| OPERATING EXPENSES |
NOTE 24 – OPERATING EXPENSES Operating expenses disclosed by nature of expense amounted to $5,225,100 million, $5,801,092 million and $8,470,429 million for the years ended December 31, 2024, 2023 and 2022, respectively. The main components of the operating expenses are the following: | | | | | | | | | Years ended December 31, | | | 2024 | | 2023 | | 2022 | | Employee benefit expenses and severance payments | | Profit (loss) | Salaries, social security expenses and benefits | | (1,060,790) | | (1,264,274) | | (1,300,709) | Severance indemnities | | (158,998) | | (74,605) | | (180,075) | Other employee expenses | | (28,845) | | (27,520) | | (30,015) | | | (1,248,633) | | (1,366,399) | | (1,510,799) | Fees for services, maintenance, materials and supplies | | | | | | | Maintenance and materials | | (375,233) | | (356,368) | | (382,091) | Fees for services | | (290,719) | | (326,324) | | (344,028) | Directors and Supervisory Committee’s fees | | (5,418) | | (4,453) | | (5,493) | | | (671,370) | | (687,145) | | (731,612) | Taxes and fees with the Regulatory Authority | | | | | | | Turnover tax | | (205,966) | | (207,631) | | (223,001) | Regulatory Entity Fees | | (103,166) | | (103,692) | | (115,643) | Municipal taxes | | (50,251) | | (55,576) | | (63,387) | Other taxes and fees | | (37,765) | | (53,247) | | (61,064) | | | (397,148) | | (420,146) | | (463,095) | Cost of equipment | | | Inventory balance at the beginning of the year | | (87,371) | | (57,383) | | (55,398) | Plus: | | | | | | | Purchases | | (252,909) | | (355,433) | | (312,085) | Others | | 16,732 | | 30,425 | | 24,423 | Less: | | | | | | | Inventory balance at the end of the year | | 83,215 | | 87,371 | | 57,383 | | | (240,333) | | (295,020) | | (285,677) | Other operating expenses | | Profit (loss) | Legal Claims and contingent liabilities | | (21,971) | | (57,247) | | (98,358) | Rentals and internet capacity | | (35,548) | | (31,970) | | (34,408) | Energy, water and other services | | (127,751) | | (103,267) | | (109,235) | Postage, freight and travel expenses | | (35,432) | | (40,116) | | (42,445) | Other | | (24,269) | | (19,824) | | (17,004) | | | (244,971) | | (252,424) | | (301,450) | Depreciation, amortization and impairment of Fixed Assets | | | | | | | Depreciation of PP&E | | (1,217,258) | | (1,446,267) | | (1,644,158) | Amortization of intangible assets | | (141,799) | | (233,482) | | (236,953) | Amortization of Rights of use assets | | (241,685) | | (190,450) | | (179,884) | Impairment of Fixed Assets (*) | | 1,348 | | (833) | | (2,035,760) | | | (1,599,394) | | (1,871,032) | | (4,096,755) |
(*)In 2022 includes $(2,017,275) million corresponding to the impairment of goodwill of the CGU Telecom. Operating expenses, disclosed per function are as follows: | | | | | | | | | | | | | | | | | Operating | | Administration | | Commercialization | | Other | | Total | | Total | | Total | Concept | | costs | | costs | | costs | | expenses | | 12.31.2024 | | 12.31.2023 | | 12.31.2022 | Employee benefit expenses and severance payments | | (670,974) | | (259,285) | | (318,374) | | — | | (1,248,633) | | (1,366,399) | | (1,510,799) | Interconnection costs and other telecommunication charges | | (144,560) | | — | | — | | — | | (144,560) | | (161,465) | | (185,725) | Fees for services, maintenance, materials and supplies | | (267,110) | | (141,545) | | (262,715) | | — | | (671,370) | | (687,145) | | (731,612) | Taxes and fees with the Regulatory Authority | | (391,618) | | (3,364) | | (2,166) | | — | | (397,148) | | (420,146) | | (463,095) | Commissions and advertising | | — | | — | | (283,237) | | — | | (283,237) | | (320,316) | | (365,292) | Cost of equipment | | (240,333) | | — | | — | | — | | (240,333) | | (295,020) | | (285,677) | Programming and content costs | | (291,518) | | — | | — | | — | | (291,518) | | (308,550) | | (378,320) | Bad debt expenses | | — | | — | | (103,936) | | — | | (103,936) | | (118,595) | | (151,704) | Other operating expenses | | (162,132) | | (42,637) | | (40,202) | | — | | (244,971) | | (252,424) | | (301,450) | Depreciation, amortization and impairment of Fixed Assets | | (1,289,238) | | (206,297) | | (105,207) | | 1,348 | | (1,599,394) | | (1,871,032) | | (4,096,755) | Total as of 12.31.2024 | | (3,457,483) | | (653,128) | | (1,115,837) | | 1,348 | | (5,225,100) | | | | | Total as of 12.31.2023 | | (3,828,063) | | (707,681) | | (1,264,515) | | (833) | | | | (5,801,092) | | | Total as of 12.31.2022 | | (4,218,039) | | (794,464) | | (1,422,166) | | (2,035,760) | | | | | | (8,470,429) |
Other leases Future minimum lease payments of non-cancellable other lease agreements of Telecom and its subsidiaries as of December 31, 2024, 2023 and 2022 in currency on the transaction date are as follows: | | | | | | | | | | | Less than | | | | More than 5 | | | | | 1 year | | 1‑5 years | | years | | Total | 2024 | | 7,706 | | 11,471 | | 6,230 | | 25,407 | 2023 | | 4,688 | | 10,246 | | 3,938 | | 18,872 | 2022 | | 5,399 | | 1,100 | | — | | 6,499 |
Further information is provided in Note 3.k).
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