| OPERATING EXPENSES |
NOTE 25 – OPERATING EXPENSES Operating expenses disclosed by nature of expense amounted to $7,878,767 million, $5,635,634 million and $6,256,880 million for the years ended December 31, 2025, 2024 and 2023, respectively. The main components of the operating expenses are the following: | | | | | | | | | Years ended December 31, | | | 2025 | | 2024 | | 2023 | | Employee benefit expenses and severance payments | | Profit (loss) | Salaries, social security expenses and benefits | | (1,626,133) | | (1,144,135) | | (1,363,607) | Severance indemnities | | (278,834) | | (171,491) | | (80,466) | Other employee expenses | | (56,130) | | (31,111) | | (29,683) | | | (1,961,097) | | (1,346,737) | | (1,473,756) | Fees for services, maintenance, materials and supplies | | | | | | | Maintenance and materials | | (579,726) | | (404,715) | | (384,367) | Fees for services | | (476,131) | | (313,561) | | (351,963) | Directors and Supervisory Committee’s fees | | (8,536) | | (5,844) | | (4,804) | | | (1,064,393) | | (724,120) | | (741,134) | | | | | | | | Taxes and fees with the Regulatory Authority | | | | | | | Turnover tax | | (375,606) | | (222,149) | | (223,945) | Regulatory Entity Fees | | (198,846) | | (111,272) | | (111,839) | Municipal taxes | | (84,097) | | (54,199) | | (59,943) | Other taxes and fees | | (61,939) | | (40,732) | | (57,430) | | | (720,488) | | (428,352) | | (453,157) | Cost of equipment | | | Inventory balance at the beginning of the year | | (89,753) | | (94,236) | | (61,891) | Plus: | | | | | | | Acquisitions through business combination (Note 29) | | (53,222) | | — | | — | Purchases | | (246,957) | | (272,780) | | (383,360) | Others | | 7,534 | | 18,047 | | 32,816 | Less: | | | | | | | Inventory balance at the end of the year | | 93,730 | | 89,753 | | 94,236 | | | (288,668) | | (259,216) | | (318,199) | Other operating expenses | | | Legal Claims and contingent liabilities | | (69,436) | | (23,697) | | (61,745) | Rentals and internet capacity | | (99,929) | | (38,341) | | (34,482) | Energy, water and other services | | (206,560) | | (137,788) | | (111,381) | Postage, freight and travel expenses | | (63,147) | | (38,216) | | (43,268) | Other | | (54,139) | | (26,176) | | (21,381) | | | (493,211) | | (264,218) | | (272,257) | Depreciation, amortization and impairment of Fixed and Intangible Assets | | | | | | | Depreciation of PP&E | | (1,533,091) | | (1,312,898) | | (1,559,899) | Amortization of intangible assets | | (234,722) | | (152,940) | | (251,826) | Amortization of Rights of use assets | | (278,639) | | (260,674) | | (205,413) | Depreciation of Investment properties | | (2,028) | | — | | — | Impairment of Fixed and Intangible Assets | | (27,008) | | 1,455 | | (900) | | | (2,075,488) | | (1,725,057) | | (2,018,038) |
Operating expenses, disclosed per function are as follows: | | | | | | | | | | | | | | | | | Operating | | Administration | | Commercialization | | Other | | Total | | Total | | Total | Concept | | costs | | costs | | costs | | expenses | | 12.31.25 | | 12.31.24 | | 12.31.23 | Employee benefit expenses and severance payments | | (939,463) | | (477,471) | | (544,163) | | — | | (1,961,097) | | (1,346,737) | | (1,473,756) | Interconnection and transmission costs | | (243,797) | | — | | — | | — | | (243,797) | | (155,918) | | (174,151) | Fees for services, maintenance, materials and supplies | | (421,048) | | (242,876) | | (400,469) | | — | | (1,064,393) | | (724,120) | | (741,134) | Taxes and fees with the Regulatory Authority | | (702,102) | | (4,957) | | (13,429) | | — | | (720,488) | | (428,352) | | (453,157) | Commissions and advertising | | — | | — | | (437,205) | | — | | (437,205) | | (305,491) | | (345,483) | Cost of equipment and handsets | | (288,668) | | — | | — | | — | | (288,668) | | (259,216) | | (318,199) | Programming and content costs | | (450,698) | | — | | — | | — | | (450,698) | | (314,423) | | (332,792) | Bad debt expenses | | — | | — | | (143,722) | | — | | (143,722) | | (112,102) | | (127,913) | Other operating expenses, net | | (234,467) | | (188,757) | | (69,987) | | — | | (493,211) | | (264,218) | | (272,257) | Depreciation, amortization and impairment of Fixed and intangible assets | | (1,694,180) | | (201,645) | | (152,655) | | (27,008) | | (2,075,488) | | (1,725,057) | | (2,018,038) | Total for the year ended December 31,2025 | | (4,974,423) | | (1,115,706) | | (1,761,630) | | (27,008) | | (7,878,767) | | | | | Total for the year ended December 31,2024 | | (3,729,137) | | (704,444) | | (1,203,508) | | 1,455 | | | | (5,635,634) | | | Total for the year ended December 31,2023 | | (4,128,832) | | (763,280) | | (1,363,868) | | (900) | | | | | | (6,256,880) |
Other leases Future minimum lease payments of non-cancellable other lease agreements of Telecom as of December 31, 2025, 2024 and 2023 in currency on the transaction date are as follows: | | | | | | | | | | | Less than | | | | More than 5 | | | | | 1 year | | 1‑5 years | | years | | Total | 2025 | | 14,885 | | 20,600 | | 2,908 | | 38,393 | 2024 | | 8,311 | | 12,372 | | 6,720 | | 27,403 | 2023 | | 5,057 | | 11,051 | | 4,248 | | 20,356 |
Further information is provided in Note 3.k).
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