Consolidated Operating Revenues

 

Mobile Services

 

As of June 30, 2026, Telecom’s total accesses (excluding TMA) in Argentina and Paraguay reached 22.1 million, while TMA’s accesses amounted to 19.5 million. In 1H26, consolidated mobile service revenues reached P$2,668,829 million (+P$525,526 million or +24.5% vs. 1H25), being the main business in terms of service revenues (representing 55% and 51% of service revenues in 1H26 and 1H25, respectively). The increase in revenues is mainly the result of the consolidation of TMA’s results in 1H26, which amounted to P$1,162,929 million. Excluding the impact of TMA’s consolidation on mobile service revenues, the 8.5% increase for Telecom (excluding TMA) was mainly driven by an 18.4% increase in real terms in the average monthly revenue per customer (“ARPU”).

 

Mobile Services in Argentina

 

As of June 30, 2026, Telecom’s mobile accesses (excluding TMA) in Argentina amounted to approximately 19.4 million (-1.5 million or -7.1% vs. 1H25). This decrease is related to prepaid lines that remain inactive for 240 days without any top-up, leading to their disconnection and removal from the customer base. It is important to note that, despite the year-over-year decline, the postpaid customer base increased by 1.3%, or 102 thousand customers, vs. 1Q26. As of June 30, 2026, 59% of customers corresponded to the prepaid segment and 41% to the postpaid segment, while as of June 30, 2025, prepaid customers represented 61% and postpaid customers represented 39%.

 

As of June 30, 2026, TMA’s mobile accesses amounted to approximately 19.5 million (+237 thousand or +1.2% vs. 1H25) – including machine-to-machine ("M2M") accesses. The postpaid base increased by 2.8% vs. 1H25, while the prepaid customer base remained practically stable, posting a slight decrease of 0.2%. As of June 30, 2026, postpaid accesses represent 49% of total mobile accesses. TMA’s average monthly churn stood at 1.4% in 1H26 (vs. an average of 1.6% in 1H25).

 

ARPU for Telecom (excluding TMA) amounted to P$11,772.2 in 1H26 (+18.4% in real terms vs. 1H25). The effect generated by the restatement into the current measuring unit as of June 30, 2026, included in ARPU, amounted to P$663.1 and P$2,872.6 in 1H26 and 1H25, respectively. Average monthly churn stood at 2.1% in both 1H26 and 1H25.

 

ARPU for TMA amounted to P$9,840.4 in 1H26 (+2.3% in real terms vs. 1H25). The effect generated by the restatement into the current measuring unit as of June 30, 2026, included in ARPU, amounted to P$541.0 and P$2,794.4 in 1H26 and 1H25, respectively.

 

Mobile Services in Paraguay (“Núcleo”)

 

As of June 30, 2026, Núcleo’s customer base totaled 2.6 million, decreasing by 1.3% compared to 1H25. Of total accesses, 68% correspond to prepaid and 32% to postpaid, while as of June 30, 2025, prepaid accesses represented 72% and postpaid 28%. Average monthly churn stood at 2.8% in 1H26 versus 2.3% in 1H25.

 

During 1H26, mobile service revenues in Paraguay reached P$118,534 million, increasing in real terms (+P$21,220 million vs. 1H25). This increase was mainly driven by a 17.8% rise in ARPU, supported by price increases and a stronger real appreciation of the Guarani against the Argentine peso (36.7% vs. 22.0%), in a context of lower accumulated inflation (33.5% vs. 39.4%).

 

 

 

 

 

 

 

Internet Services

 

Consolidated Internet service revenues reached P$1,101,497 million in 1H26, increasing in real terms (+P$107,160 million, or +10.8%, vs. 1H25). Telecom's subscriber base (excluding TMA) increased, reaching 4.2 million subscribers (+110.4 thousand, or +2.7%, vs. 1H25) during 1H26. Telecom's monthly internet service churn stood at 1.4% and 1.2% as of June 30, 2026, and 2025, respectively.

 

The increase in revenues was mainly driven by the consolidation of TMA's results in 1H26, which amounted to P$277,889 million. Excluding the impact of TMA's consolidation, Telecom's revenues (excluding TMA) increased by 0.7% vs. 1H25.

 

TMA's subscriber base reached almost 1.7 million subscribers (+73 thousand, or +4.6%, vs. 1H25) during 1H26. Monthly internet service churn stood at 2.0% as of June 30, 2026, and 2025, respectively.

