Telecom Argentina’s Dividend Payouts Mask Underlying Financial Strain

Investors in Telecom Argentina are facing a complex scenario as substantial dividend distributions coincide with concerning financial results. The company's latest earnings report reveals significant losses despite impressive revenue growth, creating a challenging landscape for shareholders seeking both immediate returns and long-term stability.

November 24, 2025, represents the ex-dividend date for Telecom Argentina's upcoming distributions. Shareholders are set to receive a cash dividend of $0.04857 per share, supplemented by a special dividend of $0.45919 per share. This special payment includes Global Bonds from the Argentine Republic with a nominal value of $0.091837117 per share. Additionally, an Argentine peso dividend of 13.632047274 pesos per share will be distributed primarily to cover wealth tax obligations for the 2024 fiscal year.

Operational Performance: Revenue Growth Versus Profitability Challenges

The consolidated financial results for the first nine months of 2025 present a contradictory picture. While revenues surged dramatically by 50.7 percent to reach 5,622,561 million pesos, the company recorded a net loss of 272,543 million pesos. The loss attributable to the controlling company amounted to 289,156 million pesos.

This substantial revenue expansion was largely driven by the acquisition of Telefónica Móviles Argentina. Operational efficiency showed some improvement, with the EBITDA margin climbing to 30.5 percent, representing a 1.7 percentage point increase year-over-year. The third quarter alone saw even stronger performance, with the margin reaching 31.4 percent.

Should investors sell immediately? Or is it worth buying Telecom Argentina?

Customer metrics revealed mixed trends across different service segments:
* Mobile subscriptions (excluding TMA) declined by 5.0 percent
* Pay-TV customers increased by 1.4 percent
* Broadband connections grew by 2.5 percent

Sustainability Concerns Emerge

Market analysts are questioning the viability of maintaining current dividend levels given the company's negative earnings outlook. The fundamental concern revolves around whether Telecom Argentina can sustain these payouts from operational earnings alone. Despite these reservations, a major financial institution adjusted its price target to $11 in late October while upgrading the stock to a "Hold" rating, indicating cautious optimism amid prevailing skepticism.

Financial Snapshot

• Ex-Dividend Date: November 24, 2025
• Regular Cash Dividend: $0.04857 per share (Payable: December 3)
• Special Dividend: $0.45919 per share including Global Bonds
• Nine-Month 2025 Net Loss: 272,543 million pesos
• Revenue Growth: +50.7 percent
• EBITDA Margin: 30.5 percent (+1.7 percentage points)
• Recent Financing: 500 million yuan loan from Bank of China

The company's current situation presents investors with a dichotomy: attractive short-term dividend yields contrasted against persistent financial losses and structural challenges. This combination creates navigating waters where immediate returns must be balanced against longer-term financial health considerations.