917-691-4047, or Cablevisión Holding in Buenos Aires at 54 11 4309 3417.
Speaker #2: The webcast presentation is available at www.cablevisionholding.com/investors. I would now like to introduce today's speakers: Ms. Samantha Olivieri, Head of Investor Relations, and Mr. Ignacio Solari, Senior Analyst.
Speaker #2: For the Q&A session, they will be joined by Mr. Ignacio Dreola, Executive Director and Chairman. It is now my pleasure to turn the call over to Ms. Olivieri.
Speaker #3: Thank you, Dave. Good morning, everyone, and thank you for joining us. Today's call will begin with a brief macro overview and continue with a review of the company's income statement and operating results.
Samantha Olivieri: Thank you, Dave. Good morning, everyone, and thank you for joining us. Today's call will begin with a brief macro overview and continue with a review of the company's income statements and operating results, followed by a review of the financial position. I will now pass the call to Ignacio for the macro overview.
Samantha Olivieri: Thank you, Dave. Good morning, everyone, and thank you for joining us. Today's call will begin with a brief macro overview and continue with a review of the company's income statements and operating results, followed by a review of the financial position. I will now pass the call to Ignacio for the macro overview.
Speaker #3: Followed by a review of the financial position, I will now pass the call to Ignacio for the macro overview.
Speaker #4: Thank you, Samantha. Good morning, everyone. Please move to slide 4 for the macro overview. The economic program has continued to make significant progress on several fronts.
Ignacio Solari: Thank you, Samantha. Good morning, everyone. Please move to slide 4 for the macro overview. The economic program has continued to make significant progress on several fronts. The shift in economic policy built around fiscal discipline and a range of incentives for key foreign currency-generating sectors has helped address some of Argentina's long-standing macroeconomic imbalances, stabilize the peso, and bring inflation down substantially from the high levels incurred in previous years. At the same time, sustained foreign currency purchases by the Banco Central de la República Argentina, totaling just over $13.4 billion today, have helped improve its balance sheet and reduce some of its underlying vulnerabilities. Despite this progress, the program continues to face a degree of uncertainty regarding the potential adverse effects of the proposed shift in both the economic model and the country's productive structure, as well as the extent to which these changes will gain widespread public support.
Ignacio Solari: Thank you, Samantha. Good morning, everyone. Please move to slide 4 for the macro overview. The economic program has continued to make significant progress on several fronts. The shift in economic policy built around fiscal discipline and a range of incentives for key foreign currency-generating sectors has helped address some of Argentina's long-standing macroeconomic imbalances, stabilize the peso, and bring inflation down substantially from the high levels incurred in previous years. At the same time, sustained foreign currency purchases by the Banco Central de la República Argentina, totaling just over $13.4 billion today, have helped improve its balance sheet and reduce some of its underlying vulnerabilities. Despite this progress, the program continues to face a degree of uncertainty regarding the potential adverse effects of the proposed shift in both the economic model and the country's productive structure, as well as the extent to which these changes will gain widespread public support.
Speaker #4: The shift in economic policy, built around fiscal discipline and a range of incentives for key foreign currency-generating sectors, has helped address some of Argentina's longstanding macroeconomic imbalances, stabilize the peso, and bring inflation down substantially from the high levels inherited in previous years.
Speaker #4: At the same time, sustained foreign currency purchases by the central bank, totaling just over $13.4 billion today, have helped improve its balance sheet and reduce some of its underlying vulnerabilities.
Speaker #4: Despite this progress, the program continues to face a degree of uncertainty regarding the potential adverse side effects of the proposed shift in both the economic model and the country's productive structure.
Speaker #4: As well as the extent to which these changes will gain widespread public support. During the first half of 2026, Argentina's economy remained resilient despite rising global uncertainty linked to the escalation of tensions in the Middle East. The disinflation process resumed during the second quarter. External accounts remained robust, and sovereign financing conditions improved.
Ignacio Solari: During H1 2026, Argentina's economy remained resilient despite rising global uncertainty linked to the escalation of tensions in the Middle East. The disinflation process resumed during Q2, external accounts remained robust, and sovereign financing conditions improved. Although activity growth became increasingly concentrated in a limited number of sectors. After accelerating during Q1, inflation returned to a downward path in Q2, reaching 1.9% in June, its lowest monthly rate in 10 months. The temporary surge observed at the beginning of the year, driven by regulated tariff adjustments, seasonal factors, and higher energy prices, gradually faded. As a result, the disinflation process regained traction despite a still challenging international environment and lingering pressures from relative price adjustments. Economic activity continued to display a highly uneven performance while aggregate indicators remained near historically high levels.
Ignacio Solari: During H1 2026, Argentina's economy remained resilient despite rising global uncertainty linked to the escalation of tensions in the Middle East. The disinflation process resumed during Q2, external accounts remained robust, and sovereign financing conditions improved. Although activity growth became increasingly concentrated in a limited number of sectors. After accelerating during Q1, inflation returned to a downward path in Q2, reaching 1.9% in June, its lowest monthly rate in 10 months. The temporary surge observed at the beginning of the year, driven by regulated tariff adjustments, seasonal factors, and higher energy prices, gradually faded. As a result, the disinflation process regained traction despite a still challenging international environment and lingering pressures from relative price adjustments. Economic activity continued to display a highly uneven performance while aggregate indicators remained near historically high levels.
Speaker #4: Although activity growth became increasingly concentrated in a limited number of sectors, after accelerating during the first quarter, inflation returned to a downward path in the second quarter, reaching 1.9% in June.
Speaker #4: It lowered monthly revenue in 10 months. The temporary surge observed at the beginning of the year, driven by regulated tariff adjustments, seasonal factors, and higher energy prices, gradually faded.
Speaker #4: As a result, the disinflation process regained traction despite a still challenging international environment and lingering pressures from relative price adjustments. Economic activity continued to display a highly uneven performance. While aggregate indicators remained near historically high levels, the monthly economic activity estimator (IMAE) followed a volatile pattern and recorded contractions in the last two months of the series.
Ignacio Solari: The monthly economic activity estimator, EMAE, followed a volatile pattern and recorded contractions in the last two months of the series. Growth remained largely concentrated in agriculture, energy, and mining sectors, supported by favorable external conditions and strong investment dynamics. Energy and mining are becoming increasingly important drivers of economic growth and export performance. This trend reflects the broader transformation in Argentina's productive structure, led by a rapid development of Vaca Muerta and expansion of mining sectors. At the same time, private consumption reached record levels, although an increasing share of demand came from imported goods and spending abroad, reflecting both the appreciation of the Argentine peso and the necessary opening of the economy. As a result, despite strong aggregate consumption indicators, many local goods and services sectors continue to face a challenging demand environment. Households have also been affected by a decline in purchasing power relative to pre-adjustment levels.