 

In 1H26, Telecom's broadband ARPU (excluding TMA) (restated in constant currency as of June 30, 2026) reached P$30,587.3 (-3.6% in real terms vs. 1H25). The effect generated by the restatement into the current measuring unit as of June 30, 2026, included in ARPU, amounted to P$1,171.8 and P$9,185.8 for 1H26 and 1H25, respectively.

 

Additionally, in 1H26, TMA's broadband ARPU (restated in constant currency as of June 30, 2026) reached P$28,946.8 (+1.1% in real terms vs. 1H25). The effect generated by the restatement into the current measuring unit as of June 30, 2026, included in ARPU, amounted to P$1,574.5 and P$8,323.9 for 1H26 and 1H25, respectively.

 

As of June 30, 2026, subscribers with broadband speeds of 100 Mbps or higher represented 99% of the total subscriber base (vs. 92% as of June 30, 2025).

 

Cable TV Services

 

Consolidated cable TV service revenues reached P$541,595 million in 1H26 (+P$25,167 million, or +4.9%, compared to 1H25). The number of TV subscribers for Telecom (excluding TMA), including Uruguay and Paraguay, reached 3.6 million (+206 thousand, or +6.1%, vs. 1H25). TMA's TV subscriber base totaled 0.4 million (+27 thousand, or +6.5%, vs. 1H25).

 

The increase in revenues was mainly driven by the consolidation of TMA's results in 1H26, which amounted to P$60,615 million. Excluding the impact of TMA's consolidation, the 2.1% increase reported by Telecom (excluding TMA) was primarily attributable to a 0.5% increase in ARPU and a 6.1% growth in the customer base compared to 1H25.

 

Telecom's TV subscriber base (excluding TMA) in Argentina reached 3.4 million accesses as of June 30, 2026, representing an increase of 6.6% compared to 1H25. This growth was primarily recorded during June 2026 and was driven by the FIFA World Cup 2026, which boosted demand for bundled cable TV and internet packages to access live match broadcasts and tournament-related content, as well as by new subscriptions to the Football Package.

 

As part of its strategy to continue delivering a flexible, intuitive and innovative entertainment experience, Personal announced its first exclusive partnership with Netflix in Argentina. This strategic agreement incorporates the OTT platform as a new option within Flow+, its flexible entertainment offering featuring interchangeable monthly subscriptions. Under the same monthly fee, customers can choose two subscriptions from the Football Package, HBO, Disney+ Premium, Universal+, and now Netflix Premium, and switch them every 30 days.

 

Telecom's monthly TV ARPU (excluding TMA) (restated in constant currency as of June 30, 2026) reached P$21,870.6 during 1H26 (+0.5% in real terms vs. 1H25). The effect generated by the restatement into the current measuring unit as of June 30, 2026, included in ARPU, amounted to P$837.2 and P$5,902.8 for 1H26 and 1H25, respectively.

 

TMA's monthly TV ARPU (restated in constant currency as of June 30, 2026) reached P$25,255.4 during 1H26 (-7.5% in real terms vs. 1H25). The effect generated by the restatement into the current measuring unit as of June 30, 2026, included in ARPU, amounted to P$1,353.7 and P$7,939.3 for 1H26 and 1H25, respectively.

 

 

 

 

 

 

 

 

 

 

 

Monthly cable TV churn for Telecom (excluding TMA) stood at 1.5% as of June 30, 2026 and 2025, while TMA's monthly cable TV churn stood at 3.5% and 4.0% as of June 30, 2026 and 2025, respectively.

 

Fixed Telephony and Data Services

 

Consolidated fixed telephony and data service revenues reached P$550,145 million in 1H26 (+P$28,661 million, or +5.5%, compared to 1H25).

 

The variation in Argentina was mainly driven by the consolidation of TMA's results in 1H26, which amounted to P$259,536 million. Fixed voice and data revenues for Telecom (excluding TMA) decreased by 10.9%, primarily because the Company was unable to increase its prices at the same pace as inflation, partially offset by a 3.5% increase in the fixed telephony customer base.

