Equibles

6-K

TELECOM ARGENTINA SA (TEO)

6-K 2024-08-15 For: 2024-08-15
View Original
Added on April 04, 2026

UNITEDSTATES

SECURITIESAND EXCHANGE COMMISSION

Washington,D.C. 20549

FORM 6-K

REPORTOF FOREIGN PRIVATE ISSUER

Pursuantto Rule 13a-16 or 15d-16

ofthe Securities Exchange Act of 1934

For the month of August 2024

Commission File Number: 001-13464

TelecomArgentina S.A.

(Translation of registrant’s name into English)

GeneralHornos, No. 690, 1272

BuenosAires, Argentina

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

TelecomArgentina S.A.

TABLE OF CONTENTS

Item

1. Unaudited condensed consolidated financial statements as of June 30, 2024
2. Operating and financial review and prospects as of June 30, 2024
--- ---
3. Capsulefinancial information illustrating the effects of inflation from December 31, 2023 to June 30, 2024
--- ---

UnauditedCondensed Consolidated Financial Statements as of June 30, 2024

GeneralHornos 690

(C1272ACK)Autonomous city of Buenos Aires

Republicof Argentina

UNAUDITEDCONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OFJUNE 30, 2024 AND 2023

INDEX

Glossary of terms F-1
Unaudited condensed consolidated financial statements
Consolidated statements of financial position F-3
Consolidated income statements F-4
Consolidated statements of comprehensive income F-5
Consolidated statements of changes in equity F-6
Consolidated statements of cash flows F-7
Notes to the unaudited condensed consolidated financial statements

Glossaryof terms

The following explanations are not technical definitions, but to assist the general reader to understand certain terms as used in these unaudited condensed consolidated financial statements.

*ADS:*Telecom Argentina’s American Depositary Share, listed on the New York Stock Exchange, each representing five Class B Shares.

*ADR:*American Depositary Receipt.

BCRA*(Banco Central de la República Argentina):* The Central Bank of Argentina.

BYMA(Bolsas y Mercados Argentinos): Buenos Aires Stock Exchange*.*

*CAPEX:*Capital expenditures.

CNV(Comisión Nacional de Valores): The Argentine National Securities Commission.

Company/TelecomArgentina: Telecom Argentina S.A.

*CVH:*Cablevisión Holding S.A., controlling company of Telecom Argentina since January 1, 2018.

*DFI:*Derivate Financial Instrument.

FACPCE(Federación Argentina de Consejos Profesionales en Ciencias Económicas): Argentine Federation of Professional Councils of Economic Sciences.

*Fintech:*Fintech Telecom LLC, a Telecom Argentina shareholder.

*fintech:*Financial technology services are activities that involve the use of innovation and technological developments for the design, offer and provision of financial products and services.

FixedAssets: Includes PP&E, Intangible assets, Goodwill and Rights of use assets.

*IAS:*International Accounting Standards.

IASB: International Accounting Standards Board.

*ICTServices (Information and Communication Technology services):*Services to transport and distribute signals or data, such as voice, text, video and images, provided or requested by third-party users, through telecommunications networks.

IFRSAccounting Standards: International Financial Reporting Standards, as issued by the IASB.

INDEC(Instituto Nacional de estadísticas y censos): The National Institute of statistics and cense.

LaCapital Cable/Ver TV/TSMA: Names corresponding to limited companies La Capital Cable S.A., Ver T.V. S.A. and Teledifusora San Miguel Arcángel S.A., respectively, companies that are directly or indirectly associates according to the definition of the General Corporations Law.

LAD(Ley Argentina Digital): Argentine Digital Law No. 27,078.

LGS(Ley de General de Sociedades): Argentine Corporations Law No. 19,550 as amended. Since the enforcement of the new Civil and Commercial Code its name was changed to “General Corporations Law”.

MicroSistemas/Pem/Cable Imagen/AVC Continente Audiovisual/Inter Radios/Personal Smarthome/NYS2/NYSSA/ RISSAU/ Manda: Names corresponding to limited companies or limited responsibility companies that are directly or indirectly controlled according to the definition of the General Corporations Law, or were controlled by the Company, directly or indirectly: Micro Sistemas S.A.U., Pem S.A.U., Cable Imagen S.R.L., AVC Continente Audiovisual S.A., Inter Radios S.A.U., Personal Smarthome S.A., NYS2 S.A.U., Negocios y Servicios S.A.U., Red Intercable Satelital S.A.U. and Manda S.A..

NYSE:New York Stock Exchange.

*OPH:*Name corresponding to company Open Pass Holding LLC that is a joint venture of Telecom Argentina.

PEN(Poder Ejecutivo Nacional): The executive branch of the Argentine government.

*PP&E:*Properties, plant and equipment.

PSPCP(Proveedores de servicios de pago con cuentas de pago): Payment service providers offering payment accounts.

RECPAM(Resultado por exposición a los cambios en el poder adquisitivo de la moneda): Inflation Adjustment Gain (Loss).

F-1

*Telecom:*Telecom Argentina and its consolidated subsidiaries.

TelecomUSA/ Núcleo/ Personal Envíos/ Tuves Paraguay/ Televisión Dirigida/ Adesol/ Opalker/Ubiquo/ Micro Fintech Holding/Naperville: Names corresponding to foreign companies Telecom Argentina USA Inc., Núcleo S.A.E., Personal Envíos S.A., Tuves Paraguay S.A., Televisión Dirigida S.A., Adesol S.A., Opalker S.A., Ubiquo Chile Spa,Micro Fintech Holding LLC and Naperville Investments LLC, respectively, companies that are directly or indirectly controlled according to the definition of the General Corporations Law.

*USA:*United States of America

UVA(Unidad de Valor Adquistivo): Purchasing Value Unit, an index developed and published by the Banco Central de la República Argentina.

F-2

CONSOLIDATEDSTATEMENTS OF FINANCIAL POSITION

(In millions of Argentine pesos in current currency - Note 1.d)

June 30, December 31,
ASSETS Note 2024 2023
Current<br> Assets
Cash<br> and cash equivalents 2 165,008 287,230
Investments 2 223,141 222,862
Trade receivables 3 252,285 238,860
Other receivables 4 55,543 61,193
Inventories 5 42,190 56,681
Assets<br> classified as held for sale 7 1,781 -
Total<br> current assets 739,948 866,826
Non-Current<br> Assets
Trade receivables 3 409 453
Other receivables 4 27,860 35,289
Deferred<br> income tax assets 13 20,904 24,836
Investments 2 36,823 42,799
Goodwill 6 2,783,516 2,775,625
PP&E 7 3,750,804 4,084,143
Intangible<br> assets 8 1,590,915 1,629,505
Right<br> of use assets 9 384,569 387,755
Total<br> non-current assets 8,595,800 8,980,405
TOTAL<br> ASSETS 9,335,748 9,847,231
LIABILITIES
Current<br> Liabilities
Trade payables 10 391,424 641,526
Borrowings 11 820,770 1,012,979
Salaries<br> and social security payables 12 137,026 163,845
Income tax<br> payables 13 3,875 2,808
Other taxes<br> payables 14 70,301 70,377
Dividends<br> payables 2 616 -
Leases liabilities 15 50,204 51,659
Other liabilities 16 42,392 36,782
Provisions 17 6,726 9,600
Total<br> current liabilities 1,523,334 1,989,576
Non-Current<br> Liabilities
Trade payables 10 10,944 1,643
Borrowings 11 1,743,220 2,812,707
Salaries<br> and social security payables 12 7,999 6,704
Deferred<br> income tax liabilities 13 1,185,424 829,007
Other taxes<br> payables 14 4 20
Leases liabilities 15 82,739 107,700
Other liabilities 16 8,318 16,255
Provisions 17 45,503 46,951
Total<br> non-current liabilities 3,084,151 3,820,987
TOTAL<br> LIABILITIES 4,607,485 5,810,563
EQUITY
Equity attributable<br> to Controlling Company 4,635,492 3,897,253
Equity<br> attributable to non-controlling interest 92,771 139,415
TOTAL EQUITY*(See Consolidated Statements of Changes in Equity)* 4,728,263 4,036,668
TOTAL<br> LIABILITIES AND EQUITY 9,335,748 9,847,231

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-3

CONSOLIDATEDINCOME STATEMENTS

(In millions of Argentine pesos in current currency, except per share data in Argentine pesos in current currency - Note 1.d)

Three-month<br> period<br> ended June 30, Six-month<br> period<br> ended June 30,
Note 2024 2023 2024 2023
Revenues 21 856,084 933,838 1,666,979 1,921,749
Employee<br> benefit expenses and severance payments 22 (207,318) (224,150) (394,444) (461,767)
Interconnection<br> and transmission costs (23,607) (26,947) (53,353) (56,417)
Fees for<br> services, maintenance, materials and supplies 22 (110,363) (123,094) (228,973) (238,916)
Taxes and<br> fees with the Regulatory Authority 22 (66,838) (72,260) (129,323) (148,333)
Commissions<br> and advertising (44,565) (59,468) (86,665) (117,032)
Cost of<br> equipment and handsets 22 (45,561) (58,414) (73,847) (104,255)
Programming<br> and content costs (48,977) (52,401) (93,387) (109,040)
Bad debt<br> expenses 3 (15,103) (18,021) (35,283) (47,909)
Other operating<br> expenses 22 (44,251) (52,946) (76,612) (92,808)
Depreciation,<br> amortization and impairment of Fixed Assets 22 (280,596) (321,588) (557,189) (634,933)
Operating loss (31,095) (75,451) (62,097) (89,661)
Losses<br> from associates and joint ventures 2 (1,361) (4,967) (2,972) (3,013)
Financial<br> results from borrowings 23 176,002 (24,682) 1,121,977 16,321
Other financial<br> results, net 23 26,855 34,997 163,823 83,096
Income (loss) before income<br> tax 170,401 (70,103) 1,220,731 6,743
Income<br> tax benefit (expense) 13 (111,539) 85,523 (361,508) 139,666
Net income for the period 58,862 15,420 859,223 146,409
Attributable to:
Controlling<br> Company 54,608 12,902 851,682 140,561
Non-controlling<br> interest 4,254 2,518 7,541 5,848
58,862 15,420 859,223 146,409
Earnings per share for income<br> attributable to the Controlling Company - Basic and diluted 1.c 25.36 5.99 395.45 65.27

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

See Note 22 for additional information on operating expenses per function.

F-4

CONSOLIDATEDSTATEMENTS OF COMPREHENSIVE INCOME

(In millions of Argentine pesos in current currency - Note 1.d)

Three-month<br> period<br> ended June 30, Six-month<br> period<br> ended June 30,
2024 2023 2024 2023
Net income for<br> the period 58,862 15,420 859,223 146,409
Other comprehensive income
Items<br> that may be reclassified to profit or loss
Currency<br> translation adjustments (no effect on Income Tax) (38,567) (1,370) (162,078) (4,912)
DFI effects<br> classified as hedges 172 2,877 1,000 1,939
Income<br> Tax effects on DFI classified as hedges and others (33) (1,034) (350) (684)
Other comprehensive income<br> (loss), net of tax (38,428) 473 (161,428) (3,657)
Total comprehensive income<br> for the period 20,434 15,893 697,795 142,752
Attributable to:
Controlling<br> Company 28,076 13,029 738,239 137,124
Non-controlling<br> interest (7,642) 2,864 (40,444) 5,628
20,434 15,893 697,795 142,752

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-5

CONSOLIDATEDSTATEMENTS OF CHANGES IN EQUITY

(In millions of Argentine pesos in current currency – Note 1.d)

Owners<br> contribution Reserves
Outstanding<br><br> shares<br><br> Capital<br><br> nominal<br><br> value<br> (1) Inflation<br><br> adjustment Contribu-<br><br> ted Surplus Legal Special<br> <br><br> reserve for<br><br> IFRS <br><br>implementa-<br><br> tion Facultati-<br><br> ve (2) Other<br><br> comprehensive loss Retained<br><br> earnings Equity<br><br> attributa-<br><br> ble to<br><br> controlling<br><br> company Equity<br><br> attributable<br><br> to non-<br><br> controlling<br><br> interest Total<br><br> Equity
Balances<br> as of January 1, 2023 2,154 1,543,632 3,804,015 91,716 33,629 330,421 (183,941) (1,163,501) 4,458,125 90,754 4,548,879
Resolutions<br> of the General Ordinary and Extraordinary Shareholders’ Meeting held on April 27, 2023
-<br> Specific loss allocation - - (1,533,515) - - - - 1,533,515 - - -
-<br> Reserves constitution - - - - - 370,014 - (370,014) - - -
Dividends<br> (3) - - - - - (187,767) - - (187,767) - (187,767)
Subsidiary<br> acquisition - - - - - - - - - (4) (4)
Comprehensive<br> income:
Net<br> income for the period - - - - - - - 140,561 140,561 5,848 146,409
Other<br> comprehensive loss - - - - - - (3,437) - (3,437) (220) (3,657)
Total<br> Comprehensive income (loss) - - - - - - (3,437) 140,561 137,124 5,628 142,752
Balances<br> as of June 30, 2023 2,154 1,543,632 2,270,500 91,716 33,629 512,668 (187,378) 140,561 4,407,482 96,378 4,503,860
Balances<br> as of January 1, 2024 2,154 1,543,632 2,270,500 91,716 33,629 512,668 (93,718) (463,328) 3,897,253 139,415 4,036,668
Resolutions<br> of the General Ordinary and Extraordinary Shareholders’ Meeting held on April 25, 2024
-<br> Absorption of retained earnings (losses) and reserve reclassification (4) - - (139,179) - - (324,149) - 463,328 - - -
Dividends<br> to non-controlling shareholders (3) - - - - - - - - - (8,609) (8,609)
Subsidiary<br> acquisition (5) - - - - - - - - - 2,409 2,409
Comprehensive<br> income:
Net<br> income for the period - - - - - - - 851,682 851,682 7,541 859,223
Other<br> comprehensive loss - - - - - - (113,443) - (113,443) (47,985) (161,428)
Total<br> Comprehensive income (loss) - - - - - - (113,443) 851,682 738,239 (40,444) 697,795
Balances<br> as of June 30, 2024 2,154 1,543,632 2,131,321 91,716 33,629 188,519 (207,161) 851,682 4,635,492 92,771 4,728,263

(1) See Note 20.

(2) Correspond to the Voluntary reserve to maintain the Company's level of capital expenditures and its current solvency level.

(3) See Note 2.b).

(4) See Note 20.b).

(5) See Note 25.2.a).

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-6

CONSOLIDATEDSTATEMENTS OF CASH FLOWS

(In millions of Argentine pesos in current currency – Note 1.d)

**** Six-month period ended June 30,
Note 2024 2023
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net<br> income for the period 859,223 146,409
Adjustments to reconcile net income to net cash flows provided by operating activities
Allowances<br> deducted from assets 30,310 45,364
Depreciation<br> of PP&E 7 425,842 496,951
Amortization<br> of intangible assets 8 49,150 77,832
Amortization<br> of rights of use assets 9 82,569 60,021
Disposals<br> of Fixed Assets 681 502
Losses<br> from associates and joint ventures 2.a 2,972 3,013
Financial<br> results and others (1,403,700) (208,138)
Income<br> tax 13 361,508 (139,666)
Income<br> tax paid (*) (2,967) (3,344)
Net<br> increase in assets 2.b (191,678) (228,209)
Net<br> increase in liabilities 2.b 114,749 247,624
Total cash flows from operating activities 328,659 498,359
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Payments<br> for PP&E (171,104) (192,148)
Payments<br> for intangible asset acquisitions (18,031) (8,995)
Dividends<br> received from associates 2.b 764 1,334
Proceeds<br> from the sale of PP&E and intangible assets 2,851 238
Payments<br> for acquisition of subsidiary and joint venture, net of cash acquired (5,111) (4,057)
Proceeds<br> from sale of investments not considered as cash and cash equivalents 146,723 7,070
Payments<br> for investments not considered as cash and cash equivalents (190,904) (244,656)
Total cash flows used in investing activities (234,812) (441,214)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds<br> from borrowings 2.b 264,140 286,286
Payment<br> of borrowings 2.b (225,083) (139,290)
Payment<br> of interests and related expenses 2.b (153,425) (158,060)
Payments<br> of leases liabilities 15 (35,895) (37,183)
Dividends<br> paid to non-controlling interests in subsidiaries 2.b (7,928) -
Total cash flows used in financing activities (158,191) (48,247)
NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS (64,344) 8,898
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 287,230 224,222
NET FOREIGN EXCHANGE DIFFERENCES AND RECPAM ON CASH AND CASH EQUIVALENTS (57,878) (6,855)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 165,008 226,265
(*) Six-month period<br><br> <br>ended June 30,
--- --- ---
2024 2023
Corresponding<br> to Controlling Company - (1,193)
Corresponding<br> to subsidiaries (2,967) (2,151)
(2,967) (3,344)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

See Note 2.b for additional information on the consolidated statements of cash flows.

**F-7**

NOTESTO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2024 AND 2023 (*)

(In millions of Argentine pesos in current currency, except as otherwise indicated)

INDEX

Page
Note<br> 1 – Basis of preparation of the unaudited condensed consolidated financial statements and significant accounting policies F-9
Note<br> 2 – Cash and cash equivalents and Investments. Additional information on the consolidated statements of cash flows. Dividends<br> payables F-14
Note<br> 3 – Trade receivables F-16
Note<br> 4 – Other receivables F-17
Note<br> 5 – Inventories F-17
Note<br> 6 – Goodwill F-17
Note<br> 7 – PP&E F-18
Note<br> 8 – Intangible assets F-18
Note<br> 9 – Right of use assets F-19
Note<br> 10 – Trade payables F-19
Note<br> 11 – Borrowings F-19
Note<br> 12 – Salaries and social security payables F-21
Note<br> 13 – Income tax payable and Deferred income tax assets/liabilities F-21
Note<br> 14 – Other taxes payables F-22
Note<br> 15 – Leases liabilities F-22
Note<br> 16 – Other liabilities F-23
Note<br> 17 – Provisions F-23
Note<br> 18 – Additional information of financial assets and liabilities F-24
Note<br> 19 – Purchase commitments F-26
Note<br> 20 – Equity F-26
Note<br> 21 – Revenues F-27
Note<br> 22 – Operating expenses F-27
Note<br> 23 – Financial results F-28
Note<br> 24 – Balances and transactions with Related parties F-28
Note<br> 25 – Recent developments corresponding to the six-month period ended June 30, 2024 F-30
Note<br> 26 – Subsequent events to June 30, 2024 F-32

(*) By convention the definitions used in the notes are in the Glossary of Terms.