Ignacio Solari: The monthly economic activity estimator, EMAE, followed a volatile pattern and recorded contractions in the last two months of the series. Growth remained largely concentrated in agriculture, energy, and mining sectors, supported by favorable external conditions and strong investment dynamics. Energy and mining are becoming increasingly important drivers of economic growth and export performance. This trend reflects the broader transformation in Argentina's productive structure, led by a rapid development of Vaca Muerta and expansion of mining sectors. At the same time, private consumption reached record levels, although an increasing share of demand came from imported goods and spending abroad, reflecting both the appreciation of the Argentine peso and the necessary opening of the economy. As a result, despite strong aggregate consumption indicators, many local goods and services sectors continue to face a challenging demand environment. Households have also been affected by a decline in purchasing power relative to pre-adjustment levels.
Speaker #4: Growth remained largely concentrated in agriculture, energy, and mining—sectors supported by favorable external conditions and strong investment dynamics. Energy and mining are becoming increasingly important drivers of economic growth and export performance. This trend reflects a broader transformation in Argentina's productive structure, led by the rapid development of Vaca Muerta and the expansion of mining sectors.
Speaker #4: At the same time, private consumption reached record levels, although an increasing share of demand came from imported goods and spending abroad, reflecting both the appreciation of the Argentine peso and the necessary opening of the economy.
Speaker #4: As a result, despite strong aggregate consumption indicators, many local goods and services sectors continue to face a challenging demand environment. Households have also been affected by a decline in purchasing power related to pre-adjustment levels. Despite the recovery observed in certain segments of the economy, real disposable income remains below 2023 levels, reflecting the combined impact of lower real wages and a higher share of income devoted to utilities and other regulated services following the correction of relative prices.
Ignacio Solari: Despite the recovery observed in certain segments of the economy, real disposable income remains below 2023 levels, reflecting the combined impact of lower real wages and a higher share of income devoted to utilities and other regulated services following the correction of relative prices. One key development was the return of twin surpluses on both the fiscal and external fronts, something Argentina had not achieved since 2008. During H1 of the year, the government preserved its commitment to fiscal discipline as the primary balance posted a surplus of approximately 0.6% of GDP and the financial balance, a surplus of around 0.1% of GDP. On the external front, the cash-based current account posted a $2.2 billion surplus, largely driven by a strong export growth of 24% year-on-year, and a slight decline in imports compared to 2025, reversing the deficit recorded during the same period last year.
Ignacio Solari: Despite the recovery observed in certain segments of the economy, real disposable income remains below 2023 levels, reflecting the combined impact of lower real wages and a higher share of income devoted to utilities and other regulated services following the correction of relative prices. One key development was the return of twin surpluses on both the fiscal and external fronts, something Argentina had not achieved since 2008. During H1 of the year, the government preserved its commitment to fiscal discipline as the primary balance posted a surplus of approximately 0.6% of GDP and the financial balance, a surplus of around 0.1% of GDP. On the external front, the cash-based current account posted a $2.2 billion surplus, largely driven by a strong export growth of 24% year-on-year, and a slight decline in imports compared to 2025, reversing the deficit recorded during the same period last year.
Speaker #4: One key development was the return of twin surpluses on both the fiscal and external fronts, something Argentina has not achieved since 2008. During the first half of the year, the government preserved its commitment to fiscal discipline, as the primary balance posted a surplus of approximately 0.6% of GDP and the financial balance a surplus of around 0.1% of GDP.
Speaker #4: On the external front, the cash-based current account posted a $2.0 billion surplus, largely driven by a strong spark growth of 24% year-on-year, and a slight decline in imports compared to 2025, reversing the deficit recorded during the same period last year.
Speaker #4: The high level of foreign currency purchases by individuals remains an important factor to watch closely in a bimonetary economy such as Argentina's. Gross USD purchases by households reached $42 billion in 2025, and amounted to $19.2 billion during the first five months of 2026.
Ignacio Solari: The high level of foreign currency purchases by individuals remains an important factor to watch closely in a bi-monetary economy such as Argentina. Gross USD purchases by households reached $42 billion in 2025 and amounted to $19.2 billion during the first five months of 2026. Financial conditions also improved during Q2. The presentation of the government financing program for 2026 and 2027, combined with sovereign rating upgrades to B-, contributed to a further decline in country risks toward the 400 basis point range. Nevertheless, gains in market sentiment were partially offset by the escalation of the conflict between the United States and Iran, which increased global risk aversion. Looking ahead, the outlook for H2 2026 remains broadly constructive, although significant challenges persist. Maintaining balanced public accounts amid a year-on-year decline in tax revenues remains an important challenge for the months ahead.
Ignacio Solari: The high level of foreign currency purchases by individuals remains an important factor to watch closely in a bi-monetary economy such as Argentina. Gross USD purchases by households reached $42 billion in 2025 and amounted to $19.2 billion during the first five months of 2026. Financial conditions also improved during Q2. The presentation of the government financing program for 2026 and 2027, combined with sovereign rating upgrades to B-, contributed to a further decline in country risks toward the 400 basis point range. Nevertheless, gains in market sentiment were partially offset by the escalation of the conflict between the United States and Iran, which increased global risk aversion. Looking ahead, the outlook for H2 2026 remains broadly constructive, although significant challenges persist. Maintaining balanced public accounts amid a year-on-year decline in tax revenues remains an important challenge for the months ahead.
Speaker #4: Financial conditions also improved during the second quarter. The presentation of the government's financing program for 2026 and 2027, combined with sovereign rating upgrades to B-minus, contributed to a further decline in the country's spread toward the 400 basis point range.
Speaker #4: Nevertheless, gains in market sentiment were partially offset by the escalation of the conflict between the United States and Iran, which increased global risk aversion.
Speaker #4: Looking ahead, the outlook for the second half of 2026 remains broadly constructive, although significant challenges persist. Maintaining balanced public accounts amid a year-on-year decline in tax revenues remains an important challenge for the months ahead.
Speaker #4: At the same time, the concentration of growth in a few sectors and the weakness of real household income highlight the need for a broader-based recovery.
Ignacio Solari: At the same time, the concentration of growth in a few sectors and the weakness of real household income highlight the need for a broader-based recovery. Maintaining social support while advancing the stabilization program will depend increasingly on the ability of economic growth to generate tangible improvements in employment, incomes, and living standards across a wide range of sectors and regions. Having gone through the macro overview, I will now pass the call back to Samantha.
Ignacio Solari: At the same time, the concentration of growth in a few sectors and the weakness of real household income highlight the need for a broader-based recovery. Maintaining social support while advancing the stabilization program will depend increasingly on the ability of economic growth to generate tangible improvements in employment, incomes, and living standards across a wide range of sectors and regions. Having gone through the macro overview, I will now pass the call back to Samantha.
Speaker #4: Maintaining social support while advancing the stabilization program will depend increasingly on the ability of economic growth to generate tangible improvements in employment, incomes, and living standards across a wider range of sectors and regions.
Speaker #4: Having gone through the macro overview, I will now pass the call back to Samantha.
Speaker #5: Thank you, Ignacio. Slide six shows the highlights for the first half of 2026. On February 24, 2025, our subsidiary, Telecom Argentina, announced the acquisition of shares representing 100% of Telefónica Móviles de Argentina S.A. (TMA), a company incorporated in Argentina which provides mobile and fixed telephony, fixed broadband, and video services nationwide in Argentina.