 

It is also worth noting that, although certain data service revenues increased as a result of exchange rate fluctuations (23.0% year-over-year increase), given that these services are primarily denominated in U.S. dollars, such increase remained below cumulative inflation over the last twelve months (33.5%). Telecom's fixed telephony customer base (excluding TMA) reached 2.8 million in 1H26, of which 2.5 million correspond to customers with IP lines. TMA's telephony customer base reached 2.1 million, of which 1.6 million are customers with IP lines.

 

During 1H26, the Pacheco Datacenter, one of the Company’s most important technological hubs, obtained the international “Certified Energy Efficient Datacenter Award” (CEEDA), a recognition that validates efficient energy management and the sustainable operation of data centers under global standards.

 

Other Service Revenues

 

Consolidated other service revenues reached P$26,842 million in 1H26 (-P$13,465 million, or -33.4%, compared to 1H25). The decline in other service revenues was mainly attributable to the loss of control of Micro Sistemas, which provided Fintech services in Argentina during 1Q26 and, as of 1H26, is recognized as a joint venture investment.

 

Revenues from equipment sales

 

Consolidated revenues from equipment sales totaled P$186,603 million (-P$75,175 million or -28.7% vs. 1H25). The contribution from the consolidation of TMA’s results in 1H26 amounted to P$69,006 million, while equipment sales for Telecom (excluding TMA) decreased by 28.5% in real terms.

 

 

 

 

 

 

Consolidated Operating Costs

 

Consolidated Operating Costs, including Depreciation, Amortization and Impairment of Fixed Assets, amounted to P$4,401,308 million in 1H26 (+P$158,751 million or +3.7% vs. 1H25).

 

Excluding Depreciation, Amortization and Impairment of Fixed Assets, consolidated operating costs amounted to P$3,258,692 million and increased by P$126,085 million or 4.0% vs. 1H25. The increase is mainly explained by the impact of the consolidation of TMA amounting to P$332,123 million (excluding the effects of intercompany transactions), resulting from the comparison of 1H26 results for the full six-month period with 1H25 results from the date of TMA’s acquisition.

 

The cost breakdown was as follows:

 

 

 

 

 

·

Labor costs and severance payments totaled P$1,092,828 million in 1H26 (+P$19,987 million, or +1.9%, compared to 1H25). The increase was mainly driven by the full six months consolidation of TMA's results in 1H26, whose contribution amounted to P$406,231 million. Telecom's headcount (excluding TMA) totaled 17,884 employees as of June 30, 2026.

 

·

Interconnection and transmission costs, which also include roaming, correspondence services, and line and circuit rentals, amounted to P$139,309 million in 1H26 (+P$16,177 million, or +13.1%, compared to 1H25). The increase was mainly driven by the consolidation of TMA's results in 1H26, whose contribution amounted to P$178,146 million.

 

·

Fees for services, maintenance and materials: P$622,991 million in 1H26 (+P$37,893 million, or +6.5%, compared to 1H25). The increase was mainly driven by the consolidation of TMA's results in 1H26, whose contribution amounted to P$266,311 million. Excluding the impact of TMA's consolidation, the decrease was mainly attributable to a reduction in services provided by customer call centers due to a lower number of service hours consumed. This was primarily the result of the Company's customer self-service strategy, which enabled a greater proportion of customer interactions and transactions to be completed through digital channels, reducing the need for operational support.

 

·

Taxes, fees and regulatory charges totaled P$448,516 million (+P$62,379 million or +16.2% vs. 1H25). Taxes, fees and regulatory authority charges in 1H26 include P$179,974 million corresponding to TMA.

 

·

Commissions and advertising (agents, collection commissions and other commissions) totaled P$235,597 million in 1H26 (-P$8,413 million, or -3.4%, compared to 1H25). TMA's contribution amounted to P$86,424 million. The decrease was mainly attributable to lower advertising expenses related to Personal Pay campaigns following the loss of control of Micro Sistemas, whose results ceased to be consolidated on a line-by-line basis.

 

·

Cost of equipment sold totaled P$159,024 million in 1H26 (-P$29,404 million or -15.6% vs. 1H25). This variation is mainly due to a decrease in the number of units sold compared to 1H25. The contribution from TMA’s results in 1H26 amounted to P$62,727 million.

 

·

Programming and content costs amounted to P$255,354 million (+P$29,889 million or +13.3% vs. 1H25). Programming and content costs in 1H26 include P$51,507 million corresponding to TMA.

