| CASH AND CASH EQUIVALENTS AND INVESTMENTS. ADDITIONAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS |
NOTE 4 – CASH AND CASH EQUIVALENTS AND INVESTMENTS. ADDITIONAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS a) Cash and cash equivalents and Investments | | | | | | | As of December 31, | Cash and cash equivalents | | 2024 | | 2023 | Cash and Banks (1) | | 148,497 | | 241,607 | Time deposits | | 128,033 | | 94,416 | Mutual funds | | 111,711 | | 36,934 | Government bonds at fair value through profit or loss | | — | | 51,399 | Total cash and cash equivalents | | 388,241 | | 424,356 | | | | | | (1) As of December 31, 2024, and 2023, includes restricted funds for $ 8,738 million ($10,657 million in current currency as of September 30, 2025) and $7,219 million ($19,173 million in current currency as of September 2025), respectively corresponding to the funds to be paid to customers. | | | | | | Investments | | | | | Current | | | | | Government bonds at fair value through profit or loss | | 13,887 | | 295,714 | Time deposits | | 25,164 | | 32,164 | Mutual funds | | 1,910 | | 1,380 | | | 40,961 | | 329,258 | Non- current | | | | | Investments in associates and joint ventures(a) | | 16,597 | | 63,273 | 2003 Telecommunications Fund | | 1 | | 1 | | | 16,598 | | 63,274 | Total investments | | 57,559 | | 392,532 |
| (a) | Information on Investments in associates and joint ventures is detailed below: |
Financial position information: | | | | | | | | | | | | | | | | | | | | | Percentage | | | | | | | | | | | | | (direct and | | | | | | | | | | | | | indirect) of | | | | | | | | | | | | | capital stock | | | | | | | Nature of | | | | | | owned and | | Valuation as | | Valuation as | Companies | | relationship | | Main activity | | Country | | voting rights (%) | | of 12.31.2024 | | of 12.31.2023 | Ver TV (1) (3) | | Associate | | Community Closed-circuit television | | Argentina | | — | | — | | 27,869 | TSMA (1) (2) (3) | | Associate | | Community Closed-circuit television | | Argentina | | — | | — | | 10,176 | La Capital Cable (1) | | Associate | | Closed-circuit television | | Argentina | | 50.00 | | 5,746 | | 5,974 | OPH (1) (4) (5) | | Joint venture | | Holding | | USA | | 50.00 | | 10,851 | | 19,254 | Total | | | | | | | | | | 16,597 | | 63,273 |
Earnings (loss) information: | | | | | | | | | Years ended December 31, | | | 2024 | | 2023 | | 2022 | Ver TV | | (8,760) | | (4,707) | | 3,415 | TSMA | | (190) | | (2,191) | | 2,250 | La Capital Cable | | 394 | | 868 | | 1,108 | OPH | | (4,221) | | 1,016 | | — | Costs related to the sale of Ver TV (Note 28.1) | | (1,217) | | — | | — | Total | | (13,994) | | (5,014) | | 6,773 |
| (1) | Data about the issuer arises from extra-accounting information. |
| (2) | As of December 31, 2023, despite owning a percentage higher than a 50% of interest, the Company did not have the control in accordance with the requirements of IFRS Accounting Standards. |
| (3) | During September 2024, the Company acquired an additional 49.9% equity interest in TSMA by exchanging 49% of its equity interest in Ver TV. For this transaction, the Company recognized a loss of $3,317 million. For more details, see Note 28.1). |
| (4) | In April 2023, the Company has acquired a 50% shareholding in OPH. |
| (5) | As of December 31, 2024, includes $(4,181) million of currency translation adjustments. |
The evolution of investments in associates and joint ventures is as follows: | | | | | | | As of December 31, | | | 2024 | | 2023 | At the beginning of the year | | 63,273 | | 53,316 | Losses for the year | | (12,777) | | (5,014) | Reduction of interest in associate | | (28,482) | | — | Dividends from associates | | (1,236) | | (3,268) | Acquisitions | | — | | 18,239 | Currency translation adjustments | | (4,181) | | — | At the end of the year | | 16,597 | | 63,273 |
b) Additional information on the consolidated statements of cash flows Changes in assets/liabilities components: | | | | | | | | | December 31, | Net (increase) decrease in assets | | 2024 | | 2023 | | 2022 | Trade receivables | | (318,136) | | (472,662) | | (273,436) | Other receivables | | (99,147) | | (238,618) | | (186,882) | Inventories | | (7,791) | | (55,430) | | (19,437) | | | (425,074) | | (766,710) | | (479,755) | Net increase (decrease) in liabilities | | | | | | | Trade payables | | 25,491 | | 898,403 | | 457,736 | Salaries and social security payables | | 101,965 | | 192,455 | | 156,676 | Other taxes payables | | 78,874 | | 116,793 | | (96,258) | Other liabilities and provisions | | (9,027) | | 47,885 | | (4,988) | | | 197,303 | | 1,255,536 | | 513,166 |
