Telecom Argentina S A : Financial Statements 1Q24

TELECOM ARGENTINA S.A.

Unaudited Condensed Consolidated Financial Statements as of March 31, 2024

General Hornos 690

(C1272ACK) Autonomous city of Buenos Aires Republic of Argentina

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2024 AND 2023

INDEX

Glossary of terms

Unaudited condensed consolidated financial statementsConsolidated statements of financial position Consolidated income statements

Consolidated statements of comprehensive income Consolidated statements of changes in equity Consolidated statements of cash flows

Notes to the unaudited condensed consolidated financial statements Operating and Financial Review and Prospects

Corporate information

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

Glossary of 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.

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

CAPEX: Capital expenditures.

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

Company/Telecom Argentina: Telecom Argentina S.A.

CPCECABA (Consejo Profesional de Ciencias Económicas de la Ciudad Autónoma de Buenos Aires): The Professional Council of Economic Sciences of the City of Buenos Aires.

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

DFI: Derivate Financial Instrument.

DNU (Decreto de Necesidad y Urgencia): Decree of Urgency issued by the Argentine Government.

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.

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

IAS: International Accounting Standards.

IASB: International Accounting Standards Board.

ICT Services (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.

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

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

La Capital 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".

Micro Sistemas/Pem/Cable Imagen/AVC Continente Audiovisual/Inter Radios/Personal Smarthome/NYS2/NYSSA: 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.

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.

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

RT: Technical resolutions issued by the FACPCE.

F-1

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

RT 26: Technical resolution No, 26 issued by the FACPCE, amended by RT29 and RT43.

Telecom: Telecom Argentina and its consolidated subsidiaries.

Telecom USA/ Núcleo/ Personal Envíos/ Tuves Paraguay/ Televisión Dirigida/ Adesol/ Opalker/Ubiquo/ Micro Fintech Holding: 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 and Micro Fintech Holding 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.

VLG: VLG S.A.U. (formerly VLG Argentina LLC), a company that was merged and absorbed by CVH.

F-2

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

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

		March 31,	December 31,
ASSETS	Note	2024	2023
Current Assets
Cash and cash equivalents	2	150,604	242,252
Investments	2	315,094	187,964
Trade receivables	3	208,647	201,457
Other receivables	4	51,774	51,611
Inventories	5	44,208	47,805
Total current assets		770,327	731,089
Non-Current Assets
Trade receivables	3	355	382
Other receivables	4	21,351	29,763
Deferred income tax assets	13	16,282	20,947
Investments	2	32,937	36,097
Goodwill	6	2,337,135	2,340,988
PP&E	7	3,283,930	3,444,604
Intangible assets	8	1,355,603	1,374,340
Right of use assets	9	325,633	327,036
Total non-current assets		7,373,226	7,574,157
TOTAL ASSETS		8,143,553	8,305,246
LIABILITIES
Current Liabilities
Trade payables	10	415,440	541,069
Borrowings	11	854,148	854,356
Salaries and social security payables	12	127,776	138,188
Income tax payables	13	2,929	2,368
Other taxes payables	14	61,300	59,357
Leases liabilities	15	40,178	43,570
Other liabilities	16	26,736	31,022
Provisions	17	5,228	8,097
Total current liabilities		1,533,735	1,678,027
Non-Current Liabilities
Trade payables	10	11,192	1,386
Borrowings	11	1,591,888	2,372,263
Salaries and social security payables	12	5,836	5,654
Deferred income tax liabilities	13	906,453	699,192
Other taxes payables	14	7	17
Leases liabilities	15	73,351	90,835
Other liabilities	16	10,213	13,710
Provisions	17	35,022	39,599
Total non-current liabilities		2,633,962	3,222,656
TOTAL LIABILITIES		4,167,697	4,900,683
EQUITY
Equity attributable to Controlling Company		3,885,937	3,286,979
Equity attributable to non-controlling interest		89,919	117,584
TOTAL EQUITY(See Consolidated Statements of		3,975,856	3,404,563
Changes in Equity)
TOTAL LIABILITIES AND EQUITY		8,143,553	8,305,246