 

·

Other costs totaled P$305,073 million (-P$2,423 million, or -0.8%, compared to 1H25), including bad debt expense, which totaled P$92,851 million (+P$4,412 million, or +5.0%, compared to 1H25):

 

o

Bad debt expense in 1H26 includes P$39,252 million corresponding to TMA. Bad debt expense represented 1.8% of total revenues as of June 30, 2026 (vs. 2.0% in 1H25).

 

o

Other operating costs, which include provisions for litigation and other contingencies, energy and other utilities, insurance, leases and Internet capacity, among others, amounted to P$212,222 million (-P$6,835 million, or -3.1%, vs. 1H25). TMA's contribution to 1H26 amounted to P$56,955 million.

 

·

Depreciation, amortization and impairment of fixed assets totaled P$1,142,616 million (+P$32,666 million, or +2.9%, vs. 1H25). The increase is mainly explained by the impact of the consolidation of TMA amounting to P$53,408 million, resulting from the comparison of 1H26 results for the full six-month period with 1H25 results from the date of TMA’s acquisition. Excluding this effect, the decrease is attributable to assets that reached the end of their useful lives after June 30, 2025, and to disposals of property, plant and equipment since that date, partially offset by the impact of depreciation and amortization associated with additions made subsequent to such date.

 

Net Financial Results

 

Consolidated net financial results (including debt-related financial costs and other net financial results) recorded a gain of P$614,769 million in 1H26 (vs. a loss of P$287,613 million in 1H25).

 

*Related to Notes issued in UVA (Unidades de Valor Adquisitivo)

 

The difference in Net Financial Results was mainly attributable to a higher foreign exchange gain, measured in real terms, amounting to P$830,350 million. Although the Company maintained a higher level of U.S. dollar-denominated debt during 2026, thereby increasing its exposure to exchange rate fluctuations, the foreign exchange impact was favorable during the period. This was due to the fact that the U.S. dollar increased by only 1.9% against the Argentine peso, compared to 16.8% in 1H25, while inflation remained at similar levels (16.8% compared to 15.1%). As a result, foreign exchange differences shifted from generating a negative impact in the comparative period to recording a gain in 1H26.

 

Additionally, there was a higher gain on RECPAM of P$111,240 million and a higher gain from changes in the fair value of financial assets of P$19,898 million, driven by a higher volume of government securities acquired during 1H26, together with an improvement in their real market value.

 

These effects were partially offset by higher interest expense on borrowings of P$55,884 million, a lower gain from the indexation of loans of P$4,342 million and lower other net financial results of P$1,120 million.

 

Additionally, the effect derived from the consolidation of TMA amounted to P$5,140 million, resulting from the comparison between results for the full 1H26 period and results for 1H25 from the date of TMA's acquisition.

 

Income Tax

 

Telecom’s income tax includes the following effects:

 

i)

the current income tax, determined based on the tax legislation currently applicable to Telecom;

 

ii)

the effect of applying the deferred tax method with respect to temporary differences determined by comparing our asset and liability valuations according to tax and financial accounting criteria, which includes the effect of the income tax inflation adjustment.

 

Income tax resulted in a loss of P$452,758 million in 1H26 (compared to a loss of P$46,038 million in 1H25). Losses related to current income tax amounted to P$491,212 million in 1H26 (compared to a loss of P$298,269 million in 1H25), and the income tax charge related to the application of the deferred tax method in 1H26 was a gain of P$38,454 million (compared to a gain of P$252,231 million in 1H25).

 

Additionally, the effect derived from the consolidation of TMA amounted to P$22,671 million, resulting from comparing the results for the full 1H26 against the results of 1H25 from the date of TMA’s acquisition.

 

Consolidated Net Financial Debt

As of June 30, 2026, our net financial debt (cash, cash equivalents – net of client funds – plus financial investments and derivatives* minus loans) was a net liability and totaled P$4,646,726 million, representing a decrease of P$803,881 million compared to Net Financial Debt as of December 31, 2025, adjusted for inflation.

 

* Contemplates rate swaps and NDF (non-delivery forwards) agreements.

 

Investments in PP&E, intangible assets and rights of use assets

 

As of June 30, 2026, consolidated CAPEX (including additions to PP&E and intangible assets) totaled P$946,470 million (+47.3% vs. 1H25). CAPEX for Telecom (excluding TMA) totaled P$671,165 million (+39.9% vs. 1H25). Including additions from right-of-use, investments amounted to P$1,085,076 million, including P$292,096 million related to TMA.

