Telecom Argentina’s In-Kind Dividend and Mixed Quarterly Results

Investors in Telecom Argentina have recently navigated a dual narrative: the distribution of an in-kind dividend and the release of third-quarter financials marked by robust revenue expansion alongside a net loss. The interplay of these events has been a focal point for market sentiment and share price movement.

The company reported its Q3 2025 figures in early November, revealing consolidated revenue of 5.6 trillion Argentine pesos (ARS). This figure represents a real-term increase of approximately 50% and came in about 7.8% above analyst forecasts. Despite this strong top-line performance, the bottom line showed a consolidated net loss of 272 billion ARS. On a per-share basis, the loss was $0.2372 (USD), though this was marginally better—by 3.8%—than market expectations. Organic growth in mobile services, broadband, and pay-TV segments provided some counterbalance to the negative earnings, resulting in a modest pre-market share price increase of around 0.55% following the announcement.

Mechanics of the Bond-Based Dividend

A significant corporate action unfolded in November when Telecom Argentina declared a partial distribution from its discretionary reserves. This took the form of an in-kind dividend, allocating bonds issued by the Argentine Republic to holders of its American Depositary Shares (ADS). The assigned value was about $0.459185 per ADS. Due to logistical constraints in delivering these sovereign bonds directly to ADS holders, the depositary bank, JPMorgan, was authorized to sell the securities on the market. The net proceeds from this sale are subsequently to be distributed to ADS investors. The ex-date for this dividend was set for November 24.

Market Context and Strategic Moves

From a technical analysis perspective, a notable signal emerged in mid-December as the share price crossed above its 200-day moving average. This movement, following a "Golden Cross" pattern earlier in the month, suggested improving near-term momentum. Analyst opinions remain varied, with the prevailing consensus currently rated as "Hold." The average 12-month price target among analysts spans a range from approximately $9.60 to $11.96. The company's estimated market capitalization for December stands between $5.1 billion and $5.6 billion.

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

In a separate strategic financing development, Telecom Argentina secured a loan facility worth 500 million Renminbi (RMB) from the Bank of China.

Key Data Summary:
* Recent Closing Price: $11.97 USD; Daily Volume: 180,904 shares
* 52-Week Range: $6.43 – $15.54 USD
* Q3 Revenue Growth: +50% in real terms

Forward-Looking Considerations

In the near term, two factors are poised to be critical for Telecom Argentina's equity performance. First, the final net proceeds that ADS holders receive from the sale of the bond dividend will be a tangible return. Second, the market will closely watch the company's ability to translate its impressive revenue growth into improved operational margins. Maintaining a share price above the 200-day moving average would support the case for continued technical strength, while a sustained fall below this level could weaken that momentum.