Samantha Olivieri: Thank you, Ignacio. Slide 6 shows the highlights for H1 2026. On 24 February 2025, our subsidiary, Telecom Argentina, announced the acquisition of shares representative of 100% of Telefónica Móviles de Argentina S.A., TMA, a company incorporated in Argentina, which provides mobile and fixed telephony, fixed broadband, and video services nationwide in Argentina. As of this date, and following the conditional resolution approving the acquisition of TMA issued on 17 June 2026, our subsidiary, Telecom, is working on the implementation of remedies and preparing the corresponding submissions to the regulatory authorities. Driven by the increase in demand generated by the FIFA World Cup, there has been an increase in broadband and pay TV sales. Mobile ARPU has shown a strong growth in Personal Argentina.
Samantha Olivieri: Thank you, Ignacio. Slide 6 shows the highlights for H1 2026. On 24 February 2025, our subsidiary, Telecom Argentina, announced the acquisition of shares representative of 100% of Telefónica Móviles de Argentina S.A., TMA, a company incorporated in Argentina, which provides mobile and fixed telephony, fixed broadband, and video services nationwide in Argentina. As of this date, and following the conditional resolution approving the acquisition of TMA issued on 17 June 2026, our subsidiary, Telecom, is working on the implementation of remedies and preparing the corresponding submissions to the regulatory authorities. Driven by the increase in demand generated by the FIFA World Cup, there has been an increase in broadband and pay TV sales. Mobile ARPU has shown a strong growth in Personal Argentina.
Speaker #5: As of this date, and following the conditional resolution approving the acquisition of TMA issued on June 17, 2026, our subsidiary Telecom is working on the implementation of remedies and preparing the corresponding submissions to the regulatory authority.
Speaker #5: Driven by the increase in demand generated by the FIFA World Cup, there has been an increase in broadband and pay TV sales. Mobile ARPU has shown strong growth in Personal Argentina.
Speaker #5: Both Telecom before the effect of including TMA, and TMA standalone, have shown significant margin expansions, driven mainly by cost efficiencies achieved by the companies and by the effect of the deconsolidation of the subsidiary Microsistemas.
Samantha Olivieri: Both Telecom, before the effect of including TMA, and TMA standalone have shown significant margin expansions, driven mainly by cost efficiencies achieved by the companies and by the effect of the deconsolidation of the subsidiary MicroSistemas. EBITDA, excluding TMA, increased compared to 2025, resulting in a higher EBITDA margin of 37.9% in H1 2026, up from 32.2% in H1 2025. Even considering the indebtedness from the acquisition of TMA, net debt-to-EBITDA ratios remain strong, with a solid cash generation and an expansion of EBITDA. Slide 7 shows the key financials for H1 2026. The company has reflected the effects of the inflation adjustment adopted by Resolution 777/2018 of the Comisión Nacional de Valores, CNV, which establishes the re-expression of figures must be applied to the annual financial statements for intermediate and special periods ended as of and including 31 December 2018.
Samantha Olivieri: Both Telecom, before the effect of including TMA, and TMA standalone have shown significant margin expansions, driven mainly by cost efficiencies achieved by the companies and by the effect of the deconsolidation of the subsidiary MicroSistemas. EBITDA, excluding TMA, increased compared to 2025, resulting in a higher EBITDA margin of 37.9% in H1 2026, up from 32.2% in H1 2025. Even considering the indebtedness from the acquisition of TMA, net debt-to-EBITDA ratios remain strong, with a solid cash generation and an expansion of EBITDA. Slide 7 shows the key financials for H1 2026. The company has reflected the effects of the inflation adjustment adopted by Resolution 777/2018 of the Comisión Nacional de Valores, CNV, which establishes the re-expression of figures must be applied to the annual financial statements for intermediate and special periods ended as of and including 31 December 2018.
Speaker #5: EBITDA excluding TMA increased compared to 2025, resulting in higher EBITDA margin of 37.9% in first half '26, up from 32.2% in first half '25.
Speaker #5: Even considering the indebtedness from the acquisition of TMA, net debt-to-EBITDA ratios remain strong, with solid cash generation and an expansion of EBITDA.
Speaker #5: Slide seven shows the key financials for the first half of 2026. The company has reflected the effects of the inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores (CNV), which establishes that the re-expression of figures must be applied to the annual financial statements for intermediate and special periods ended as of and including December 31, 2018.
Speaker #5: Accordingly, the reported figures corresponding to the first half of 2026 include the effects of the adoption of inflationary accounting in accordance with International Accounting Standard 29.
Samantha Olivieri: Accordingly, the reported figures corresponding to H1 2026 include the effects of the adoption of inflationary accounting in accordance with International Accounting Standards 29. For comparative purposes, the results restated by inflation corresponding to June 2025 contain the effect of year-over-year inflation as of June 2026, which amounted to 33.5%. in this presentation, we included some figures and historical values for the sake of clarity. In addition, the reported figures corresponding to H1 2026 include the effect of the incorporation of results from TMA from 1 March 2025. Hence, the results for H1 2026 are not comparable to the results of H1 2025. We included some figures excluding the effect of TMA acquisition for comparison. CVH owns 39.08% stake in TIO and is controlling shareholder of Telecom Argentina. It consolidates 100% of its operations.
Samantha Olivieri: Accordingly, the reported figures corresponding to H1 2026 include the effects of the adoption of inflationary accounting in accordance with International Accounting Standards 29. For comparative purposes, the results restated by inflation corresponding to June 2025 contain the effect of year-over-year inflation as of June 2026, which amounted to 33.5%. in this presentation, we included some figures and historical values for the sake of clarity. In addition, the reported figures corresponding to H1 2026 include the effect of the incorporation of results from TMA from 1 March 2025. Hence, the results for H1 2026 are not comparable to the results of H1 2025. We included some figures excluding the effect of TMA acquisition for comparison. CVH owns 39.08% stake in TIO and is controlling shareholder of Telecom Argentina. It consolidates 100% of its operations.
Speaker #5: For comparative purposes, the results restated by inflation corresponding to June 2025 contain the effect of year-over-year inflation as of June 2026, which amounted to 33.5%.
Speaker #5: In this presentation, we included some figures in historical values for the sake of clarity. In addition, the reported figures corresponding to the first half of 2026 include the effect of the incorporation of results from TMA from March 1, 2025.
Speaker #5: Hence, the results for the first half of '26 aren't comparable to the results for the first half of '25. We included some figures excluding the effect of the TMA acquisition for comparison.
Speaker #5: CVH owns a 39.08% stake in TIO and is the controlling shareholder of Telecom Argentina. It consolidates 100% of its operations. Revenues in nominal terms increased 50%.
Samantha Olivieri: Revenues in nominal terms increased 50%. In constant currency, revenues for H1 2026 grew 13.4%, from ARS 4,477.6 billion to ARS 5,075.5 billion, mostly driven by the incorporation of revenues from TMA and by higher ARPU in real terms in mobile and pay TV services, thanks to the effective pricing policy and the stabilization of the inflation rate, and the growth of internet and pay TV subs, partially offset by a decrease in data services that are mostly denominated in USD, as exchange rate increased less than inflation over the same period, and by the loss of control in the subsidiary MicroSistemas, which provides fintech services.
