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TEO Telecom Argentina

Participants
Solange Barthe Dennin Manager of Investor Relations
Roberto Nobile Chief Executive Officer
Gabriel Blasi Chief Financial Officer
Fernando José Balmaceda Director of Investor Relations
Marcelo Santos JPMorgan
Alejandra Aranda Itau
Call transcript
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Solange Barthe Dennin

Good morning. On behalf of Telecom Argentina, I would like to thank everybody for participating on this conference call. The participants on today's conference call are Roberto Nobile, Chief Executive Officer; Gabriel Blasi, Chief Financial Officer; Fernando José Balmaceda, Director of Investor Relations and myself, Solange Barthe Dennin, Manager of Investor Relations. The purpose of this call is to share with you the results of our third quarter ended September 30, 2020.

If you have not received our press release or presentation, you can call our investor relations office to request the documents or download them from Investor Relations section of our Web site located at www.telecom.com.ar. presentation our broadcasted investor and be can call through replayed website conference is and being also This at institutional.telecom.com.ar/inversores. to of like and would go Safe some I Harbor other details the call. over information session, plans, to clarify statements the and certain We would objectives. we future that mention performance, like could Telecom's and conference during call Q&A strategies about forward-looking could and operations results statements Such Telecom's cause are subject to actual differ uncertainties materially. that to well changes and in limited not demand to, conditions, effect the on financial economic and impact global in are regulations, and of our of but on industry possible general specifically market products of include, performance. and of uncertainties Telecom's as and/or on economies Such COVID-XX which effects the economic as legislation potential the in economy in the of operations the and for the countries the outbreak on-going operate services, we changes

values we to easier and accounting expression figures be In December in corresponding copy the XXXX. call. months included the to inflation nine XXXX Comisión also IAS Our certain statements of by XXXX, special XX, has dated adopted was affect any the XX. be a the X, presentation, that inflationary to figures applied effects the are ended reflected historical of annual send to company periods which financial the XXXX adjustment the the Resolution understand. and forward-looking that Nacional could accordance as in will which effect of adoption the of press mentioned November de SEC, of include and the statements, that Valores, CNV, XXX X-K this for including which may during intermediate of included The the Accordingly, factors release of of establishes describes the with will Form reported

conference read the audience call contained Our The agenda our X presentation. the today's of X is our for presentation. on and business Slide should press complemented X, by financial and The earnings includes Slide highlights. is described disclaimer release in and

afterward Q&A call the end with will we session. a So

call CFO, Blasi, our So let will me with pass the presentation. now start to the Gabriel who

Gabriel Blasi

Good of and shows the X Slide of XXXX. as September company's Thank welcome to morning figures a you, Solange. everyone. summary

months constant nine Revenues pesos X.X% decreased EBITDA totaled totaled X.X% first revenue constant billion P$X.X EBITDA in the billion. XXXX, measured of margin Telecom's basis During P$X implying XX.X% in growing year-over-year. year-to-year.

segment and lines, million offset mobile of bundling X.X customers, focused a the which amounting voice Argentina with XX% to commercial our on to to in by around million of subscribers XXX,XXX paid X.X our the due subs previous increased and in our in Our XX.X around million. increase X.X IP convergent products. decreasing decline We to considering approximately subscribers of clients clients of amounted an customers partially TV totaling currently when that have bundle. respectively. quarter, was without strategy Broadband have the X.X mobile Fixed prepaid million close XXX,XXX subscribers in successful and telephone compared million postpaid. Thanks XXX,XXX upselling broadband unique

has summarize its agencies. we refinance debt bond main far reduced XXXX X, Telecom portion to achievements Slide multilateral important enabled Going exchange our and instead so this an to in of year, been during refinance

since substantially for are digitally. clients have future Our improved has with XXXX. and improved debt approximately P$XXX capital only collections our XX% been million, has structure our our OpEx of have extended and maturities reduced been been paying

pandemic. the revenues. which stopped normalized has the soccer period thus collection billing of will had we we activity, our fourth the local been The quarter return in beginning Our delays, compared to when the at improving

and projects other our will are revenues. such we Personal as that FinTech addition, to IoT, Cloud be In on working added

end. we under prices scenario We a cannot increase year until being where continue

our clients margin. us with in done have the to keeping we sound resilient to be what However, have financial situation, EBITDA and allowed relationships our CapEx a data,

transformation undergoing a is with the in roadmap. process transformation be company. X% continue digital Telecom our We slight target with digital to a XXX%