**F-8**

TELECOMARGENTINA S.A.

NOTE1 – BASIS OF PREPARATION OF THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation and significant accounting policies

These unaudited condensed consolidated financial statements as of June 30, 2024 and for the six and three-month periods ended on June 30, 2024 have been prepared in accordance with IAS 34 “Interim Financial Reporting”.

Therefore, these financial statements do not include all the information required in an annual financial statement and, consequently, they must be read jointly with the annual financial statements as of December 31, 2023 included in form 20F 2023, which can be consulted at the Company´s website (https:// https://inversores.telecom.com.ar/en/quarterly-earnings.html). It should be noted that, the annual financial statements have been measured in terms of current pesos as of December 31, 2023 applying the guidance in IAS 29. These unaudited condensed consolidated financial statements have been measured in terms of current pesos as of June 30, 2024 applying the guidance in IAS 29. (See Note 1.d)

We have not recast our annual financial statements to measure them in terms of current pesos as of June 30, 2024, the most recent financial period for which consolidated financial statements are available. Therefore, the annual financial statements and the unaudited condensed consolidated financial statements are not comparable.

These unaudited condensed consolidated financial statements were prepared following the same accounting policies as in the most recent annual financial statements, except for:

Companiesunder common control

Business combinations between companies under common control are accounted for considering the book value of the acquired company in the parent company. Unrealized result is also eliminated unless the transaction provides evidence of the asset transferred.

These unaudited condensed consolidated financial statements were prepared including in the consolidation process the following companies:

****<br><br> <br>Company ****<br><br> <br>Main activity ****<br><br> <br>Country Telecom Argentina's direct/indirect interest in capital stock and votes
Núcleo<br> (a) Mobile<br> telecommunications Services Paraguay 67.50%
Micro<br> Fintech Holding (b) Holding USA 100.00%
Personal<br> Envíos (b) Mobile<br> financial services Paraguay 67.50%
Televisión<br> Dirigida Cable<br> television services Paraguay 100.00%
Naperville<br> (c) Holding USA 51.00%
AVC<br> Continente Audiovisual Broadcasting<br> services Argentina 100.00%
Inter<br> Radios Broadcasting<br> services Argentina 100.00%
Micro<br> Sistemas Services<br> related to the use of electronic payment media Argentina 100.00%
Pem Investment Argentina 100.00%
Cable<br> Imagen Closed-circuit<br> television Argentina 100.00%
Personal<br> Smarthome (d) Security<br> solutions and services Argentina 100.00%
NYS2<br> (d) ICT<br> Services and Audiovisual Communication Services. Argentina 100,00%
NYSSA Provision<br> of internet access services. Argentina 100.00%
Adesol<br> (e) Holding Uruguay 100.00%
Opalker Cybersecurity,<br> content platform and related services Uruguay 100.00%
Ubiquo<br> (f) Cybersecurity<br> services and products Chile 95.00%
Telecom<br> USA Telecommunication<br> services USA 100.00%
(a) During<br> June 2024, the merger by absorption between Núcleo (absorbing company) with Tuves<br> Paraguay (absorbed company) has taken place. For further details, see Note 25.2.b.1).
--- ---
(b) Since<br> May 2024, the subsidiary Micro Fintech Holding directly controls Personal Envíos.<br> For further details, see Note 25.2.b.2).
(c) Company<br> indirectly acquired by the subsidiary Televisión Dirigida on May, 2024. Naperville<br> is the holding company of Manda, which in turn is the holding company of RISSAU. For further<br> details, see Note 25.2.a).
(d) As<br> of June 30, 2024 is a dormant entity.
(e) Includes<br> the 100% interest in Telemas S.A., which holds interests in the following special-purpose<br> entities: Audomar S.A., Bersabel S.A., Dolfycor S.A., Reiford S.A., Space Energy S.A., Tracel<br> S.A. and Visión Satelital S.A..
(f) Company<br> indirectly acquired by the subsidiary Opalker on June 20, 2023. 
**F-9**

TELECOMARGENTINA S.A.

The preparation of these unaudited condensed consolidated financial statements in accordance with IFRS Accounting Standards requires that the Company's Management make estimates that affect the figures disclosed in the financial statements or its complementary information. Actual results may differ from these estimates.

These unaudited condensed consolidated financial statements are expressed in millions of Argentine pesos, on an accrual basis of accounting (except for the consolidated statement of cash flows), based on historical cost, except for certain financial assets and liabilities (includes DFI) that are measured at fair value and are prepared in current currency as of June 30, 2024.

The figures as of December 31, 2023 and for the six and three-month periods ended on June 30, 2023, which are disclosed in these unaudited condensed consolidated financial statements for comparative purposes, are a result of restating the financial statements as of such dates to values in current currency as of June 30, 2024. This is as consequence of the restatement process of the financial information described in point d). When applicable, certain reclassifications were made for comparative purposes.

These unaudited condensed consolidated financial statements as of June 30, 2024, were approved by resolution of the Board of Directors’ meeting held on August 12, 2024.

These unaudited condensed consolidated financial statements contain all disclosures required under IAS 34. Some additional disclosures required by the LGS and/or by the CNV have been also included.

b) Segment information

The Executive Committee and the CEO have a strategic and operational vision of Telecom as a single business unit, according to the current regulatory context of the converged ICT Services industry (adding to the same segment both the activities related to the mobile services, internet services, cable television and fixed and data services, services governed by the same regulatory framework of ICT Services). To exercise its functions, both the Executive Committee and the CEO receive periodically the economic-financial information of Telecom Argentina and its subsidiaries (in current currency as of the date of each transaction), that is prepared as a single segment and evaluate the evolution of business as a unit of generation of results, administrating the resources in a unique way to achieve the objectives. Regarding costs, they are not specifically allocated to a type of service, considering that the Company has a single payroll and operating expenses that affect all services in general (non-specific). Further, decisions on CAPEX affect all the types of services provided by Telecom in Argentina and are not allocated specifically to one of them.

Additionally, Telecom, through Micro Sistemas, develops activities in the fintech industry in Argentina. Telecom also carries out activities abroad (Paraguay, USA, Uruguay and Chile).

The operations that Telecom develops through Micro Sistemas, and those developed abroad, are not analyzed as a separate segment by the Executive Committee and the CEO, considering that they are not considered as individually significant. These operations do not meet the aggregation criteria established by the standard to be grouped within the "ICT Services in Argentina" segment, and considering that they do not exceed any of the quantitative thresholds identified in the standard to qualify as reportable segments, they are grouped within the category "Other segments".

The Executive Committee and the CEO continue to monitor these business to evaluate the manner in which its performance is reviewed and, eventually, its consideration as a separate reportable segment provided it complies with the requirements established by IFRS Accounting Standards to that effect.

The Executive Committee and the CEO evaluate the profitability for each reportable segment based on the measure of the Adjusted EBITDA. Adjusted EBITDA is defined as our net (loss) income less income tax, financial results, earnings (losses) from associates and joint ventures, and depreciation, amortization and impairment of Fixed Assets.

Presented below is the segment financial information as it is analyzed by the Executive Committee and the CEO for the six-month period ended June 30, 2024 and 2023.

**F-10**

TELECOMARGENTINA S.A.

ConsolidatedIncome Statement for the six-month period ended June 30, 2024

ICT Services in Argentina ICT Services in Argentina – Inflation restatement ICT Services in Argentina restated for inflation Other segments Other segments – Inflation restatement Other segments restated for inflation Eliminations Total
Revenues 1,321,150 210,058 1,531,208 124,723 22,587 147,310 (11,539) 1,666,979
Operating<br> costs without depreciation, amortization and impairment of Fixed Assets (888,654) (180,063) (1,068,717) (94,818) (19,891) (114,709) 11,539 (1,171,887)
Adjusted EBITDA 432,496 29,995 462,491 29,905 2,696 32,601 - 495,092
Depreciation,<br> amortization and impairment of Fixed Assets (557,189)
Operating loss (62,097)
Losses<br> from associates and joint ventures (2,972)
Financial<br> results from borrowings 1,121,977
Other<br> financial results, net 163,823
Income before income tax 1,220,731
Income<br> tax expense (361,508)
Net income for the period 859,223
Attributable to:
Controlling<br> Company 851,682
Non-controlling<br> interest 7,541
859,223

ConsolidatedIncome Statement for the six-month period ended June 30, 2023

ICT Services in Argentina ICT Services in Argentina – Inflation restatement ICT Services in Argentina restated for inflation Other segments Other segments – Inflation restatement Other segments restated for inflation Eliminations Total
Revenues 409,148 1,392,136 1,801,284 29,419 99,718 129,137 (8,672) 1,921,749
Operating<br> costs without depreciation, amortization and impairment of Fixed Assets (290,952) (1,002,269) (1,293,221) (20,996) (70,932) (91,928) 8,672 (1,376,477)
Adjusted EBITDA 118,196 389,867 508,063 8,423 28,786 37,209 - 545,272
Depreciation,<br> amortization and impairment of Fixed Assets (634,933)
Operating loss (89,661)
Losses<br> from associates and joint ventures (3,013)
Financial<br> results from borrowings 16,321
Other<br> financial results, net 83,096
Income before income tax 6,743
Income<br> tax benefit 139,666
Net income for the period 146,409
Attributable to:
Controlling<br> Company 140,561
Non-controlling<br> interest 5,848
146,409

Additional information per geographical area is disclosed below:

Six-month period ended June 30,
2024 2023
Revenues<br> from customers located in Argentina 1,527,302 1,795,013
Revenues<br> from foreign customers 139,677 126,736
CAPEX<br> corresponding to the segment “ICT Services in Argentina” 196,602 200,756
CAPEX<br> corresponding to the segment “Other segments” 27,990 27,839
As of June 30, As of December 31,
--- --- ---
2024 2023
Fixed<br> Assets corresponding to the segment “ICT Services in Argentina” 8,186,516 8,407,940
Fixed<br> Assets corresponding to the segment “Other segments” 323,288 469,088
Borrowings<br> corresponding to the segment “ICT Services in Argentina” 2,521,348 3,725,763
Borrowings<br> corresponding to the segment “Other segments” 42,642 99,923 
**F-11**

TELECOMARGENTINA S.A.

Presented below is the segment financial information as it is analyzed by the Executive Committee and the CEO for the three-month period ended June 30, 2024 and 2023.

ConsolidatedIncome Statement for the three-month period ended June 30, 2024

ICT Services in Argentina ICT Services in Argentina – Inflation restatement ICT Services in Argentina restated for inflation Other segments Other segments – Inflation restatement Other segments restated for inflation Eliminations Total
Revenues 762,001 32,810 794,811 64,978 2,908 67,886 (6,613) 856,084
Operating<br> costs without depreciation, amortization and impairment of Fixed Assets (516,850) (41,925) (558,775) (49,428) (4,993) (54,421) 6,613 (606,583)
Adjusted EBITDA 245,151 (9,115) 236,036 15,550 (2,085) 13,465 - 249,501
Depreciation,<br> amortization and impairment of Fixed Assets (280,596)
Operating loss (31,095)
Losses<br> from associates and joint ventures (1,361)
Financial<br> results from borrowings 176,002
Other<br> financial results, net 26,855
Income before income tax 170,401
Income<br> tax expense (111,539)
Net income for the period 58,862
Attributable to:
Controlling<br> Company 54,608
Non-controlling<br> interest 4,254
58,862

ConsolidatedIncome Statement for the six-month period ended June 30, 2023

ICT Services in Argentina ICT Services in Argentina – Inflation restatement ICT Services in Argentina restated for inflation Other segments Other segments – Inflation restatement Other segments restated for inflation Eliminations Total
Revenues 221,044 652,491 873,535 16,293 48,134 64,427 (4,124) 933,838
Operating<br> costs without depreciation, amortization and impairment of Fixed Assets (160,517) (484,799) (645,316) (11,777) (34,732) (46,509) 4,124 (687,701)
Adjusted EBITDA 60,527 167,692 228,219 4,516 13,402 17,918 - 246,137
Depreciation,<br> amortization and impairment of Fixed Assets (321,588)
Operating loss (75,451)
Losses<br> from associates and joint ventures (4,967)
Financial<br> results from borrowings (24,682)
Other<br> financial results, net 34,997
Loss before income tax (70,103)
Income<br> tax benefit 85,523
Net income for the period 15,420
Attributable to:
Controlling<br> Company 12,902
Non-controlling<br> interest 2,518
15,420

Additional information per geographical area is disclosed below:

Three-month period ended June 30,
2024 2023
Revenues<br> from customers located in Argentina 792,701 870,580
Revenues<br> from foreign customers 63,383 63,258
CAPEX<br> corresponding to the segment “ICT Services in Argentina” 85,075 94,695
CAPEX<br> corresponding to the segment “Other segments” 15,416 17,211 
**F-12**

TELECOMARGENTINA S.A.

c) Net earnings per share

Basic earnings per share is calculated by dividing the net income attributable to the Controlling Company by the weighted average number of ordinary shares outstanding during the period. On the other hand, diluted earnings per share is computed by dividing the net income attributable to the Controlling Company for the period by the weighted average number of common shares issued and to be potentially issued at the end of the period. Since the Company has no dilutive potential common stock outstanding, basic and dilutive earnings per share amounts do not differ.

For the six and three-month periods ended June 30, 2024 and 2023, the weighted average number of shares outstanding amounted to 2,153,688,011.

d) Financial reporting in hyperinflationary economies

Since Argentina has been considered a high-inflation economy for accounting purposes in accordance with IAS 29 since July 1, 2018, the financial information expressed in Argentine pesos is restated in current currency of June 30, 2024.

The table below shows the evolution of the indexes as of June 30, 2024 and 2023 and December 31, 2023 according to official statistics (INDEC) in accordance with Resolution No. 539/18 of the FACPCE and the devaluation of the Argentine peso vs. de US dollar for the same years / periods:

As of June 30, 2023 As of December  31, 2023 As of June 30, 2024
National<br> Consumer Price Index (National CPI) (December 2016=100) 1,709.61 3,533.19 6,351.71
Variation in prices
Annual 115.6% 211.4% 271.5%
Accumulated<br> six months 50.7% n/a 79.8%
Accumulated<br> three months since March 2023/2024 23.8% n/a 18.6%
Banco<br> Nación US$/$ exchange rate 256.70 808.45 912.00
Variation in the exchange rate
Annual 105.0% 356.3% 310.5%
Accumulated<br> six months 44.9% n/a 12.8%
Accumulated<br> three months since March 2023/2024 22.8% n/a 6.3%

The Company followed the same restatement policies for items identified in the annual consolidated financial statements as of December 31, 2023.

e) New Standards and Interpretations issued by the IASB

NewStandards and Interpretations issued by the IASB applied by the Company

Standards and amendments Description Mandatory application date for years beginning on or after
Amendments<br> to IFRS 16 Measurement<br> of the lease liability in a sale and leaseback transaction January 1,<br> 2024
Amendments<br> to IAS 1 Classification<br> of liabilities as current and non-current exposed to covenants January 1,<br> 2024
Amendments<br> to IAS 7 and IFRS 7 Disclosure<br> requirements to enhance the transparency of supplier finance arrangements and their effects on a company's liabilities, cash flows<br> and exposure to liquidity risk. The new disclosures are not required to be provided in the 2024 interim report. January 1,<br> 2024

The application of the detailed amendment did not generate any impact on the results of operations or the financial situation of the Company.

NewStandards and Interpretations issued by the IASB not in force

As of the date to prepare these unaudited condensed consolidated financial statements, the Company has not applied the following new standards and amendments to the existing ones which application is mandatory for periods beginning after June 30, 2024:

**F-13**

TELECOMARGENTINA S.A.

Standards and amendments Description Mandatory application date for years beginning on or after
IFRS<br> 18 Presentation<br> and disclosure in financial statements January 1,<br> 2027
Amendments<br> to IFRS 7 and 9 Classification<br> and Measurement of Financial Instruments January 1,<br> 2026

It should be noted that on August 15, 2023, the CNV issued General Resolution No. 972/23, which does not allow early application of new IFRS Accounting Standards or their amendments. While Management is analyzing the potential impacts of such standard.

NOTE2 – CASH AND CASH EQUIVALENTS AND INVESTMENTS. ADDITIONAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS. DIVIDENDS PAYABLES

a) Cash and cash equivalents and Investments
December 31,
--- ---
Cash<br> and cash equivalents 2023
Cash<br> and Banks  (1) 163,535
Time<br> deposits 63,906
Mutual<br> funds 24,999
Government<br> bonds at fair value through profit or loss 34,790
Total<br> cash and cash equivalents 287,230
(1)      As<br> of June 30, 2024 includes restricted funds for 16,210 million corresponding to the funds to be paid to clients.
Investments ****
Current ****
Government<br> bonds and Notes at fair value through profit or loss 200,157
Time<br> deposits 21,770
Mutual<br> funds 935
222,862
Non-<br> current ****
Investments<br> in associates and joint ventures(a) 42,798
2003<br> Telecommunications Fund 1
42,799
Total<br> investments 265,661

All values are in US Dollars.

(a) Information<br> on Investments in associates and joint ventures is detailed below:

Financialposition information:

Companies Nature of relationship Main activity Country Percentage of capital stock owned and voting rights (%) Valuation as of 06.30.2024 Valuation as of 12.31.2023
Ver<br> TV. (1) Associate Cable<br> television station Argentina 49.00 17,731 18,864
TSMA<br> (1) (2) (3) Associate Cable<br> television station Argentina 50.10 6,688 6,857
La<br> Capital Cable (1) (2) Associate Closed-circuit<br> television Argentina 50.00 3,648 4,041
OPH<br> (1)(4) Joint<br> venture Holding USA 50.00 8,755 13,036
Total 36,822 42,798

(1)       Data about the issuer arises from extra-accounting information.

(2)       Direct and indirect interest.

(3)       Despite owning a percentage higher than a 50% of interest, the Company does not have the control in accordance with the requirements of IFRS Accounting Standards.

(4)       As of June 30, 2024, includes $(2,169) million of currency translation adjustments.

**F-14**

TELECOMARGENTINA S.A.