Samantha Olivieri: Revenues in nominal terms increased 50%. In constant currency, revenues for H1 2026 grew 13.4%, from ARS 4,477.6 billion to ARS 5,075.5 billion, mostly driven by the incorporation of revenues from TMA and by higher ARPU in real terms in mobile and pay TV services, thanks to the effective pricing policy and the stabilization of the inflation rate, and the growth of internet and pay TV subs, partially offset by a decrease in data services that are mostly denominated in USD, as exchange rate increased less than inflation over the same period, and by the loss of control in the subsidiary MicroSistemas, which provides fintech services.
Speaker #5: In constant currency, revenues for first half '26 grew 13.4% from 4,477.6 to 5,075.5 billion pesos, mostly driven by the incorporation of revenues from TMA and by higher ARPU in real terms in mobiles and cable TV services thanks to the effective pricing policy and the stabilization of the inflation rate and the growth of internet and paid TV subs, partially offset by a decrease in data services that are mostly denominated in US dollars as exchange rate increased less than inflation over the same period, and by the loss of control in the subsidiary microsistemas which provides fintech services.
Speaker #5: EBITDA reached approximately 1,805.4 billion pesos in constant currency, a 35.1% increase to first half of '25, mainly driven by the incorporation of TMA's EBITDA for the six months versus four months in 2025, and by lower expenses and higher revenues excluding TMA, resulting in a higher EBITDA margin of 35.6% in first half '26 compared to '29.8% in first half '25.
Samantha Olivieri: EBITDA reached approximately ARS 1,805.4 billion in constant currency, a 35.1% increase to H1 2025, mainly driven by the incorporation of TMA's EBITDA for the six months versus four months in 2025, and by lower expenses and higher revenues, excluding TMA, resulting in a higher EBITDA margin of 35.6% in H1 2026, compared to 29.8% in H1 2025. EBITDA in nominal pesos amounted to ARS 1,753.8 billion, 78% higher than the nominal EBITDA for H1 2025, while average inflation for the same period was approximately 32.9%, and the end-of-period year-over-year inflation amounted to 33.5%. Net income resulted in a profit of ARS 849.2 billion from a net loss of ARS 107.1 billion reported during H1 2025.
Samantha Olivieri: EBITDA reached approximately ARS 1,805.4 billion in constant currency, a 35.1% increase to H1 2025, mainly driven by the incorporation of TMA's EBITDA for the six months versus four months in 2025, and by lower expenses and higher revenues, excluding TMA, resulting in a higher EBITDA margin of 35.6% in H1 2026, compared to 29.8% in H1 2025. EBITDA in nominal pesos amounted to ARS 1,753.8 billion, 78% higher than the nominal EBITDA for H1 2025, while average inflation for the same period was approximately 32.9%, and the end-of-period year-over-year inflation amounted to 33.5%. Net income resulted in a profit of ARS 849.2 billion from a net loss of ARS 107.1 billion reported during H1 2025.
Speaker #5: EBITDA in nominal pesos amounted to $1,753.8 billion pesos, 78% higher than the nominal EBITDA for the first half of '25, while average inflation for the same period was approximately 32.9%, and the end-of-period year-over-year inflation amounted to 33.5%.
Speaker #5: Net income resulted in a profit of 849.2 billion pesos, from a net loss of 107.1 billion reported during the first half of '25. This increase in net income is mainly explained by financial net results, mainly due to positive foreign exchange differences, as the exchange rate increased below inflation for this period, contrary to what had happened the year before; by the effect of the incorporation of TMA's EBITDA; and by the increase in EBITDA before this effect.
Samantha Olivieri: This increase in net income is mainly explained by financial net results, mainly due to positive FX differences as the exchange rate increased below the inflation for this period, contrary to what had happened the year before, by the effect of the incorporation of TMA's EBITDA, and by the increase in EBITDA before this effect. These variations were partially offset by higher income tax.
Samantha Olivieri: This increase in net income is mainly explained by financial net results, mainly due to positive FX differences as the exchange rate increased below the inflation for this period, contrary to what had happened the year before, by the effect of the incorporation of TMA's EBITDA, and by the increase in EBITDA before this effect. These variations were partially offset by higher income tax.
Speaker #5: These variations were partially offset by higher income tax. The equity shareholders' net income for the period amounted to $313.9 billion and is mainly the result of CVH's stake in Telecom, the personal assets tax at CVH level following the change in criteria established by the fiscal authority in December 2024 calculation, and negative financial results from the holding of funds collected from Telecom's in-kind dividend payment during 2025, and negative results related to the effect on foreign currency assets at CVH level of the exchange rate increasing below the inflation rate for the same period, partially offset by positive inflation adjustment.
Samantha Olivieri: The equity shareholders' net income for the period amounted to ARS 313.9 billion and is mainly the result of CVH's stake in Telecom, the personal assets taxed at CVH level following the change in criteria established by the fiscal authority in December 2024 regarding the basis for its calculation, and negative financial results from the holding of bonds collected from Telecom's in-kind dividend payment during 2025, and negative FX results related to the effect on foreign currency assets at CVH level of the FX rate increasing below the inflation rate for the same period, partially offset by positive inflation adjustment. Now let's continue on slide 8 for a discussion of the operating results for Q2 2026, with both quarters reflecting the full incorporation of TMA. Revenues in Q2 2026 increased by 0.4%.
Samantha Olivieri: The equity shareholders' net income for the period amounted to ARS 313.9 billion and is mainly the result of CVH's stake in Telecom, the personal assets taxed at CVH level following the change in criteria established by the fiscal authority in December 2024 regarding the basis for its calculation, and negative financial results from the holding of bonds collected from Telecom's in-kind dividend payment during 2025, and negative FX results related to the effect on foreign currency assets at CVH level of the FX rate increasing below the inflation rate for the same period, partially offset by positive inflation adjustment. Now let's continue on slide 8 for a discussion of the operating results for Q2 2026, with both quarters reflecting the full incorporation of TMA. Revenues in Q2 2026 increased by 0.4%.
Speaker #5: Now let's continue on slide eight for a discussion of the operating results for the second quarter of 2026, with both quarters reflecting the full incorporation of TMA.
Speaker #5: Revenues in the second quarter '26 increased by 0.4%. Price increases for our services, management of commercial discounts granted according to the customer retention policy for some of the services, and stable inflation have had positive results in service revenues, which increased 2.6%.
Samantha Olivieri: Price increases for our services, management of commercial discounts granted according to customer retention policy for some of the services, and the stable inflation have had positive results in service revenues, which increased 2.6%. Fixed telephony and data services revenues decreased 12.3%, explained by lower data services, most of which are arranged in USD, as the FX rate increased below the inflation for the same period. Revenues from equipment sales decreased 35%, mainly as a result of prices of equipment sold increasing below inflation and lower quantities sold. Considering the effect of incorporating TMA, the main source of revenues is mobile services. Its participation in total revenues has been increasing, reaching 52.7% from 49.6% in Q2 2025, driven by the decrease in share of equipment sold and fixed telephony and data services over total revenues and higher ARPU increases for mobile services.