Non-cash investing and financing activities Main non-cash transactions from the consolidated statement of cash flows are the following: | | | | | | | | | | | | | December 31, | Description | | Classification of activities | | 2024 | | 2023 | | 2022 | PP&E and intangible assets acquisition financed with accounts payable | | Investing - Operating | | 248,072 | | 367,134 | | 227,548 | Right of use assets acquisition owed | | Investing - Financing | | 289,423 | | 227,402 | | 173,664 | Joint ventures acquisition cancelled with government bonds | | Investing - Investing | | — | | 1,453 | | — | Other liabilities for acquisition of companies and joint ventures | | Investing - Operating | | — | | 10,431 | | 5,036 | Other receivables offset with acquisition of companies and joint ventures | | Investing - Operating | | 10,162 | | — | | — | Dividends payment made with investments not considered as cash and cash equivalents (See “Dividends paid”) | | Investing - Financing | | 144,962 | | 277,404 | | 374,325 | Trade payables cancelled with borrowings | | Financing - Operating | | 28,571 | | 90,582 | | 88,797 | Trade receivables cancelled with government bonds | | Investing - Operating | | — | | — | | 5,551 | Trade payables cancelled with government bonds | | Investing - Operating | | 25,645 | | — | | — | Exchange Notes | | Financing - Financing | | 162,405 | | — | | — | Transaction with non-controlling interest offset against other receivables | | Financing - Operating | | 1,585 | | — | | — | Dividend payable from subsidiaries | | Financing - Operating | | 1,006 | | — | | — |
Dividends received from associates Brief information on dividends received by the Company is provided below: | | | | | | | | | | | | | | | | | Distributed amount | | Dividends collected | | | | | | | | | Current currency | | | | Current currency | | | Paying | | Distribution | | Currency of the | | as of September 30, | | Collection | | as of September 30, | Year | | Company | | month | | transaction date | | 2025 | | month | | 2025 | 2024 | | Ver TV | | March, 2024 | | 281 | | 493 | | March, 2024 | | 493 | | | Ver TV | | June, 2024 | | 70 | | 104 | | June, 2024 | | 104 | | | La Capital Cable | | May, 2024 | | 400 | | 622 | | May, 2024 | | 622 | | | TSMA | | April, 2024 | | 10 | | 17 | | May, 2024 | | 17 | | | | | | | | | 1,236 | | | | 1,236 | 2023 | | Ver TV | | March, 2023 | | 130 | | 883 | | April, 2023 | | 813 | | | Ver TV | | November, 2023 | | 217 | | 722 | | November, 2023 | | 722 | | | La Capital Cable | | April, 2023 | | 200 | | 1,142 | | May, 2023 | | 1,142 | | | TSMA | | July, 2023 | | 101 | | 521 | | July, 2023 | | 521 | | | | | | | | | 3,268 | | | | 3,198 | 2022 | | Ver TV | | January, 2022 | | 104 | | 1,612 | | January, 2022 | | 1,612 | | | TSMA | | January, 2022 | | 28 | | 434 | | January, 2022 | | 434 | | | La Capital Cable | | September, 2022 | | 343 | | 3,327 | | October, 2022 | | 3,040 | | | | | | | | | 5,373 | | | | 5,086 |
Dividends paid Distribution of non-cash dividends | | | | | | | | | | | Distributed amount | | | | | Currency of the | | Current currency as of | Year | | Government Bonds and Nominal Value | | transaction date | | September 30, 2025 | 2024 (1) | | 2030 Global Bonds: US$145,602,795 | | 115,725 | | 144,962 | 2023 (2) | | 2030 Global Bonds: US$411,214,954 | | 47,701 | | 277,404 | 2022 (3) | | 2030 Global Bonds: US$411,145,986
2035 Global Bonds 2035: US$103,854,014 | | 31,634 | | 374,325 |
| (1) | Pursuant to the powers delegated by the shareholders of Telecom Argentina at the Ordinary and Extraordinary Shareholders’ Meeting held on April 25, 2024, on November 11, 2024, the Board of Directors resolved to partially reverse the “Voluntary reserve to maintain the Company’s level of capital expenditures and its current solvency level” to distribute as non-cash dividends for $144,962 million. |
| (2) | Pursuant to the powers delegated by the shareholders of Telecom Argentina at the Ordinary and Extraordinary Shareholders’ Meeting held on April 27, 2023, on May 3, 2023, the Board of Directors resolved to partially reverse the “Voluntary reserve to maintain the Company’s level of capital expenditures and its current solvency level” to distribute as non-cash dividends for $277,404 million. |
| (3) | Pursuant to the powers delegated by Telecom Argentina’s Ordinary and Extraordinary Shareholders’ Meeting held on April 27, 2022, on June 2, 2022, the Board resolved to partially reverse the “Voluntary reserve to maintain the Company’s level of capital expenditures and its current solvency level” to distribute as non-cash dividends for $ 374,325 million. |
Dividends paid to non-controlling interests in subsidiaries Brief information on cash dividends distributed and paid is provided below: | | | | | | | | | | | | | | | | | | | Distributed amount | | | | | | | | | | | | | Current currency | | | | Dividends paid in | | | Paying | | | | Currency of the | | as of September 30, | | | | current currency | Year | | company | | Distribution month | | transaction date | | 2025 | | Payment month | | as of September 30, 2025 | 2024 | | Núcleo | | April, 2024 | | 6,468 | | 10,410 | | April, 2024 | | 10,410 | | | | | May, 2024 | | 842 | | 1,304 | | May, 2024 | | 1,304 | | | | | | | | | 11,714 | | | | 11,714 | | | Personal Envíos | | June, 2024 | | 681 | | 1,006 | | | | (*) | 2023 | | Núcleo | | August, 2023 | | 2,326 | | 10,677 | | August, 2023 | | 10,677 | | | | | | | | | | | | | 10,677 | 2022 | | Núcleo | | April, 2022 | | 804 | | 10,510 | | May, 2022 / August, 2022 | | 10,165 | | | | | | | | | | | | | 10,165 |
(*) | As of December 31, 2024, these dividends are unpaid. The same converted at the closing exchange rate amount to $837 million. |
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