Earnings(losses) information:

Three-months period ended<br><br> <br>June 30, Six-months period ended<br><br> <br>June 30,
2024 2023 2024 2023
Profit (loss) Profit (loss)
Ver<br> TV 140 (3,246) (729) (1,912)
TSMA (141) (1,673) (156) (1,416)
La<br> Capital Cable (52) 75 25 438
OPH (1,308) (123) (2,112) (123)
Total (1,361) (4,967) (2,972) (3,013)
b) Additional information on the consolidated statements of cash flows
--- ---

Changes in assets/liabilities components:

June 30,
Net (increase) decrease in assets 2024 2023
Trade<br> receivables (155,906) (119,978)
Other<br> receivables (43,024) (101,179)
Inventories 7,252 (7,052)
(191,678) (228,209)
Net increase (decrease) in liabilities
Trade<br> payables 74,258 186,140
Salaries<br> and social security payables 10,868 3,113
Other<br> taxes payables 35,869 29,291
Other<br> liabilities and provisions (6,246) 29,080
114,749 247,624

MainFinancing activities components

The following table presents the main financing activities components:

June 30,
2024 2023
Bank<br> overdrafts 197,305 124,964
Notes 66,835 149,585
Bank<br> and other financial entities loans - 11,737
Total borrowings proceeds 264,140 286,286
Notes (94,971) (19,078)
Bank<br> and other financial entities loans (123,280) (104,010)
Loans<br> for purchase of equipment (6,832) (16,202)
Total payment of borrowings (225,083) (139,290)
Bank<br> overdrafts (59,309) (40,671)
Notes (38,404) (27,192)
Bank<br> and other financial entities loans (54,130) (59,698)
By<br> DFI and loans for purchase of equipment (1,582) (30,499)
Total payment of interest and related expenses (153,425) (158,060)

Mainnon-cash operating transactions

Main non-cash operating transactions from the consolidated statement of cash flows are the following:

June 30,
2024 2023
PP&E<br> and intangible assets acquisition financed with accounts payable 69,597 170,706
Right<br> of use assets acquisition through leases liabilities 91,354 76,223
Dividends<br> payment made with investments not considered as cash and cash equivalents - 187,767
Trade<br> payables cancelled with borrowings 10,508 9,846
Trade<br> payables cancelled with government bonds 11,423 -
Dividends<br> to non-controlling interest pending to pay 681 -
Dividends<br> distribution from associates uncollected 71 -
Joint<br> ventures acquisition cancelled with government bonds - 985
Acquisition<br> of companies and joint ventures financed by other liabilities (Note 25.2.a) 6,370 7,059
Other<br> receivables offset with acquisition of companies and joint ventures (Note 25.2.a) 3,708 398 
**F-15**

TELECOMARGENTINA S.A.

Dividendsreceived from associates

Brief information on dividends received by the Company is provided below:

Six-month period ended<br><br> <br>June 30 Paying<br><br> <br>company Distributed amount Dividends collected
Distribution month Currency of the transaction date Current currency as of June 30, 2024 Collection month Current currency as of June 30, 2024
2024 Ver<br> TV March,<br> 2024 281 333 March,<br> 2024 333
La<br> Capital Cable May,<br> 2024 400 418 May,<br> 2024 418
TSMA May,<br> 2024 12 13 May,<br> 2024 13
Ver<br> TV June,<br> 2024 71 71 (*)
835 764
2023 Ver<br> TV March,<br> 2023 130 594 April,<br> 2023 550
La<br> Capital Cable April,<br> 2023 200 784 April,<br> 2023 784
1,378 1,334

(*) As of June 30, 2024, these dividends are pending collection.

Dividendspaid

Distributionof non-cash dividends

Six-month period ended<br><br> <br>June 30 Non cash Distributed amount
Currency of the transaction date Current currency as of June 30, 2024
2023<br> ^(1)^ 2030<br> Global Bonds: US$411,214,954 47,701 187,767
(1) Pursuant<br> to the powers delegated by the shareholders of Telecom Argentina at the Ordinary and Extraordinary<br> Shareholders’ Meeting held on April 27, 2023, on May 3, 2023, the Board resolved<br> to partially reverse the “Voluntary reserve to maintain the Company's level of capital<br> expenditures and its current solvency level” to distribute as non-cash dividends.
--- ---

Dividendspaid to non-controlling interests in subsidiaries

Brief information on cash dividends distributed and paid is provided below:

Six-month period ended<br><br> <br>June 30 Paying company Distribution month Distributed amount Payment month Dividends paid in current currency as of June 30, 2024
Currency of the transaction date Current currency as of June 30, 2024
2024 Núcleo April,<br> 2024 6,468 7,046 April,<br> 2024 7,046
May,<br> 2024 842 882 May,<br> 2024 882
7,928 7,928
2024 Personal<br> Envíos June,<br> 2024 681 681 (*)

(*) As of June 30, 2024, these dividends are pending payment. The same converted at the closing exchange rate amount to $616 million.

NOTE 3– TRADE RECEIVABLES

June 30, December 31,
Current 2024 2023
Ordinary<br> receivables 315,293 300,677
Related<br> parties (Note 24.b) 2,204 1,246
Contractual<br> asset IFRS 15 75 79
Allowance<br> for doubtful accounts (65,287) (63,142)
252,285 238,860
Non-current
Ordinary<br> receivables 380 422
Contractual<br> asset IFRS 15 29 31
409 453
Total trade receivables, net 252,694 239,313

Movements in the allowance for doubtful accounts are as follows:

June 30,
2024 2023
At the beginning of the year (63,142) (86,147)
Increases (35,283) (47,909)
Uses (861) 26,910
RECPAM<br> and currency translation adjustments 33,999 31,420
At the end of the period (65,287) (75,726) 
**F-16**

TELECOMARGENTINA S.A.

NOTE4 – OTHER RECEIVABLES

June 30, December 31,
Current 2024 2023
Prepaid<br> expenses 21,645 16,902
Other<br> tax credits 12,705 10,375
Related<br> parties (Note 24.b) 328 388
DFI 2,712 2,785
Indemnification<br> assets 40 81
Guarantee<br> of financial operations 6,069 -
Guarantee<br> deposits 3,091 4,345
Call<br> option (Note 25.2.a) 1,062 7,250
Other 10,001 22,220
Allowance<br> for other receivables (2,110) (3,153)
55,543 61,193
Non-Current **** ****
Prepaid<br> expenses 2,147 3,640
Income<br> tax credits 19,291 18,376
Other<br> tax credits 207 99
DFI 114 786
Guarantee<br> deposits 3,215 8,579
Other 2,886 3,809
27,860 35,289
Total other receivables, net 83,403 96,482

Movements in the allowance for current other receivables are as follows:

June 30,
**** 2024 2023
At the beginning of the year (3,153) (4,195)
Increases (369) (505)
RECPAM<br> and currency translation adjustments 1,412 1,412
At the end of the period (2,110) (3,288)

NOTE5 – INVENTORIES

June 30, December 31,
2024 2023
Mobile<br> handsets and others 46,175 59,138
Allowance<br> for obsolescence of inventories (3,985) (2,457)
Total inventories 42,190 56,681

Movements in the allowance for obsolescence of inventories are as follows:

June 30,
2024 2023
At the beginning of the year (2,457) (2,742)
Increases (1,655) (186)
Uses 127 219
At the end of the period (3,985) (2,709)

NOTE6 – GOODWILL

June 30, December 31,
2024 2023
Argentina 2,774,647 2,760,414
Abroad 8,869 15,211
Total goodwill 2,783,516 2,775,625

Movements in Goodwill are as follows:

June 30,
2024 2023
At the beginning of the year 2,775,625 2,769,775
Incorporation<br> by acquisition (Note 25.2.a) 793 -
Increases<br> (Note 25.2.a) 14,342 431
Currency<br> translation adjustments (7,244) 209
At the end of the period 2,783,516 2,770,415 
F-17

TELECOMARGENTINA S.A.

NOTE7 – PP&E

June 30, December 31,
2024 2023
PP&E 3,787,418 4,128,137
Allowance<br> for obsolescence and impairment of materials (32,557) (39,537)
Accumulated<br> impairment of others PP&E (4,057) (4,457)
3,750,804 4,084,143

Movements in PP&E (without allowance for obsolescence and impairment of materials and accumulated impairment of others PP&E) are as follows:

June 30,
2024 2023
At the beginning of the year 4,128,137 4,493,421
CAPEX 207,726 218,411
Acquisitions<br> through business combinations (Note 25.2.a) 1,826 -
Currency<br> translation adjustments (122,263) (4,707)
Net<br> carrying value of decreases (385) (398)
Reclassification<br> to Assets classified as held for sale (*) (1,781) -
Depreciation<br> of the period (425,842) (496,951)
At the end of the period 3,787,418 4,209,776

(*) Corresponds to buildings that the Company considers available for sale and comply with the requirements of IFRS 5 for their classification.

Movements in the allowance for obsolescence and impairment of materials are as follows:

June 30,
2024 2023
At the beginning of the year (39,537) (50,826)
Decreases 6,597 3,295
Currency<br> translation adjustments 383 (21)
At the end of the period (32,557) (47,552)

Movements in the accumulated impairment of others PP&E are as follows:

June 30,
2024 2023
At the beginning of the year (4,457) (4,317)
Decreases 400 74
At the end of the period (4,057) (4,243)

NOTE8 – INTANGIBLE ASSETS

June 30, December 31,
2024 2023
Intangible<br> assets 1,651,890 1,690,480
Impairment<br> allowance (60,975) (60,975)
1,590,915 1,629,505

Movements in Intangible assets (without considering the impairment allowance) are as follows:

June 30,
2024 2023
At the beginning of the year 1,690,480 1,487,319
CAPEX 16,866 10,184
Currency<br> translation adjustments (6,306) (353)
Amortization<br> of the period (49,150) (77,832)
At the end of the period 1,651,890 1,419,318

Movements in Impairment allowance of intangible assets are as follows:

June 30,
2024 2023
At the beginning of the year (60,975) (60,842)
Increases - (133)
At the end of the period (60,975) (60,975) 
F-18

TELECOMARGENTINA S.A.

NOTE9 – RIGHT OF USE ASSETS

June 30, December 31,
2024 2023
Leases<br> rights of use
Sites 241,116 247,489
Real<br> estate and others 36,929 38,105
Poles 31,371 26,311
Indefeasible<br> right of use 7,057 8,095
Asset<br> retirement obligations 68,096 67,755
384,569 387,755

Movements in right of use assets are as follows:

June 30,
2024 2023
At the beginning of the year 387,755 352,310
Increase 91,354 76,223
Net<br> carrying value of decreases (296) (104)
Currency<br> translation adjustments (11,675) 836
Amortization<br> of the period (82,569) (60,021)
At the end of the period 384,569 369,244

NOTE10 – TRADE PAYABLES

June 30, December 31,
Current 2024 2023
Suppliers 381,440 631,347
Related<br> parties (Note 24.b) 9,984 10,179
391,424 641,526
Non-current ****
Suppliers 10,944 1,643
10,944 1,643
Total trade payables 402,368 643,169

NOTE11 – BORROWINGS

June 30, December 31,
Current 2024 2023
Bank<br> overdrafts – principal 165,603 42,272
Bank<br> and other financial entities loans – principal 240,792 368,081
Notes<br> – principal 263,748 339,729
DFI 23 -
Loans<br> for purchase of equipment 16,373 28,012
Remeasurement,<br> interest and related expenses 134,231 234,885
820,770 1,012,979
Non-current ****
Notes<br> – principal 1,229,994 1,796,166
Bank<br> and other financial entities loans – principal 372,086 718,515
Loans<br> for purchase of equipment 6,891 19,280
Remeasurement,<br> interest and related expenses 134,249 278,746
1,743,220 2,812,707
Total borrowings 2,563,990 3,825,686

Movements in Borrowings are as follows:

F-19

TELECOMARGENTINA S.A.

**** Balances at the beginning of the year Net Cash Flows Accrued Exchange differences, currency translation adjustments and others Balances as of June  30, 2024
Bank<br> overdrafts 42,272 197,305 - (73,974) 165,603
Bank<br> and other financial entities loans – principal 1,086,596 (123,280) - (350,438) 612,878
Notes<br> – principal 2,135,895 (28,136) - (614,017) 1,493,742
DFI - (739) - 762 23
Loans<br> for purchase of equipment 47,292 (6,832) - (17,196) 23,264
Remeasurement,<br> interest and related expenses 513,631 (153,494) 128,521 (220,178) 268,480
Total as of June 30, 2024 3,825,686 (*) (115,176) 128,521 (**)  (1,275,041) 2,563,990
Total as of June 30, 2023 2,626,642 (*)   (24,268) 50,602 (***)       (44,413) 2,608,563

(*) Includes $(808) million and $(13,204) million, respectively, corresponding to DFI collections included in Other receivables.

(**) Includes $10,508 million of loans that do not represent cash movement.

(***) Includes $9,846 million of loans that do not represent cash movement.

Recent developments of Borrowings for the six-months period ended June 30, 2024 are detailed below:

a) Notes
Series Currency Amount involved<br><br> <br>(in millions) Issuance date Maturity date Amortization Interest rate Interest payment date<br><br> <br>**** Accounting balance (in millions) (1)
--- --- --- --- --- --- --- --- ---
20 US$<br> linked 59.7<br> (2) 06/2024 06/2026 In<br> one installment at maturity date Annual<br> fixed rate of 5.00% Quarterly<br> basis 56,363
US$<br> linked 21.6<br> (3) 06/2024 06/2026 In<br> one installment at maturity date Annual<br> fixed rate of 5.00% Quarterly<br> basis 20,524
(1) This<br> accounting balances includes remeasurement, interest and related expenses.
--- ---
(2) For<br> Series 20 Notes issued, the subscription price was above par. The Company issued Notes<br> for a nominal value of $55,619 million, equivalent to US$59.7 million. Of the total issued,<br> the Company obtained proceeds net of issuance expenses of $46,210 million (equivalent to<br> US$51.8 million) and an integration in kind of $9,128 million (equivalent to US$9.8 million)<br> was made through the exchange of a portion of the Series 9 Notes. This transaction was<br> recognized as a debt extinguishment, recognizing a loss of $0.4 million that is included<br> in “Borrowings renegotiation results” item, within Financial results from borrowings.
(3) For<br> Series 20 Notes additional issued, the subscription price was above par. The Company<br> obtained proceeds net of issuance expenses of $20,225 million, equivalent to US$21.6 million.
b) Bank and other financing entities loans
--- ---

Export Development Canadá 2023 (EDC)

During June 2024, disbursements of the aforementioned credit line of US$11.6 million (equivalent to $10,508 million as of June 30, 2024) was completed, maturing in May 2030. The principal disbursed accrues compensatory interest at a semi-annual SOFR plus a margin of 6.65 percentage points.

c) Compliance with covenants

Considering the complexity of Argentina’s economic situation, described in Note 29 to our consolidated financial statements for the year-ended December 31, 2023, which prevented the early and accurate estimation of certain financial ratios, the Company requested and obtained waivers regarding the Net Debt/EBITDA ratio.

During March 2024, the Company requested and obtained from the Lenders new waivers effective until March 31, 2025, which allow increasing the maintenance Net Debt/EBITDA ratio above the originally established level (raising it to 3.75), for the calculation period between December 31, 2023 and December 31, 2024, establishing a net debt of US$2,700 billion on each calculation date, among other matters.

As of June 30, 2024 the Company has complied with: a) the EBITDA/ Net Interest ratio and b) the Net Debt/EBITDA ratio established in the waivers obtained in March 2024, and is also in compliance with the rest of the commitments assumed and in force.

F-20

TELECOMARGENTINA S.A.

NOTE12 – SALARIES AND SOCIAL SECURITY PAYABLES

June 30, December 31,
Current 2024 2023
Salaries,<br> annual complementary salaries, vacation, bonuses and their social security payables 125,894 156,516
Termination<br> benefits 11,132 7,329
137,026 163,845
Non-current ****
Termination<br> benefits 7,999 6,704
7,999 6,704
Total salaries and social security payables 145,025 170,549

NOTE13 – INCOME TAX PAYABLE AND DEFERRED INCOME TAX ASSETS/LIABILITIES

Income tax payable by company is presented below:

June 30, December 31,
**** 2024 2023
Núcleo 2,558 2,268
NYSSA 240 266
Adesol 425 187
Opalker 33 18
Micro<br> Fintech Holding 27 -
Televisión<br> Dirigida 592 -
Pem - 69
(*)      3,875 2,808

(*) Includes $(1,504) million corresponding to the currency translation adjustments on initial balances of foreign subsidiaries, RECPAM and to compensation made with tax credits.

Deferred Income tax assets and liabilities, net of Telecom and its subsidiaries, and the actions for recourse tax receivable are presented below:

**** June 30, December 31,
**** 2024 2023
Tax<br> carryforward (65,083) (888,737)
Allowance<br> for doubtful accounts (21,496) (30,171)
Legal<br> Claims and contingent liabilities (8,475) (13,152)
PP&E,<br> intangible assets and right of use assets 1,102,493 1,119,154
Cash<br> dividends from foreign companies 14,148 24,506
Income<br> tax inflation adjustment effect 146,273 594,451
Other<br> deferred tax assets, net (2,452) (284)
Total deferred tax liabilities, net 1,165,408 805,767
Actions<br> for recourse tax receivable (888) (1,596)
Total deferred tax liability, net (*)    1,164,520 804,171
Net deferred tax assets (20,904) (24,836)
Net deferred tax liabilities 1,185,424 829,007

(*) Includes $3,815 million of currency translation adjustments on foreign subsidiaries’ initial balances.

As of June 30, 2024, Telecom and some subsidiaries have cumulative tax loss carryforwards of $187,432 million (including $988 million of unrecognized tax loss carryforwards for considering them non-recoverable), that calculated considering statutory income tax rate, represents a deferred tax asset of $65,083 million.

F-21

TELECOMARGENTINA S.A.

