Company: TCMFF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001104659-25-019133
Chunk: 4

Company: TELECOM ARGENTINA SA
Filing Date: 2025-02-28
Form: 20-F
Item: Item 3
Chunk 4
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, level of BCRA reserves, public debt, tax pressures, trade and fiscal balances, government policy and the international and macroeconomic conditions. Those conditions could adversely affect our operations.
Devaluation of the Argentine Peso and foreign exchange restrictions may adversely affect our results of operations, our capital expenditures and our ability to service our liabilities and pay dividends.
Since we generate a substantial portion of our revenues in Argentine Pesos (the functional currency of Telecom), any devaluation may negatively affect the U.S. dollar value of our earnings while increasing, in Peso terms, our expenses and capital expenditures denominated in foreign currency. The Argentine Peso has been subject to significant devaluation against the U.S. dollar in the past and may be subject to fluctuations in the future. The value of the Argentine Peso compared to other foreign currencies is dependent, among other factors, on the level of international reserves maintained by the BCRA, which have also shown significant fluctuations in recent years. The Argentine macroeconomic environment, in which we operate, has been affected by the continued devaluation of the Argentine Peso, which in turn has and could continue to have a direct impact on our financial and economic position.

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PART I - ITEM 3 KEY INFORMATION   TELECOM ARGENTINA S.A.
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The value of the Argentine Peso has fluctuated significantly over time. In 2024, the Argentine Peso continued to depreciate against the U.S. dollar. However, the Peso devalued at a slower rate compared to the previous year, with a monthly depreciation rate of around 2%. According to Banco de la Nación Argentina, the Peso/dollar exchange rate stood at P$1,032 per US$1.00 as of December 31, 2024, evidencing an appreciation of the U.S. dollar against the Argentine Peso of approximately 27.7% from its value of P$808.45 per dollar on December 31, 2023 (compared to 356.3% and 72.5% in the years ended December 31, 2023 and 2022, respectively). If we analyze the behavior of the average exchange rate, during 2024 it stood at P$925.2 per dollar.
As a result of the Argentine Peso’s increased volatility, the Argentine government and the BCRA implemented several measures to stabilize its value. The continued devaluation of the Argentine Peso during the past years has had and continues to have a negative impact on the