We our but leverage creating of the us promotes also absolute the work the collaborative by DevOps a methodologies. to example are on of are all multidisciplinary and are connectivity, customer a The this agile recent which of was to team. results also operations converting to conversion systems and an product personal, business. services minutia ecosystem which our the of autonomy, application with integrate BXB we manage equal in and transformation not and was order An formed allows digital and focus to on an platforms only experience internal implementation that

for are We efficiency. order architecture to platforms in and systems additional working our on a superior achieve

us cut half system and the enhance habits, commercial to Cablevision in better Telecom have data will the big legacy our three and last of a allow years, capabilities. incorporate and offers the from our our to to system merger, get consumption our we adapting This customer customize in we understanding order experience. are analytics clients During

are envisioning future the for IoT we business. Finally, a

Our slide, have we its progress developed of the IP wing in we portfolio target products provider main transformation to solutions will IoT In green strong of supported with all solution. and IoT the a by partnership a our our services be go worldwide strong Nokia is IoT network of projects. next Currently, the one segments. value exchange exchange to and number we have

where present Slide turn our we Let's fun switch and X, to initiatives.

X.X BSS digital process been pandemic, total Regarding which a million fun, the customers invoice unified added. have this experience immigration five service continue transformation also can during the and were which migrations new projects lines offers Currently, the in and with our main a have process. X.X of we million enjoy achieved largest We industry. to

Switch more includes brief channels. Through complete solutions is the that customers different of with summarize Slide end intuitive digital to additional switch, BXC platforms in digital the of and continue has frontend of an process. clients to to information cloud our Telecom cloud self-service cloud In accordance with profile. its our flexibility. with our experience. use higher next interface is We summary this efficiency, programs. processes our products year by give that process expect the and that foundation convergent client's in BXX new It objective channel, for ecommerce and cloud a objective integrate is centers and data to automation capacity. the the enhance public achieve order foundation project final The company's business The X, with physical we our the our

is digital concluded implementation has micro core in HANA management live X X, done. evolution July company and hosted altogether. implementing also implemented our first great central new cloud. been central the are our post-go the payment AS product world payments in support Telecom to We On and S/X successfully site with Argentina. a finance, the Slide we have in shows

subs HFC where continued while segments. pay months X.X%, Tv revenues. share. X.X% On than XX.X segment, postpaid the XX the and platform. in grown Fibertel our accessories year-over-year. Fibertel leverage customer in voice reached accesses while by has real pay versus mainly service increased nine base shows in almost growing totaled flow P$XXX postpaid reduction subscribers XXX,XXX. lines, have revenues of fixed increasing in copper ARPU our have Fixed period more billion inflation Slide evolution traditional accessories Service decreasing of X.X% in FTTH most IP decreased mainly mobile the the X.X% a terms, XXXX, our year-over-year our increased have X.X increased prepaid ARPU, have year-over-year on

broadband XX%, September and as XX%, results an and follows; of when in revenues breakdown a the as mobile with XXXX, pay revenues share fixed shows revenue pay equipment and breakdown previous of revenues data lower mobile quarter. TV Our are revenues XX%, X%. broadband increase telephony revenue TV share compared sales The XX%,

main base performance. growth We of of main our the be and and are broadband also two constant register pillars I Our in of mobile usage Slide able on of customer growth can keep postpaid our explain to drivers our almost and products, our in mobile will broadband XX.