The detail of the maturities of estimated Tax loss carryforward is disclosed below:

Company Tax<br> loss carryforward<br><br> generation year Tax<br> loss carryforward<br><br> amount as of<br><br> 06.30.2024 Tax<br> loss<br><br> carryforward<br><br> expiration year
Telecom 2023 144,540 2028
Micro Sistemas 2021 240 2026
Micro Sistemas 2022 3,424 2027
Micro Sistemas 2023 17,646 2028
Micro Sistemas 2024 19,659 2029
Interradios 2023 1 2028
Pem 2024 91 2029
Ubiquo 2023 10 No deadline
RISSAU 2023 526 2028
Manda 2020 194 2025
Manda 2022 15 2027
Manda 2023 779 2028
AVC Continente Audiovisual 2021 3 2026
AVC Continente Audiovisual 2022 37 2027
AVC Continente Audiovisual 2023 130 2028
AVC Continente Audiovisual 2024 42 2029
Cable Imagen 2021 6 2026
Cable Imagen 2022 16 2027
Cable Imagen 2023 50 2028
Cable Imagen 2024 23 2029
187,432

Income tax benefit (expense) differed from the amounts computed by applying the statutory income tax rate of each company to pre-tax income as a result of the following:

Six-month period ended June 30,
2024 2023
Profit (loss)
Income  before income tax 1,220,731 6,743
Non-taxable items – Losses from associates and<br> joint ventures 2,972 3,013
Non-taxable items – Other (1,863) (4,150)
Restatement in current currency of Equity, goodwill and<br> other 693,260 943,875
Subtotal 1,915,100 949,481
Effective income tax rate 34.69% 34.57%
Income tax expense at statutory tax rate of each companies (664,340) (328,250)
Deferred tax liability restatement in current currency<br> and other 909,762 778,630
Income tax inflation adjustment (606,414) (303,807)
Income tax on cash dividends of foreign companies (516) (6,907)
Income tax benefit (expense)(*)(**) (361,508) 139,666
Current tax (5,538) (1,575)
Deferred tax (355,970) 141,241
Income tax benefit (expense) (361,508) 139,666

(*) Includes $2,711 million and ($2,121) million in the six-month periods ended June 30, 2024 and 2023, respectively, corresponding to the adjustments made in respective Affidavits 2023 and 2022.

(**) Includes $214 million in the six-month period ended June 30, 2024 corresponding to a computable withholding arising from the subsidiary Micro Fintech Holding, which is not subject to income tax.

NOTE14 –OTHER TAXES PAYABLES

June 30, December 31,
Current 2024 2023
Other national taxes 57,790 59,674
Provincial taxes 9,280 7,482
Municipal taxes 3,231 3,221
70,301 70,377
Non- current
Provincial taxes 4 20
4 20
Total other taxes payables 70,305 70,397

NOTE 15– LEASES LIABILITIES

June 30, December 31,
**** 2024 2023
Current **** ****
Argentina 48,202 48,504
Abroad 2,002 3,155
50,204 51,659 
**F-22**

TELECOMARGENTINA S.A.

**** June 30, December 31,
**** 2024 2023
Non- current ****
Argentina 64,184 81,493
Abroad 18,555 26,207
82,739 107,700
Total leases liabilities 132,943 159,359

Movements in Leases liabilities are as follows:

June 30,
2024 2023
At the beginning of the year 159,359 161,775
Increases (*) 77,911 64,464
Financial results, net (**) 10,496 22,034
Payments (35,895) (37,183)
Decreases (included RECPAM<br> and currency translation adjustments) (78,928) (57,641)
At the end of the period 132,943 153,449

(*) Included in Rights of use assets acquisitions.

(**) Included in Other foreign currency exchange gains (losses) and Other interests, net.

NOTE 16– OTHER LIABILITIES

June 30, December 31,
Current 2024 2023
Deferred<br> revenues on prepaid credit 12,273 14,303
Deferred<br> revenues on connection fees and international capacity leases 3,078 3,099
Debt<br> for acquisition of companies 6,689 1,020
Related<br> parties (Note 24.b) 2,545 4,239
Funds<br> to be paid to clients 16,210 12,978
Other 1,597 1,143
42,392 36,782
Non-current
Deferred<br> revenues on connection fees and international capacity leases 1,604 2,743
Pension<br> benefits 3,623 4,043
Related<br> parties (Note 24.b) 2,329 7,431
Debt<br> for acquisition of companies 692 1,844
Other 70 194
8,318 16,255
Total other liabilities 50,710 53,037

NOTE17 – PROVISIONS

The evolution of provisions as of June 30, 2024 and 2023 is as follows:

Balances as of December 31, 2023 Additions Reclassifica- tions Payments<br><br> <br>**** RECPAM, currency translation adjustments Balances<br><br> <br>as of June 30, 2024
<br><br> <br><br><br> <br>**** Capital<br><br> <br>(i) Financial result (ii)
Current
Legal<br> Claims and contingent liabilities 9,600 171 - 10,768 (10,386) (3,427) 6,726
Total current provisions 9,600 171 - 10,768 (10,386) (3,427) 6,726
Non- Current
Legal<br> Claims and contingent liabilities 23,023 7,079 7,275 (10,768) (28) (6,621) 19,960
Asset<br> retirement obligations 23,928 13,443 - - - (11,828) 25,543
Total non-current provisions 46,951 20,522 7,275 (10,768) (28) (18,449) 45,503
Total provisions 56,551 20,693 7,275 - (10,414) (21,876) 52,229
(i) $4<br> million related to acquisitions through business combinations (Note 25.2.a), $7,246 million<br> charged to Other operating expenses and $13,443 million to Right of use assets.
--- ---
(ii) Charged<br> to Other financial results, net - Other interests, net. 
**F-23**

TELECOMARGENTINA S.A.

Balances as of December 31, 2022 Additions Reclassifica-tions Payments<br><br> <br>**** RECPAM, currency translation adjustments Balances<br><br> <br>as of June 30, 2023
<br><br> <br><br><br> <br>**** Capital<br><br> <br>(i) Financial result (ii)
Current
Legal<br> Claims and contingent liabilities 14,742 17,417 - 12,914 (27,515) (4,283) 13,275
Total current provisions 14,742 17,417 - 12,914 (27,515) (4,283) 13,275
Non- Current
Legal<br> Claims and contingent liabilities 36,421 9,668 8,709 (12,914) - (9,345) 32,539
Asset<br> retirement obligations 28,823 11,759 - - - (9,931) 30,651
Total non-current provisions 65,244 21,427 8,709 (12,914) - (19,276) 63,190
Total provisions 79,986 38,844 8,709 - (27,515) (23,559) 76,465
(i) $27,085<br> million charged to Other operating expenses and $11,759 million to Right of use assets.
--- ---
(ii) Charged<br> to Other financial results, net - Other interests, net.

NOTE18 – ADDITIONAL INFORMATION OF FINANCIAL ASSETS AND LIABILITIES

Financialassets and liabilities denominated in foreign currencies

Financial assets and liabilities denominated in foreign currencies as of June 30, 2024, and December 31, 2023 are the following:

06.30.2024 12.31.2023
In equivalent millions of Argentine pesos
Assets 185,199 321,757
Liabilities (2,369,923) (4,048,911)
Net Liabilities (2,184,724) (3,727,154)

Offsettingof financial assets and financial liabilities

The following table presents financial assets and liabilities that are offset as of June 30, 2024 and December 31, 2023:

As of June 30, 2024
Trade receivables Other receivables Trade payables Other liabilities
Current<br> and non-current assets (liabilities) - Gross value 284,804 25,648 (434,478) (32,234)
Offsetting (32,110) (2,173) 32,110 2,173
Current and non-current assets (liabilities) – Book value 252,694 23,475 (402,368) (30,061)
As of December 31, 2023
--- --- --- --- ---
Trade receivables Other receivables Trade payables Other liabilities
Current and non-current assets<br> (liabilities) - Gross value 252,404 44,014 (656,260) (30,222)
Offsetting (13,091) (1,568) 13,091 1,568
Current and non-current assets (liabilities) – Book value 239,313 42,446 (643,169) (28,654)

Fairvalue hierarchy and other disclosures

The measurement at fair value of the financial instruments of Telecom are classified according to the three levels set out in IFRS 13:

- Level<br> 1: Fair value determined by quoted prices (unadjusted) in active markets for identical assets<br> or liabilities.
- Level<br> 2: Fair value determined based on inputs other than quoted prices included within Level 1<br> that are observable for the asset or liability, either directly (e.g. as prices) or indirectly<br> (e.g. derived from prices).
- Level<br> 3: Fair value determined by unobservable inputs where the reporting entity is required to<br> develop its own assumptions. 
**F-24**

TELECOMARGENTINA S.A.

Financial assets and liabilities recognized at fair value as of June 30, 2024 and December 31, 2023, and the level of hierarchy are listed below:

June 30, 2024 Level 1 Level 2 Total
Assets
Current Assets
Mutual<br> Funds (1) 19,170 - 19,170
Government<br> bonds and Notes (1) 225,670 - 225,670
Other<br> receivables: DFI - 2,712 2,712
Non-current Assets
Other<br> receivables: DFI - 114 114
Total assets 244,840 2,826 247,666
Liabilities
Current Liabilities
Other<br> liabilities: Debt for acquisition of NYSSA - 698 698
Borrowings:<br> DFI - 23 23
Non-current Liabilities
Other<br> liabilities: Debt for acquisition of NYSSA - 692 692
Total Liabilities - 1,413 1,413
(1) Mutual<br> Funds are included in “Cash and cash equivalents”, “Investments”<br> and Guarantee of financial operations included in “Other receivables”. and Government<br> bonds and Notes are included in “Cash and cash equivalents” and “Investments”.
--- ---
December 31, 2023 Level 1 Level 2 Total
--- --- --- ---
Assets
Current Assets
Mutual<br> Funds (1) 25,934 - 25,934
Government<br> bonds and Notes (1) 234,947 - 234,947
Other<br> receivables: DFI - 2,785 2,785
Other<br> receivables: Indemnification assets - 18 18
Non-current Assets
Other<br> receivables: DFI - 786 786
Total assets 260,881 3,589 264,470
Liabilities
Current Liabilities
Other<br> liabilities: Debt for acquisition of NYSSA - 1,020 1,020
Non-current Liabilities
Other<br> liabilities: Debt for acquisition of NYSSA - 1,844 1,844
Total liabilities - 2,864 2,864
(1) Mutual<br> Funds are included in “Cash and cash equivalents” and “Investments”.<br> Government bonds and Notes are included in “Cash and cash equivalents” and “Investments”.
--- ---

In relation to the fair values set forth above, as of June 30, 2024, there were no changes in the methods and assumptions used with respect to what was reported in Note 22 to the consolidated financial statements as of December 31, 2023.

The Company also has certain financial instruments that are not measured at fair value for which the book value approximates their fair value, except for:

Borrowings

As of June 30, 2024, fair value of borrowings is as follows:

Carrying Value Fair Value
Notes 1,610,391 1,528,055
Other borrowings 953,599 963,628
2,563,990 2,491,683

The fair value of the borrowings was assessed as follows:

a) The<br> fair value of Notes traded in active markets was measured based on quoted market prices at<br> the end of the reporting period. As a result, its valuation classifies as Level 1.
b) The<br> fair value of Notes that are not traded in an active market was measured based on quotes<br> provided by first-tier financial entities, so their valuation qualifies as Level 2.
c) Fort<br> the rest of the borrowings, the fair values were calculated based on cash flows discounted<br> using a current lending rate, so as they are classified as level 3. 
**F-25**

TELECOMARGENTINA S.A.

Exchangerate Hedges

During June 2024, Telecom Argentina entered into several DFI agreements to hedge the fluctuation of the exchange rate from its loan portfolio amounting to US$5 million fixing the exchange rate in 1,015 Argentine pesos/US$, maturing on August 30, 2024.

NOTE19 – PURCHASE COMMITMENTS

The Company has entered into various purchase commitments with domestic and foreign suppliers amounting to approximately $567,560 million as of June 30, 2024 (of which $99,952 million corresponds to Fixed Assets commitments). These purchase commitments include those that contain “take or pay” clauses, which force the buyer to purchase a quantity of a product or service in a period, usually annually, or, alternatively, to pay that amount even if it has not been taken or accepted to receive it.

NOTE20 – EQUITY

a) Capital Stock

As of June 30, 2024 and December 31, 2023, the capital stock of Telecom Argentina amounts to $2,153,688,011, represented by the same number of common book-entry shares with nominal value of $1, as detailed below:

Class of Shares Total
Class “A” 683,856,600
Class “B” 628,058,019
Class “C” 106,734
Class “D” 841,666,658
Total 2,153,688,011

As of the date of these unaudited condensed consolidated financial statements, all the shares of Telecom Argentina are authorized by the CNV for public offering.

Class B Shares are listed and traded on the leading companies’ panel of the BYMA and the ADS representing 5 Class “B” shares of the Company are traded on the NYSE under the symbol TEO.

b) Provisions of the Telecom Ordinary and Extraordinary Shareholders’ meeting

At the Ordinary and Extraordinary Shareholders’ Meeting held on April 25, 2024, the shareholders of Telecom decided, among other:

(i) To<br> approve the Board of Directors’ proposal stated in current currency as of March 31,<br> 2024 using the National Consumer Price Index pursuant to CNV Resolution No. 777/18 in<br> connection with the Accumulated Deficit as of December 31, 2023 for $257,730 million<br> ($463,328 million in current currency as of June 30, 2024): (i) absorb the amount<br> of $257,730 million ($463,328 million in current currency as of June 30, 2024) from<br> the “Voluntary reserve to maintain the Company's level of capital expenditures and<br> its current solvency level”; b) to reclassify the amount of $84,257 million ($139,179<br> million in current currency as of June 30, 2024) from “Voluntary reserve to maintain<br> the Company's level of capital expenditures and its current solvency level” and to<br> be charged against the “Contributed Surplus”;
(ii) to<br> delegate on the Board of Directors the power to reverse between October 1, 2024 and<br> December 31, 2024 the “Voluntary reserve to maintain the Company's level of capital<br> expenditures and its current solvency level” in<br> an amount that allows distribution of dividends in cash or in kind or any combination of<br> both options, for up to the maximum amount of distribution of US$ 100 million, once the conditions<br> detailed in Note 13.c) to the consolidated financial statements as of December 31, 2023<br> are met or waived.
c) Restrictions on distribution of profits
--- ---

Under the LGS, the by-laws of the Company and rules and regulations of the CNV, a minimum of 5% of net income for the year in accordance with the statutory books, plus/less previous years’ adjustments and accumulated losses must be appropriated by resolution of the shareholders to a legal reserve until such reserve reaches 20% of the outstanding capital (common stock) plus inflation adjustment of common stock.

**F-26**

TELECOMARGENTINA S.A.

NOTE21 – REVENUES

Three-month<br> period ended<br><br> June 30, Six-month<br> period ended<br><br> June 30,
2024 2023 2024 2023
Mobile<br> Services 342,406 375,946 672,409 778,849
Internet<br> Services 218,247 194,151 418,073 410,373
Cable<br> Television Services 122,803 168,203 243,058 351,738
Fixed<br> and Data Services 107,787 111,041 221,313 223,717
Other<br> services revenues 8,449 7,475 17,741 15,501
Subtotal<br> services revenues 799,692 856,816 1,572,594 1,780,178
Equipment<br> revenues 56,392 77,022 94,385 141,571
Total<br> Revenues 856,084 933,838 1,666,979 1,921,749

NOTE22 – OPERATING EXPENSES

The main components of the operating expenses are the following:

Three-month<br> period ended<br> June 30, Six-month<br> period<br><br> ended June 30,
2024 2023 2024 2023
Employee<br> benefit expenses and severance payments Profit (loss)
Salaries,<br> social security expenses and benefits (179,175) (207,858) (346,542) (430,413)
Severance<br> indemnities (22,983) (9,919) (38,970) (21,876)
Other<br> employee expenses (5,160) (6,373) (8,932) (9,478)
(207,318) (224,150) (394,444) (461,767)
Fees<br> for services, maintenance, materials and supplies
Maintenance<br> and materials (61,873) (63,940) (125,300) (119,577)
Fees for<br> services (47,554) (58,554) (101,806) (117,741)
Directors<br> and Supervisory Committee’s members’ fees (936) (600) (1,867) (1,598)
(110,363) (123,094) (228,973) (238,916)
Taxes<br> and fees with the Regulatory Authority
Turnover<br> tax (34,791) (35,379) (67,141) (71,921)
Regulatory<br> Entity Fees (16,937) (17,842) (33,165) (37,350)
Municipal<br> taxes (8,617) (9,735) (16,104) (19,921)
Other<br> taxes and fees (6,493) (9,304) (12,913) (19,141)
(66,838) (72,260) (129,323) (148,333)
Cost<br> of equipment
Inventory<br> balance at the beginning of the year (55,901) (42,645) (59,138) (38,840)
Plus:
Purchases (38,552) (58,061) (66,416) (112,778)
Other 2,717 1,052 5,532 6,123
Less:
Inventory<br> balance at the end of the period 46,175 41,240 46,175 41,240
(45,561) (58,414) (73,847) (104,255)
Other<br> operating expenses
Legal Claims<br> and contingent liabilities (5,057) (20,831) (7,246) (27,085)
Rental and<br> internet capacity (9,224) (5,233) (14,989) (10,968)
Energy, water<br> and other services (24,610) (17,699) (41,239) (37,313)
Postage,<br> freight and travel expenses (5,795) (7,034) (10,701) (13,565)
Other 435 (2,149) (2,437) (3,877)
(44,251) (52,946) (76,612) (92,808)
Depreciation,<br> amortization and impairment of Fixed Assets
Depreciation of PP&E (214,864) (252,946) (425,842) (496,951)
Amortization<br> of intangible assets (24,402) (38,351) (49,150) (77,832)
Amortization<br> of rights of use assets (41,799) (31,425) (82,569) (60,021)
(Impairment)<br> / Recovery of Fixed Assets 469 1,134 372 (129)
(280,596) (321,588) (557,189) (634,933) 
F-27

TELECOMARGENTINA S.A.

