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spk_0: good morning and welcome to cablevision holdings conference call my name is chris and i will be your conference operator today after the speakers remarked there will be an opportunity to ask questions during a question and answer session you may that your questions throughout the event by clicking in the summit a question box on your screen today we will discuss cablevision holdings first half and second quarter two thousand twenty three results this call is for investors and analysts only therefore questions from the media will not be taken at this time however if you are a member of the media and have questions please contact key corporate communications following the call i will now introduce or speakers decision and saw all of the eyrie head of investor relations additionally mister said bastion or dangle executive director and chairman wall should be available for today's q and a session the kid will be discussing the result as per the earnings will be distributed last wednesday august tenth if you have not received a report or need any assistance for introduce call police caught cat fig corporate communications in new york at nine one seven
spk_1: looks nine one
spk_0: four zero four seven or the company in buenos aires at five four one one for three oh nine three four one seven pvh has also posted the webcast reason presentation that can be found at www dot cablevision holding dot com for a swatch investors comments made by management may contain forward looking statements about cablevision holdings future performance plans strategies and targets such statements are subject to uncertainties the could cause cablevision holdings actual results and operations to differ materially church uncertainties include but are not limited to the effects of the impact and duration of the at nineteen pandemic new or ongoing industry and economic regulations possible changes in demand for cablevision holdings products and services and the effects of more general factors such as changes in the general market economy or in regulatory conditions we ask that you refer to the disclaimer in the earnings report or presentation for additional information regarding forward looking statements it is now my pleasure to turn the call or refute this is samantha all very
spk_2: please go ahead
spk_3: thank you chris good morning everyone and thank you for joining us today call will begin with a brief macro review and continue with a review of the companies income statement and operating result followed by a review of the financial position please move dislike for argentina's economy closes the first half of beer with the most favorable trade turbulent history and brazil growing above forecast with that it's growing mainly the effect of higher prices a double digits for the second year in a row which are expected to account for ninety billion dollars thirty five billion above that twenty twenty figure he's got get her to fill shadowed by a worrying inflationary acceleration and some lack of credibility regarding the fiscal monetary and foreign exchange or during committed before the iowa to this must be added the recent change in economic authority to first policy statements save to meet expectations even though they have reaffirmed their commitment to the target a two point five percent primary deficit agree with the a myth for the current year and the upward adjustment of interest rates carried out by both the central bank and the trail three going into the number two lions later wrote to seven point four percent the highest registered the fear and of the last twenty years and accumulate forty six point two percent wreaking seventy one percent year over year because of this wortham dynamic estimate for twenty twenty two are being revised upwards on and or in the range of ninety to ninety five percent according to the central bank bank expectations therapy it it's worth mentioning that unlike previous fear this bright the acceleration isn't the result of junk in the official exchange rate or utility price adjustment although moving forward as part of the effort to tackle fiscal imbalances the government has announced that cut cut cut back of futility prices subsidy adding pressure to the inflation expectations the central bank hasn't been able to accumulate reserved during twenty twenty two even with the paper trail setting mentioned before in fact the stock of growth reserve is currently around thirty seven billion dollars two point seven billion below the thirty nine point seven figure of the end of twenty twenty one it it's worth my mentioning that during the last forty five days the central bank of bluff just go were five point five billion dollars disagree places the net reserve at a critical level and a priority for the new economic team in addition to find them fiscal deficit the government has been continuously issuing sovereign debt and local currency which accounts for around forty percent since the beginning a beer with an increasing percentage of it being funded by the central bank as the father for the monetary base had increased to four point four trillion paper and the liability to that end to the had increased to six point seven trillion one hundred and fifty fifty three percent of the monetary base resembling that of the month prior to nineteen eighty nine hyperinflation since foreign exchange them imbalance is always the reverse side of the monetary imbalance the