to our The negative As month of left competition of in total postpaid XX% base. amounting of September incoming wireless the the blue landscape, of evolution customer numbers shows during year, against per upper last loss the numbers competition. of and personal positive subscribers show in client color, clients the the chart XXXX,

the mobile more that to months internet convergent usage in segment an mentioned, company. first internet reaching Mobile the our supported and offers per by per kilobytes nine not the TV of than increased subscribers mainly X.X average of in of As also that growth clients month has were XXXX. is cable user

lockdown CapEx call. clients be the our extremely been shown increasing to traffic Considering have more and the are the our which resilient during the our to mainly to that migrating we continued responding networks. the on broadband different capacity of base, We speed increasing of broadband leveraging terminologies, and observe our can strong to efficient fixed to have higher our usage upgrading have network you customer continue network to ones. HFC here

speeds COVID. In addition, in important there an to growth has broadband due been considering

addition, third better evolution flow subs almost and we have broadband has XX XX, have the it the last reached been total devices Slide level of able growth year. average important our XXXX, product showed speeds speed XXXX million that of usage of hours quarter. been the of quarter use of In of third has experience, our compared XX megabytes between X.X views connected third Flows there currently and customers video to end penetration. and as as In of an as high an the during quarter in XX% same XXX how million a of platform period in the XX% IP considering flow during we X its with to increase our the for

X.X objective million digitalization. network homes the We million advancing almost of ups flow X.X and inside thus have towards boxes flow

Disney+ our the service we XXXX, platform in for access are to on customers to to personal flow starting able Additionally, continue free the charge. be of integrating November streaming first we will add value path months Disney three flow

on can no our Paraguay, currency our a XX%, the we voice million market to months our XX%, to Browsing around operations first dollar almost driver into XX Slide local consider during subsidiary in and revenues TV Paraguay move share, Paraguay's local itself We EBITDA services market hedge XX% by X%. summary internet X% and Núcleo's the and stake that improving find finance presence services are to almost there revenues respectively. XXXX in have for we situation, subtle nine of to we with which in strong hold in the of guaraní and with implicit in million grow given our data XX, almost Let's economic ability the almost XXX registered accounting where Paraguay. since a of dollars. convert XX.X% restrictions followed international Núcleo, Núcleo in

network fixed XX, provides the in main XXX,XXX, [indiscernible] totaled pay in has past. a and XX,XXX. customers Fixed XX,XXX X.X mobile XXX,XXX Paraguay September deployment subsidiary customer As service XXX,XXX. XXXX, amounting been segment, homes financial XXXX, TV mobile clients personal increasing reached rapidly totaled HD to that The subscribers internet of of million, the our cities of reaching during services low

of versus Núcleo's Additionally, internet our period will XXX,XXX call the totaled José Balmaceda, X.Xx past the subscribers over who I now go last year. to will performance. increasing Fernando financial same

Fernando José Balmaceda

much, Thank Gabriel. you so

show Turning inflation. evolution to local Slide we the XX, of

been increase the XXXX, year-over-year September inflation of As has XX.X%.

most the During terms other X.X%. The increase in months transport by share breakdown index Slide grew including to that of has services have analyzing that can we prices and terms. below the showing nine P$XXX.X amounts to reduction the the exception real the well year-over-year in by XX% when in the real generating almost nine-month in XX.X%. when and company's a of increased Service last in company compared mainly mainly FX of items, and commissions third still margin quarter slightly comes to May controls, return from Slide months in of context XXXX. terms, interconnection by nominal in well decrease percentage consolidated XX% the XXXX. by which cost in approximately billion. the terms beverage, the reduction lower to rise which evolution rates. a see in of in revenues a the since programming by The margin more expenses, of the The due operating important of X.X% XXXX CPI D&A X% mainly to XX% costs, content sell terms than in in XXXX, XX, inflation obtained efficient we being maintaining an nine clothing been and contribution positive efficiencies When inflation but with a where In to P$XXX.X real are cost thus that the revenues amounted billion, costs revenues, EBITDA which accelerating of adjusted and and operating driven in before shows XX.X%, material that communication EBITDA been a X% XXXX. It revenues the nominal food for while and advertising. only stood the nominal almost X.X%, transmission costs, decreased quarter than third Operating real also margin was impact costs, mobile expenses. reaching terms, shows policy, quarter, decreased handset performed year, the was a frozen EBITDA figure grew comparing company reduction in XXXX were real performed terms, very at terms XX%, nine-month more on of increased EBITDA versus out. both XX

