2Q26: Strong Execution Drives EBITDA Beat; OW

Research evidence excerpt

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M

Update

August 7, 2026 03:26 PM GMT

Morgan Stanley & Co. LLC

Telecom Argentina | Latin America

Cesar A Medina

Equity Analyst

2Q26: Strong Execution Drives

EBITDA Beat; OW

Morgan Stanley México, Casa de Bolsa, S.A. de C.V.+

Ernesto Gonzalez

Equity Analyst

Morgan Stanley C.T.V.M. S.A.+

AlphaSignals Earnings Reaction

Gabriel Vaz de Lima

Unchanged

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Research Associate

Telecom Argentina (TEO.N, TEO UN)

Latin America Telecom | Argentina

+10% EBITDA beat on cost efficiencies as growth remains above

inflation. The stock is yet to price synergies/market repair for

upcoming TEF integration and we remain OW.

Investment thesis: TEO delivered in-line revenues, but EBITDA was 10% above our

estimate, as broad-based cost efficiencies (mainly in labor-related expenses) drove

margins to 36.8%, up 9.2pp YoY and 3.2pp above MSe (TEO stand-alone reached

40.8%). The stock continues to move in-line with MSCI Argentina (chart), suggesting

the market is pricing limited M&A benefits. Thus, we remain OW on: 1) continued

strong organic execution and 2) synergies from the TMA acquisition, as the company

complies with the regulatory remedies.

TEO reported ARS1,615bn in revenues, +1.5% YoY in real terms (excl. Telefonica;

vs. +1.6% in 1Q26 and +1.5% vs. MSe). Main segment highlights below consider just

Telecom's operations (i.e., excl. Telefonica acquisition) and historical comparisons

Stock Rating

Industry View

Shr price, close (Aug 6, 2026)

Price target

Mkt cap, curr (mm)

52-Week Range

Fiscal Year Ending

Overweight

No Rating

US$13.80

US$17.00

US$5,944

US$16.24-6.26

12/25 12/26e 12/27e 12/28e

Revenue, net (Ar$ mm) 7,604,72 10,468,6 11,867,2 13,861,8

9

72

97

14

EBITDA (Ar$ mm)**

2,303,39 3,486,31 4,092,40 4,914,99

5

6

7

2

EPS (US$)**

(0.28)

1.54

0.88

1.26

Prior EPS (US$)**

P/E

NM

8.9

15.8

11.0

EPS (US$)§

0.25

1.67

0.90

1.45

Div yld (%)

0.0

1.8

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

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