 

The investments were focused on:

 

·

Expansion of both fixed and mobile data services to improve transmission and access speed offered to customers, the deployment of 4G coverage and capacity, and continued expansion of 5G to support mobile internet growth and enhance service quality.

 

·

Deployment and modernization of 4G mobile access sites to improve coverage and increase mobile network capacity. The 4G/LTE rollout reached 98% population coverage. Our mobile network customers with access to our network experienced improved service quality, reaching average speeds of 85 Mbps.

 

·

During 1H26, we continued expanding our 5G network with the addition of 375 sites.

 

·

With regard to the fixed access infrastructure, during the first half of 2026 we continued to strengthen our broadband capabilities through the deployment of new fiber optic networks and the modernization of existing infrastructure. FTTH (Fiber to the Home) accesses currently represent 36% of Personal’s broadband base, with over 1.5 million accesses, supported by the acceleration of fiber deployment.

 

 

 

 

 

 

 

On June 18, 2026, the Company reported that it had been notified of Resolution RESFC-2026-38-APN-TDC#ANC, dated June 17, 2026, issued in Case No. EX-2025-22498026-APN-DR#CNDC, entitled: “TELECOM ARGENTINA S.A. S/ NOTICE UNDER SECTION 9 OF LAW No. 27,442 (Conc. 2025),” rendered by the Argentine Antitrust Tribunal (Tribunal de Defensa de la Competencia) (the “Resolution”).

 

Pursuant to Section 2 of the Resolution, the Argentine Antitrust Commission resolved as follows: “To condition the economic concentration transaction consisting of the acquisition of exclusive control over TELEFÓNICA MÓVILES ARGENTINA S.A. and its subsidiaries by TELECOM ARGENTINA S.A. upon compliance with the remedy set forth in Annex I (IF-2026-60062041-

APN-TDC#ANC) (the “Remedy”), which forms an integral part of this Resolution, in accordance with Section 14(b) of Law No. 27,442.”

 

In summary, Annex I (IF-2026-60062041-APN-TDC#ANC) establishes, as Remedy:

 

1. In the mobile telephony segment, “[t]he Parties shall transfer to the Purchaser a minimum base of 6,000,000 mobile service customers, distributed as follows: (a) Buenos Aires Metropolitan Area (AMBA, for its acronym in Spanish): 4,000,000 customers; (b) remaining of the country: 2,000,000 customers, to be freely allocated throughout the national territory outside AMBA, without regional subdivision” (Section 5.1), and “[t]he Parties shall transfer the rights of use of radio spectrum assigned by ENACOM, in the bands and amounts necessary for the competitive operation of the divested mobile service” (Section 6.1).

 

2. In the residential internet segment, “[t]he Parties shall transfer to the Purchaser the subscriber base of residential internet services provided by TELEFÓNICA in twenty-eight (28) localities, comprising 211,400 subscribers, located in the Province of Buenos Aires, the City of Buenos Aires, the Province of Mendoza, the Province of Neuquén and the Province of Río Negro” (Section 13.1).

 

3. In addition, behavioral remedies are imposed in the corporate services segment and in the wholesale segment, among others.

 

 

 

 

Relevant events after June 30, 2026

 

5G Spectrum Auction in Paraguay

 

In June 2026, CONATEL launched Auction No. 01/2026 - Mobile Broadband for the granting of licenses to provide cellular mobile telephony, internet access and data transmission services in the 2,300 MHz and 3,500 MHz frequency bands. The auction contemplates the provision of services under 5G standards and establishes a maximum spectrum cap of 200 MHz per operator or economic group.

 

On July 16, 2026, Núcleo was awarded Lot “I” (3,700-3,750 MHz Band) and Lot “J” (3,750-3,800 MHz Band) for a total amount of US$1 million, of which US$0.7 million was paid on the date of the auction, while US$0.3 million remained outstanding as of the issuance date of these condensed interim consolidated financial statements.

 

The award of the frequency band usage rights will result in their capitalization as intangible assets.

 

Appointment of Chief Financial Officer ("CFO")

 

At its meeting held on July 22, 2026, the Company's Board of Directors resolved to appoint Mr. Manuel Garcia Diez as Chief Financial Officer ("CFO") of Telecom Argentina.

 

Mr. Garcia Diez assumed his duties on August 3, 2026.

 

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