Telecom Argentina (TEO) investor relations material

Executive summary

• Achieved strong EBITDA margin improvement, reaching highest levels since 2018 merger, driven by operational efficiency, margin expansion in core and TMA segments, and full TMA consolidation in 1Q26.

• Consolidated revenues for 1Q26 reached P$2,357,686 million, up 30.5% year-over-year, with service revenues at P$2,275,239 million (+33.6%).

• Net income rose sharply to P$642,984 million from P$123,593 million in 1Q25, mainly due to higher foreign exchange gains.

• Continued execution on 5G and FTTH network deployment, supporting subscriber and ARPU growth.

• Free cash flow generation strengthened, supported by robust cash position and extended debt maturity profile.

Financial highlights

• 1Q26 consolidated revenues reached US$1.7 billion, with adjusted EBITDA at US$0.6 billion.

• EBITDA margin improved to 36.0% (excluding severance charges), up from 33.2% in 1Q25; operating income margin remained stable at 27% year-over-year.

• Net income increased to P$416,255 million (IAS 29 adjusted), up from P$123,593 million in 1Q25.

• Free cash flow before interest and dividends rose to US$216 million, up from US$80 million in 1Q25.

• CAPEX (excluding right-of-use assets) was P$433,768 million (+85.1% YoY), representing 18.4% of revenues.

Outlook and guidance

• Focus remains on expanding 4G/5G and FTTH networks, driving further ARPU and subscriber growth, with 98% 4G population coverage and 126 new 5G sites added in 1Q26.

• Shareholders approved the potential distribution of up to US$300 million in dividends before year-end.

• Continued emphasis on profitability and cash generation, with net leverage expected to remain low.