In This Article:
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Revenue Growth: Increased 27.8% in constant currency from ARS1,066.4 billion to ARS1,363.4 billion.
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EBITDA: Reached ARS448.6 billion in constant currency, a 39.2% increase compared to Q1 2024.
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EBITDA Margin: Increased to 32.9% in Q1 2025 from 30.2% in Q1 2024.
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Net Income: ARS86.8 billion, a decrease from ARS1,050.7 billion in Q1 2024.
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Mobile Revenue: Increased 42.9% in real terms, driven by the incorporation of TMA and higher ARPUs.
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Fixed Services Revenue: Increased 14% in real terms, mainly due to the incorporation of TMA.
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Broadband Subscribers: Remained stable at 4.1 million.
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CapEx as Percentage of Revenue: 16.2% or 13% before rights of use from leases.
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Net Debt to EBITDA Ratio: 2.6 times as of March 2025.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cablevision Holding SA (CVHSY) reported a significant increase in EBITDA margin to 33.6% in Q1 2025, up from 30.2% in Q1 2024.
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The acquisition of Telefonica Movil Argentina SA (TMA) is expected to enhance Telecom's capabilities and expand coverage and service quality across Argentina.
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Revenues in constant currency grew by 27.8% year-over-year, driven by the incorporation of TMA and price increases.
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The company achieved a net positive income of ARS86.8 billion, despite challenging economic conditions.
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Mobile service revenues increased by 42.9% in real terms, largely due to the TMA acquisition and higher ARPUs in Argentina.
Negative Points
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The commercial balance deteriorated with a $2.2 billion deficit as of March 2025, compared to a $9 billion surplus in the same period last year.
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Net income decreased significantly from ARS1,050.7 billion in Q1 2024 to ARS86.8 billion in Q1 2025, mainly due to lower positive financial results.
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Fixed telephony and data services revenues decreased by 20.3%, impacted by a reduction in legacy copper accesses.
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The company faces challenges from high inflation dynamics and stress from price increases on the subscriber base.
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Political uncertainty ahead of the middle elections poses a critical test for the government's economic program.
Q & A Highlights
Q: Can you provide an overview of the macroeconomic environment in Argentina and its impact on Cablevision Holding SA? A: Julian Brescia, Senior Analyst, explained that the current administration inherited an economy with significant macroeconomic imbalances, including high inflation and fiscal deficits. The government implemented a stabilization program, resulting in a fiscal surplus and reduced inflation. However, challenges remain, such as political uncertainty and global volatility affecting export prices.