Operating expenses disclosed by function of expense amounted to $1,729,076 million and $2,011,410 million for the six-month period ended June 30, 2024 and 2023, respectively are as follows:

****<br><br> <br>Concept Operating costs Administration costs Commercialization costs Other expenses Total 06.30.2024 Total 06.30.2023
Employee<br> benefit expenses and severance payments (215,187) (83,715) (95,542) - (394,444) (461,767)
Interconnection<br> costs and transmission costs (53,353) - - - (53,353) (56,417)
Fees<br> for services, maintenance, materials and supplies (85,556) (47,116) (96,301) - (228,973) (238,916)
Taxes<br> and fees with the Regulatory Authority (127,834) (790) (699) - (129,323) (148,333)
Commissions<br> and advertising - - (86,665) - (86,665) (117,032)
Cost<br> of equipment and handsets (73,847) - - - (73,847) (104,255)
Programming<br> and content costs (93,387) - - - (93,387) (109,040)
Bad<br> debt expenses - - (35,283) - (35,283) (47,909)
Other<br> operating expenses (51,613) (13,566) (11,433) - (76,612) (92,808)
Depreciation,<br> amortization and impairment of Fixed Assets (441,368) (76,850) (39,343) 372 (557,189) (634,933)
Total as of 06.30.2024 (1,142,145) (222,037) (365,266) 372 (1,729,076)
Total as of 06.30.2023 (1,310,970) (240,090) (460,221) (129) (2,011,410)

NOTE23 – FINANCIAL RESULTS

Three-month period ended June 30, Six-month period ended<br><br> <br>June 30,
2024 2023 2024 2023
Profit (loss)
Interests<br> on borrowings (*) (21,858) (27,351) (53,122) (59,166)
Remeasurement<br> in borrowings (**) (39,023) (3,680) (74,013) 9,340
Foreign<br> currency exchange gains on borrowings (***) 236,883 6,349 1,249,112 67,581
Borrowings<br> renegotiation results - - - (1,434)
Total financial results from borrowings 176,002 (24,682) 1,121,977 16,321
Fair<br> value gains/(losses) on financial assets at fair value through profit or loss 13,103 (16,680) (15,077) (29,741)
Other<br> foreign currency exchange gains (losses) 35,665 (941) 151,451 (4,823)
Other<br> interests, net 1,657 3,305 8,221 9,307
Other<br> taxes and bank expenses (30,665) (9,629) (49,186) (19,190)
Financial<br> expenses on pension benefits (665) (988) (1,511) (2,225)
Financial<br> discounts on assets, debts and others (7,223) (2,672) (7,542) (6,498)
RECPAM 14,983 62,602 77,467 136,266
Total other financial results, net 26,855 34,997 163,823 83,096
Total financial results, net 202,857 10,315 1,285,800 99,417

(*) Includes $1,386 million and $776 million corresponding to net income generated by DFI in the six-month period ended June 30, 2024 and 2023, respectively.

(**) Related to Notes issued in UVA.

(***) Includes $222 million and ($13,449) million corresponding to net income/ (losses) generated by DFI in the six-month period ended June 30, 2024 and 2023, respectively.

NOTE24 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES

a) Controlling Company

CVH is the controlling company of Telecom Argentina, holding 28.16% of the capital stock of the Company. Additionally, both CVH and Fintech, contributed to the Voting Trust, in accordance with the Shareholders´ Agreement, shares representing 10.92% of the capital of the Company so the shares subject to such agreement represent 21.84% of the total capital of the Company (the “Shares in Trust”).

According to the Voting Trust Agreement, the trustee appointed by CVH must vote the Shares in Trust as instructed or voted by CVH with respect to all issues except in respect of certain matters subject to veto under the Shareholders’ Agreement.

b) Balances with Related parties
· Associates and joint venture
--- ---
CURRENT ASSETS June 30, December 31,
--- --- --- ---
Trade receivables 2024 2023
Ver<br> TV Associate 16 18
OPH Joint<br> venture 27 49
43 67 
F-28

TELECOMARGENTINA S.A.

June 30, December 31,
Other receivables 2024 2023
La<br> Capital Cable Associate 254 377
Ver<br> TV Associate 72 4
326 381
CURRENT LIABILITIES June 30, December 31,
Trade payables 2024 2023
La<br> Capital Cable Associate 8 6
TSMA Associate 1 2
OPH Joint<br> venture 878 1,926
887 1,934
Other liabilities **** ****
OPH Joint<br> venture 2,545 4,239
2,545 4,239
NON - CURRENT LIABILITIES
Other liabilities
OPH Joint<br> venture 2,329 7,431
2,329 7,431
· Other Related parties
--- ---
CURRENT ASSETS June 30, December 31,
--- --- ---
Trade receivables 2024 2023
Other<br> related parties 2,161 1,179
2,161 1,179
Other receivables **** ****
Other<br> related parties 2 7
2 7
CURRENT LIABILITIES
Trade payables
Other<br> related parties 9,097 8,245
9,097 8,245
c) Transactions with Related parties
--- ---
· Associates and joint ventures
--- ---
Transaction Kind of related party Six-month period<br><br> <br>ended June 30,
--- --- --- --- ---
**** **** 2024 2023
**** **** Profit (loss)
**** **** **** Revenues
La<br> Capital Cable Services<br> revenues and other revenues Associate 86 7
Ver<br> TV Services<br> revenues and other revenues Associate 35 30
OPH Services<br> revenues and other revenues Joint<br> venture 142 -
263 37
**** **** Operating costs
La<br> Capital Cable Fees<br> for services Associate (432) (1,111)
(432) (1,111)
· Other Related parties
--- ---
Transaction Six-month period<br><br> <br>ended June 30,
--- --- --- ---
**** 2024 2023
**** **** Profit (loss)
**** **** Revenues
Other<br> related parties Services<br> and advertising revenues 2,459 1,698
2,459 1,698
**** **** Operating costs
Other<br> related parties Programming<br> costs (14,735) (16,485)
Other<br> related parties Editing<br> and distribution of magazines (1,847) (2,801)
Other<br> related parties Advisory<br> services (2,373) (2,237)
Other<br> related parties Advertising<br> purchases (501) (1,226)
Other<br> related parties Other<br> purchases and commissions (1,327) (873)
(20,783) (23,622)

The transactions discussed above were made by Telecom Argentina under the same conditions than would have been obtained from unaffiliated third parties. When Telecom Argentina’s transactions represented more than 1% of its total shareholders’ equity, they were approved according to Law No. 26,831, the Bylaws and the Executive Committees’ Faculties and Performance Regulation.

F-29

TELECOMARGENTINA S.A.

NOTE25 – RECENT DEVELOPMENTS CORRESPONDING TO THE SIX-MONTH PERIOD ENDED JUNE 30, 2024

1. Regulatory issues
a) Decree No. 690/20 - Amendment to the LAD
--- ---

In relation to the situation described in Note 2.c).i) in the consolidated financial statements as of December 31, 2023, on February 20, 2024 the precautionary measure, which suspended the application of the Decree No. 690/20, was extended for an additional period of six months, remaining in force until August 20, 2024. Consequently, the precautionary measure is fully in force as of the issuance date of these unaudited condensed consolidated financial statements.

In connection with the decision rendered on November 17, 2023 by the Federal Court on Administrative Litigation Matters No. 8 whereby it nullified Decree No. 690/20 and ENACOM Resolutions Nos. 1,466/20 and 1,467/20, on June 19, 2024, Chamber II of the Court of Appeals on Federal Administrative Matters rendered a decision whereby it fully upheld the first-instance judgment, ratifying the nullity of both Decree No. 690/20 and the aforementioned ENACOM Resolutions, considering them unconstitutional.

On July 4, 2024, PEN filed an extraordinary appeal against the second instance ruling, which has not been granted to date.

On the other hand, through Emergency Decree No. 302/24, published in the Official Gazette on April 9, 2024, the Executive Branch repealed Decree No. 690/20. Furthermore, on June 25, 2024, through ENACOM Resolution No. 13/24, the ENACOM revoked the regulations that limited price increases for Internet, mobile telephony, and cable television services.

b) Micro Sistemas

Through Communication "A" No. 8,038, the BCRA repealed Communication "A" No. 7,825, which had established that the return received by PSPCP in pesos of deposit accounts held at financial institutions, where their clients' funds are deposited, had to be fully transferred to those clients.

Additionally, on July 4, 2024, Micro Sistemas was registered with the BCRA as an Acceptor of payments made through transfers.

2. Corporate issues
a) Exercise of the call option of Naperville and Saturn Holding LLC
--- ---

a.1)Naperville

On May 20, 2024, the subsidiary Televisión Dirigida partially exercised the call option to purchase 51% of Naperville (which owns shares representing 76.63% of Manda’s share capital and votes, which in turn is the sole shareholder and owns 100% of RISSAU’s share capital and votes, an operating company whose main activity is the installation and operation of broadcasting services).

Additionally, on the same day, Televisión Dirigida also exercised the call option for US$ 3,108 to purchase all the shares held by minority shareholders in Manda, which represent 0.007% of the capital stock and votes of said company.

The transaction price amounted to US$ 16.4 million ($14,584 million stated at the exchange rate prevailing on the transaction date), which shall be settled as follows: a) US$ 3.8 million ($ 3,404 million stated at the exchange rate prevailing on the transaction date) has been paid as an option premium on the date of execution of the Option Agreement dated October 4, 2023, b) US$ 12.6 million for the partial acquisition of 51%, of which US$ 6 million -$ 5,333 million stated at the exchange rate prevailing on the transaction date- was paid within 48 hours of signing date , and US$ 6.6 million -$5,847 million stated at the exchange rate prevailing on the transaction date- to be paid on July 31, 2024.

The remained unsettled as of June 30, 2024 amounts to $5,991 million which was included under "Debt for acquisition of companies" within Other current liabilities. This debt was cancelled on July 31, 2024.

F-30

TELECOMARGENTINA S.A.

The Company's management has made a preliminary determination of the fair value of the assets acquired and liabilities assumed (net assets) at the acquisition date, and from the comparison with the consideration paid has determined a goodwill.

Details of the purchase consideration, the estimated net assets acquired and the goodwill resulting from the exercise of the call option for 51% of Naperville:

Purchase consideration (In current currency at the acquisition date) (In current currency as of June 30, 2024)
Call<br> option 3,404 3,708
Cash<br> Paid 5,333 5,810
Remaining<br> balance 5,847 6,370
Total 14,584 15,888

The assets and liabilities in millions recognized as a result of the acquisition are as follows:

(In current currency at the acquisition date) (In current currency as of June 30, 2024)
Cash<br> and cash equivalents 642 699
Investment 1,613 1,758
Trade<br> receivables 420 458
Goodwill 728 793
PP&E 1,686 1,826
Trade<br> payables 1,343 1,463
Other<br> assets / liabilities, net (2,801) (3,042)
Net identifiable assets acquired 3,631 3,955
Less:<br> non-controlling interests (2,211) (2,409)
Add:<br> goodwill (*) 13,164 14,342
Net assets acquired 14,584 15,888

(*) The Company will annually review the recoverability of goodwill.

Revenueand profit contribution

The acquired business contributed revenues of $208 million and Adjusted EBITDA of $(340) million for the period from May 1, 2024 to June 30, 2024.

On July 17, 2024, Televisión Dirigida exercised the call option to purchase the remaining shares, accounting for 49% of Naperville. The price of this transaction amounted to US$ 15.8 million and shall be paid according to the schedule agreed by the parties, with the possibility for Televisión Dirigida to make partial payments, pre-cancel outstanding balances if it so desires, or even postpone payments subject to obtaining the prior consent of the seller.

Therefore, the total transaction price amounted to US$ 32.2 million.

a.2)Saturn Holding LLC

As of June 30, 2024, Televisión Dirigida held a call option for the purchase of 100% of Saturn Holding LLC (which owns 23.37% of Manda) for US$ 1.2 million (equivalent to $1,062 million as of June 30, 2024), to be deducted from the purchase price.

On July 17, 2024, the option to purchase 100% of Saturn Holding LLC was exercised.

The transaction price amounted to US$ 9.8 million and the outstanding balance was US$8.6 million. This outstanding balance shall be paid according to the schedule agreed by the parties, and the agreement provides for the possibility for Televisión Dirigida to make partial payments, pre-cancel outstanding balances if it so desires, or even postpone payments subject to obtaining the prior consent of the seller.

F-31

TELECOMARGENTINA S.A.

b) Corporate reorganization

b.1)Merger between Núcleo and Tuves Paraguay S.A.

In relation to the corporate reorganization process between Núcleo and Tuves Paraguay S.A. mentioned in Note 1 to the consolidated financial statements as of December 31, 2023, on June 3, 2024, the General Directorate of Public Registries approved the merger between Núcleo (the absorbing and surviving company) and Tuves Paraguay S.A. (the absorbed company). The effective merger date is June 4, 2024, the date on which the transfer to Núcleo of all the rights and obligations, assets, and liabilities of the absorbed company took effect.

This operation has no impact on these unaudited condensed consolidated financial statements.

b.2)Transfer of shares of Personal Envíos to Micro Fintech Holding

On May 20, 2024, the subsidiary Núcleo distributed dividends to its shareholders totalling PYG 145,614 million ($ 18,326 million in constant currency as of June 30, 2024), of which PYG 21,842 million ($ 2,713 million in constant currency as of June 30, 2024) was distributed in cash and PYG 123,772 million ($15,613 million in constant currency as of June 30, 2024) was distributed in shares of Personal Envíos (an amount equivalent to the fair value, determined by an independent appraiser, of the 7,760 shares it held in Personal Envíos, representing 97% of its interest in that company).

On the same day, the Company made an in-kind contribution to Micro Fintech Holding consisting of the shares received from Núcleo along with 160 shares that the Company already held in Personal Envíos.

As a result of this transaction, Micro Fintech Holding currently owns 5,400 shares, representing 67.5% of the issued and outstanding capital stock of Personal Envíos.

This operation has no impact on these unaudited condensed consolidated financial statements since the non-controlling interest maintained its percentage of Equity.

NOTE26 – SUBSEQUENT EVENTS TO JUNE 30, 2024

Notes:Series 21 and 22

In connection with the Notes Global Program, the Company issued the Series 21 and 22 Notes with the following characteristics:

Series Currency Amount involved<br><br> <br>(in millions) Issuance date Maturity date Amortization Interest rate Interest payment date
21 US$ 500<br> (1) 07/2024 07/2031 In<br> three installment of:<br><br> 33% at 07/2029<br><br> 33% at 07/2030<br><br> <br>34%<br> at 07/2031 Annual<br> fixed rate of 9.50% Semiannual
US$ 115.3<br> (2) 07/2024 07/2031 In<br> three installment of:<br><br> 33% at 07/2029<br><br> 33% at 07/2030<br><br> <br>34%<br> at 07/2031 Annual<br> fixed rate of 9.50% Semiannual
US$ 2.0<br> (3) 08/2024 07/2031 In<br> three installment of:<br><br> 33% at 07/2029<br><br> 33% at 07/2030<br><br> <br>34%<br> at 07/2031 Annual<br> fixed rate of 9.50% Semiannual
22 US$<br> linked 33.7<br> (4) 08/2024 02/2026 In<br> one installment at maturity date Annual<br> fixed rate of 2% Quarterly<br> basis

1.            The subscription price was under par, so that on the date of issuance, the Company obtained, net of issuance costs, US$493 million ($456,544 million in current currency as of date of issuance). The Company will use the proceeds to refinance borrowings, including the use of US$100 million to repurchase Series 5 Notes maturing in 2025.

On August 6, 2024, the Company paid a part of principal on the Series 5 Notes for US$128.3 million. Additionally, on August 8, 2024, the Company paid, within the terms of the Tender Offer, US$19.8 million for the repurchase of the Series 5 Notes.

2.            The contribution of the additional Series 21 Notes was carried out through the exchange of part of its Series 1 Notes, maturing in 2026, of US$ 115.3 million.

3.            The contribution of the additional Series 21 Notes was carried out through the exchange of part of its Series 1 Notes, maturing in 2026, of US$ 2.0 million.

4.            The subscription price was above par. The Company issued Notes for a nominal value of $31,732 million, equivalent to US$33.7 million.

F-32

TELECOMARGENTINA S.A.

Finally, in relation to the compliance with its covenants and waivers, it should be noted that the new debt issuance does not affect the obligations assumed by the Company, because the proceeds will be used to refinance its borrowings.

Carlos Moltini
Chairman of the Board of Directors 
F-33

OPERATINGAND FINANCIAL REVIEW AND PROSPECTS AS OF JUNE 30, 2024

(In millions of Argentine pesos in current currency - except per share data in Argentine pesos in current currency- or as expressly indicated)

1. General considerations

As provided under Resolution No. 777 issued by the CNV on December 28, 2018, this operating and financial review and prospects discloses the comparative balances set forth below, restated to current currency as of June 30, 2024.

The table below shows the evolution of the national consumer price index (National CPI) in light of the fact that Argentina has been considered a high-inflation economy for accounting purposes in accordance with IAS 29 since July 1, 2018, as further discussed in Note 1.d) to the unaudited condensed consolidated financial statements for 2023 and as of June 30, 2024 and 2023. According to official statistics from the Argentine National Statistics and Censuses Institute (Instituto Nacional de Estadísticas y Censos) and the Banco Nación U.S. dollar exchange rate used for the preparation of this operating and financial review and prospects are as follows:

As<br> of June 30, <br> 2023 As<br> of December <br> 31, 2023 As<br> of June 30, <br> 2024
National<br> Consumer Price Index (National CPI) (December 2016=100) 1,709.61 3,533.19 6,351.71
Variation<br> in prices
Annual 115.6% 211.4% 271.5%
Accumulated<br> six months 50.7% n/a 79.8%
Accumulated<br> three months since March 2023/2024 23.8% n/a 18.6%
Banco<br> Nación US$/$ exchange rate 256.70 808.45 912.00
Variation<br> in the exchange rate
Annual 105.0% 356.3% 310.5%
Accumulated<br> six months 44.9% n/a 12.8%
Accumulated<br> three months since March 2023/2024 22.8% n/a 6.3%

The National CPI has registered an increase of 271.5% as of June 30, 2024 as compared to June 30, 2023.