Samantha Olivieri: Price increases for our services, management of commercial discounts granted according to customer retention policy for some of the services, and the stable inflation have had positive results in service revenues, which increased 2.6%. Fixed telephony and data services revenues decreased 12.3%, explained by lower data services, most of which are arranged in USD, as the FX rate increased below the inflation for the same period. Revenues from equipment sales decreased 35%, mainly as a result of prices of equipment sold increasing below inflation and lower quantities sold. Considering the effect of incorporating TMA, the main source of revenues is mobile services. Its participation in total revenues has been increasing, reaching 52.7% from 49.6% in Q2 2025, driven by the decrease in share of equipment sold and fixed telephony and data services over total revenues and higher ARPU increases for mobile services.
Speaker #5: To extend, F&A and data services revenues decreased 12.3%, explained by lower data services, most of which are arranged in US dollars, as the FX rate increased below inflation for the same period.
Speaker #5: Revenues from equipment sales decreased 35%, mainly as a result of equipment prices increasing below inflation and lower quantities sold. Considering the effect of incorporating TMA, the main source of revenues is mobile services.
Speaker #5: Its participation in total revenues has been increasing, reaching 52.7% from 49.6% in the second quarter of '25, driven by the decrease in the share of equipment sold and fixed F&A and data services over total revenues, and higher ARPU increases for mobile services.
Speaker #5: Broadband, paid TV, and fixed F&A and data services amounted to 42.9% of the total. EBITDA in real terms increased 33.6%, and margin increased to 36.6%, higher than the 27.5% margin of second quarter '25, mainly as a result of cost efficiencies obtained by the company and the increase in mobile internet and paid TV revenues.
Samantha Olivieri: Broadband, pay TV, and fixed telephony and data services amounted to 42.9% of the total. EBITDA in real terms increased 33.6%, and margin increased to 36.6%, higher than the 27.5% margin of Q2 2025, mainly as a result of cost efficiencies obtained by the company and the increase in mobile, internet, and pay TV revenues. On slide 9, we review some of the effects of the incorporation of TMA for Q2 2026, net of intercompany and eliminations. as of June 2026, TMA had 19.5 million mobile subscribers, including machine-to-machine subs, 1.7 million broadband subs, 2.1 million fixed telephony subs, including IP lines, and 435,200 pay TV subs.
Samantha Olivieri: Broadband, pay TV, and fixed telephony and data services amounted to 42.9% of the total. EBITDA in real terms increased 33.6%, and margin increased to 36.6%, higher than the 27.5% margin of Q2 2025, mainly as a result of cost efficiencies obtained by the company and the increase in mobile, internet, and pay TV revenues. On slide 9, we review some of the effects of the incorporation of TMA for Q2 2026, net of intercompany and eliminations. as of June 2026, TMA had 19.5 million mobile subscribers, including machine-to-machine subs, 1.7 million broadband subs, 2.1 million fixed telephony subs, including IP lines, and 435,200 pay TV subs.
Speaker #5: On slide nine, we review some of the effects of the incorporation of TMA for the second quarter '26, net of intercompany eliminations. As of June 2026, TMA had 19.5 million mobile subscribers, including machine-to-machine subs, 1.7 million broadband subs, 2.1 million fixed F&A subs, including IP lines, and 435,200 pay TV subs.
Speaker #5: Revenues of TMA included in second quarter '26 consolidated figures amounted to $922.4 billion, and EBITDA resulted in $317.2 billion, with a 34.4% EBITDA margin—a significant improvement versus second quarter '25, attributable to the cost optimization plan implemented by the company.
Samantha Olivieri: Revenues of TMA included in Q2 2026 consolidated figures amounted to ARS 922.4 billion, and EBITDA resulted in ARS 317.2 billion, with a 34.4% EBITDA margin, a significant improvement versus Q2 2025, attributable to the cost optimization plan implemented by the company. Now let's move on to slide 10. Mobile revenues, including TMA, represented approximately 52.7% of our revenues and increased 6.7% in real terms when comparing 2026 to 2025 Q2, mainly explained by higher ARPUs in real terms in this quarter, particularly in Personal plans, thanks to the stabilization of inflation, the carry-on effect of price increases done during 2025, and the effective pricing strategy.
Samantha Olivieri: Revenues of TMA included in Q2 2026 consolidated figures amounted to ARS 922.4 billion, and EBITDA resulted in ARS 317.2 billion, with a 34.4% EBITDA margin, a significant improvement versus Q2 2025, attributable to the cost optimization plan implemented by the company. Now let's move on to slide 10. Mobile revenues, including TMA, represented approximately 52.7% of our revenues and increased 6.7% in real terms when comparing 2026 to 2025 Q2, mainly explained by higher ARPUs in real terms in this quarter, particularly in Personal plans, thanks to the stabilization of inflation, the carry-on effect of price increases done during 2025, and the effective pricing strategy.
Speaker #5: Now let's move on to slide ten. Mobile revenues, including TMA, represented approximately 52.7% of our revenues and increased 6.7% in real terms when comparing the second quarter of 2026 to 2025.
Speaker #5: Mainly explained by higher ARPUs in real terms in this quarter, particularly in personal clients, thanks to the stabilization of inflation, the carry-on effect of price increases done during 2025, and the effect of our pricing strategy.
Speaker #5: Mobile prepaid subs, which generate less revenue and had decreased in 2025 following price increases at the end of 2024, were subsequently adjusted as a result of the change in criteria regarding how many days can elapse without a client recharging his credit before this is discontinued.
Samantha Olivieri: Mobile prepaid subs, which generate less revenue and had decreased in 2025 following price increases at the end of 2024, were subsequently adjusted as a result of the change in criteria regarding how many days can elapse without a client recharging his credit before it is discontinued. With no effect on revenues for this service. Excluding the effect of TMA, mobile services revenues reached ARS 762,756 million in constant pesos and increased 9.4% in real terms. Personal Argentina clients decreased 7.1% to 19.4 million, of which post-pay clients amounted to 41%, mostly the effect of the beforementioned change in criteria. In Argentina, in a highly competitive environment, Personal ARPU restated in constant currency increased by 18.4% to ARS 11,772.2 in H1 2026. Monthly churn remains stable at 2.1%.
Samantha Olivieri: Mobile prepaid subs, which generate less revenue and had decreased in 2025 following price increases at the end of 2024, were subsequently adjusted as a result of the change in criteria regarding how many days can elapse without a client recharging his credit before it is discontinued. With no effect on revenues for this service. Excluding the effect of TMA, mobile services revenues reached ARS 762,756 million in constant pesos and increased 9.4% in real terms. Personal Argentina clients decreased 7.1% to 19.4 million, of which post-pay clients amounted to 41%, mostly the effect of the beforementioned change in criteria. In Argentina, in a highly competitive environment, Personal ARPU restated in constant currency increased by 18.4% to ARS 11,772.2 in H1 2026. Monthly churn remains stable at 2.1%.
