Telecom Argentina (TEO) released its Q4 2025 financial results on March 11 2026, reporting consolidated revenue of $1.53 billion—up 1.32 % versus the consensus estimate of $1.51 billion—while earnings per share rose to $0.0218, a 2080 % beat over the $0.001 estimate. The company’s net loss of approximately ARS 145 million for the year, compared with a net income of almost ARS 1.4 trillion in 2024, was largely attributable to foreign‑exchange losses that offset the operational gains.
Revenue growth was driven by the integration of Telefónica Móviles Argentina (TMA). The combined entity added roughly $200 million in top‑line revenue, while the core mobile and broadband segments continued to expand, contributing to a 53 % year‑over‑year increase in consolidated revenue to $5.7 billion. The company also achieved real‑term service‑revenue growth for the first time under Argentina’s hyperinflation accounting regime, underscoring the operational momentum behind the headline numbers.
The net loss was primarily a result of foreign‑exchange losses that materialized during the quarter. While the company’s operating income improved, the FX impact eroded profitability, illustrating the ongoing risk that currency volatility poses to the firm’s financial performance.
Segment‑level data show that mobile services grew 4 % in real terms, excluding TMA’s contribution, and broadband revenue increased modestly, while Pay‑TV revenue remained flat. The EBITDA margin for the fiscal year expanded to 30.3 %, an improvement of more than 200 basis points over 2024, and excluding TMA severance charges the margin rose to 32.2 %. These margin gains reflect operational efficiencies and a favorable mix shift toward higher‑margin services.
Management guided for continued revenue growth, projecting Q1 2026 revenue of $1.95 billion and Q2 2026 revenue of $2.52 billion, with EPS forecasts of $0.09 and $0.12, respectively. The guidance signals confidence in sustaining the integration gains and maintaining cost discipline, even as the company remains vigilant about foreign‑exchange exposure and macroeconomic headwinds.
Investors reacted cautiously, with the stock falling 9.12 % in aftermarket trading. Analysts cited the net loss driven by foreign‑exchange losses and broader macroeconomic challenges as the primary reasons for the negative market reaction, despite the earnings and revenue beats. The market’s focus on currency risk and economic volatility highlights the importance of managing external headwinds even as the company demonstrates operational resilience and growth momentum.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.