Edgar Filing: TELECOM ARGENTINA SA

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6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of August 2015

Commission File Number: 001-13464

Telecom Argentina S.A.

(Translation of registrant’s name into English)

Alicia Moreau de Justo, No. 50, 1107

Buenos Aires, Argentina

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes ¨ No x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ¨ No x

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Telecom Argentina S.A.

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Telecom Argentina S.A. announces consolidated six month period (‘1H15’) and second quarter (‘2Q15’) results for fiscal year 2015

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FOR IMMEDIATE RELEASE

Market Cap P$42.3 billion

August 3^rd, 2015

Contacts:

Pedro Insussarry

Solange Barthe Dennin

(54 11) 4968-3743/3752

Telecom Argentina S.A.

announces consolidated six month period (‘1H15’) and second

quarter (‘2Q15’) results for fiscal year 2015*

•

Consolidated Revenues amounted to P$18,496 million (+18.7% vs. 1H14); Fixed Internet +38.1% vs. 1H14; Fixed Data +22.8% vs. 1H14; and Mobile business in Argentina +17.9% vs. 1H14.

•

Mobile subscribers in Argentina: 19.4 million in 1H15.

•

Mobile Value Added Services in Argentina (Internet and Data): +23.5% vs. 1H14; 60.1% of Service Revenues.

•

Mobile ARPU in Argentina increased to P$86.4 per month in 1H15 (+23.5% vs. 1H14).

•

ADSL ARPU increased to P$190.1 per month in 1H15 (+32.9% vs. 1H14); monthly churn reached 1.4% in 1H15.

•

Consolidated Operating Costs -including D&A and Results on disposal of PP&E and write-down of PP&E- totaled P$15,359 million (+18.2% vs. 1H14); Employee benefits expenses +28.4% and Taxes +18.5% vs. 1H14.

•

Operating Income Before Depreciation and Amortization reached P$5,135 million (+24.7% vs. 1H14), 27.8% of Consolidated Revenues.

•

Net Income amounted to P$1,978 million (+7.7% vs. 1H14). Net Income attributable to Telecom Argentina amounted to P$1,956 million (+8.4% vs. 1H14).

•

Capex amounted to P$4,690 million in 1H15 (+107.1% vs. 1H14) due to the 4G spectrum acquisition for P$2,256 million in 2Q15, 25.4% of consolidated revenues.

•

Net Financial Position (Debt) achieved P$1,078 million, a decrease of P$4,885 million vs. 1H14, after the total 3G/4G spectrum payment of P$5,786 million and Telecom Argentina’s cash dividend distribution of P$1,202 million during fiscal year 2014 and P$804 million in fiscal year 2015.


	As of June, 30
*(in million P$, except where noted)*	2015			2014		D $			D %
Consolidated Revenues		18,496			15,585		2,911			18.7	%
Mobile Services		13,547			11,529		2,018			17.5	%
Fixed Services		4,949			4,056		893			22.0	%
Operating Income before D&A		5,135			4,119		1,016			24.7	%
Operating Income		3,148			2,618		530			20.2	%
Net Income attributable to Telecom Argentina		1,956			1,805		151			8.4	%
Shareholders’ equity attributable to Telecom Argentina		15,537			12,538		2,999			23.9	%
Net Financial Position - (Debt) / Cash		(1,078	)		3,807		(4,885	)		-128.3	%
CAPEX		4,690			2,265		2,425			107.1	%
Fixed lines in service (in thousand lines)		4,064			4,103		(39	)		-1.0	%
Mobile customers (in thousand)		21,936			22,163		(227	)		-1.0	%
Personal (Argentina)		19,418			19,776		(358	)		-1.8	%
Núcleo (Paraguay) -including Wimax customers-		2,518			2,387		131			5.5	%
Broadband accesses (in thousand)		1,786			1,726		60			3.5	%
Average Billing per user (ARBU) Fixed Telephony / voice (in P$)		62.5			55.7		6.8			12.2	%
Average Revenue per user (ARPU) Mobile Services in Arg. (in P$)		86.4			70.0		16.4			23.5	%
Average Revenue per user (ARPU) ADSL (in P$)		190.1			143.0		47.1			32.9	%

*	Unaudited non financial data


		1		www.telecom.com.ar

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Buenos Aires, August 3, 2015 - Telecom Argentina (‘Telecom’) - (NYSE: TEO; BASE: TECO2), one of Argentina’s leading telecommunications companies, announced today a Net Income of P$1,978 million for the six month period ended June 30, 2015, or +7.7% when compared to the same period last year. Net income attributable to Telecom Argentina amounted to P$1,956 million (+8.4% vs. 1H14).


	1H15			1H14			D $		D %
Consolidated Revenues (MMP$)		18,496			15,585			2,911		18.7	%
Net Income attributable to Telecom (MMP$)		1,956			1,805			151		8.4	%
Earnings attributable to Telecom per Share (P$)		2.0			1.9			0.1
Earnings attributable to Telecom per ADR (P$)		10.1			9.3			0.8
Operating Income before D&A *		27.8	%		26.4	%
Operating Income *		17.0	%		16.8	%
Net Income*		10.7	%		11.8	%

*	As a percentage of Consolidated Revenues

Note: As of 1H15 and 1H14 , the average of ordinary shares outstanding amounted to 969,159,605.