XX, when basis nine expenses terms can increasing to due total increased collections dollar real the costs above see In have in months Slide On the can compared beginning have non-performing XX% result channels while our points at final evolution the XXX to debt. interconnection terms, other XXXX. during mainly We The at in hand, EBITDA the XX% increased of of bad of collections show increased of from we inflation. year. real of this to digital their collections debt the component, was

billion the increasingly continue year, Telecom mainly lower composed the impact FX system Slide XX% last when up income the year's in of the will In from nine is in year as billion] BXB negative. our has Additionally, has retail COVID-XX and first registered extraordinary CapEx of totaled most EBIT the of was assets decrease months of normal and period. to same I has than and being has the program to of P$XX.X of a our poses invested business. the can XX% levels, real nine-month billion. Considering CPE. and level versus influenced balance the months the from of the was beginning of margin XX, in Slide decreasing fixed EBITDA. X.X% Net revenues, the almost year. catching to amount D&A business growth was there than the consolidated due X% decreased of income XX% The year during international XX% effect were by XXXX. peso during X.X%, Currently, been collections almost terms, evolving according infrastructure [P$X.X XX, our gap the COVID-XX to has see located increased summary level have in the changes more tax. of loss was period margin Uruguay. almost X% XXXX technology XXXX. lower debt Paraguay from mainly lockdown, increased of The a same a end company's general this first has and debt in ago. increased installations lower compared [ph], of at mean, network substantially. Technical Operating terms our our losses in normal of This September years nine P$XX possibly the premise more in to CapEx of June XXXX of of the equipment last are collections the new in or historical level our moved impairment our two requirements P$XX and forecast was figure during collections after the diversification as is operations figures, company's billion, finalized, economic real our in of lockdown and performance to services. customer and network we Argentina's due the the this higher stable Despite non-performing of an almost customer increasing slightly CapEx merger, real several same operating reflecting

quarter were mainly third mobile exiting XXXX, sites HFC in XX deployed of more our During we more various particularly segmentation sites were the and of modernized. than region. the network, Moreover, XXX capacity the new continue than increase of through focusing access AMBA to

first FTTH speed upload Personal and nine of second While campus consistent and months and same XXXX describes first enabled, the America. of terms median during excellent X.XXXX all in with quality speed our the generation the mobile download XXXX. network Slide in fastest when the has highest of fastest reaching South nine were FTTH more download than new period XXX achieved Argentina, flow months cash of of XXXX. comparing blocks in network the XX with

months the shows of nine to of of EBITDA constant flow while margin the XX cash Company The operating amounted million cash compared and billion, P$XXX XXXX, XX.X%. CapEx free P$XX unit. in the figures the revenues in XX September flow As free $XXX to amounted months Slide to September to our when EBITDA was reduction million. in for amounted measuring $XX EBITDA key XXXX. almost in XXXX, explain additional approximately increase billion. last as mainly

debt CPPIB million. Credit of of additional gross XXXX. and XXXX, decreasing million important P$XX net notes our XX.XX% our bonds structure XXXX due to X.X% the of X.X% XX, amounting XXXX, Our have coupon branch of September case $XXX.X million The it to ratio due Investments has the of X.XXx. and company Moreover, bank, with billion, solid more September a summary, semi-annual of to and XX repay Inc. latest billion and was its has X, been December of of due new that months. payable loans the high almost conceptions short-term investments summarize from acceptance new XXXX, a IFC the demonstrate has cash Invest In amortized between its which X.X% invested local notes. be Telecom credit an and million XX% was billion, company amounted IDB financial amount flows an overtaken. in refinanced notes raised notes tendered in XXXX. on an due Slide our to able XX enough than company as offer announced was XXXX the of of basis. notes the has on billion EBITDA to amounted paid P$XX with from $XXX.X On been profile for exchange loan validly P$XXX P$XXX money issued The An IFC offer. $XXX.X August new successfully Holders XXX.X XXXX. to exchange to XX London debt outstanding amount with extended Deutsche that concluded debt in was of of and Net that rate principle generate amount to In company

standing capital the for Total considerably XX% XX of be to $XX fourth to debt As in was to between breakdown structure. his the above that quarter million Invest of and months. loans in September Overall, the a XXXX than has IDB principle the outstanding on and XX billion. and amount to was the loans. shows company in repaid optimized paid financial extended of Due company the XXXX partially our XXXX, as the debt. amounted of $X.X more Slide XX

