Several factors like the growing household income from a healthier labor market, government transfers to the low-income segments, and an expansive monitory policy stimulated private consumption. High inflation was a consequence of the increase in demand from the private sector, significant expansion in public spending and some supply strains, especially in the food segment.
Moreover, steady FX rates and low interest rates also stimulated consumption over savings. In this context, the government benefited from the recovery as a slight increase in fiscal surplus was registered, despite reaching a record level of fiscal spending to GDP.
In 2010 (audio gap) and the last debt swap reduced uncertainties in the sovereign debt solvency. Finally, the trade balance remained robust, despite growing imports compensated with the rising commodity prices and growing export to Brazil, which helped to sustain a strong surplus and to increase Central Bank international reserves.
In this challenging macroeconomic context for Argentina, our company has more than well performed in 2010, both in terms of its business and operations, as we will explain during the conference call.And having gone through this introduction let me pass the call to Franco Bertone, who will go over the business highlights. Franco? Franco Bertone We are happy to announce our 2010 results, they’re quite good and Q4 figures are even better. Revenues grew 20% over 12 months and 25% in the fourth quarter. Data and value-added service grew twice as much and 4 times voice revenue. EBITDA, EBIT, and net profit posted double-digit growth although we experienced some dilution in EBITDA margin due to the combined effect of frozen wireline tariffs and inflationary pressure affecting OpEx. Line in service increased by 2.1 million to 23.7 million in total. Read the rest of this transcript for free on seekingalpha.com