During 1H15 Consolidated Revenues increased by 18.7% to P$18,496 million (+P$2,911 million vs. 1H14), mainly fueled by the Broadband businesses, Fixed Data and Mobile Services. Moreover, Operating Income reached P$3,148 million (+P$530 million or +20.2% vs. 1H14).

Consolidated Operating Revenues

Mobile Services

During 1H15 clients amounted to 21.9 million as of the end of June, 2015 vs. 22.2 million as of 1H14.

Third parties Revenues amounted to P$13,547 million (+17.5% vs. 1H14) thanks to innovative commercial offers that stimulates value added services (‘VAS’) accompanying service usage towards higher data consumption.

Telecom Personal in Argentina

As of June 30, 2015, Personal reached 19.4 million subscribers in Argentina, where postpaid modality represented 32% of the subscriber base.

In 1H15, third parties Revenues reached P$12,723 million (+P$1,935 million or +17.9% vs. 1H14) while Service Revenues (excluding equipment sales) amounted to P$10,490 million (+21.0% vs. 1H14), with 60.1% corresponding to VAS revenues (vs. 58.8% in 1H14). VAS revenues amounted to P$6,302 million (+23.5% vs. 1H14). Moreover, equipment sales reached P$2,233 million (+5.6% vs. 1H14).

During 1H15 the Average Monthly Revenue per User (‘ARPU’) reached P$86.4 (+23.5% vs. 1H14) due to a commercial offer that promotes the development of Data and Internet services.

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		2		www.telecom.com.ar

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Initiatives

During 2Q15, Personal continued with the deployment of the 4G/LTE network, adding coverage in areas where the service was already available. Therefore, clients in 18 cities of 15 provinces of the country with handsets who have this technology can enjoy the service without changing the SIM card and just having enabled a data plan.

Furthermore, together with the evolution of service usage towards higher data consumption, Personal boosted the commercial offer by giving the possibility to reset the daily or monthly Data Quota for additional Data Usage, once the quota is reached. Moreover, digital tools were launched such as: ‘Mi Cuenta’, available at the website and as app for mobile, with the aim of consumption control, among other features.

In addition, in relation to the handsets offer, Personal introduced several commercial proposals during Father’s Day campaign with the aim to stimulate handsets upgrade to Smartphones and 4G devices. These offers granted a 50% discount and financing for clients with ‘Día Full Plans’ and additional benefits for ‘Personal’s Black’ subscribers.

Moreover, for the corporate segment, Personal continued promoting M2M (‘Machine to Machine’) services, providing visibility and control in real time of the connected devices, besides the mobile service management, diagnostic, support and flexible billing. For this segment, additionally, Telecom and Personal launched ‘Executive’, the first convergent commercial platform for more than 5,000 companies, generating a unified position that includes: expert advisory in sales and customer service, convergent fixed and mobile offers plus Internet tailored to each company.

Finally, consolidating its brand position associated to music and the youth segment, Personal and LG accompanied the ‘Violetta Live 2015 International Tour’ in the shows around the country, in conjunction with related commercial offers.

In the communicational aspect associated to sports, for eleventh consecutive year, Personal was the official sponsor of the ‘Rally Argentina 2015’. In this way, Personal continued building a relationship with these sport fans, besides offering the best quality service in an international event thanks to the reinforcement of the network capacity through 3G and 4G mobile cells to satisfy the notable increase in mobile traffic to national and international destinations.

Telecom Personal in Paraguay (‘Núcleo’)

As of June 30, 2015, Nucleo’s subscriber base reached approximately 2.5 million clients (+5.5% vs. 1H14). Prepaid and postpaid customers represented 80% and 20%, respectively.

Nucleo generated revenues from third parties equivalent to P$824 million during 1H15 (+11.2% vs. 1H14). VAS revenues amounted to P$409 million (+10.2% vs. 1H14) representing 54.0% of 1H15 service revenues (vs. 52.6% in 1H14). The revenue performance of Nucleo measured in pesos was affected by the depreciation of the Guarani to peso FX rate.

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		3		www.telecom.com.ar

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Fixed Services (Voice, Data & Internet) During 1H15, revenues generated by fixed services amounted to P$4,949 million, +22.0% vs. 1H14; with Internet (+38.1% vs. 1H14) and Data revenues (+22.8% vs. 1H14) growing the most in the segment.

Voice

Total service revenues reached P$2,012 million in 1H15 (+9.4% vs. 1H14). A portion of this line of business (mainly monthly charge and measured services), continued to be affected by frozen tariffs of regulated services enforced by the Argentine Government in 2002.

Revenues generated by measured services totaled P$856 million, an increase of P$116 million or +15.7% vs. 1H14 mainly due to a higher penetration of flat rate packs of local and national long distance calls.

Monthly charges and supplementary services reached P$628 million, an increase of P$36 million or +6.1% vs. 1H14 due to higher revenues in non-regulated supplementary services. The customer base remained stable at 4.1 million lines in service.

As a result of these increases, the average monthly revenue billed to user (ARBU) reached P$62.5 in 1H15, +12.2% vs. 1H14.