structure XXXX of IDB Our and after improved notes debt of loans. profile and refinancing capital IFC the our the has significantly exchange and

agreed to telecommunications the industry to until our decisions May regulatory August XXXX. regarding freeze COVID-XX, In U.S. million in the Venicom of latest the products $XXX the has to and our XXXX Slide the maturity summarize $XXX notes. XXXX. it of due between of million industry. strongly range the ties jointly dollars been has of in XX, until maturities Our are end now reduced with our XXXX And

to being salaries essential other XXXX. as a August, freeze mobile with This August then to telephony, increase in the the the also A XXX-XXXX who has XX XXXX. an who regulation today provided by either Thank let the for suspension and which until hand, plans TV mentioning a the XXXX. clients services, of not presentation, me In reduced end before inclusive power declared until reduced are that services and public determined temporary remark. to not the provided Congress serviced days. in until call during the price the March was XXXX. only pass decree Solange the On In service. Q&A extended the all period of of worth to September the still of decree been of pending December both the services required case cable services you. National issued to it during until have a they're ICT extended companies of clients. It's case and industry end approved and the are And non-payment Having of a internet Secretary going the the fixed interruption concluded final and session, XXXX, is

Solange Barthe Dennin

Thank you, Fernando.

CEO, to our than more With we questions have. any the answer of may Roberto you are presence Nobile, pleased

we in to menu, session, you Please immediately. how so which it can to direct we before the want Q&A or the Thank questions alternatively, button to state speak know your to a identifying the proceed your start, could will other will when Argentina However, IR you you. formulate send and to know question let we use remind like message Q&A the you hand yourself turn be to unmute us during let question. Telecom is opened you that you and questions. We your with any

from received government following on an assuming the with have be we impact from share And you question raise us for with focusing first XXXX? services pressure, with XXXX? to is What your be it able that which inflationary the in not Would to the then, structure telecom negative us prices, will does third questions. question please The a just is, your you considering? that conversation government you allow [indiscernible] the share make finally, please question update second price would targets So of potential you your personal are increase for to investment? says, there you alternatives CapEx the

Roberto Nobile

entry where regulator the the decree that targeted of government should an as are This growing means define terms like morning such working to the try in will Roberto. trying like is very negotiations with try are information ENACOM, industry the that good the giving the product to to together to service special be of keep on free degree incentives we with higher we focus services to to an product customers, industry. in the broadband keep public for the with or is as Trying with of how on trying industry conservative to certain you. I investing. industry an which the can everyone. the And we services terms share consider and of to level having government Okay. on implement as on and that premium to mobile. the rest We

optimistic discussing be So, we know we on are optimistic prices able increases, during how we need to don't XXXX increase we're from that increase know all that we how agree the the keep to rates to But but that prices, We be inflation we do schedule we will do able that catch up. not and that will be is to increase. we real able far will on rate, working upon. of that, something we're we very the still will yet those

a other Regarding these the the that of hand, in activity, we still of assume or aggressive of on question, price. customer promotional trying do the have that. base we the was, not room gain discount competition terms very, second in And have are reducing and do in share very -- any a we to marketing most a discounts, promotion market that and in terms to that assume of the industry other has been we if price not grow lot have increase

possibility, a that formal believe it if which believe to I be any chance, by prices personally will don't that able could I it. not be been So, if that increased,

say work therefore, less have through of we would being will will be I increase in prices a and able enough away competitive environment to promotions. taken We terms in discounts aggressive or to less room

of try to for be to network XX% that of previously more was We've two of the one third companies The of -- a this revenues is IT also telecom CapEx up our target one, and This investing not around did two will make it and a we about and integrate we trying the by last also platforms. former that and integrate been last CapEx XX% the target CapEx due investing revenues, that been That year our have over XX%. catch keep XX% was companies CapEx way. and incumbent years. XX% we out XX%, will of to we the to of done to reduced lot than

We But aligned make and price love be of it company in have that terms also to XX the or the increases. will XX. to possibilities will that financing

Solange Barthe Dennin

ahead. from question Marcelo Following go please Santos JPMorgan. Marcelo,

Marcelo Santos

on was freeze. think you sequentially question if price performance, despite the look was the I it good quite mobile My

you you. is in if the on fixed when second lead Thank sequential initiatives the this to And comment when actually performance, comes the growth Paraguay, goals you the fixed talk So, I broadband perhaps and line could was good. product term versus the this it of would it especially longer mobile about there? that share some compare question your to

Roberto Nobile

good. the On our why performance prepaid been in we been very the main mobile have successful trying that is probably has to convert into postpaid reason and

COVID, look transport, they locked they charging by are lockdown home, because their period, work a customers at into service, to prepaid not are because have the are take public going is commuting, the public you they If too. stopped down transportation not

pretty heavily strong have working postpaid, keeping the to trying post very is So basically, on I and revenues the say. pre into the stable, been where we migrate thing would

grow services have today Going zero we customers. share from Paraguay, the almost we been to were back to XX% to Paraguay were able years, that successful story and new market X.X in coming XXX,XXX we broadband a because has service service of we the gap we that our -- our during service XXXX as network especially new fast believe competitors. considering are network between compared growing forward, FTTH to far can we and FTTH very moving the on keep And as

Solange Barthe Dennin

on the for company's perspective one who question of looking is what What on The prices possible is sense from better XXX that? asking, the was it Pedro impact a is cash following and business, Soares, the have [indiscernible] question the And to we of received since are flow. ahead, December XXXX?

Roberto Nobile

And answer we we that customers gap. have and are probably to XXX Gabby number paying. that is is XXXX, the probably share in we Gabby and to us between with how the to in I will not customers and I say, it. that number the asking think compare can complete that decree that start main We XXX,XXX that can past point not decree If XXX,XXX keep of the -- That's the increase. we have XX% in around date, situation. -- The

X.X the and last that customer not customer that's from but day debt year in increase X.X% final the the year. impact the of basically, that's XX% are look our last customer we bad probably amount to at is and base probably service, that numbers, up have the eliminating come year from we debt using still main the the compared look decree. number is X.X So bad is should If the -- between to that this we and difference a the too we

Solange Barthe Dennin

Moving XXXX us following the from environment also we about maturity the thinking Paraguay? bond are extended? the is, second Deluca, is in can the competitive you beyond Andrew how CB and but he the asking, maturity of measures from measure, CB question you to remaining could And is please Andrew with update are XXXX provide an you update provide the received question the on an

Gabriel Blasi

Okay.

is million, been has maturity as the already the learning our of is, thing first the $XXX maturity is Regarding debt was interpretation the standing personnel that XXX, defined. the it original debt is that

that company maturity too rule, that. that complied are of the bond role extending and is after with that behind has although the the we So already as reach is much

of -- see multilateral maturity a them total the is can interesting to to foreign agency. chain one related a transaction that that is than in the channel something next a we because year in about plus related company It's dollars of has only maturity. million case $XX less that vendors, cope how which it's with that Regarding prefer to

easily from international expect capital that markets we and additional now, think very in lot announce are soon company can we this a risk very next first depending developing low. amount and of Besides that, position or market not a can go a and in we Argentina, hardest probably cash dollars that which also still all, all to have environment and capital year local give million to us So, imagine that we lines are to very that issue markets the is the the doing on only the related great that ability refinance has of the year. been or during from also maturity room the in also we as parallel the will to $XX strong we always has the pretty

Roberto Nobile

will previous I answer. to the back Okay. go

First of in to next question then because we for debt, probably until of X.X will to whole of previous the instead going April, and situation back something considering levels. XXXX or go actually, pandemic, that we this March bad April we slowly closer target terms believe X of year are

are we XX% for bad year. next So the debt the targeting difference

ARPU, very Paraguay, things. to we that increase conservative growing we I'm sustain And revenues that very therefore going have month major business market to that aggressive we trying a on aggressive a competitors, We to aggressive are going not Now, Basically and type basically being they Paraguay, are but back keep the We're month. mention very, able losing were are were increase that devices only very are not them, we of one and EBITDA. to and competitive EBITDA. share we in very, after long-term and have sure the market. three, that. competitors. trying to their very When are making increase and subsidizing They in

Solange Barthe Dennin

in have dividends says should question of for following We Partners, AR year? next from terms the he what [indiscernible] we expect