net and mission is under the current and third in the state the main reason for the worrying jump in the price of financial daughter we will now continue with the a key financial blight think shows the highlight for the first half of twenty twenty two the company has reflected the effects of inflation and government aid the adopted by resolution seven hundred and seventy seven life a team of they call me feel nothing on they were loaded cmv which establishes the reimbursement of figure must be applied to the annual financial statement for intermediate and special period and that as the and and looting december thirty first twenty eighteen accordingly were reported to figured corresponding to the first half of twenty twenty two include the effects of the adoption of inflationary accounting in accordance with international accounting standard twenty nine for comparative purposes that results with data by inflation corresponding to june twenty twenty one contained the effect of year over year inflation as of june twenty twenty two which amounted to thirty four percent in the present asia we included some figures and historical value for the sake of clarity the own thirty nine point oh wait they in they column and it's the controlling shareholder in the bomb argentina it consolidates one hundred percent of it's operation in constant currency revenue for first half of twenty twenty two dropped can point four percent from two hundred and ninety five point two two two hundred and sixty four point six billion pesos mainly driven by lower third of revenue increasingly high inflation it's hard to fully back through the prices of were so a bit that read the preferably eighty point six billion pesos in constant currency on nineteen point five degree compared to one of two for sept twenty one driven by lower revenue partially offset by lower operating costs ebitda margin decreased from thirty three point nine percent to thirty point five percent of the phenomenon paper for mounted seventy one point nine billion pesos twenty four percent higher than nominal a beat the for the first half of twenty twenty one one month later for think year it was approximately sixty four percent net income total thirty one thousand three hundred and sixty one million from negative three thousand and eighty eight million reported you first half of twenty one the increase in their think them with mainly the result of the application of the deferred income tax method which resulted in again versus the laugh and twenty twenty one with have included at that time the effect of the increase in tax rate according to a law twenty thousand and twenty seven thousand six hundred and thirty relieved on june sixteen twenty twenty one with replace the previous back rate of twenty five percent and established the tax rate gave from twenty five to thirty five percent depending on the taxpayers taxable income and higher net financial been partially offset by lower a beat the the effect black prevented the impact of losses and were both due to the revaluation of death and dollar as had been occurring in previous quarter the equity shareholders net income for the period amounted to what eleven thousand six hundred and ninety eight million and it's mainly there were other pvh they can philip he the eight own operating costs and never negative financial results from holding of the been received a dividend at the age level and negative foreign exchange without under i am twenty nine on t v eight calf and quick cash equivalent in foreign currency now let's continue on five seven for a discussion of the operating results for the second quarter twenty twenty two revenues and second quarter twenty two decreased by twelve point five percent of bait price increases for services keep keeping up with the high level of inflation be argentine economy has experience over the past twelve months have been a thousand revenue the nominal terms of increased forty one percent while inflation for the same period with approximately sixty four percent the main source of revenue is are fixed infrastructure robin pay tv and fix the left and and at it data services amounted to fifty three point three percent of the todo while mother earth with participation stood at thirty nine point eight percent a bit then grief by fifty percent year on year in nominal term were presenting and the big the margin of twenty six point nine percent when they beat the martin and real term decree to twenty six percent
spk_4: the net income for the period a trooper do from to equity shareholder with nine hundred and eleven million and gotham faithful mainly of the referred affiliate participation in telecom net income and negative financial return from holding of the bonds received a dividend at the beach low
spk_3: now let's let's move to flight eight while by revenue represented approximately thirty nine point eight percent of our revenue and decrease the point seven percent in real terms when comparing second quarter twenty two were vs second quarter twenty one that fun and argentina clients and greet four point two percent to twenty point one million and prof paid client the market forty two percent of the total mall by client mobile internet usage increased reaching an average of five gigabytes per user per month in the first half of the year thanks to the capek deployment click on have been able to increase the number of at forty subscribers with rapid growth and subscribers that you the fourteen network have been the main driver of data traffic increase in argentina are correct dated and gone from currency decreased by nine point five percent to seven hundred and seventy nine point to be full in the for theft twenty two and monthly churn increase to two point four percent from one point five percent and perfect twenty one