Fixed and mobile interconnection revenues amounted to P$314 million (+4.0% vs. 1H14). Meanwhile, other revenues totaled P$214 million (+4.3% vs. 1H14).

Data and Internet

Data revenues (services mainly offered to Corporate segment and Government) amounted to P$839 million (+P$156 million or +22.8% vs. 1H14), strengthening the position of Telecom as an integrated ICT provider. This increase was partially due to a growth in fixed accesses of innovative Data services.

Revenues related to Internet totaled P$2,075 million (+P$572 million or +38.1% vs. 1H14), mainly due to price increases and a commercial offer with higher speeds (ultra broadband or UBB), where 10Mb was the most demanded service that represents 22% over the total customer base, in comparison to 10% in 1H14. This was possible thanks to significant investments executed recently in the access network using FTTx technology that allows taking fiber optics to the closest connection point with the customer.
As of June 30, 2015, Telecom reached 1.8 million ADSL accesses (+3.5% vs. 1H14). These connections represented 43.9% of Telecom’s fixed lines in service. In addition, ADSL ARPU reached P$190.1 in 1H15, +32.9% when compared to 1H14 and the monthly churn rate achieved 1.4% in 1H15.
During 2Q15, Arnet and Personal developed a bundled offer, named as ‘Promo Histórica’ that provides important benefits with discounts of up to 50% per twelve months and financing for those clients who choose both products, and had already been clients for either one of them, fulfilling communication needs of fixed and mobile subscribers.

In the same way, Arnet continued in 2Q15 with its integrated offer through packs of services and special benefits such as: Pack Arnet Total, Pack Arnet Familia, Pack Arnet Hablemos, Pack 6MB+ Play and Pack Arnet Spotify suitable to clients’ needs combining local and mobile calls, access to Play (video streaming) and to Spotify (music streaming).


		4		www.telecom.com.ar

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Consolidated Operating Costs

Consolidated Operating Costs totaled P$15,359 million in 1H15, an increase of P$2,362 million, or +18.2% vs. 1H14 (including ‘Results on disposal of PP&E and write-down of PP&E’ that resulted in a gain of P$3 million in 1H15 vs. a gain of P$10 million in 1H14). This increase is a consequence of higher depreciations and amortizations, higher labor costs and taxes associated to higher sales.
The cost breakdown is as follows:
•		Employee benefit expenses and severance payments totaled P$3,258 million (+28.4% vs. 1H14), mainly affected by increases in salaries to unionized employees due to the collective bargaining agreement set at the beginning of 3Q14 as well as increases in salaries to the non-unionized workforce and year-end bonuses, together with the social security contributions associated to such concepts. Total employees of the Telecom Group at the end of the period totaled 16,286.
•		Interconnection costs and other telecommunication charges (including TLRD, Roaming, Interconnection, international settlement charges and lease of circuits) amounted to P$1,001 million, -1.9% vs. 1H14. This decrease resulted from lower volume of roaming traffic and lower costs of international outbound calls.

•		Fees for services, maintenance and materials and supplies amounted to P$1,869 million (+16.9% vs. 1H14), mainly due to costs’ increases in technical maintenance as well as higher fees for services, mainly due to higher costs recognized to suppliers (mainly call center providers) in both the fixed and mobile businesses to continue improving the quality of the customer service.

•		Taxes and fees with regulatory authorities reached P$1,853 million (+18.5% vs. 1H14), impacted mainly by higher revenues, higher bank debit and credit taxes related to the higher collection flows, suppliers payments, the spectrum payment and dividends, as well as higher taxes with the Regulatory Authority.

•		Commissions (Commissions paid to agents, prepaid card commissions and others) totaled P$1,396 million (+24.9% vs. 1H14), mainly due to the increase in commissions paid to commercial channels as well as collection fees and distribution of prepaid cards commissions. Agent commissions capitalized as SAC amounted to P$513 million (+41.7% vs. 1H14). The higher commissions capitalized as SAC were due to the increase in the customer base and higher commissions.

•		Cost of handsets sold decreased to P$1,735 million (-8.3% vs. 1H14), due to a lower number of handsets sold because of the difficulty of its delivery. Deferred costs from SAC amounted to P$42 million (-26.3% vs. 1H14). The lower deferred costs were derived from the reduction in handset subsidies given to clients.


		5		www.telecom.com.ar

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•		Advertising amounted to P$370 million (+8.5% vs. 1H14), mainly due to slightly higher commercial expenses when compare to 1H14, related to marketing campaigns.

•		Depreciation and Amortization reached P$1,990 million (+31.7% vs. 1H14). PP&E depreciation amounted to P$1,391 million (+25.8% vs. 1H14); Amortization of SAC and service connection costs totaled P$457 million (+16.3% vs. 1H14); Amortization of 3G/4G spectrum reached P$131 million due to the capitalization of the spectrum acquired and made available since the end of 2014 and other intangible assets reached P$11 million (vs. P$12 million in 1H14).

•		Other Costs totaled P$1,890 million (+32.7% vs. 1H14). This increase was mainly due to VAS costs that totaled P$597 million (+47.0% vs. 1H14), related to the increase of sales of those services, especially in the mobile business. Bad debt expenses reached P$281 million (+20.6% vs. 1H14) representing 1.8% of consolidated costs and 1.5% of consolidated revenues.