Speaker #5: With no effect on revenues for this service. Excluding the effect of TMA, mobile services revenues reached 762,756 million in constant pesos and increased 9.4% in real terms.
Speaker #5: Personal Argentina clients decreased 7.1% to 19.4 million, of which postpaid clients amounted to 41%, mostly due to the aforementioned change in criteria. In Argentina, in a highly competitive environment, Personal ARPU, restated in constant currency, increased by 18.4% to 11,772.2 pesos in the first half of '26.
Speaker #5: Monthly churn remained stable at 2.1%. As of June 2026, TMA has 19.5 million mobile subscribers, including machine-to-machine subs. Of these, 49.1% are postpaid, a slight increase versus the second quarter of '25, while ARPU for the first half of '26 increased 2.3% to 9,800 pesos.
Samantha Olivieri: As of June 2026, TMA has 19.5 million mobile subscribers, including machine-to-machine subs. 49.1% of them are post-paid, a slight increase versus Q2 2025, while ARPU for the H1 2026 increased 2.3% to ARS 9,800. Please turn to slide 11. Revenues for fixed services, including broadband, pay TV, and fixed telephony and data services, decreased by 1.2% in real terms, mainly driven by the decrease in fixed telephony and data services. Most of the data services contracts are denominated in USD, and the exchange rate increased below the increase in inflation rate, negatively affecting revenues measured in constant pesos. On the B2B services, Telecom's strategy is to position itself as an integrated service provider for large customers by offering convergent ICT solutions, including fixed and mobile voice, data, internet, multimedia, data center, and application services through sales, consulting, management, and specialized and targeted post-sales customer services.
Samantha Olivieri: As of June 2026, TMA has 19.5 million mobile subscribers, including machine-to-machine subs. 49.1% of them are post-paid, a slight increase versus Q2 2025, while ARPU for the H1 2026 increased 2.3% to ARS 9,800. Please turn to slide 11. Revenues for fixed services, including broadband, pay TV, and fixed telephony and data services, decreased by 1.2% in real terms, mainly driven by the decrease in fixed telephony and data services. Most of the data services contracts are denominated in USD, and the exchange rate increased below the increase in inflation rate, negatively affecting revenues measured in constant pesos. On the B2B services, Telecom's strategy is to position itself as an integrated service provider for large customers by offering convergent ICT solutions, including fixed and mobile voice, data, internet, multimedia, data center, and application services through sales, consulting, management, and specialized and targeted post-sales customer services.
Speaker #5: This is turned to slide 11. Revenues for fixed services, including broadband, cable TV, and fixed F&A and data services, decreased by 1.2% in real terms, mainly driven by the decrease in fixed F&A and data services.
Speaker #5: Most of the data services contracts are denominated in US dollars, and the exchange rate increased below the increase in the inflation rate, negatively affecting revenues measured in constant pesos.
Speaker #5: In the B2B services segment, the telecom strategy is to position itself as an integrated service provider for large customers by offering convergent ICT solutions, including fixed and mobile voice, data, internet, multimedia, data center, and application services through sales, consulting, management, and specialized and targeted post-sales customer services.
Speaker #5: Internet services revenues increased 3.7% year over year in real terms, driven by the increase in subs in both Personal and TMA clients, and an increase in ARPU in TMA broadband services.
Samantha Olivieri: Internet services revenues increased 3.7% year-over-year in real terms, driven by the increase in subs in both Personal and TMA clients and an increase in ARPU in TMA broadband services. Personal broadband subscribers increased 2.7% to 4.2 million, of which 36% are Fiber to the Home as fiber rollout accelerates. Monthly churn increased to 1.4% in H1 2026 from 1.2% in H1 2025. As of June 2026, TMA's broadband subscribers increased 4.6% to 1.7 million, of which more than 97% are Fiber to the Home. The growth in Fiber to the Home segment resulted in an increase in average speeds. Personal ARPU, in real terms for the H1 2026, decreased slightly to approximately ARS 30,587.3. 99% of customers have accesses with speeds of 100 megabytes or higher versus 92% in H1 2025.
Samantha Olivieri: Internet services revenues increased 3.7% year-over-year in real terms, driven by the increase in subs in both Personal and TMA clients and an increase in ARPU in TMA broadband services. Personal broadband subscribers increased 2.7% to 4.2 million, of which 36% are Fiber to the Home as fiber rollout accelerates. Monthly churn increased to 1.4% in H1 2026 from 1.2% in H1 2025. As of June 2026, TMA's broadband subscribers increased 4.6% to 1.7 million, of which more than 97% are Fiber to the Home. The growth in Fiber to the Home segment resulted in an increase in average speeds. Personal ARPU, in real terms for the H1 2026, decreased slightly to approximately ARS 30,587.3. 99% of customers have accesses with speeds of 100 megabytes or higher versus 92% in H1 2025.
Speaker #5: Personal broadband subscribers increased 2.7% to 4.2 million, of which 36% are fiber to the home, as fiber roll-out accelerates. Monthly churn increased to 1.4% in the first half of '26 from 1.2% in the first half of '25.
Speaker #5: As of June 2026, TMA's broadband subscribers increased 4.6% to 1.7 million, of which more than 97% are fiber to the home. The growth in the fiber to the home segment resulted in an increase in average speeds.
Speaker #5: Personal ARPU in real terms for the first half of '26 decreased slightly to approximately 30,587.3 pesos. 99% of customers have access with speeds of 100 megabits or higher, versus 92% in the first half of '25.
Speaker #5: Moving to the cable TV subscribers, the customer base increased to 3.6 million, mainly explained by the success of Flow Flex, which is 100% digital with no decoder or installation needed, and by the boost in demand for sports content generated by the strong performance during the FIFA World Cup.
Samantha Olivieri: Moving to the cable TV subscribers, the customer base increased to 3.6 million, mainly explained by the success of Flow Flex, which is 100% digital with no decoder or installation needed, and by the boost of demand for sports content generated by the strong performance during the FIFA World Cup. Flow unique customers achieved 1.9 million, a 17% increase from figures observed over a year ago. Through its proposal as a content aggregator, Flow includes not only linear TV, streaming services, series, on-demand movies, documentaries, and Flow productions, but also music, gaming, and exclusive events. ARPU in real terms increased by 0.5% to ARS 21,870.6 during H1 2026, mainly due to the stabilization of the inflation rate, the carry-on effect of price increases done during 2025 and 2026, and lower discounts granted according to customer retention policy. Monthly churn stood at 1.5%.
Samantha Olivieri: Moving to the cable TV subscribers, the customer base increased to 3.6 million, mainly explained by the success of Flow Flex, which is 100% digital with no decoder or installation needed, and by the boost of demand for sports content generated by the strong performance during the FIFA World Cup. Flow unique customers achieved 1.9 million, a 17% increase from figures observed over a year ago. Through its proposal as a content aggregator, Flow includes not only linear TV, streaming services, series, on-demand movies, documentaries, and Flow productions, but also music, gaming, and exclusive events. ARPU in real terms increased by 0.5% to ARS 21,870.6 during H1 2026, mainly due to the stabilization of the inflation rate, the carry-on effect of price increases done during 2025 and 2026, and lower discounts granted according to customer retention policy. Monthly churn stood at 1.5%.
