Telecom Argentina (TEO) Q2 2026 earnings summary

Executive summary

• Consolidated revenues reached $3.4 billion (P$5.08 trillion) in 1H26, up 23% year-over-year, reflecting the full six-month contribution from TMA versus four months in 2025.

• EBITDA margin improved to 35.8% in 1H26 from 30.0% in 1H25, with adjusted EBITDA margin reaching 40.2% in 2Q26.

• Net income reached ARS 870 million (P$869 billion), reversing a prior year loss, mainly due to exchange rate effects and operational improvements.

• Investments focused on FTTH and 5G rollout, with nearly 1 million homes passed and over 480 new 5G sites added, bringing the total 5G footprint above 1,500 sites.

• Free cash flow before dividends and interest was $404 million in 1H26, more than doubling year-over-year.

Financial highlights

• Service revenues grew 16% year-over-year, with mobile ARPU up 29% and consolidated EBITDA at $1.2 billion, up 37.5%.

• Operating income was ARS 674 billion (P$674 billion), with margin up to 27% in 1H26.

• Net debt stood at $3.1 billion (P$4.65 trillion), with net debt/EBITDA ratio at 1.36x, improved from 1.74x in 2025.

• CAPEX for 1H26 was $639 million (P$946 billion), representing 18.6% of revenues, up 47% year-over-year.

• Cash position at $646 million, with average debt maturity extended to almost five years.

Outlook and guidance

• Continued focus on expanding 5G and FTTH networks to capture future connectivity demand and drive growth.

• Expectation of sustained real growth in service revenues and ARPU across all segments.

• Management highlights ample liquidity, smoother debt maturity profile, and ongoing investment plan.