Consolidated Financial Results

Net Financial results resulted in a loss of P$119 million, a decrease of P$273 million or - 177.3% vs. 1H14. This was mainly due to a lower cash position after the spectrum payments in 4Q14 and 2Q15, which led to a lower generation of interest on time deposits and lower gains on mutual funds and other investments, together with higher financial expenses associated to interest on loans contracted by Telecom Personal. Moreover, losses for FX results amounted to P$95 million in 1H15 (vs. a loss of P$222 million in 1H14). Meanwhile, results on NDF generated a loss of P$47 million in 1H15 (vs. a loss of P$6 million in 1H14).

Consolidated Net Financial Position

As of June 30, 2015, Net Financial Position (Cash, Cash Equivalents and financial Investments minus Loans) resulted in P$1,078 million in debt, a decrease of P$4,885 million when compared to the Net Financial Position as of June 30, 2014, after the cash dividend payments of Telecom Argentina of P$1,202 million paid in 2014 corresponded to the previous fiscal year and P$804 million paid in 2Q15 corresponded to fiscal year 2014. Also the effects of the 3G/4G frequencies payment for an amount of P$5,786 million (US$ 658 million) as well as higher payments to suppliers and taxes, were evidenced.

Capital Expenditures

During 1H15, the Company invested P$4,690 million (+107.1% vs. 1H14). Of this amount, P$908 million were allocated to Fixed Services and P$3,782 million to Mobile services, where P$2,256 million was related to the 4G spectrum payment. Capex reached 25.4% of consolidated revenues.

The main capital expenditures in the fixed business were associated to the expansion of broadband services to offer higher speeds thus improving the navigation experience in Internet.


in million of AR$		1H14			1H15
Net Interests		$	238	-	$	87
Gains on Mutual Funds & other Inv.		$	147		$	130
FX results	-	$	222	-	$	95
Results on NDF	-	$	6	-	$	47
Others	-	$	3	-	$	20

Total		$	154	-	$	119


		6		www.telecom.com.ar

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In the mobile business, the 3G and 4G frequencies acquired together with the executed investments allow to improve coverage and network capacity to sustain the increase in demand of Data and Internet, along with new VAS thus offering a better quality of service.

Additionally to the 4G deployment, Personal is renewing the 2G/3G equipment with state of the art technology. Consequently, through the extension of the network capacity promotes improvements in the customer experience.

Relevant Matters

Dividend Payment

The General Ordinary Shareholders’ Meeting of Telecom Argentina approved on April, 29^th, 2015 a cash dividend payment of P$804,402,472. The dividend payment started on May 11^th, 2015. The amount distributed was equivalent to P$0.83 per outstanding share in circulation or P$4.15 per ADR, prior to deductions of the Personal Asset Tax and Income Tax obligations. Additionally, the General Ordinary Shareholders’ Meeting approved the creation of a ‘Reserve for Future Cash Dividends’ for P$2.9 billion; and the delegation of the powers to the Board of Directors to determine the allocation, depending on the performance of the business, in one or more instances, of an amount up to P$649.3 million of the ‘Reserve for Future Cash Dividends’ and its distribution to shareholders as cash dividends, during Fiscal Year 2015.

Amendment of the corporate purpose of Telecom Argentina

The Ordinary and Extraordinary General Shareholders’ Meeting held on June 22^nd, 2015 approved the appointment of Mr. Oscar Carlos Cristianci as to fill the vacancy caused by the resignation of Mr. Enrique Garrido and to complete its mandate. Additionally, the Extraordinary Shareholders’ Meeting approved an amendment to Section 3 of the Bylaws of Telecom Argentina in order to extend the corporate purpose, adapting it to the new definition of ICT Services as part of the Argentine Digital Law and including the possibility to provide Audiovisual Communication Services (media services). The validity of the amendment was conditioned upon and subject to obtaining the prior authorization from the competent authority (AFTIC). On July 27^th, 2015, the AFTIC approved such amendment.

Spectrum Payment

Through Resolution 25/2015 of the Secretariat of Communications (‘SC’), the frequency bands for the Advanced Mobile Communication Services (‘SCMA’) 713-723 Mhz and 768-778 Mhz for the National Area were assigned to Telecom Personal. Thereby, the allocation of Lot 8 that had been partially assigned in November 2014 through SC Resolution 83/2014 was completed. Consequently, on June 25^th, 2015, Telecom Personal has proceeded to cancel the outstanding amount of US$ 247,263,421, as part of the total amount offered for Lot 8. The payment was made to the accounts of the Argentine State informed by SC’s through Notes 1630/15 and 1474/14, and in accordance with the List of Conditions of the Auction and the Clarification Note N 1.