2. Telecom’s activities for the six-month period ended June 30, 2024 (“1H24”) and 2023 (“1H23”)
1H24 Variation
--- --- --- ---
million $ million %
Revenues 1,666,979 (254,770) (13.3)
Employee<br> benefit expenses and severance payments (394,444) 67,323 (14.6)
Interconnection<br> and transmission costs (53,353) 3,064 (5.4)
Fees<br> for services, maintenance, materials and supplies (228,973) 9,943 (4.2)
Taxes<br> and fees with the Regulatory Authority (129,323) 19,010 (12.8)
Commissions<br> and advertising (86,665) 30,367 (25.9)
Cost<br> of equipment and handsets (73,847) 30,408 (29.2)
Programming<br> and content costs (93,387) 15,653 (14.4)
Bad<br> debt expenses (35,283) 12,626 (26.4)
Other<br> operating expenses (76,612) 16,196 (17.5)
Depreciation,<br> amortization and impairment of Fixed Assets (557,189) 77,744 (12.2)
Operating loss (62,097) 27,564 (30.7)
Losses<br> from associates and joint ventures (2,972) 41 (1.4)
Financial<br> results from borrowings 1,121,977 1,105,656 n/a
Other<br> financial results, net 163,823 80,727 97.1
Income before income tax 1,220,731 1,213,988 n/a
Income<br> tax benefit (expense) (361,508) (501,174) n/a
Net income for the period 859,223 712,814 n/a
Net income attributable to:
Controlling<br> Company 851,682 711,121 n/a
Non-controlling<br> interest 7,541 1,693 29.0
859,223 712,814 n/a
Earnings per share for income attributable to the Controlling Company - Basic and diluted (in Argentine pesos) 395.45
Adjusted<br> EBITDA(1) 495,092 (50,180) (9.2)

All values are in US Dollars.

(1) Adjusted<br> EBITDA is a non-GAAP measure, defined as our net (loss) income less income tax benefit (expense),<br> financial results, earnings (losses) from associates and joint ventures, depreciation, amortization<br> and impairment of Fixed Assets. For further information on the use of adjusted EBITDA, see<br> “Adjusted EBITDA”. 
I

In 1H24, net income amounted to $859,223 million (compared to a net income of $146,409 million in 1H23), representing 51.5% of revenues (compared to 7.6% of revenues in 1H23). The increase in 1H24 compared to 1H23 was mainly due to an increase in financial result, net of $1,186,383 million, which was partially offset by a decrease in income tax benefit (expense) of $501,174 million.

In 1H24, Adjusted EBITDA totaled $495,092 million, representing 29.7% of revenues in 1H24. Adjusted EBITDA in 1H23 totaled $545,272 million, representing 28.4% of revenues in 1H23. The decrease of $50,180 million in 1H24 compared to 1H23 was mainly due to a decrease in revenues of $254,770 million, partially offset by the decrease in operating costs (without depreciation, amortization and impairment of Fixed Assets) of $204,590 million.

· Revenues
**** 1H24 Variation
--- --- --- ---
**** million $ million %
Mobile<br> Services 672,409 (106,440) (13.7)
Internet<br> Services 418,073 7,700 1.9
Cable<br> Television Services 243,058 (108,680) (30.9)
Fixed<br> and Data Services 221,313 (2,404) (1.1)
Other<br> services revenues 17,741 2,240 14.5
Subtotal Services revenues 1,572,594 (207,584) (11.7)
Equipment<br> revenues 94,385 (47,186) (33.3)
Total Revenues 1,666,979 (254,770) (13.3)

All values are in US Dollars.

During 1H24 revenues decreased 13.3% or $254,770 million compared to 1H23, amounting to $1,666,979 million.

While there was a greater demand for services, revenues decreased mainly due to the fact that, as a consequence of the 271.5% annual inflation in Argentina (from June 30, 2023 to June 30, 2024), the Company (similarly to its competitors in the ICT industry) was unable to increase its prices during 1H24 to the same extent as the increase in inflation.

Services revenues amounted to $1,572,594 million in 1H24, decreasing 11.7% as compared to $1,780,178 million in 1H23 and represented 94.3% of consolidated revenues. Equipment revenues amounted to $94,385 million in 1H24 as compared to $141,571 million in 1H23, and represented 5.7% of consolidated revenues.

Revenues included $231,102 million and $1,485,124 million in 1H24 and 1H23, respectively, related to the effect generated by the restatement in current currency as of June 30, 2024.

Consolidated revenues for 1H24 and 1H23 are comprised as follows:

MobileServices

Mobile services revenues in 1H24 amounted to $672,409 million (a decrease of $106,440 million or 13.7% as compared to 1H23), being the principal contributor to our total services revenues for 1H24 (42.8% of services revenues in 1H24 as compared to 43.8% in 1H23). Mobile internet services revenues remained stable in 1H24 and 1H23 and accounted for 93% of total mobile service revenues in both periods.

The effect generated by the restatement in current currency as of June 30, 2024 included in Mobile services revenues amounted to $93,835 million and $602,563 million in 1H24 and 1H23, respectively.

Mobile services revenues in Argentina amounted to $608,129 million (a decrease of $109,912 million or 15.3% as compared to 1H23). This decrease was mainly due to 18.2% decrease in the ARPU (average revenue per user), partially offset by a 2.8% increase in the number of customers.

The ARPU amounted to $4,743.5 as of June 30, 2024 (compared to $5,800.0 as of June 30, 2023). This decrease was mainly explained by the fact that, as a consequence of the annual 271.5% inflation in Argentina, the Company (similarly to its competitors in the ICT industry) was unable to increase its prices during 1H24 to the same extent as the increase in inflation (the effect generated by the restatement in current currency as of June 30, 2024 included in ARPU amounted to $646.4 and $4,483.6 as of June 30, 2024 and 2023, respectively). Additionally, the decrease in ARPU is also explained by the fact that we granted greater discounts to customers in order to maintain the customer base, considering the intense competition in the market and an increase in the migration of customers from postpaid to prepaid services (which have a lower ARPU than postpaid customers).

II

Our mobile customers in Argentina amounted to 21.2 million and 20.6 million as of June 30, 2024 and 2023, respectively. Out of the total mobile customers as of June 30, 2024, 62% were prepaid customers and 38% were postpaid customers, whereas as of June 30, 2023, 60% were prepaid customers and 40% were postpaid customers. We observed a change in customer behavior, resulting in an increase in prepaid services customers of 5.4% and a decrease in the postpaid services customers of 1.2% as of June 30, 2024, as compared to June 30, 2023. Additionally, the average churn rate per month amounted to 1.6% in 1H24 (compared to a 1.8% average in 1H23).

ARPUof Mobile Services in Argentina

A monthly operational measure used in the mobile services is ARPU, which we calculate by dividing adjusted total service revenues—excluding out collect wholesale roaming, cell site rental and reconnection fees revenues and others—(divided by six months) by the average number of customers during 1H24. ARPU is not a measure calculated in accordance with IFRS Accounting Standards and our measure of ARPU may not be calculated in the same manner as similarly titled measures used by other companies. In particular, certain components of service revenues are excluded from Argentina’s ARPU calculations presented in this operating and financial review and prospects as of June 30, 2024. Management believes that this measure is helpful in assessing the development of the subscriber base of mobile services. The following table shows the reconciliation of total service revenues to such revenues included in the ARPU calculations of 1H24:

1H24
$ million
Total Mobile service revenues 608,129
Components of service revenues not included in the ARPU calculation: out collect (wholesale) roaming, cell sites rental, reconnection fees revenues and others (6,247)
Adjusted total service revenues included in the ARPU calculation 601,882
Average number of customers during 1H24 (millions) 21.1

Mobile services revenues generated in Paraguay amounted to $64,280 million in 1H24 (a $3,472 million or 5.7% increase compared to 1H23). The increase was mainly due to the appreciation of the Guaraní against the Argentine Peso.

Paraguay’s ARPU amounted to $6,875.1 as of June 30, 2024 (compared to $4,406.3 as of June 30, 2023), representing a 56.0% increase.

In 1H24, the customer base in Paraguay amounted to 2.4 million customers, increasing a 4.7% compared to 1H23. Out of the total mobile customers as of June 30, 2024, 74% were prepaid customers and 26% were postpaid customers, whereas as of June 30, 2023, 78% were prepaid customers, and 22% were postpaid customers. The average churn rate per month amounted to 2.6% in 1H24 (compared to a 2.8% average in 1H23).

InternetServices

Internet services revenues amounted to $418,073 million in 1H24 (equivalent to 26.6% of total consolidated services revenues), increasing $7,700 million or 1.9% as compared to 1H23. The effect generated by the restatement in current currency as of June 30, 2024 included in internet services revenues amounted to $59,809 million and $317,37 million in 1H24 and 1H23, respectively.

The increase in internet services revenues in Argentina in 1H24 was mainly due to the increase in the Broadband Internet access ARPU of 9.8%.

The ARPU reached $16,034.2 in 1H24 as compared to $15,866.2 in 1H23. This increase in ARPU is mainly explained by the fact that, we granted fewer discounts to customers for this service. The effect generated by the restatement in current currency as of June 30, 2024 included in ARPU amounted to $2,162.4 and $12,258.4 as of June 30, 2024 and 2023, respectively).

The customer base remained stable amounting to 4.1 million customers in both 1H24 and 1H23, as a result of the Company's efforts despite the intense competition. The churn rate per month amounted to 1.9% and 1.7% in 1H24 and 1H23, respectively.

III

ARPUof Internet Services in Argentina

A monthly operational measure used in the internet services is ARPU, which we calculate by dividing adjusted total service revenues—excluding connection and rehabilitation fees revenues and others—(divided by six months) by the average number of customers during 1H24. ARPU is not a measure calculated in accordance with IFRS Accounting Standards and our measure of ARPU may not be calculated in the same manner as similarly titled measures used by other companies. In particular, certain components of service revenues are excluded from Internet’s ARPU calculations presented in this operating and financial review and prospects as of June 30, 2024. Management believes that this measure is helpful in assessing the development of the subscriber base of Internet services. The following table shows the reconciliation of total service revenues to such revenues included in the ARPU calculations of 1H24:

1H24
$ million
Total Internet service revenues 393,440
Components<br> of service revenues not included in the ARPU calculation (51)
Adjusted<br> total service revenues included in the ARPU calculation 393,389
Average number of customers during<br> 1H24 (millions) 4.1

CableTelevision Services

Cable television services revenues amounted to $243,058 million in 1H24 (equivalent to 15.5% of total consolidated services revenues), decreasing $108,680 million or 30.9% as compared to revenues in 1H23. The effect generated by the restatement in current currency as of June 30, 2024, included in cable television services revenues, amounted to $34,031 million and $271,781 million in 1H24 and 1H23, respectively.

The decrease in Cable television service revenues in 1H24 was mainly due to the decrease in ARPU, a 33.2% decrease compared to 1H23, and a 0.9% decrease in the customer base compared to 1H23.

The ARPU amounted to $11,098.1 as of June 30, 2024 compared to an ARPU of $16,607.4 as of June 30, 2023. The decreased is mainly explained since annual inflation as of June 30, 2024 amounted to 271.5%, the Company (similarly to its competitors in the ICT industry) was unable to increase its prices during 1H24 to the same extent as the increase in inflation (the effect generated by the restatement in current currency as of June 30, 2024 included in ARPU amounts to $1,540.4 and $12,835.5 as of June 30, 2024 and 2023, respectively). Additionally, the decrease in ARPU is also explained by the fact that we granted greater discounts to customers as part of our customer retention strategy.

In 1H24, the customer base in Argentina amounted to 3.1 million customers, decreasing a 0.9% compared to 1H23. This decrease is mainly due to the economic situation in Argentina and the changes in customers’ consumption trends. Our Flow digital platform’s customer base reached 1.5 million and our Premium Package’s customer base amounted to 1.2 million in 1H24, a 11.8% decrease compared to 1H23. The average churn rate per month amounted to 2.0% in both 1H24 and 1H23.

ARPUof Cable Television Services in Argentina

An important monthly operational measure used in the Cable Television services is ARPU, which we calculate by dividing adjusted total service revenues—excluding connection and administration fees, advertising services and others—(divided by six months) by the average number of customers during 1H24. ARPU is not a measure calculated in accordance with IFRS Accounting Standards and our measure of ARPU may not be calculated in the same manner as similarly titled measures used by other companies. In particular, certain components of service revenues are excluded from Cable Television’s ARPU calculations presented in this operating and financial review and prospects as of June 30, 2024. Management believes that this measure is helpful in assessing the development of the subscriber base of cable television services. The following table shows the reconciliation of total cable television service revenues to such revenues included in the ARPU calculations of 1H24:

1H24
$ million
Total Cable television service<br> revenues 208,549
Components<br> of service revenues not included in the ARPU calculation:<br> Connection and Reconnection fees and others (374)
Adjusted<br> total service revenues included in the ARPU calculation 208,175
Average number of customers during<br> 1H24 (millions) 3.2 
IV

Fixedand Data Services

Revenues generated by fixed and data services amounted to $221,313 million in 1H24 (equivalent to 14.1% of total consolidated services revenues), decreasing $2,404 million or 1.1% as compared to 1H23. The effect generated by the restatement in current currency as of June 30 2024 included in fixed and data services revenues amounted to $32,244 million and $172,826 million in 1H24 and 1H23, respectively.

The decrease in fixed and data services in Argentina in 1H24 was mainly due to decrease in ARPU, decreasing 2.1% as compared to 1H23, and a decrease in the customer base of 6.2% compared to 1H23, partially offset by the appreciation of data service subscriptions that are denominated in dollars.

The ARPU of fixed telephony (excluding IP costumers) services amounted to $7,215.4 as of June 30, 2024 compared to an ARPU of $7,369.7 as of June 30, 2023. The decreased is mainly explained since annual inflation as of June 30, 2024 amounted to 271.5%, the Company (similarly to its competitors in the ICT industry) was unable to increase its prices during 1H24 to the same extent as the increase in inflation (the effect generated by the restatement in current currency as of June 30, 2024 included in ARPU amounts to $1,010.5 and $5,745.6 as of June 30, 2024 and 2023, respectively).

The customer base of fixed telephony services amounted to 2.8 million in 1H24 of which 1.7 million were IP customers, decreasing a 6.2% compared to 1H23. The customer base decreased mainly due to changes in consumption behavior of customers.

Otherservices revenues

Other services revenues generated by other services amounted to $17,741 million in 1H24, increasing $2,240 million or 14.5% compared to 1H23. The effect generated by the restatement in current currency as of June 30 2024 included in other services revenues amounted to $2,290 million and $11,727 million in 1H24 and 1H23, respectively.

These services include mainly revenues related to fintech services, revenues from billing remuneration and collection management on behalf of third parties, administrative revenues and revenues from the sale of advertising space, among others.

The increase in other services revenue in 1H24 was mainly due to the increase in fintech services in Argentina, principally due to the growth in the use of the "Personal Pay" digital wallet and the increase in the number of users, which amounted to 2.9 million and 1.2 million in 1H24 and 1H23, respectively.

Equipment

Equipment revenues amounted to $94,385 million in 1H24 (a decrease of $47,186 million or 33.3% compared to 1H23). This variation is mainly due to a 31% decrease in handsets sold compared to 1H23.

The effect generated by the restatement in current currency as of June 30, 2024 included in Equipment revenues amounts to $11,893 million and $108,790 million in 1H24 and 1H23, respectively.

· Operating costs (without depreciation, amortization and impairment of Fixed Assets)
1H24 Variation
--- --- --- --- ---
million $ million %
Employee benefit expenses and<br> severance payments (394,444) 67,323 (14.6)
Interconnection and transmission<br> costs (53,353) 3,064 (5.4)
Fees for services, maintenance,<br> materials and supplies (228,973) 9,943 (4.2)
Taxes and fees with the Regulatory<br> Authority (129,323) 19,010 (12.8)
Commissions and advertising (86,665) 30,367 (25.9)
Cost of equipment and handsets (73,847) 30,408 (29.2)
Programming and content costs (93,387) 15,653 (14.4)
Bad debt expenses (35,283) 12,626 (26.4)
Other operating<br> expenses (76,612) 16,196 (17.5)
Total<br> operating costs (1,171,887) 204,590 (14.9)

All values are in US Dollars.

Total operating costs without depreciation, amortization and impairment of Fixed Assets totaled $1,171,887 million in 1H24, which represents a decrease of $204,590 million or 14.9% compared to 1H23.

V

The effect generated by the restatement in current currency as of June 30, 2024 included in operating costs without depreciation, amortization and impairment of Fixed Assets amounted to $198,410 million and $1,066,471 million in 1H24 and 1H23, respectively.

Employeebenefit expenses and severance payments

Employee benefit expenses and severance payments amounted to $394,444 million in 1H24, decreasing $67,323 million or 14.6% compared to 1H23. The decrease was mainly due to a reduction of 3.7% in headcount from 21,607 employees in 1H23 to 20,809 employees in 1H24, partially offset by increases in salaries agreed to by the Company with several trade unions for unionized employees, and also for non-unionized employees, together with related social security charges and higher severance payments.

The effect generated by the restatement in current currency as of June 30, 2024 included in employee benefit expenses and severance payments amounted to $55,314 million and $356,856 million in 1H24 and 1H23, respectively.

Interconnectionand transmission costs

Interconnection and transmission costs (including charges for termination from third parties’ mobile networks, roaming and cost of international outbound calls and lease of circuits) amounted to $53,353 million in 1H24, decreasing $3,064 million or 5.4% compared to 1H23. The decrease was mainly due to the new dynamics of the business that imply an optimization of links and sites, partially offset by increases in the exchange rate in relation to services set in dollars.

The effect generated by the restatement in current currency as of June 30, 2024 included in Interconnection and transmission costs amounted to $8,415 million and $43,607 million in 1H24 and 1H23, respectively.

Feesfor services, maintenance, materials and supplies

Fees for services, maintenance, materials and supplies amounted to $228,973 million in 1H24, decreasing $9,943 million or 4.2% compared to 1H23. The decrease is mainly explained by the efficiency and management of resources through which Fees for services decreased $15,935 million compared to $117,741 million in 1H23, partially offset by higher cost of maintenance, materials and supplies, many of which are dollarized, for $5,723 million as compared to 1H23.

The effect generated by the restatement in current currency as of June 30, 2024 included in Fees for services, maintenance, materials and supplies amounted to $48,019 million and $185,492 million in 1H24 and 1H23, respectively.

Taxesand fees with the Regulatory Authority

Taxes and fees with the Regulatory Authority, including turnover tax, municipal taxes and other taxes, amounted to $129,323 million in 1H24, decreasing $19,010 million or 12.8% compared to 1H23. The decrease was mainly due to the effect of the decrease in revenues in 1H24. Taxes and fees with the Regulatory Authority represent 7.8% of revenues in 1H24 and 1H23, respectively.

The effect generated by the restatement in current currency as of June 30, 2024 included in Taxes and fees with the Regulatory Authority amounted to $17,694 million and $114,627 million in 1H24 and 1H23, respectively.

Commissionsand advertising

Commissions and advertising, amounted to $86,665 million in 1H24, decreasing $30,367 million or 25.9% compared to 1H23. The decrease is mainly due to lower charges for agent commissions, collection commissions and credit card finance charges compared to 1H23, partially offset by an increase in advertising costs.

