Telecom Argentina: Strong 2Q26, as Margin Story Continues to Play Out

研报英文原文证据摘录

J P M O R G A N

Latin America Equity Research

07 August 2026

Telecom Argentina

Strong 2Q26, as Margin Story Continues to Play Out

TEO posted a good 2Q26, beating our EBITDA estimate by +8.5% with strongerthan-expected results in both TMA and ex-TMA operations in Argentina. The

surprise came mainly on consolidated EBITDA margin expanding +2.1pp q/q and

+9.2pp y/y to 36.8%, and given that this is mostly a margin-driven story, we see the

pace of expansion happening in both ex-TMA and TMA as positive for the thesis.

Moreover, service revenue results in Argentina were slightly ahead of our

estimates in the two key segments—Mobile and Broadband—presenting healthy

trends of growth as well.

Financial Summary: In real terms, service revenues were up 9.4% y/y (-0.6%

vs JPMe), or +13.9% y/y excluding Telefonica Argentina (TMA). Revenues

were up by +7.1% y/y (-0.8% miss to JPMe), or +13.1% y/y ex-TMA. EBITDA

was up +42.7% y/y (+8.5% vs JPMe), with consolidated margins coming in at

36.8% (+3.1pp vs JPMe). Net income was Ps183m vs Ps226m JPMe.

Positives: (1) EBITDA beat of 8.5% to JPMe, coming ahead on both TEO exTMA (+9.4% vs JPMe) and TMA (+6.4% vs JPMe), driven by margins; (2)

Strong EBITDA margin expansion, reaching 36.8% vs 33.7% JPMe (+9.2pp

y/y and +2.1pp q/q), driven by efficiencies, with ex-TMA coming +3.9pp

ahead at 40.8% (+2.5pp q/q, +8.5pp y/y) and TMA coming +1.9pp ahead at

29.9% (+1.3pp q/q, +9.4% y/y); (3) Service revenue ex-TMA albeit mostly in

line came ahead of our estimates on key segments—Mobile +9% beat,

Broadband 6% beat, Pay-TV +14% beat, but missed on Fixed and Data by -5%;

(4) TMA service revenue also delivered good results, with mobile in line, while

Broadband came in 3% ahead and Pay-tv +7% ahead, here again fixed data

missed our numbers by -12%.

Negatives: (1) Mobile churn in Paraguay increased to 2.8% in 1H26 from 2.5%

in 1Q, a +0.5pp increase vs 1H25; (2) Handset revenue came -5% below JPMe.

We maintain our Overweight rating on TEO, given expected consolidation

benefits, with the key trigger being antitrust approval. Please refer to our

upgrade report of 9-Apr-26 (link) for more details.

Overweight

TEO, TEO US

Price (06 Aug 26):$13.80

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