		7		www.telecom.com.ar

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Other Relevant Matters

On June 24^th, 2015, Telefonica S.A. submitted to the CNV (‘Comisión Nacional de Valores’) and to the Buenos Aires Stock Exchange a letter informing as a relevant matter ‘the divestment of its entire stake in Telecom Italia S.p.A.’. Consequently, the grounds that led to the presentation of the Commitments to the CNDC (‘Antitrust Commission’) and the acceptance of the obligations derived from them accepted or signed by the companies have disappeared. For that reason, on July 6^th, 2015 Telecom Italia S.p.A. submitted a note to the CNDC informing that the end of the validity of the Commitments had been configured, according to that contemplated in Clause 9.2 from the Telco Commitment and Clause 3 of the TI-W Commitment. In the same sense, on July 7^th, 2015, Telecom Argentina and Telecom Personal submitted a note to the CNDC adhering to the presentation made by Telecom Italia S.p.A. and required that, for the same reasons exposed by Telecom Italia on its note; declare the extinction of the validity of both Commitments.

*********


		8		www.telecom.com.ar

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Telecom is the parent company of a leading telecommunications group in Argentina, where it offers, either itself or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, Data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine government’s transfer of the telecommunications system in the northern region of Argentina.

Nortel Inversora S.A. (“Nortel”), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom’s issued common stock. Nortel is a holding company whose common stock (approximately 78% of capital stock) is owned by Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock is comprised of preferred shares that are held by minority shareholders.

As of June 30, 2015, Telecom continued to have 984,380,978 shares issued and 969,159,605 shares outstanding.

For more information, please contact Investor Relations:


Pedro Insussarry (5411) 4968 3743		Solange Barthe Dennin (5411) 4968 3752		Ruth Fuhrmann (5411) 4968 4448		Antonella Papaleo (5411) 4968 6236

Voice Mail: (5411) 4968 3628

Fax: (5411) 4968 3616

E-mail: relinver@ta.telecom.com.ar

For information about Telecom Group services, visit:

www.telecom.com.ar

www.personal.com.ar

www.personal.com.py

www.arnet.com.ar

Disclaimer

This document may contain statements that could constitute forward-looking statements, including, but not limited to, the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; the effects of its debt restructuring process; the impact of emergency laws enacted by the Argentine Government; and the impact of rate changes and competition on the Company’s future financial performance. Forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “projects,” “intends,” “should,” “seeks,” “estimates,” “future” or other similar expressions. Forward-looking statements involve risks and uncertainties that could significantly affect the Company’s expected results. The risks and uncertainties include, but are not limited to, the impact of emergency laws enacted by the Argentine government that have resulted in the repeal of Argentina’s Convertibility law, devaluation of the peso, various changes in restrictions on the ability to exchange pesos into foreign currencies, and currency transfer policy generally, the “pesification” of tariffs charged for public services, the elimination of indexes to adjust rates charged for public services and the Executive branch announcement to renegotiate the terms of the concessions granted to public service providers, including Telecom. Due to extensive changes in laws and economic and business conditions in Argentina, it is difficult to predict the impact of these changes on the Company’s financial condition. Other factors may include, but are not limited to, the evolution of the economy in Argentina, growing inflationary pressure and evolution in consumer spending and the outcome of certain legal proceedings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as the date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward-looking statements which may be made to reflect events and circumstances after the date of this press release, including, without limitation, changes in the Company’s business or to reflect the occurrence of unanticipated events. Readers are encouraged to consult the Company’s Annual Report on Form 20-F, as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission for further information concerning risks and uncertainties faced by Telecom.

(Financial tables follow)

*******

Oscar Carlos Cristianci

Chairman


		9		www.telecom.com.ar

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TELECOM ARGENTINA S.A.

Consolidated information

Six month Period and Second Quarter - Fiscal Year 2015

(In million of Argentine pesos)

1-	Consolidated Balance Sheet


	06/30/15		12/31/14		D $			D %
Cash and cash equivalents		1,560		825		735			89.1	%
Investments		575		53		522			—
Trade receivables		4,425		4,124		301			7.3	%
Other Receivables		1,423		1,391		32			2.3	%
Total current assets		7,983		6,393		1,590			24.9	%
Financial Investments		343		300		43			14.3	%
Trade receivables		133		143		(10	)		-7.0	%
Property, plant and equipment		14,508		13,809		699			5.1	%
Intangible assets		7,593		5,331		2,262			42.4	%
Other Receivables		411		341		70			20.5	%
Total non-current assets		22,988		19,924		3,064			15.4	%
Total Assets		30,971		26,317		4,654			17.7	%
Trade payables		6,013		6,072		(59	)		-1.0	%
Deferred revenues		573		507		66			13.0	%
Financial debt		2,987		179		2,808			—
Salaries and social security payables		979		1,022		(43	)		-4.2	%
Income tax payables		701		247		454			183.8	%
Other taxes payables		723		824		(101	)		-12.3	%
Other liabilities		39		47		(8	)		-17.0	%
Provisions		262		199		63			31.7	%
Total current liabilities		12,277		9,097		3,180			35.0	%
Deferred revenues		461		465		(4	)		-0.9	%
Financial debt		569		254		315			124.0	%
Salaries and social security payables		130		150		(20	)		-13.3	%
Deferred income tax liabilities		355		417		(62	)		-14.9	%
Income tax payables		7		9		(2	)		-22.2	%
Other liabilities		92		76		16			21.1	%
Provisions		1,207		1,080		127			11.8	%
Total non-current liabilities		2,821		2,451		370			15.1	%
TOTAL LIABILITIES		15,098		11,548		3,550			30.7	%
Equity attributable to Telecom Argentina (Controlling Company)		15,537		14,418		1,119			7.8	%
Non-controlling interest		336		351		(15	)		-4.3	%
TOTAL EQUITY		15,873		14,769		1,104			7.5	%
TOTAL LIABILITIES AND EQUITY		30,971		26,317		4,654			17.7	%