Speaker #5: Flow unique customers reached 1.9 million, a 17% increase from figures observed over a year ago. Through its proposal as a content aggregator, Flow includes not only linear TV, streaming services, series, on-demand movies, documentaries, and co-productions, but also music, gaming, and exclusive events.
Speaker #5: ARPU in real terms increased by 0.5% to 21,870.6 pesos during the first half of '26, mainly due to the stabilization of the inflation rate, the carry-on effect of price increases in 2025 and 2026, and lower discounts granted according to the customer retention policy.
Speaker #5: Monthly churn stood at 1.5%. As of June 2026, TMA contributed 435,200 pay TV subs, also positively affected by the FIFA World Cup. Let's move to slide 12 for a review of the cost structure before we discuss quarter-over-quarter EBITDA performance.
Samantha Olivieri: As of June 2026, TMA contributed 435,200 PTV subs, also positively affected by the FIFA World Cup. Let's move to slide 12 for a review of the cost structure before we discuss quarter-over-quarter EBITDA performance. Amongst the most significant operating costs and expenses are salaries, fees for services, maintenance, materials and supplies costs, and taxes and fees with the regulatory authority. On slide 13, we show the performance of EBITDA and the behavior of different components of revenues and costs. The company continues with its cost management efforts and has shown positive results in gaining productivity. Before the effect of TMA, operating costs, excluding the cost of equipment and handsets, decreased in real terms 7.7%.
Samantha Olivieri: As of June 2026, TMA contributed 435,200 PTV subs, also positively affected by the FIFA World Cup. Let's move to slide 12 for a review of the cost structure before we discuss quarter-over-quarter EBITDA performance. Amongst the most significant operating costs and expenses are salaries, fees for services, maintenance, materials and supplies costs, and taxes and fees with the regulatory authority. On slide 13, we show the performance of EBITDA and the behavior of different components of revenues and costs. The company continues with its cost management efforts and has shown positive results in gaining productivity. Before the effect of TMA, operating costs, excluding the cost of equipment and handsets, decreased in real terms 7.7%.
Speaker #5: Among the most significant operating costs and expenses are salaries, fees for services, maintenance, materials and supplies costs, and taxes and fees with their regulatory authority.
Speaker #5: On slide 13, we show the performance of EBITDA and the behavior of different components of revenues and costs. The company continues with its cost management efforts and has shown positive results in gaining productivity.
Speaker #5: Before the effect of TMA, operating costs, excluding the cost of equipment and handsets, decreased in real terms by 7.7%. This is a result of efficiencies obtained by the company.
Samantha Olivieri: This is a result of efficiencies obtained by the company, mainly lower salaries and severance payments, lower fees for services, maintenance, materials, and supplies, mainly the result of the automation of the company's call centers, lower other operating income and expense, lower bad debt expenses, lower interconnection and transmission costs, and lower commissions and advertising costs, mainly due to the deconsolidation of the advertising cost of Personal Pay, partially offset by higher expenses related to the increase in revenues, such as programming and content costs, and taxes and fees with the regulatory authority. Cost of equipment and handsets before the effect of TMA decreased 14.4% as a result of lower cost of handsets sold with lower quantities and total operating costs, including cost of equipment and handsets before the effect of the incorporation of TMA decreased 8.1% with an increase in revenues.
Samantha Olivieri: This is a result of efficiencies obtained by the company, mainly lower salaries and severance payments, lower fees for services, maintenance, materials, and supplies, mainly the result of the automation of the company's call centers, lower other operating income and expense, lower bad debt expenses, lower interconnection and transmission costs, and lower commissions and advertising costs, mainly due to the deconsolidation of the advertising cost of Personal Pay, partially offset by higher expenses related to the increase in revenues, such as programming and content costs, and taxes and fees with the regulatory authority. Cost of equipment and handsets before the effect of TMA decreased 14.4% as a result of lower cost of handsets sold with lower quantities and total operating costs, including cost of equipment and handsets before the effect of the incorporation of TMA decreased 8.1% with an increase in revenues.
Speaker #5: Mainly lower salaries and severance payments; lower fees for services, maintenance, materials, and supplies, mainly the result of the automation of the company's call centers; lower other operating income and expense; lower bad debt expenses; lower interconnection and transmission costs; and lower commissions and advertising costs, mainly due to the deconsolidation of the advertising costs of Personal Pay. This was partially offset by higher expenses related to the increase in revenues, such as programming and content costs, and taxes and fees with their regulatory authority.
Speaker #5: Cost of equipment and handsets, before the effect of TMA, decreased 14.4% as a result of lower cost of the handsets sold, with lower quantities. Total operating costs, including cost of equipment and handsets, before the effect of the incorporation of TMA, decreased 8.1%, with an increase in revenues.
Speaker #5: Thus, EBITDA margin before the effect of the incorporation of TMA reached 37.8%, higher than the 30.9% margin of the second quarter '25. EBITDA from the incorporation of TMA for the second quarter '26 resulted in $317.2 million, with a 34.4% EBITDA margin, lower than the margin before this effect.
Samantha Olivieri: Thus, EBITDA margin before the effect of the incorporation of TMA reached 37.8%, higher than the 30.9% margin of Q2 2025. EBITDA from the incorporation of TMA for Q2 2026 resulted in 317.2 million, with a 34.4% EBITDA margin lower than the margin before this effect. Therefore, consolidated margin resulted in 36.6%, while EBITDA margin for TMA standalone has increased versus 2025 as a result of cost optimization efforts. Slide 14, please. in Q2 2026, investments as a percentage of revenues was 21% or 18.9% before considering rights of use from leases, higher than the same period of the previous year, highlighting the commitment of the company with expansion of both fixed and mobile networks, particularly Fiber to the Home and 5G infrastructure. Technical CapEx was mainly allocated to network and technology and customer premises equipment, or CPE.
Samantha Olivieri: Thus, EBITDA margin before the effect of the incorporation of TMA reached 37.8%, higher than the 30.9% margin of Q2 2025. EBITDA from the incorporation of TMA for Q2 2026 resulted in 317.2 million, with a 34.4% EBITDA margin lower than the margin before this effect. Therefore, consolidated margin resulted in 36.6%, while EBITDA margin for TMA standalone has increased versus 2025 as a result of cost optimization efforts. Slide 14, please. in Q2 2026, investments as a percentage of revenues was 21% or 18.9% before considering rights of use from leases, higher than the same period of the previous year, highlighting the commitment of the company with expansion of both fixed and mobile networks, particularly Fiber to the Home and 5G infrastructure. Technical CapEx was mainly allocated to network and technology and customer premises equipment, or CPE.
Speaker #5: Therefore, consolidated margin resulted in 36.6%, while EBITDA margin for TMA standalone has increased versus 2025 as a result of cost optimization efforts. Slide 14, please.
Speaker #5: And second quarter '26, investments as a percentage of revenues was 21% or 18.9% before considering rights of use from leases. Higher than the same period of the previous year.