Gabriel Blasi

no, I take see, is assembly information an public it will been -- and has place next set Regarding Friday.

shareholders need this. see we event that the to wait what's assembly think of to to I that decision So about the

Solange Barthe Dennin

another question do from strong cost cut room he you Andrew quite see bottom, says, what to the initiatives much more costs? We received how cutting to have DeLuca, were

Roberto Nobile

we that all not necessary. costs, with OpEx match is are is Not much, OpEx and not that course, that something, not losing trying start you are necessary you to customers reach we talking and marketing our our to brands have The when of proposition. again brands our squeeze need the that speaking reduce our we value can, tried OpEx are is that all think I to we -- reducing

terms them merge, of, So be in the are many we synergies terms invested lot from coming say of platform all mobile a year, resolution. will to in a of this, -- achieve you're down, that this we one of timeframe. in by in first of the terms holding our a all crisis But would for platform, have of have in there the in we under once costs, I example, need things lot having terms of that in have cut customers time, end has of benefits started of to

So, projects there coming that we things from are the good are that a are lot of out deploying.

reduced long will we platform, of applications, deploying migration deploying of keep new as long should the the we by new can by we on will type lot have synergies years, therefore we the to doing reducing allow all the And them we keep as I believe keep a converging as that as be third on of us customers finish need salesforce we venues, keep mid-XXXX, probably these Throughout on last the systems. we headcount that systems new So, into that the we important. XX%. have two on start on parties the believe things, to and that working

Gabriel Blasi

Roberto problem we mentioned, in improvement to exposed of the and investment being a in the that environment, situation activities, situation, different Argentina, Just search nearly without XX% big the all of remember was you in potential the as in EBIITDA an idea thanks of to economy can done. margin illustrate prior are idea company of the normalization completely general the give March the in margin a that an COVID of what said, the to as the we --

Solange Barthe Dennin

magnitude be eliminated. César discounts that is would The -- it Morgan Medina Stanley, says, you and what in from we following ARPU system and of please if promotion the quantify question from have promotions can XXX% current of are received what

Roberto Nobile

eliminate is That on Today, percent discounts the XX. question. between competitors, that in there's that closer to no the for used that there have impossible conversion will XXX% competition César, services happen. we that today and to number is you, not XX that because means and Thank no that discount something something XX is to the market is and

XXs. going I So, from and conversion bundle is believe that of reduce probably the that we can into can discount to a needs part reduce closer value whole that a we prop the XX promotion gap

Solange Barthe Dennin

The he discuss ability in the Welby] management your for plans is asked, [Alex you what XXXX? [ph], question from following can

Roberto Nobile

is I from not bond. Well, are too $X I Alex. original is much XXXX, we billion maturity, as XXX say the there the only Well, for of that to mentioned in having do fact, will that $XXX, from

have and market cash outside We cash the case. million if in have capital in position today. And to they go $XX both to we ability locally that's our the the --

vendor XX agency. are have related to other the financing, which in renewing lines related also that For we is an some and constantly to

the the of liquidity So -- where most per third today foresee problem with million markets $XXX we of the of And the banking I situation. can range besides local that. don't local also, we the we tapping a get, say cash in have capital present quarter using have lines Also having the that already will we about ability we of a lines the available position in beside are governments. banking we

for foresee don't we side a XXXX. So significant from the financial risk

a total in the vaccine market, working the keep of $XXX the book those will cost a continue as depend analysis. it better type the point if And debt yielding on we a gets if maturity is X%, the control. can -- mentioned market million of Argentina, future always with Fernando reduction economy on of that constant allows is outlook the general, it course, we of the today, that opportunity the consider company to in want Of better will price, of

Solange Barthe Dennin

[Akbar [ph]. Following dollarized What of is withstand affordability your believe asks, question level to Kouser] and get a He can you significant want hi, the of percentage is increases? do of sense price your customers I from customers.