2-	Consolidated Loans


	06/30/15			12/31/14		D $			D%
Bank overdraft for the acqusition of 4G spectrum - Personal		2,256			0		2,256			—
Bank overdraft - principal Personal		663			140		523			—
Bank overdraft - accrued interest Personal		10			1		9			—
Bank loans - accrued interest Personal		8			0		8			—
Banks loans - principal Nucleo		44			32		12			37.5	%
Banks loans - accrued interest Nucleo		6			6		—			0	%
Total Current Loans		2,987			179		2,808			—
Banks loans - principal Personal		354			—		354			—
Banks loans - principal Nucleo		215			254		(39	)		-15.4	%
Total Non Current Loans		569			254		315			124.0	%
Total Loans		3,556			433		3,123			—

Cash and cash equivalents, and Financial Investments		2,478			1,178		1,300			110.4	%
Net Financial Position - Cash / (Debt)		(1,078	)		745		(1,823	)		—


		10		www.telecom.com.ar

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TELECOM ARGENTINA S.A.

Consolidated information

Six month Period and Second Quarter - Fiscal Year 2015

(In million of Argentine pesos)

3-	Consolidated Income Statements


	06/30/15			06/30/14			D $			D %
Revenues		18,496			15,585			2,911			18.7	%
Other income		11			30			(19	)		-63.3	%
Total Revenues & Other Income		18,507			15,615			2,892			18.5	%
Consolidated Operating Costs		(15,362	)		(13,007	)		(2,355	)		18.1	%
Results on disposal of PP&E and writedown of PP&E		3			10			(7	)		-70.0	%
Operating income		3,148			2,618			530			20.2	%
Finance results, net		(119	)		154			(273	)		-177.3	%
Net income before income tax expense		3,029			2,772			257			9.3	%
Income tax expense		(1,051	)		(936	)		(115	)		12.3	%
Net income		1,978			1,836			142			7.7	%

Attributable to:
Telecom Argentina (Controlling Company)		1,956			1,805			151			8.4	%
Non-controlling interest		22			31			(9	)		-29.0	%

Operating income before D&A		5,135			4,119			1,016			24.7	%
As % of Revenues		27.8	%		26.4	%

Finance Income and Expenses	06/30/15			06/30/14			D $			D %
Finance Income
Interest on time deposits		7			260			(253	)		-97.3	%
Gains on other investments (notes and bonds)		69			73			(4	)		-5.5	%
Gains on Mutual Funds		61			74			(13	)		-17.6	%
Interest on receivables		90			80			10			12.5	%
Foreign currency exchange gains		39			534			(495	)		-92.7	%
Gain on NDF		4			42			(38	)		-90.5	%
Total finance income		270			1,063			(793	)		-74.6	%
Finance expenses
Interest on financial debt - Personal		(71	)		—			(71	)		—
Interest on financial debt - Nucleo		(12	)		(12	)		—			0	%
Interest on salaries and social security, other taxes ana accounts payable		(12	)		(20	)		8			-40.0	%
Interest on provisions		(89	)		(70	)		(19	)		27.1	%
Present value effect of salaries and social security and other taxes payables and other liabilities		(2	)		(3	)		1			-33.3	%
Foreign currency exchange losses		(134	)		(756	)		622			-82.3	%
Foreign currency exchange losses		(14	)		—			(14	)		—
Losses on NDF		(51	)		(48	)		(3	)		6.3	%
Others		(4	)		—			(4	)		—
Total finance expenses		(389	)		(909	)		520			-57.2	%

		(119	)		154			(273	)		-177.3	%

4-	Consolidated Income Statements

Three Months Comparison


	06/30/15			06/30/14			D $			D %
Revenues		9,624			8,119			1,505			18.5	%
Other income		4			20			(16	)		-80.0	%
Total Revenues & Other Income		9,628			8,139			1,489			18.3	%
Consolidated Operating Costs		(8,160	)		(6,904	)		(1,256	)		18.2	%
Operating income		1,468			1,241			227			18.3	%
Finance results, net		(30	)		186			(216	)		-116.1	%
Net income before income tax expense		1,438			1,427			11			0.8	%
Income tax expense		(501	)		(497	)		(4	)		0.8	%
Net income		937			930			7			0.8	%

Attributable to:
Telecom Argentina (Controlling Company)		928			916			12			1.3	%
Non-controlling interest		9			14			(5	)		-35.7	%

Operating income before D&A		2,501			2,007			494			24.6	%
As % of Revenues		26.0	%		24.7	%


		11		www.telecom.com.ar

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TELECOM ARGENTINA S.A.