The effect generated by the restatement in current currency as of June 30, 2024 included in Commissions and advertising amounted to $11,786 million and $90,189 million in 1H24 and 1H23, respectively.

Costof equipment

Cost of equipment, amounted to $73,847 million in 1H24, decreasing $30,408 million or 29.2% compared to 1H23. This decrease is mainly due to a 31% decrease in handsets sold compared to 1H23.

The effect generated by the restatement in current currency as of June 30, 2024 included in Cost of equipment amounted to $26,214 million and $82,327 million in 1H24 and 1H23, respectively.

VI

Programmingand content costs

Programming and content costs amounted to $93,387 million in 1H24, decreasing $15,653 million or 14.4% compared to 1H23. The decrease was mainly due to commercial efficiency, partially offset by price increases in almost all cable television signals.

The effect generated by the restatement in current currency as of June 30, 2024 included in Programming and content costs amounted to $15,330 million and $84,284 million in 1H24 and 1H23, respectively.

Baddebt expenses

Bad debt expenses amounted to $35,283 million in 1H24, decreasing $12,626 million or 26.4% compared to 1H23, representing 2.1% and 2.5% of the revenues in 1H24 and 1H23, respectively. The decrease is mainly due to continuing credit recovery actions.

The effect generated by the restatement in current currency as of June 30, 2024 included in Bad debt expenses amounted to $5,586 million and $37,415 million in 1H24 and 1H23, respectively.

Otheroperating expenses

Other operating expenses (which include legal claims and contingent liabilities, energy and other public services, insurance, rentals and internet capacity, among others) amounted to $76,612 million in 1H24, decreasing $16,197 million or 17.5% compared to 1H23. The decrease is mainly due to lower charges in legal claims and contingent liabilities and Postage, freight and travel expenses, partially offset by higher rental charges and energy costs.

The effect generated by the restatement in current currency as of June 30, 2024 included in Other operating expenses amounted to $10,052 million and $71,674 million in 1H24 and 1H23, respectively.

Depreciation,amortization and impairment of Fixed Assets

Depreciation, amortization and impairment of Fixed Assets amounted to $557,189 million in 1H24, a decrease of $77,744 million or 12.2 % compared to 1H23.

The variation is due to the effect of those assets that ended their useful life after June 30, 2023, partially offset by the impact of the amortization of the CAPEX subsequent to that same date.

The effect generated by the restatement in current currency as of June 30, 2024 included in depreciation, amortization and impairment of Fixed Assets amounts to $463,299 million and $594,553 million in 1H24 and 1H23, respectively.

· Operating loss

Operating loss amounted to $62,097 million and $89,661 million in 1H24 and 1H23, respectively, representing a decrease of $27,564 million as compared to 1H23. Operating loss represented (3.7)% and (4.7)% of revenues in 1H24 and 1H23, respectively.

· Financial results, net
1H24 Variation
--- --- --- ---
million $ million %
Interests on borrowings (53,122) 6,044 (10.2)
Remeasurement in borrowings (74,013) (83,353) n/a
Foreign currency exchange gains<br> on borrowings 1,249,112 1,181,531 n/a
Borrowings<br> renegotiation results - 1,434 n/a
Total<br> financial results from borrowings 1,121,977 1,105,656 n/a
Other foreign currency exchange<br> gains (losses) 151,451 156,274 n/a
Fair value gains/(losses) on financial<br> assets at fair value through profit or loss (15,077) 14,664 (49.3)
Other interests, net 8,221 (1,086) (11.7)
RECPAM 77,467 (58,799) (43.2)
Other (58,239) (30,326) 108.6
Total<br> other financial results, net 163,823 80,727 97.1
Total<br> financial results, net 1,285,800 1,186,383 n/a

All values are in US Dollars.

VII

Telecom incurred in a financial gain, net of $1,285,800 million in 1H24 (compared to a gain of $99,417 million in 1H23). Financial Results, net in 1H24 mainly included (i) foreign exchange gains measured in real terms of $1,400,563 million as a result of the U.S. dollar appreciating 12.8% against the Argentine Peso compared to a 79.8% inflation (compared to a gain of $62,758 million in 1H23 and 44.9% devaluation of the Argentine Peso against the U.S. dollar compared to a 50.7% inflation in 1H23) and (ii) the Inflation Adjustment Gain (Loss) (Resultado por exposición a los cambios en el poder adquisitivode la moneda, or RECPAM), which amounted to a gain of $77,467 million (compared to a gain of $136,266 million in 1H23). These effects were partially offset by (i) interest on borrowings, measured in real terms, of $53,122 million (compared to $59,166 million in 1H23). (ii) losses from remeasurement in borrowings of $74,013 million (compared to a gain of $9,340 million in 1H23), (iii) fair value losses on financial assets at fair value through profit or loss of $15,077 million (compared to a loss of $29,741 million in 1H23), and (iv) other financial results of $50,018 million (compared to $20,040 million in 1H23).

· Income tax benefit (expense)

Telecom’s income tax includes the following effects: (i) the current tax payable pursuant to tax legislation applicable to Telecom, and (ii) the effect of applying the deferred tax method on temporary differences arising out of the Company’s asset and liability valuation according to tax versus financial accounting criteria, including the income tax inflation effect.

Income tax expense amounted to $361,508 million in 1H24 compared to a benefit of $139,666 million in 1H23. It includes the following effects: (i) current tax expenses, Telecom’s generated $5,538 million tax expense in 1H24 (compared to an expense of $1,575 million in 1H23), (ii) regarding the deferred tax in 1H24, Telecom recorded a deferred tax expense of $355,970 million compared to a gain of $141,241 million in 1H23.

· Net income

Telecom recorded net income of $859,223 million in 1H24 as compared to net income of $146,409 million in 1H23 and represented a 51.5% of revenues as compared to 7.6% in 1H23. The increase in 1H24 compared to 1H23 was mainly due to an increase in income before income tax of $1,213,988 million, which was partially offset by a decrease in income tax benefit (expense) of $501,174 million.

Net income attributable to controlling shareholders amounted to $851,682 million in 1H24 compared to a gain of $140,561 million in 1H23.

· Adjusted EBITDA

An important operational performance measure used by the Company’s Chief Operating Decision Maker (as this term is defined in IFRS Accounting Standard 8) is Adjusted EBITDA. Adjusted EBITDA is defined as our net (loss) income less income tax, financial results, Earnings (losses) from associates and joint ventures, and depreciation, amortization and impairment of Fixed Assets. We believe Adjusted EBITDA facilitates company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures, taxation and the useful lives and book depreciation and amortization of property, plant and equipment (PP&E) and intangible assets, which may vary for different companies for reasons unrelated to operating performance. Although Adjusted EBITDA is not a measure defined in accordance with IFRS Accounting Standards (a non-GAAP measure), our Management believes that this measure facilitates operating performance comparisons from period to period and provides useful information to investors, financial analysts and the public in their evaluation of our operating performance. Adjusted EBITDA does not have a standardized meaning and, accordingly, our definition of Adjusted EBITDA may not be comparable to Adjusted EBITDA as used by other companies.

The following table shows the reconciliation of Net income to Adjusted EBITDA:

1H24 Variation
million $ million %
Net income 859,223 146,409 712,814 n/a
Income tax (benefit) expense 361,508 (139,666) 501,174 n/a
Other financial results, net (163,823) (83,096) (80,727) 97.1
Financial results from borrowings (1,121,977) (16,321) (1,105,656) n/a
Losses from associates and joint ventures 2,972 3,013 (41) (1.4)
Operating loss (62,097) (89,661) 27,564 (30.7)
Depreciation, amortization and impairment of Fixed Assets 557,189 634,933 (77,744) (12.2)
Adjusted EBITDA 495,092 545,272 (50,180) (9.2)

All values are in US Dollars.

Our consolidated Adjusted EBITDA amounted to $495,092 million in 1H24, representing a decrease of $50,180 million or 9.2% as compared to 1H23. Adjusted EBITDA represented 29.7% of our total consolidated revenues in both 1H24 and 1H23, respectively.

VIII

Liquidityand Capital Resources

· Sources and Uses of Funds

We expect the main sources of Telecom Argentina’s liquidity in the short term to be cash flows from Telecom Argentina’s operations and cash flows from financing from third parties, which may include accessing to domestic and international capital markets and obtaining financing from financial institutions. Telecom Argentina’s principal uses of cash flows are expected to be capital expenditures, operating expenses, dividend payments to its shareholders, payments of borrowings and for general corporate purposes. Telecom Argentina expects working capital, funds generated from operations, dividend payments from its subsidiaries and financing from third parties to be sufficient. Telecom Argentina has accessed and expects that it will be able to access the domestic and international capital markets during 2024 to refinance its outstanding debt, if necessary.

· Borrowings Developments during 1H24

The most relevant borrowings developments for the six-months period ended June 30, 2024 were the following:

Series Currency Amount involved<br><br> <br>(in millions) Issuance date Maturity date Amortization Interest rate Interest payment date
20 US$<br> linked 59.7 06/2024 06/2026 In<br> one installment at maturity date Annual<br> fixed rate of 5.00% Quarterly<br> basis
US$<br> linked 21.6 06/2024 06/2026 In<br> one installment at maturity date Annual<br> fixed rate of 5.00% Quarterly<br> basis

For more information, see Note 11 of our unaudited condensed consolidated financial statements.

For more information, related to subsequent events to June 30, 2024 see Note 26 to the unaudited condensed consolidated financial statements.

Cash Flow

The table below summarizes, for the six-months period ended June 30, 2024 and June 30, 2023, Telecom’s consolidated cash flows.

1H24 Variation
million
Cash<br> flows provided by operating activities 328,659 (169,700)
Cash<br> flows used in investing activities (234,812) 206,402
Cash<br> flows used in financing activities (158,191) (109,944)
Net<br> foreign exchange differences and RECPAM on cash and cash equivalents (57,878) (51,023)
Decrease in cash and cash equivalents (122,222) (124,265)
Cash and cash equivalents at the beginning of the year 287,230 63,008
Cash and cash equivalents at the end of the period 165,008 (61,257)

All values are in US Dollars.

As of June 30, 2024 and June 30, 2023, we had $165,008 million and $226,265 million in cash and cash equivalents, respectively.

Cashflows provided by operating activities were $328,659 million and $498,359 million in 1H24 and 1H23, respectively.

Net cash provided by operating activities decreased $169,700 million, or (34.1)% in 1H24 compared to 1H23, primarily due to a $73,733 million increase in net loss adjusted for non-cash income and expense which was partially offset by (i) a $96,344 million decrease in net cash outflows in connection with changes in our assets and liabilities and (ii) a $377 million decrease in cash outflows used to pay income tax.

The decrease was primarily due to an increase in trade payable payments, mostly due to settlements of outstanding foreign currency payables (which was settled using government bonds also), an increase in payments of other liabilities and a decrease in cash flows related to trade receivables, partially offset by an increase in cash flows related to other receivables.

IX

Cashflows used in investing activities were $234,812 million and $441,214 million in 1H24 and 1H23, respectively.

In 1H24, cash flows used in investing activities included payments for acquisitions of PP&E and Intangible assets of $189,135 million and payment for investments not considered as cash and cash equivalents of $190,904 million partially offset by proceeds from sale of investments not considered as cash and cash equivalents of $146,723 million.

In 1H23, cash flows used in investing activities included payments for acquisitions of PP&E and Intangible assets of $201,143 million, and payment for investments not considered as cash and cash equivalents of $244,656 million partially offset by proceeds from sale of investments not considered as cash and cash equivalents of $7,070 million.

Cashflows used in financing activities were $158,191 million and $48,247 million in 1H24 and 1H23, respectively.

In 1H24, cash flows used in financing activities included payments for borrowings, interest and related expenses and leases liabilities for $414,403 million and dividends paid to non-controlling interests in subsidiaries for $7,928 million offset by proceeds from borrowings for $264,140 million.

In 1H23, cash flows used in financing activities included payments for borrowings, interest and related expenses and leases liabilities for $334,533 million offset by proceeds from borrowings for $286,286 million.

· Liquidity

The liquidity position of Telecom is and will be significantly dependent on its operating performance, its indebtedness, capital expenditure programs and dividends from its subsidiaries, if any.

Telecom’s working capital breakdown and its main variations are disclosed below:

As<br> of June<br> 30, 2024 Variation
million
Trade<br> receivables 252,285 13,425
Other<br> receivables 52,831 (5,577)
Inventories 42,190 (14,491)
Current<br> liabilities (not considering borrowings) (702,564) 274,033
Operating working capital - negative (355,258) 267,390
As % of Revenues 21.3%
Cash<br> and cash equivalents 165,008 (122,222)
DFI 2,712 (73)
Investments 223,141 279
Current<br> borrowings (820,770) 192,209
Net Current financial liability (429,909) 70,193
Assets<br> classified as held for sale 1,781 1,781
Negative working capital (current assets — current liabilities) (783,386) 339,364
Liquidity rate (current assets / current liabilities) 0.49 0.05

All values are in US Dollars.

Telecom has a typical working capital structure corresponding to a company with intensive capital that obtains spontaneous financing from its suppliers (especially PP&E and Intangible asset) for longer terms than those it provides to its customers. As a result, Telecom has a negative working capital, which amounted to $783,386 million as of June 30, 2024 (decreasing $339,364 million compared to December 31, 2023).

Telecom had consolidated cash and cash equivalents amounting to $165,008 million and $287,230 million as of June 30, 2024 and December 31, 2023, respectively.

Compliancewith covenants

The Company has complied with: a) the EBITDA/ Net Interest ratio and b) the Net Debt/EBITDA ratio established in the waivers obtained in March 2024, and is also in compliance with the rest of the commitments assumed and in force on June 30, 2024.

For more information on our financial ratio waivers, see Note 11 of our unaudited condensed consolidated financial statements.

X

CapitalExpenditures

CAPEX and Rights of use assets additions composition 1H24 and 1H23 is as follows:

1H24 Variation
million $ million %
PP&E 207,726 (10,685) (4.9)
Intangibles<br> assets 16,866 6,682 65.6
Total CAPEX 224,592 (4,003) (1.8)
Rights<br> of use assets 91,354 15,131 19.9
Total CAPEX and Right of use asset additions 315,946 11,128 3.7

All values are in US Dollars.

Our main CAPEX projects are related to the expansion of cable television and Internet services in order to improve the transmission and speed offered to customers; the deployment of 4G and the expansion of 5G services to support the growth of mobile Internet services, improvement of the quality service.

In terms of infrastructure, during 2024 we have continued to improve the services we provide by deploying the 4G / LTE network, together with the technological reconversion of our 2G / 3G networks to 4G and LTE, and the deployment of fiber optics to connect homes with Broadband, which also had an impact on fixed and data network. The deployment of 4G/LTE reached a coverage of 97% of urban population. Additionally, we reached a coverage of 98% of the population of major cities of Argentina. Our customers with access to our 4G network, according to the latest benchmark of June 30, 2024 carried out by Ookla, perceived a better service experience reaching average speeds of 39.9 Mbps, compared to 33.1 Mbps as of June 30, 2023. In addition, approximately 72% of the calls are made by Volte, a technology that allows making and receiving voice calls over the 4G Network with substantial improvements in audio and video quality. During 2024 we have continued with the expansion of our 5G network and are planning to reach 200 sites in 2024.

Additionally, we continued to deploy the mobile sites connectivity in order to achieve better quality and capacity, replacing radio links with high capacity fiber optics connections. Finally, the plan to connect remote and low-density areas through satellite backhaul continued.

3. Telecom Group’s activities for the three-month periods ended June 30, 2024 (“2Q24”) and 2023 (“2Q23”)
2Q24 Variation
--- --- --- ---
million $ million %
Revenues 856,084 (77,754) (8.3)
Operating<br> costs without depreciation, amortization and impairment of fixed assets (606,583) 81,118 (11.8)
Depreciation,<br> amortization and impairment of fixed assets (280,596) 40,992 (12.7)
Operating loss (31,095) 44,356 (58.8)
Losses<br> from associates and joint ventures (1,361) 3,606 n/a
Financial<br> results, net 202,857 192,542 n/a
Income (loss) before income tax 170,401 240,504 n/a
Income<br> tax benefit (expense) (111,539) (197,062) n/a
Net income 58,862 43,442 n/a
Attributable to:
Controlling<br> Company 54,608 41,706 n/a
Non-controlling<br> interest 4,254 1,736 68.9
58,862 43,442 n/a
Basic and diluted income per share attributable to the Controlling Company (in Argentine pesos) 25.36
Adjusted<br> EBITDA 249,501 3,364 1.4

All values are in US Dollars.

Revenues in 2Q24 amounted to $856,084 million and operating costs (without depreciation, amortization and impairment of fixed assets) amounted to $606,583 million, therefore, adjusted EBITDA amounted to $249,501 million (equivalent to 29.1% of consolidated revenue in 2Q24 vs. 26.4% in 2Q23). Depreciation, amortization and impairment of fixed assets amounted to $280,596 million (equivalent to 32.8% of consolidated revenues) and operating loss amounted to $31,095 million (equivalent to 3.6% of consolidated revenue in 2Q24 vs. 8.1% in 2Q23).

Services revenues amounted to $799,692 million in 2Q24 -equivalent to 93.4% of consolidated revenues-, and equipment revenues amounted to $56,392 million in 2Q24 –equivalent to 6.6% of consolidated revenues.

Mobile services revenues amounted to $342,406 million in 2Q24 –equivalent to 42.8% of consolidated services revenues– which were mainly generated by customers in Argentina.

XI

Internet services revenues amounted to $218,247 million in 2Q24 –equivalent to 27.3% of consolidated services revenues.

Cable television services revenues amounted to $122,803 million in 2Q24 –equivalent to 15.4% of consolidated service revenues– and they are mainly composed of services revenues provided in Argentina and Uruguay.

Finally, Fixed and data services revenues amounted to $107,787 million in 2Q24 –equivalent to 13.5% of consolidated service revenues.

Operating costs without depreciation, amortization and impairment of fixed assets amounted to $606,583 million in 2Q24, being the main components, employee benefit expenses and severance payments (amounted to $207,318 million); fees for services, maintenance, materials and supplies (amounted to $110,363 million); taxes and fees with the Regulatory Authority (amounted to $66,838 million); Programming and content costs (amounted to $48,977 million) and commissions and advertising (amounted to $44,565 million).

