Company: TCMFF
Filing Date: 2025-11-12
Form Type: 6-K
Source: 0001104659-25-110392
Chunk: 42

Company: TELECOM ARGENTINA SA
Filing Date: 2025-11-12
Form: 6-K
Chunk 42
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 Current financial liability                          |     |      -744,500 |     |     -877,648 |     |   133,148 |
| Assets                                               
 classified as held for sale                          |     |         2,792 |     |        2,153 |     |       639 |
| Negative                                             
 working capital (current assets—current liabilities) |     |    -1,586,782 |     |   -1,467,925 |     |  -118,857 |
| Liquidity                                            
 rate (current assets/ current liabilities)           |     |          0.52 |     |         0.39 |     |      0.14 |

Telecom has a typical working capital structure corresponding to a company
with intensive capital that obtains spontaneous financing from its suppliers (especially PP&E and Intangible assets) for longer terms
than it provides to its customers. As a result, Telecom has a negative working capital, which amounted to $1,586,782 million as of September 30,
2025 (increasing $118,857 million compared to December 31, 2024).

Negative working capital
contains $79,563 million corresponding to TMA as of September 30, 2025.

During 2024 and 2025,
Telecom obtained funds from the financial market to refinance part of its loans in order to optimize their terms, rates, and structure.
Telecom will continue its strategy of refinancing its borrowings to extend contractual terms and achieve lower financing costs, thus covering
its negative working capital.

In addition to our financial information that has
been prepared and presented in accordance with IFRS Accounting Standards, these this operating and financial review and prospect as of
September 30, 2025, contain certain “non-GAAP financial measures” (as defined in Item 10(e) of Regulation S-K under
the Securities Act). These measures include Adjusted EBITDA, Operating Working Capital, Net Current Financial Liability and Working Capital.
Our management believes these financial reporting measures to be useful indicators of our operational performance and liquidity. Our calculation
of these non-GAAP financial measures may be different from the calculations used by other companies, including our competitors in the
telecommunications industry, and therefore, our measures may not be directly comparable to those of other companies.

For our definition of Adjusted EBITDA and its reconciliation
to the most directly comparable IFRS measure, see “Depreciation, amortization and impairment of Fixed