Consolidated information

Six month Period and Second Quarter - Fiscal Year 2015

(In million of Argentine pesos)

5-	Breakdown of the Income Statements


	06/30/15		06/30/14		D $			D %
REVENUES FROM SERVICES		16,174		13,403		2,771			20.7	%
*Fixed Services*		4,926		4,025		901			22.4	%
Voice		2,012		1,839		173			9.4	%
Retail Voice		1,533		1,386		147			10.6	%
Monthly Charges		628		592		36			6.1	%
Measured Services		856		740		116			15.7	%
Others		49		54		(5	)		-9.3	%
Wholesale		479		453		26			5.7	%
Interconnection		314		302		12			4.0	%
Others		165		151		14			9.3	%
Data		839		683		156			22.8	%
Internet		2,075		1,503		572			38.1	%

*Mobiles Sevices*		11,248		9,378		1,870			19.9	%
*Telecom Personal*		10,490		8,673		1,817			21.0	%
Voice		4,188		3,571		617			17.3	%
Retail Voice		3,259		2,595		664			25.6	%
Monthly Charges		1,830		1,431		399			27.9	%
Measured Services		983		855		128			15.0	%
Roaming		146		157		(11	)		-7.0	%
Others		300		152		148			97.4	%
Wholesale		929		976		(47	)		-4.8	%
Interconnection (CPP and TLRD)		758		794		(36	)		-4.5	%
Roaming		154		162		(8	)		-4.9	%
Others		17		20		(3	)		-15.0	%
Data		3,613		3,677		(64	)		-1.7	%
Internet		2,689		1,425		1,264			88.7	%

*Núcleo*		758		705		53			7.5	%
Voice		349		334		15			4.5	%
Retail Voice		293		277		16			5.8	%
Monthly Charges		111		104		7			6.7	%
Measured Services		142		155		(13	)		-8.4	%
Roaming		5		5		0			0	%
Others		35		13		22			169.2	%
Wholesale		56		57		(1	)		-1.8	%
Interconnection (CPP and TLRD)		38		55		(17	)		-30.9	%
Roaming		15		—		15			—
Others		3		2		1			50.0	%
Data		148		164		(16	)		-9.8	%
Internet		261		207		54			26.1	%

REVENUES FROM EQUIPMENT SALES		2,322		2,182		140			6.4	%
*Fixed Services*		23		31		(8	)		-25.8	%
*Mobiles Sevices*		2,299		2,151		148			6.9	%
Equipments (Personal)		2,233		2,115		118			5.6	%
Equipments (Núcleo)		66		36		30			83.3	%
REVENUES		18,496		15,585		2,911			18.7	%

OTHER INCOME		11		30		(19	)		-63.3	%
Fixed		8		17		(9	)		-52.9	%
Mobile		3		13		(10	)		-76.9	%
TOTAL REVENUES & OTHER INCOME		18,507		15,615		2,892			18.5	%


		12		www.telecom.com.ar

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TELECOM ARGENTINA S.A.

Consolidated information

Six month Period and Second Quarter - Fiscal Year 2015

(In million of Argentine pesos)

6-	BREAKDOWN OF THE INCOME STATEMENTS

Three Months Comparison


	06/30/15		06/30/14		D $			D %
REVENUES FROM SERVICES		8,215		6,844		1,371			20.0	%
*Fixed Services*		2,566		2,073		493			23.8	%
Voice		1,032		932		100			10.7	%
Retail Voice		788		704		84			11.9	%
Monthly Charges		316		297		19			6.4	%
Measured Services		447		381		66			17.3	%
Others		25		26		(1	)		-3.8	%
Wholesale		244		228		16			7.0	%
Interconnection		159		153		6			3.9	%
Others		85		75		10			13.3	%
Data		432		364		68			18.7	%
Internet		1,102		777		325			41.8	%

*Mobiles Sevices*		5,649		4,771		878			18.4	%
*Telecom Personal*		5,274		4,409		865			19.6	%
Voice		2,005		1,738		267			15.4	%
Retail Voice		1,557		1,250		307			24.6	%
Monthly Charges		876		734		142			19.3	%
Measured Services		448		382		66			17.3	%
Roaming		61		62		(1	)		-1.6	%
Others		172		72		100			138.9	%
Wholesale		448		488		(40	)		-8.2	%
Interconnection (CPP and TLRD)		366		398		(32	)		-8.0	%
Roaming		75		80		(5	)		-6.3	%
Others		7		10		(3	)		-30.0	%
Data		1,768		1,890		(122	)		-6.5	%
Internet		1,501		781		720			92.2	%

*Núcleo*		375		362		13			3.6	%
Voice		175		181		(6	)		-3.3	%
Retail Voice		145		151		(6	)		-4.0	%
Monthly Charges		60		55		5			9.1	%
Measured Services		65		87		(22	)		-25.3	%
Roaming		2		3		(1	)		-33.3	%
Others		18		6		12			—
Wholesale		30		30		—			0	%
Interconnection (CPP and TLRD)		18		29		(11	)		-37.9	%
Roaming		11		—		11			—
Others		1		1		—			0	%
Data		68		79		(11	)		-13.9	%
Internet		132		102		30			29.4	%

REVENUES FROM EQUIPMENT SALES		1,409		1,275		134			10.5	%
*Fixed Services*		13		18		(5	)		-27.8	%
*Mobiles Sevices*		1,396		1,257		139			11.1	%
Equipments (Personal)		1,352		1,236		116			9.4	%
Equipments (Núcleo)		44		21		23			109.5	%
REVENUES		9,624		8,119		1,505			18.5	%

OTHER INCOME		4		20		(16	)		-80.0	%
Fixed		4		8		(4	)		-50.0	%
Mobile		0		12		(12	)		-100.0	%
TOTAL REVENUES & OTHER INCOME		9,628		8,139		1,489			18.3	%


		13		www.telecom.com.ar

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TELECOM ARGENTINA S.A.