spk_5: the commercial strategy have been focused and heaving higher mobile portability through convergent offered and promoting the consumption of mobile internet
spk_3: up to date more than fifty percent of that a comparable customers have immobile been go to the rollout of the tricky dick cavett plan and the convergent offer the company of turned around and strand of negative portability net addition in argentina and have been increasing the number of over the left four year please turn to five nine revenue for victorville including brought on cable tv and picture left the mandated therapy decreased by fourteen point one percent a real term mainly driven by a decrease of fixed telephone and data services and pay tv revenue that brought and business has been performed well despite the tough a tough macro economic environment the number of driver through main table at four point two million while monthly current with one point five percent they will have compared to think your last year article in real terms decrease to approximately two thousand and two hundred and forty before price increases in september twenty one january and april twenty twenty two and higher internet the film and her customer base or not enough to fully compensate the inflation it should also be noted that you to are crop filling tragically fix brother have been offered with some discount to and car and incurred the path of mobo portability around seventy seven percent of the four point two million broadband customer three and second quarter twenty two subscribe to services will beat the fifty megabytes or higher
spk_6: moving to the cable tv subscribers the customer base remain stable at three point five million showing a flight decree year over year
spk_3: furthermore hello unique customers achieved one point two million eighteen point six increase from figures of third of over a year ago during the past month flow through it full flow of version have continued to expand penetration in areas where bets on i have a great president mainly the northern region of argentina this is allowed and increase in the capture of cable tv subscribers and regions in with the company reaches truth and it fell and ftp a network where it's content proposal at the content aggregator flow include not only linear to be here is on them and movie documentaries and co production but also music gaming and exclusive event that had gone began activating be i f t v t digitalization derby solution to it and illogical customer which allows client to connect to a digital digital service from the traditional cable connection without a decoder with initiative it will continue to expand during the second half of twenty twenty two article a real turn decreased by thirteen point nine percent to two thousand two hundred and thirty nine point three people cheering first half twenty two and mceachern increase to one point three percent please during to fight can in august twenty twenty the argentine government issued a decree the find the last twenty twenty which was later confirmed by congress declaring mobile fixed void brother and and tv of public financial services they're breathing their prices until the end of twenty twenty one and fading a knock on of the regulatory a the in charge of them for thing that create and regulating the industry replied price it's legality have been challenged in court by the industry in general in twenty twenty one telecom was granted a preliminary injunction defending the effect of several sections of the decree with have been extended twice last time in april twenty twenty two although we feel that a final ruling regarding the underlying issue is imperative to guarantee the health of the industry as a consequence of urgent junction telecom me manage the pricing policy of it's services as before the decree ninety flesh twenty twenty two a flash twenty twenty four the company have been trying to accept the inflation impact on revenue from cough but with price increases suspended and twenty twenty and the increasingly high inflation recovering terrain is a challenge euro where your plate and as of june thirtieth of twenty twenty two amounted to sixty four percent while facing for the first half of twenty twenty two and mounted thirty six point two percent during january and april twenty twenty two are considered like on increased prices on all of services and again in july twenty twenty robin prices of at the at the services and by thirteen percent and prices of acre the and ftp eight therapists increased by ten percent mobile prices were increased by thirty percent for pop fade and seven per cent for prepaid sir pay tv prices including premium services were increased by twelve percent prices affect void faith services were increased by thirteen percent if price increases have resulted in high arpu a nominal terms a graph of from the as shown on exhibits nineteen to twenty two the nominal price and cry who it increases were not enough to offset that the enter new place and sixty four percent year over year that was something and lower revenues when measured in constant basis the company will continue to monitor it costs structure competitive environment and client behavior and hope household income in order to decide on future price increases to help compensate for inflation and maintain sustainability let's move to the next flight for a discussion of a cough structure before with a cup quarter over quarter and beat the performance among the most significant burning coffin expenses are valerie fee for service of maintenance but hear them for quite golf taxes a thief with a regulatory a authority and programming convent car or flight eleven we feel the performance of it's a bit that and the behavior of the different components of revenue from cop the company continue with it's effort to expand efficiency and have shown thump often referred to by the challenging economic content