Speaker #5: Highlighting the commitment of the company to the expansion of both fixed and mobile networks, particularly fiber to the home and 5G infrastructure. Technical CapEx was mainly allocated to network and technology and customer premises equipment, or CPE. The balance was allocated to our international operations in Paraguay and Uruguay.
Samantha Olivieri: The balance was allocated to our international operations in Paraguay and Uruguay. During the last quarter, the company continued with the deployment and upgrading of existing sites and the expansion of the Fiber to the Home network, including the overlay with HFC networks and adding 5G sites. The CapEx program will continue evolving according to Argentina's economic condition, network performance, expansion objectives, and the customer's requirements. Going to the debt financial position as per slide 16. As of June 2026, we have reported a total financial debt of ARS 5,603.4 billion and net debt of ARS 4,637.8 billion, equivalent to $3.1 billion. Mainly as a result of the strong cash generation, a reduction in peso-denominated debt compensated by an increase in cross-border debt following the international bonds issued during the past year, and by the effect of a lower variation of the foreign currency versus inflation.
Samantha Olivieri: The balance was allocated to our international operations in Paraguay and Uruguay. During the last quarter, the company continued with the deployment and upgrading of existing sites and the expansion of the Fiber to the Home network, including the overlay with HFC networks and adding 5G sites. The CapEx program will continue evolving according to Argentina's economic condition, network performance, expansion objectives, and the customer's requirements. Going to the debt financial position as per slide 16. As of June 2026, we have reported a total financial debt of ARS 5,603.4 billion and net debt of ARS 4,637.8 billion, equivalent to $3.1 billion. Mainly as a result of the strong cash generation, a reduction in peso-denominated debt compensated by an increase in cross-border debt following the international bonds issued during the past year, and by the effect of a lower variation of the foreign currency versus inflation.
Speaker #5: During the last quarter, the company continued with the deployment and upgrading of existing sites, and the expansion of the fiber-to-the-home network, including the overlay with the HFC network and the addition of 5G sites.
Speaker #5: The capex program will continue evolving according to Argentina's economic condition, network performance, expansion objectives, and customer requirements. Going to the debt financial position, as per slide 16, as of June 2026, we have reported a total financial debt of $5,603.4 billion pesos and net debt of $4,637.8 billion pesos, equivalent to $3.1 billion US dollars.
Speaker #5: Mainly as a result of the strong cash generation, a reduction in peso-denominated debt was compensated by an increase in cross-border debt following the international bonds issued during the past year, and by the effect of a lower variation of the foreign currency versus inflation.
Speaker #5: Of the total debt, 73.3% is mostly cross-border, dollar-denominated, but includes the hard dollar local issuance of 2024; 14.9% is in Argentine pesos, including dollar-linked local emissions; and the rest is in guaraníes and renminbi.
Samantha Olivieri: Of the total debt, 73.3% is mostly cross-border dollar-denominated, that includes the hard dollar local issuance of 2024. 14.9% is in Argentine pesos, including dollar-linked local emissions, and the rest is in guaraníes and renminbi. During the past years, Telecom has been accessing the local and international debt market for its financing needs and will do so for future potential needs. Exhibit 24 reflects the debt profile, which is highly manageable. The company will continue its liability management strategy, aiming to reduce costs and expand tenors. Consolidated net debt-to-EBITDA coverage ratio as of the end of June 2026 was 1.4x, a significant achievement considering the increase in indebtedness for the acquisition of TMA, a testament of the company's strong cash generation and the expansion of EBITDA. Next slide, please.
Samantha Olivieri: Of the total debt, 73.3% is mostly cross-border dollar-denominated, that includes the hard dollar local issuance of 2024. 14.9% is in Argentine pesos, including dollar-linked local emissions, and the rest is in guaraníes and renminbi. During the past years, Telecom has been accessing the local and international debt market for its financing needs and will do so for future potential needs. Exhibit 24 reflects the debt profile, which is highly manageable. The company will continue its liability management strategy, aiming to reduce costs and expand tenors. Consolidated net debt-to-EBITDA coverage ratio as of the end of June 2026 was 1.4x, a significant achievement considering the increase in indebtedness for the acquisition of TMA, a testament of the company's strong cash generation and the expansion of EBITDA. Next slide, please.
Speaker #5: During the past years, Telecom has been accessing the local and international debt markets for its financing needs and will do so for future potential needs.
Speaker #5: Exhibit 24 reflects a debt profile that is highly manageable. The company will continue its liability management strategy, aiming to reduce costs and extend tenors.
Speaker #5: Consolidated net debt over adjusted EBITDA coverage ratio as of the end of June 2026 was 1.4 times, a significant achievement considering the increase in indebtedness for the acquisition of TMA—a testament to the company's strong cash generation and the expansion of EBITDA.
Speaker #5: Next slide, please. Finally, it is worth mentioning that, thanks to the efforts to increase productivity and efficiency, and the ability to raise prices as macroeconomic variables improved with the disinflation process, Telecom continues with a positive year-over-year trend in both revenues and EBITDA, even before considering the acquisition of TMA.
Samantha Olivieri: Finally, it is worth mentioning that thanks to the efforts to increase productivity and efficiency and the ability to increase prices as macroeconomic variables improve with the disinflation process, Telecom continues with a positive year-over-year trend in both revenues and EBITDA, even before considering the acquisition of TMA. That concludes our comments for today. We are now ready to take your questions. Dave?
Samantha Olivieri: Finally, it is worth mentioning that thanks to the efforts to increase productivity and efficiency and the ability to increase prices as macroeconomic variables improve with the disinflation process, Telecom continues with a positive year-over-year trend in both revenues and EBITDA, even before considering the acquisition of TMA. That concludes our comments for today. We are now ready to take your questions. Dave?
Speaker #5: That concludes our comments for today. We are now ready to take your questions. Dave?
Speaker #1: Thank you. At this time, we will open the floor for questions. If you would like to ask a question, please type it in the box and click send.
Operator: Thank you. At this time, we will open the floor for questions. If you would like to ask a question, please type it in the box and click send. Again, if you have a question, please type it in the box and click send. It appears we have no questions at this time. I would like to return the program to Ms. Olivieri for any closing remarks.
Operator: Thank you. At this time, we will open the floor for questions. If you would like to ask a question, please type it in the box and click send. Again, if you have a question, please type it in the box and click send. It appears we have no questions at this time. I would like to return the program to Ms. Olivieri for any closing remarks.
Speaker #1: Again, if you have a question, please type it in the box and click send. It appears we have no questions at this time. I would like to return the program to Ms. Olivieri.
Speaker #1: For any closing remarks.
Speaker #2: Thank you, Dave. Thank you all for your interest in CBH. Should you have any questions in the future, please do not hesitate to contact our IR team.
Samantha Olivieri: Thank you, Dave. Thank you all for your interest in CVH. Should you have any questions in the future, do not hesitate to contact our IR team. Have a great day.
Samantha Olivieri: Thank you, Dave. Thank you all for your interest in CVH. Should you have any questions in the future, do not hesitate to contact our IR team. Have a great day.
Speaker #2: Have a great day.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