Consolidated information

Six month Period and Second Quarter - Fiscal Year 2015

(In million of Argentine pesos)

7-	Consolidated Income Statements


	06/30/15			06/30/14			D $			D %
Revenues		18,496			15,585			2,911			18.7	%
Other income		11			30			(19	)		-63.3	%
Total Revenues & Other Income		18,507			15,615			2,892			18.5	%
Employee benefit expenses and severance payments		(3,258	)		(2,537	)		(721	)		28.4	%
Interconnection costs and other telecommunication charges		(1,001	)		(1,020	)		19			-1.9	%
Fees for services, maintenance, materials and supplies		(1,869	)		(1,599	)		(270	)		16.9	%
Taxes and fees with the Regulatory Authority		(1,853	)		(1,564	)		(289	)		18.5	%
Commissions		(1,396	)		(1,118	)		(278	)		24.9	%
Cost of equipments and handsets		(1,735	)		(1,893	)		158			-8.3	%
Advertising		(370	)		(341	)		(29	)		8.5	%
Cost of Value Added Services		(597	)		(406	)		(191	)		47.0	%
Provisions		(167	)		(102	)		(65	)		63.7	%
Bad debt expenses		(281	)		(233	)		(48	)		20.6	%
Other operating expenses		(845	)		(683	)		(162	)		23.7	%
Subtotal Operating costs		(13,372	)		(11,496	)		(1,876	)		16.3	%
Operating income before D&A		5,135			4,119			1,016			24.7	%
D&A		(1,990	)		(1,511	)		(479	)		31.7	%
Results on disposal of PP&E and write-down of PP&E		3			10			(7	)		-70.0	%
Operating income		3,148			2,618			530			20.2	%
Finance Income		270			1,063			(793	)		-74.6	%
Finance Expenses		(389	)		(909	)		520			-57.2	%
Net income before income tax expense		3,029			2,772			257			9.3	%
Income tax expense		(1,051	)		(936	)		(115	)		12.3	%
Net Income		1,978			1,836			142			7.7	%

Attributable to:
Telecom Argentina (Controlling Company)		1,956			1,805			151			8.4	%
Non-controlling interest		22			31			(9	)		-29.0	%


		14		www.telecom.com.ar

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TELECOM ARGENTINA S.A.

Consolidated information

Six month Period and Second Quarter - Fiscal Year 2015

(In million of Argentine pesos)

8-	CONSOLIDATED INCOME STATEMENTS

Three Months Comparison


	06/30/15			06/30/14			D $			D %
Revenues		9,624			8,119			1,505			18.5	%
Other income		4			20			(16	)		-80.0	%
Total Revenues & Other Income		9,628			8,139			1,489			18.3	%
Employee benefit expenses and severance payments		(1,715	)		(1,354	)		(361	)		26.7	%
Interconnection costs and other telecommunication charges		(501	)		(505	)		4			-0.8	%
Fees for services, maintenance, materials and supplies		(980	)		(844	)		(136	)		16.1	%
Taxes and fees with the Regulatory Authority		(980	)		(809	)		(171	)		21.1	%
Commissions		(773	)		(577	)		(196	)		34.0	%
Cost of equipments and handsets		(1,095	)		(1,118	)		23			-2.1	%
Advertising		(179	)		(177	)		(2	)		1.1	%
Cost of Value Added Services		(304	)		(215	)		(89	)		41.4	%
Provisions		(74	)		(65	)		(9	)		13.8	%
Bad debt expenses		(98	)		(115	)		17			-14.8	%
Other operating expenses		(428	)		(353	)		(75	)		21.2	%
Subtotal Operating costs		(7,127	)		(6,132	)		(995	)		16.2	%
Operating income before D&A		2,501			2,007			494			24.6	%
D&A		(1,033	)		(772	)		(261	)		33.8	%
Results on disposal of PP&E and write-down of PP&E		—			6			(6	)		-100.0	%
Operating income		1,468			1,241			227			18.3	%
Finance Income		165			264			(99	)		-37.5	%
Finance Expenses		(195	)		(78	)		(117	)		150.0	%
Net income before income tax expense		1,438			1,427			11			0.8	%
Income tax expense		(501	)		(497	)		(4	)		0.8	%
Net Income		937			930			7			0.8	%

Attributable to:
Telecom Argentina (Controlling Company)		928			916			12			1.3	%
Non-controlling interest		9			14			(5	)		-35.7	%


		15		www.telecom.com.ar

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Telecom Argentina S.A.

Date: August 5, 2015

/s/ Oscar Carlos Cristianci

Oscar Carlos Cristianci

Chairman of the Board of Directors