spk_7: operating costs excluding cough of equipment and handsome decrease in real term three point one percent of the of the company cough components decrease in real terms reflecting efficiency except for salary and other operating call with concrete above inflation as a result of the agreements which was different you know
spk_8: in the for hey
spk_3: and reopening f of such agreements and mainly charges were and many charges regarding settlement of from contingencies on the other operating costs it it's worth mentioning that the company have been able to reduce that that as a percentage of revenue from two point seven percent in fourth quarter twenty two two two point what and first quarter twenty one and forty to two point one percent in second quarter twenty two as a result operating costs to creep five point five percent a real term and driven by the reduction in revenue of a bit though decreased by twenty seven point seven percent in real terms of one martin contracted to twenty six percent neck bite me and second quarter twenty two back of a percent of their revenue was eighteen point three percent lower than the same period of the previous year that needle capek was mainly allocated network and technology and customer braniff equipment or cp the balance was are located or international versions him but away and or the way during the second quarter twenty two seven new mobo fight for deployed a more than one hundred and eighty fifth in fight were upgraded the company have been focused on expanding and p a network for farming and overlay with the hired to the home or of
spk_9: hm ce network and increasing and of dream capacity in addition a common out near original investment mainly in the province of lotta where it will expand ft a network and the located in back okay some to almost one hundred thousand home and bill fifty eight new mobile site to increase
spk_3: mobile coverage the carpet program will continue evolving according to argentina pick on the condition network performance and customers requirement going to the that financial position at first light fifteen
spk_10: as of june twenty twenty two we have reported a code of honor for dept of three hundred and thirty eight point four billion faithful and that get of two hundred ninety eight point nine billion equivalent to apartment with two point four billion in you have daughter one hundred percent of the death is that the operating level and telecom argentina
spk_3: of the total debt victory the three point six percent of dollar denominated approximately thirty percent is an argentine people including dollar length local emissions and there were wrath even what an eve and renminbi are you a daughter cause of death is approximately six point five percent for their wrath of twenty twenty two maturity are manageable and very low during july look on received a disbursement from the a fee for one hundred and eighty four point five million dollar and cancelled the total amount of the principal remaining under the term loan you twenty twenty two for one hundred and fourteen million dollars from twenty twenty three to twenty twenty thick that maturity remain manageable within the range of five hundred six hundred million dollars each year the company expect to continue act the thing the local capital market for any potential fantasy mean that that to adjusted ebitda coverage ratio as of the end of june twenty twenty two with one point nine time during second quarter twenty two or subsidiary telecom paid dividends and kind for a total market value of thirty one point six billion people or approximately one hundred fifty million dollars of would he be a threat direct and indirect interest receive one hundred and sixty point seven million two thousand
spk_11: thirty global bomb and forty point six men into favour thirty five globe a go born in turn he did your holder to prove to pay a dividend and kind for the todo with keep from telecom and barely cleared to the not though the payment was executed on july fifteenth and the local market for a graph martin mark
spk_12: the value of approximately sixty four point twenty three for per share that concludes our common we are now ready for your question operator
spk_0: thank you at this time when before to your questions as were under if you like to ask the question for you type in the box and quick and we will now pause for a few seconds and order to allow protesting questions again if you do have a question and you would like to ask please type in the box
spk_3: and quick said
spk_0: at times it appears that we have no questions and i would like to turn the program back over to snapper olivieri for any closing remarks
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