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

F-3

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

CONSOLIDATED INCOME STATEMENTS

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

		Three-month period
		ended March 31,
	Note	2024	2023
Revenues	21	683,916	833,213
Employee benefit expenses and severance payments	22	(157,824)	(200,408)
Interconnection and transmission costs		(25,088)	(24,855)
Fees for services, maintenance, materials and supplies	22	(100,037)	(97,685)
Taxes and fees with the Regulatory Authority	22	(52,700)	(64,161)
Commissions and advertising		(35,507)	(48,550)
Cost of equipment and handsets	22	(23,857)	(38,663)
Programming and content costs		(37,456)	(47,770)
Bad debt expenses	3	(17,020)	(25,208)
Other operating expenses	22	(27,293)	(33,620)
Depreciation, amortization and impairment of Fixed Assets	22	(233,281)	(264,278)
Operating loss		(26,147)	(11,985)
Earnings (losses) from associates and joint ventures	2	(1,359)	1,648
Financial costs	23	797,844	34,582
Other financial results, net	23	115,520	40,567
Income before income tax		885,858	64,812
Income tax benefit (expense)	13	(210,826)	45,665
Net income for the period		675,032	110,477
Attributable to:
Controlling Company		672,260	107,669
Non-controlling interest		2,772	2,808
		675,032	110,477
Earnings per share for income attributable to the Controlling	1.c	312.14	49.99
Company - Basic and diluted

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

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

Three-month period

ended March 31,

	2024	2023
Net income for the period	675,032	110,477
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translation adjustments (no effect on Income Tax)	(104,170)	(2,987)
DFI effects classified as hedges	698	(791)
Income Tax effects on DFI classified as hedges and others	(267)	295
Other comprehensive loss, net of tax	(103,739)	(3,483)
Total comprehensive income for the period	571,293	106,994
Attributable to:
Controlling Company	598,958	104,663
Non-controlling interest	(27,665)	2,331
	571,293	106,994

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

F-5

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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

	Owners contribution		Reserves
	Outstanding				Special				Equity	Equity
	shares
	Inflation			reserve for		Other		attributable	attributable
	Capital	Contribu-		Facultati-	Retained	Total
	adjustment	Legal	IFRS	comprehens-	to	to non-
	nominal	ted Surplus	ve (2)	earnings	Equity
			implementa-	ive loss	controlling	controlling
	value
				tion				company	interest
	(1)
Balances as of January 1, 2023	2,154	1,301,576	3,208,341	77,354	28,363	278,680	(155,136)	(981,309)	3,760,023	76,542	3,836,565
Comprehensive income:
Net income for the period	-	-	-	-	-	-	-	107,669	107,669	2,808	110,477
Other comprehensive loss	-	-	-	-	-	-	(3,006)	-	(3,006)	(477)	(3,483)
Total Comprehensive income (loss)	-	-	-	-	-	-	(3,006)	107,669	104,663	2,331	106,994
Balances as of March 31, 2023	2,154	1,301,576	3,208,341	77,354	28,363	278,680	(158,142)	(873,640)	3,864,686	78,873	3,943,559
Balances as of January 1, 2024	2,154	1,301,576	1,914,960	77,354	28,363	432,389	(79,042)	(390,775)	3,286,979	117,584	3,404,563
Comprehensive income:
Net income for the period	-	-	-	-	-	-	-	672,260	672,260	2,772	675,032
Other comprehensive loss	-	-	-	-	-	-	(73,302)	-	(73,302)	(30,437)	(103,739)
Total Comprehensive income (loss)	-	-	-	-	-	-	(73,302)	672,260	598,958	(27,665)	571,293
Balances as of March 31, 2024	2,154	1,301,576	1,914,960	77,354	28,363	432,389	(152,344)	281,485	3,885,937	89,919	3,975,856

1. See Note 20 to these unaudited condensed consolidated financial statements.
2. Correspond to the Voluntary reserve to maintain the Company's level of capital expenditures and its current solvency level.