Roberto Nobile

a pesos economy so All not pesos. not dollarized economy, It's a -- are They a it's one. difficult have denominated in are question. dollarized our customers pesos because we

part most our lockdown of and will to are are probably after without any they of we they have remain strongest essential need lockdown pandemic. our And after problem. really been that thing pay and the the able the about basically, customers, throughout that For connectivity the services today

throughout is inflation you because that have the seen think we I I working and pricing are say we to, inflation. able wouldn't the prices I with adjustment, as So have been freeze, resilient have keep price say would to we always quarters, long service as not

the not is many been of or adjustment. able be a business, inflation. will inflation have products But We Probably, can products, thing. and of to to real and look other at customers on can going change That always increased. the will price our be have to whole one able prop we if been if years. we been so has products what the increase going demonstrate keep the because we beyond the premium we And the mix gig take believe able throughout we value we

Solange Barthe Dennin

Thank What raise? you it -- you. in compared those how The following to tariff taking the services from received question, are [ph], [John competitors? we do Mohu] you measures said, of reduce kind he of response competitors to your your

Roberto Nobile

How you compare?

Solange Barthe Dennin

services of raise? kind reduce of competitors? your to And in what are you your the tariff competitors compared those do How measures response taking to

Roberto Nobile

decree. by ruled No, basically, that's

So, the by the requested that to government. all are product competitors reducing the product is -- the

as don't difference. that other level we in no any product, difference should sharing are we the entry the I so So say that. see same reduced non-paid or the product we have the -- there's

Solange Barthe Dennin

Alejandra you. from Aranda. will Thank question be The follow-on

Itau. from Alejandra So,

If you are here, ahead. ask please go

Alejandra Aranda

was the Roberto I to base little wanted average a promotions And to competitors bit being a on hoping competitive in and line, there that was client -- of up percentage your not some then, the confirm of rational. little your with bit quite could break color discount? landscape, of more you were Just, get I the said you the

next pushback think the we your you about the So a have cost promotions few tariffs question and where the months? and the going next is should clients And severance forward? how and even I'm I extend last would increase world year, in on what could need from to in wondering it personal that be

Roberto Nobile

Okay.

many it XX%. Alejandra, our for one been was average XX% XX% the about mentioned things a discount base You around has talk customer and always first -- we

whole this in So, that's the last thing that produced has gap quarter. the

The second the was competitive landscape. one

of It's during in reductions on leaving severances -- in when is aggressive keep and the the due less in important, On say portability. to port the or agree entities was are that the not I market with, time as to low. saw and you has side to been push I balance, that accept we of a would the year month-by-month, that mobile moment -- Argentina the and situation. competitive especially year. to company portability of have the cost major a activity economy with very labor trying not in by this the saw negotiate are wants bad. to reduction pulling very port-in someone the this the economic been in to that situation own of because other down difficult to many believe will a is reasons the very down means we very Right we the pull activity trying find the year, own is And that the cooling in our they the to real activity. start one force why have truth we very severance, And one company, But difficult Therefore, soon to the I is so Last are competitors discounts, that are the activity. that because now, presentation, the and leave severances that its sake.

Alejandra Aranda

for you going XXXX? are what forward, And expecting

Roberto Nobile

this same year. as The

a As long this without the does to wants of it's start to economy to will way that very as find leaving. keep difficult country people company new it People the severance to business improve, trying being a whole leave try not outside. the paid and and

believe similar will be this to I number the that very year. So

Solange Barthe Dennin

Alexandra. you, Thank

just final from freeze price perhaps is it saying perhaps a have [indiscernible] considers changing incomes That we price? point So the or as following does question Nicolas prices and is Petrone. considering question, lower the regulation

Roberto Nobile

the company's the have commercial is the the on part discount promotions of that customers decision. and based major thing of is always new new promotions are general the still be real on effect part all prices, the the with not will will it, is not decree -- prices, promotions, are The customers, the that

on price sell can price, sell say of the of product you the So at month a product a I would three XX% you XXX% can XX% a price, price. discount or

and commercial of a So it. that's decision part that's not

Solange Barthe Dennin

for everybody for Thanks DeLuca. Andrew congrats comment the and to Final results.

Roberto Nobile

Thank you.

Gabriel Blasi

very much. you Thank

Fernando José Balmaceda

you. Thank

Solange Barthe Dennin

department very not conference had day. We call. thank questions. having do quarterly for have. a nice more contacting to you our any may you no inquiries our much hesitate in and So Good for Investor Please Relations all further morning participating in