Financial results, net amounted to a gain of $202,857 million in 2Q24, mainly due to net foreign exchange gains, measured in real terms, amounting to $272,548 million, the net gain on restatement in current currency amounting to $14.983 million and fair value losses on financial assets at fair value through profit or loss of $13,103 million, partially offset by, interests on borrowings amounting to $21,858 million, losses from remeasurement in borrowings amounting to $39,023 million, other taxes and bank expenses amounting to $30,665 million and other financial results amounting to $6,231 million.

Income tax gain amounted to $111,539 million in 2Q24. Therefore, Telecom Argentina obtained a net income amounting to $58,862 million in 2Q24, which represents 6.9% of consolidated revenues.

Net income attributable to the controlling shareholders amounted to $54,608 million in 2Q24.

Our consolidated Adjusted EBITDA amounted to $249,501 million in 2Q24. Adjusted EBITDA represented 28.9% of our total consolidated revenues.

The following table shows the reconciliation of Net income to Adjusted EBITDA:

2Q24
million
Net income 58,862 15,420
Income<br> tax (benefit) expense 111,539 (85,523)
Other<br> financial results, net (26,855) (34,997)
Financial<br> results from borrowings (176,002) 24,682
Losses<br> from associates and joint ventures 1,361 4,967
Operating loss (31,095) (75,451)
Depreciation,<br> amortization and impairment of Fixed Assets 280,596 321,588
Adjusted EBITDA 249,501 246,137

All values are in US Dollars.

4. Summary of comparative consolidated statements of financial position (in million)
June 30,
--- --- --- --- --- ---
2024 2023 2022 2021 2020
Current<br> assets 739,948 682,597 574,359 1,072,993 1,512,144
Non-current<br> assets 8,595,800 8,723,755 10,659,625 11,265,371 11,578,820
Total assets 9,335,748 9,406,352 11,233,984 12,338,364 13,090,964
Current<br> liabilities 1,523,334 1,675,941 1,734,631 1,651,446 2,531,481
Non-current<br> liabilities 3,084,151 3,226,553 3,529,933 4,345,389 3,604,317
Total liabilities 4,607,485 4,902,494 5,264,564 5,996,835 6,135,798
Equity<br> attributable to the Controlling Company 4,635,492 4,407,479 5,882,701 6,247,424 6,853,943
Equity<br> attributable non-controlling interest 92,771 96,379 86,719 94,105 101,223
Total Equity 4,728,263 4,503,858 5,969,420 6,341,529 6,955,166
Total liabilities and equity 9,335,748 9,406,352 11,233,984 12,338,364 13,090,964
5. Summary of comparative consolidated income statements (in million)
--- ---
1H24 1H23 1H22 1H21 1H20
--- --- --- --- --- ---
Revenues 1,666,979 1,921,749 2,119,116 2,364,374 2,587,403
Operating<br> costs (1,729,076) (2,011,410) (2,187,478) (2,294,713) (2,301,548)
Operating income (loss) (62,097) (89,661) (68,362) 69,661 285,855
Earnings<br> (losses) from associates and joint ventures (2,972) (3,013) 1,152 1,512 4,254
Financial<br> results, net 1,285,800 99,417 309,897 244,169 (186,515)
Income before income tax 1,220,731 6,743 242,687 315,342 103,594
Income<br> tax benefit (expense) (361,508) 139,666 12,647 (337,308) (64,925)
Net income (loss) 859,223 146,409 255,334 (21,966) 38,669
Other<br> comprehensive loss, net of tax (161,428) (3,657) (21,798) (28,273) (20,977)
Total comprehensive income (loss) 697,795 142,752 233,536 (50,239) 17,692
Attributable<br> to Controlling Company 738,239 137,124 233,165 (48,121) 17,228
Attributable<br> to non-controlling interest (40,444) 5,628 371 (2,118) 464 
XII
6. Summary of comparative consolidated statements of cash flow (in million)
1H24 1H23 1H22 1H21 1H20
--- --- --- --- --- ---
Net<br> cash flows provided by operating activities 328,659 498,359 606,808 739,976 932,629
Net<br> cash flows used in investing activities (234,812) (441,214) (586,657) (774,491) (464,995)
Net<br> cash flows used in financing activities (158,191) (48,247) (48,447) (40,905) (92,214)
Net<br> foreign exchange differences and RECPAM on cash and cash equivalents (57,878) (6,855) (15,820) (13,962) 21,170
Total cash and cash equivalents (used) provided during the period (122,222) 2,043 (44,116) (89,382) 396,590
7. Statistical data (in physical units in index-term)
--- ---
06.30.24 06.30.23 06.30.22 06.30.21 06.30.20
--- --- --- --- --- ---
Mobile<br> telephony services lines 23.6 22.9 22.3 21.4 21.0
Internet<br> Access (ii) 4.4 4.3 4.5 4.4 4.2
Cable<br> TV Subscribers 3.3 3.4 3.5 3.5 3.5
Fixed<br> telephony services lines 2.8 2.9 3.1 3.2 3.2
8. Consolidated ratios
--- ---
06.30.24 06.30.23 06.30.22 06.30.21 06.30.20
--- --- --- --- --- ---
Liquidity<br> (1) 0.49 0.41 0.33 0.65 0.60
Solvency<br> (2) 1.03 0.92 1.13 1.06 1.13
Locked-up<br> capital (3) 0.92 0.93 0.95 0.91 0.88
1) Current<br> assets/Current liabilities.
--- ---
2) Total<br> equity/Total liabilities.
3) Non-current<br> assets/Total assets.
9. Trend information
--- ---

As part of the ICT industry, Telecom is a driving force in Argentina's digital economy. It plays a significant role in developing essential digital solutions for Economy 4.0 and has a considerable impact on the lives of individuals and communities. “Industry 4.0” refers to technological advancement focused on producing solutions focused on interconnectivity, automation, real-time data based on artificial intelligence, data analytics and IoT, through the adoption of 4.0 technologies.

We offer valuable connections, enhance digital life, encourage talent development, and create innovative products and services that make us Argentina's leading technology company.

We have navigated the first part of 2024 alongside the emergence of a new national government, in a socio-economic context that remains complex, where the main macro and microeconomic variables present significant challenges to the Company's sustainability. We trust that there will be an intensified trend toward inflation deceleration and exchange rate stability, as well as the regularization of conditions for the acquisition of technological equipment.

We believe that there will be a trend towards inflation deceleration and stability in the exchange rate, as well as regularization in the conditions for the purchase of technological equipment.

Telecom remains committed to its customers by offering the best comprehensive ecosystem of digital, connectivity, and entertainment services, essential pillars for the digital life of individuals and organizations. To ensure business viability, the Company remains focused on achieving an optimal balance between its revenues and costs through an operational efficiency plan and a balance between pricing policies, maintaining commercial promotions, and adapting to the highly competitive market.

This commitment is also reflected in the continuation of the investment plan that Telecom has maintained over the past few years for the transformation of its systems and infrastructure, which are central pillars of its digital transformation, as well as for the development of new services and solutions, crucial for the evolution of our customers.

We connect the country with the best technology available worldwide. We continue to expand the fiber optic network to bring high-speed connections to every corner of the country, enhancing services both inside and outside the home. We also focus our efforts on growing digital platforms such as Flow and Personal Pay, Telecom's digital wallet, which continue to expand their customer base.

XIII

Personal 5G, the first 5G network in the country, continues to grow with new mobile sites in the main cities of Argentina. The deployment of this technology targets areas with the highest concentration of compatible devices, with planning aligned to the evolution of demand, taking into account the intensive and dollarized investments required by this new technology. The objective is to expand business opportunities and create value for industries, cities, entrepreneurs, and individuals. The 5G standard not only represents a technological evolution but will also be a great enabler of innovation and technological development worldwide, a pillar of industrial transformation, and a factor of economic competitiveness as the value chain of this ecosystem develops and new businesses are generated.

From a regulatory perspective, on April 10, 2024, through Decree No. 302/24, the National Government repealed Decree No. 690/20, enacted in August 2020, which had declared ICT Services as essential public services and limited, among other things, free competition and the freedom to set prices. The repeal of the Decree reduces the uncertainty that the ICT Services industry has been experiencing in recent years. This first measure of the National Government towards the ICT industry generates positive expectations regarding the demands that the sector has been making, and keeps us attentive to the regulatory developments of this new stage in Argentina.

The Company's digital transformation is key to evolving the business model we are developing based on the opportunities offered by the platformization of services and regional positioning, initially focusing on Paraguay, Uruguay, and Chile.

Deepening this strategic objective, Telecom leads the GSMA Open Gateway initiative in Argentina, which drives innovation and digital development in the country by generating new businesses through the standardization and monetization of network assets. Just one year after joining this initiative, we have launched two anti-fraud service applications, we are developing more, and we have partnered with the company Intraway to continue driving this new business paradigm along with mobile operators in Latin America.

In line with our purpose, we will continue to promote the growth of the digital economy, the expansion of talent and supporting the evolution of variables such as energy efficiency and the circular economy, which today are pillars of Telecom's sustainable management. We continue to build the future and be the leading choice of our customers.

Carlos Moltini
Chairman of the Board of Directors 
XIV

UNAUDITEDSELECTED FINANCIAL DATA

(In millions of Argentine pesos in current currency - except per share data in Argentine pesos in current currency)

FinancialStatements – Application of Accounting Standards

We prepared our audited consolidated financial statements as of December 31, 2023 and 2022 and for our fiscal years ended December 31, 2023, 2022 and 2021 (our “Annual Financial Statements”) in Pesos in current currency as of December 31, 2023 and in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (IFRS). Our Annual Financial Statements are included in Item 18 of our 2023 20-F.

We prepared our unaudited condensed consolidated financial statements as of June 30, 2024 and for the six-month periods ended June 30, 2024 and 2023 (our “Q2 2024 Unaudited Financial Statements”) in Pesos in current currency as of June 30, 2024 and in accordance with IAS 34 “Interim Financial Reporting”. Our Q2 2024 Unaudited Financial Statements do not include all the information and disclosures required in our Annual Financial Statements and should be read in conjunction with them. Our results for the six-months period ended June 30, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024, or any future period. Our Q2 2024 Unaudited Financial Statements are included elsewhere herein.

We refer to our Annual Financial Statements and our Q2 2024 Unaudited Financial Statements together as our “Financial Statements”.

FinancialStatements – Application of IAS 29 “Financial Reporting in Hyperinflationary Economies” (“IAS 29”)

IAS 29 requires for financial statements of an entity whose functional currency is the currency of a hyperinflationary economy, whether they are based on a historical cost approach or a current cost approach, to be stated in terms of the measuring unit current at the end of the reporting year/ period. This requirement also includes the comparative information of the financial statements. In general terms, by applying to non-monetary items the change in a general price index from the date of acquisition or the date of revaluation, as appropriate, to the end of the reporting period.

In order to determine whether an economy is categorized as a high inflation economy under IAS 29, the standard details several factors to be assessed, including the existence of a cumulative inflation rate over six years approaching, or exceeding, 100%.

The table below shows the evolution of the indexes as of June 30, 2024 and December 31, 2023, 2022 and 2021, respectively.

As of December  31, 2021 As of December 31, 2022 As of December 31, 2023 As of<br><br> <br>June 30,<br><br> <br>2024
National<br> Consumer Price Index (National CPI) (December 2016=100) 582.46 1,134.59 3,533.19 6,351.71
Variation in Prices
Annual 50.9% 94.8% 211.4% 271.5%
Accumulated<br> six months n/a n/a n/a 79.8%

Our Annual Financial Statements have been measured in terms of current pesos as of December 31, 2023 applying the guidance in IAS 29. Our Q2 2024 Unaudited Financial Statements have been measured in terms of current pesos as of June 30, 2024 applying the guidance in IAS 29.

We have not recast our Annual Financial Statements to measure them in terms of current pesos as of June 30, 2024, the most recent financial period for which consolidated financial statements are available. Therefore, the Annual Financial Statements and the Q2 2024 Unaudited Financial Statements are not comparable.

We have included herein supplemental selected financial data for the years ended December 31, 2023, 2022 and 2021 recast in Pesos in current currency as of June 30, 2024, the most recent financial period for which financial statements are available. We believe the presentation of this supplemental selected financial data helps to bridge a reader to better understand the impact the inflation for the six-month period ended June 30, 2024 would have had on the Annual Financial Statements should they had been presented on a comparative basis together with the Unaudited Interim Consolidated Financial Statements. The inflation rate in Argentina for the six-month period ended June 30, 2024 was 79.77%.

The following tables summarize selected statements of financial position as of December 31, 2022, income statement data and cash flow data for the years ended December 31, 2023, 2022 and 2021 recast in Pesos in current currency as of June 30, 2024, the most recent financial period for which financial statements are available. The statements of financial position as of December 31, 2023 recast in Pesos in current currency as of June 30, 2024 is included in the Q2 2024 Unaudited Financial Statements as the comparative information to June 30, 2024.

Supplementalselected consolidated statements of financial position data recast in millions of Pesos in current currency as of June 30, 2024

As of December 31, 2022
$ million
Current<br> assets 632,492
Assets 9,679,235
Current<br> liabilities 1,614,039
Liabilities 5,130,355
Equity 4,548,880
Liabilities and Equity 9,679,235

Supplementalselected consolidated income statement data recast in millions of Pesos - exceptper share data in Pesos - in current currency as of June 30, 2024

For<br> the years ended December 31,
2023 2021
million
Revenues 3,701,701 4,640,011
Employee<br> benefit expenses and severance payments (924,862) (1,001,332)
Interconnection<br> and transmission costs (109,289) (166,430)
Fees<br> for services maintenance materials and supplies (465,103) (539,045)
Taxes<br> and fees with the Regulatory Authority (284,381) (357,063)
Commissions<br> and advertising (216,809) (265,995)
Cost<br> of equipment and handsets (199,688) (228,583)
Programming<br> and content costs (208,846) (315,692)
Bad<br> debt expenses (80,272) (87,053)
Other<br> operating expenses (170,856) (230,990)
Depreciation<br> amortization and impairment of Fixed Assets (1,266,429) (1,478,221)
Operating loss (224,834) (30,393)
Earnings<br> (losses) from associates and joint ventures (3,394) 4,311
Finance<br> costs (1,140,311) 312,977
Other<br> financial results net 311,575 184,826
Income (loss) before income tax (1,056,964) 471,721
Income<br> tax benefit (expense) 608,094 (363,330)
Net income (loss) for the year (448,870) 108,391

All values are in US Dollars.

For<br> the years ended December 31,
2023 2021
million
Attributable to:
Controlling<br> Company (463,328) 94,488
Non-controlling<br> interest 14,458 13,903
(448,870) 108,391
Earnings per share for income (loss) attributable to the Controlling Company-Basic and diluted (215.1) 43.9
Adjusted<br> EBITDA (*) 1,041,595 1,447,828

All values are in US Dollars.

(*) Adjusted EBITDA is a non-GAAP measure, for further information on the use of adjusted EBITDA, see “Adjusted EBITDA” in our “Operating and financial review and prospects as of June 30, 2024”.

Reconciliation of net income (loss) to Adjusted EBITDA

For<br> the years ended December 31,
2023 2021
million
Net income (loss) for the year (448,870) 108,391
Income<br> tax benefit (expense) (608,094) 363,330
Other<br> financial results, net (311,575) (184,826)
Finance<br> costs 1,140,311 (312,977)
Earnings<br> (losses) from associates and joint ventures 3,394 (4,311)
Operating loss (224,834) (30,393)
Depreciation,<br> amortization and impairment of Fixed Assets 1,266,429 1,478,221
Adjusted EBITDA 1,041,595 1,447,828

All values are in US Dollars.

Supplementalselected consolidated statement of cash flow data recast in millions of Pesos in current currency as of June 30, 2024

For<br> the years ended December 31,
2023 2021
million
Cash<br> flows provided by operating activities 1,110,452 1,418,040
Cash<br> flows used in investing activities (1,067,323) (1,255,364)
Cash<br> flows used in financing activities (129,508) (221,331)
Net<br> foreign exchange differences and RECPAM on cash and cash equivalents 149,388 (29,844)
Increase/ (Decrease) in cash and cash equivalents 63,009 (88,499)
Cash and cash equivalents at the beginning of the year 224,222 304,959
Cash and cash equivalents at the end of the year 287,231 216,460

All values are in US Dollars.

The management’s discussion and analysis on the results of operations and liquidity included in our 20-F for the year ended December 31, 2023 continue to be applicable.

CORPORATEINFORMATION

BYMA

Market<br> quotation (/share) Volume of shares
Quarter High traded (in millions)
2Q23 687.45 7.0
3Q23 959.80 11.9
4Q23 1,752.45 10.6
1Q24 2,073.15 8.5
2Q24 2,191.65 10.9

All values are in US Dollars.

NYSE*

Market<br> quotation (US/ADR) Volume of ADRs
Quarter High traded (in millions)
2Q23 6.72 6.5
3Q23 6.43 8.0
4Q23 8.64 11.0
1Q24 7.97 8.7
2Q24 9.65 15.9

All values are in US Dollars.

* Calculated at 1 ADR = 5 shares.

• INVESTOR RELATIONS for information about Telecom Argentina S.A., please contact:
In Argentina
---
Telecom<br> Argentina S.A.
Investor<br> Relations Division
General<br> Hornos 690
(1272)<br> Autonomous City of Buenos Aires
Argentina
https://inversores.telecom.com.ar/ar/es/contacto.html
Outside Argentina
---
JPMorgan<br> Chase Bank N.A.
383<br> Madison Avenue, Floor 11.
New<br> York, NY10179<br><br> <br>Attn:<br> Depositary Receipts Group<br><br> <br>Tel:<br> +1 212 622 5935
• INTERNET http://institucional.telecom.com.ar/inversores/
--- ---
• DEPOSIT AND TRANSFER AGENT FOR ADSs
--- ---
JPMorgan<br> Chase Bank N.A.
---
383<br> Madison Avenue, Floor 11
New<br> York, NY10179
Attn:<br> Depositary Receipts Group<br><br> <br>adr@jpmorgan.com<br> – www.adr.com

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Telecom Argentina S.A.
Date: August 15, 2024 By: /s/<br> Luis Fernando Rial Ubago
Name: Luis Fernando Rial Ubago
Title: Responsible for Market Relations

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