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

F-6

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

			Three-month period
			ended March 31,
		Note	2024	2023
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net income for the period			675,032	110,477
Adjustments to reconcile net income to net cash flows provided by operating
activities
Allowances deducted from assets			19,009	23,074
Depreciation of PP&E		7	177,941	205,796
Amortization of intangible assets		8	20,873	33,299
Amortization of rights of use assets		9	34,386	24,118
Disposals of Fixed Assets and consumption of materials			338	268
Earnings (losses) from associates and joint ventures		2.a	1,359	(1,648)
Financial results and others			(950,299)	(108,452)
Income tax		13	210,826	(45,665)
Income tax paid (*)			(252)	(1,133)
Net increase in assets		2.b	(120,468)	(103,848)
Net increase in liabilities		2.b	102,484	69,832
Total cash flows from operating activities			171,229	206,118
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Payments for PP&E			(68,032)	(68,606)
Payments for intangible asset acquisitions			(5,991)	(3,305)
Dividends from associates		2.b	281	-
Proceeds from the sale of PP&E and intangible assets			2,566	4
Payments for investments not considered as cash and cash equivalents		(161,394)	(166,473)
Proceeds from sale of investments not considered as cash and cash equivalents	8,352	698
Total cash flows used in investing activities			(224,218)	(237,682)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from borrowings		2.b	191,171	163,080
Payment of borrowings		2.b	(73,487)	(65,015)
Payment of interests and related expenses		2.b	(76,409)	(70,736)
Payments of leases liabilities		15	(13,619)	(17,594)
Total cash flows from financing activities			27,656	9,735
NET DECREASE IN CASH AND CASH EQUIVALENTS			(25,333)	(21,829)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR		242,252	189,109
NET FOREIGN EXCHANGE DIFFERENCES AND RECPAM ON CASH AND CASH	(66,315)	(5,950)
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		150,604	161,330
(*)	Three-month period
	ended March 31,
	2024	2023
Corresponding to Controlling Company	-	(1,005)
Corresponding to subsidiaries	(252)	(128)
	(252)	(1,133)

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

[AM_ACTIVE 406014658_6]

TELECOM ARGENTINA S.A.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2024 AND 2023 (*)

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

INDEX

	Page
Note 1 - Basis of preparation of the unaudited condensed consolidated financial statements and	F-9
significant accounting policies
Note 2 - Cash and cash equivalents and Investments. Additional information on the	F-12
consolidated statements of cash flows.
Note 3 - Trade receivables	F-14
Note 4 - Other receivables	F-14
Note 5 - Inventories	F-14
Note 6 - Goodwill	F-15
Note 7 - PP&E	F-15
Note 8 - Intangible assets	F-15
Note 9 - Right of use assets	F-16
Note 10 - Trade payables	F-16
Note 11 - Borrowings	F-16
Note 12 - Salaries and social security payables	F-17
Note 13 - Income tax payable and Deferred income tax assets/liabilities	F-17
Note 14 - Other taxes payables	F-18
Note 15 - Leases liabilities	F-18
Note 16 - Other liabilities	F-19
Note 17 - Provisions	F-19
Note 18 - Additional information of financial assets and liabilities	F-20
Note 19 - Purchase Commitments	F-21
Note 20 - Equity	F-21
Note 21 - Revenues	F-22
Note 22 - Operating expenses	F-22
Note 23 - Financial results	F-23
Note 24 - Balances and transactions with Companies under Section 33 - Law No. 19,550 and	F-23
Related Parties
Note 25 - Recent developments corresponding to the three-month period ended March 31, 2024	F-25
Note 26 - Subsequent events to March 31, 2024	F-25

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

F-8