This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Telecom Argentina's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: TEO

According to official indicators, the local economy is showing certain deceleration in sectors like construction and industrial production, that’s a significant decline in the respective levels of affinity. Moreover, investment levels seemed to suffer from the import restrictions and the lower level of growth of the economy.

Moreover, a cautious consumer is slowing private consumption trends due to higher concerns about the economy and the restrictions to the access to the FX market. Inflation remained stable at high levels and in general wage negotiations have concluded at lower levels than last year.

Efforts to achieve a higher commercial balancing to take effect although with some deterioration in fiscal revenues in investments and in level of affinity. Increasing a gap between fiscal revenues and expenditures having covered by the incremental financial assistance from the central bank and the national pensions fund system allowing to preserve the fiscal balance neutral.

Despite this environment, higher commodity prices could help to sustain external balance and the growth in the economy in the near future.

Finally, we'd like to highlight the defensiveness of the communication sector but also remark that is not excluded from the economic cycle.

Having gone through this introduction of the macro context in which we operate, let me pass the call to Franco Bertone, who will go over the business highlights. Franco?

Franco Bertone

Thank you, Pedro and good morning to everyone. This quarter operating performance was good though a lower growth pace affected margin. Business environment was quite challenging and under these conditions the strength of our balance sheet and positive cash position is a very valuable asset to drive market growth.

As a matter of fact, we had a successful MNP start as we have reached first in customer choice, we also made further progress in mobile revenue share leadership and we stay leaders in post-paid net adds. We believe that smartphones are even strong sustained VAS revenue growth particularly mobile Internet that grew 82% year-on-year is a silent proof of a successful strategy.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs