Cablevision Holding S.A.

Good morning and welcome to Cablevision Holdings conference call. Today the team will be discussing Cablevision Holdings first half and second quarter 2025 result as per the earnings release distributed Monday, August 11, 2025. My name is Steve and I will be a conference operator today. 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 FIC Corporate Communication. Comments made by the management may contain forward-looking statements about cable vision holdings, future performance, plans, strategies and targets. Such statements are subject to uncertainties that could cause cable vision holdings, actual result and operation to differ materially. Such uncertainties include but are not limited to to differ materially. Limited to the effects of the impact of new or ongoing industries and economic regulation. Possible changes in demand for cable vision holdings, product, and services. And the effect of more general factors such as changes in general market, economic, or in regulatory conditions. Please refer to the disclaimer in today's call. Please contact FIT Corporate Communication in New York at 917-691-7000 Cablevision Holdings has also posted the webcast presentation that can be found at www.cablevisionholdings.com slash investors. Following the presentation, there will be a question and answer session. You may submit a question throughout the event by clicking in the Submit a Question box on your screen. I will now introduce our speakers, Ms. Samantha Oliveri, Head of Investor Relations, and Julian Brascia, Senior Analyst. Ms. Samantha Oliveri, please go ahead.

Thank you, Steve. Good morning, everyone, and thank you for joining us. Today's call will begin with a brief macro overview and continue with a review of the company's income statements and operating results, followed by a review of the financial position. Having gone through the agenda for today's webcast, I will now pass the call to Julián for the macro overview.

Thanks, Samantha. By the end of 2021, programs centered on a fiscal surplus by reducing public spending. It also focuses on monetary discipline, including the improvement of the central bank's balance sheet, while also correcting relative prices, mainly through subsidy reductions and stabilizing the exchange rate. Key macro indicators have shown progress so far. However, the risk persists and requires close attention, particularly in relation to the main pillars of the economic program. The fiscal anchor remains at the core of the stabilization program. So far this year, the national public sector has accumulated the primary surplus of 0.9% of GDP. The government has set a 1.6 target, which is 0.3% above the one agreed on with the IMF. This will be the second consecutive year with a fiscal surplus, something Argentina has not achieved since 2008. Inflation has also continued effective normalization. While the official rate has remained within the defined balance, it is currently trading above the midpoint, reflecting some pressure in the lead-up to October midterm elections and especially weaker supply of dollars from agriculture exports. In a bi-currency economy like Argentina, exchange rate dynamics remain a key variable for sustaining this inflation, which is the government's most valuable achievement. A point to be monitored is the performance of the current accounts and the practical move toward a more flexible foreign exchange system may help correct this imbalance over time. regarding the purchase of dollars in the official market by the non-financial private sector. After the partial listing of foreign exchange controls in April, individuals have purchased more than $9.3 billion. Given this trend, the external sector is showing a dynamic that should be closely monitored. As a result of this stabilization program, economic activity here on the year declined. Then it went and improved averaging 1.3% decline in 2024. Data from the first four months of 2025 suggest that if current levels continue, GDP could grow by around 5% this year, mainly due to the carryover effects from the rebound that began in the second semester of 2024. We should also consider that this recovery has been highly irregular across sectors. The best performing sectors are agriculture and energy. while construction, industry and mass consumption are still lagging. Besides, household disposable income remains significantly constrained because real wages have not risen enough to offset the higher cost of living. Finally, the focus of the market is clearly on the electoral cycle. The upcoming midterm election in October will be a critical moment to test if Argentina validates the direction of the economic program. The outcome will determine the level of political support for further structural reforms and will be a key factor in the evolution of Argentina's country risk index, which remains elevated. About 724 basic points, reflecting limited access to international capital markets, even in a context where the central bank is rarely accumulating reserves. This concludes our macroeconomic analysis. I will now pass the call back to Samantha. Thank you.

Thank you, Julián. We will now continue with CBH Key Financials. Slide six shows some highlights for the first half of 2025. On February 24th, 2025, our subsidiary Telecom Argentina announced the acquisition of shares representative of 99.999625% of Telefónica Móviles de Argentina, or TMA, a company in caution reached $1,245 million and was financed by two loans for a total amount of $1,170 million. As of this date, our subsidiary Telecom has made the regulatory findings and necessary procedures were initiated with the regulatory authorities in order to obtain the conformity of the Secretary of Industry and Commerce or such other authority that succeeds it as Enforcement Authority of Law No. 27442 to the economic concentration produced as a result of the acquisition of TMA and the conformity of ENACOM to the change of control occurred in TMA as a consequence of the acquisition by the company. Both administrative proceedings are currently pending. Excluding fixed telephony services, all telecoms are to present significant increases. EBITDA, excluding TMA, increased compared to the first half of 24, resulting in a higher EBITDA margin of 32.2% in first half 25, up from 29.6% in first quarter, first half 24. Even considering the indebtedness for the acquisition of TMA, net deaths to the beta ratios remain healthy. Now please move to slide seven where we review the recent updates on the regulatory approval process. On May 2nd, Telecom sent its formal response to the request for additional information issued by the CNBC. On June 5th, the Chamber of the Federal Civil and Commercial Court resolved to suspend the effect of the resolution that prohibited any act of integration with TMA until the appeal filed by Telecom is resolved. On June 19th, Telecom was notified of a resolution issued by the Secretary of Industry and Commerce to which it informed of the technical report issued by the CNBC considered as a preliminary objection report under Article 14 of Law 27442. This report does not constitute a final decision nor the imposition of sanctions, but rather a formal stage of the proceeding that enables the parties to exercise their right to defense, submit responses, or propose commitments to mitigate potential anti-competitive effects. According to the methodology adopted by the CNBC, the objection report constitutes a preliminary technical evaluation and in no way constitutes a final decision on the matter under consideration. On August 5, 2025, Télécom responded in a timely and proper manner to the transfer of the preliminary objection report issued by the CNBC. Along with this submission, and with that, this being interpreted in any way as an acknowledgement that the transaction raises a competition defense issue, Telecom expressed its willingness to assume possible commitments that address the provision and concerns outlined by the company's business, nor impair its ability to meet its financial obligations. The review process is still underway, and based on the experience in accordance to previous transactions, it may take up to 12 to 14 months. From day one of the acquisition, both companies have operated separately and independently, and this will continue until the regulatory resolution has been reached. Slide eight shows the key financials for the first half of 25. The company has reflected the effect of the inflation adjustment adopted by Resolution 777-18 of the Commission Nacional de Valores , which establishes the re-expression of figures must be applied to the annual financial statements for intermediate and special periods ended as of and including December 31st, 2018. Accordingly, The recorded figures corresponding to the first half of 2025 include the effects of the adoption of inflationary accounting in accordance with International Accounting Standard 29. For comparative purposes, the results restated by inflation corresponding to June 2024 contain the effect of the year-over-year inflation as of June 2025, which amounted to 39.4%. In this presentation, we included some figures and historical values for the sake of clarity. In addition, the reported figures corresponding to the first half of 2025 include the effect of the incorporation of results from TMA from the first of March 2025. Hence, the results for the first half of 2025 are incomparable to the results of the first half of 2024. We included some figures excluding the effect of TMA acquisition for comparison. BVH owns 39.08 stake in TIO and is controlling shareholder of Telecom Argentina. Its contact 25 grew 44.4% from 2,324.1 to 3,357 billion pesos. Mostly driven by the incorporation of revenue from TMA and higher ARPUs in real terms in most of the services in Argentina, in part the effect of price increases implemented in 2024 and the decrease in inflation rates, partially upset by a decrease in fixed telephony copper accesses and the effect of lower effects rate versus inflation rate for the same period on data revenues, excluding TMA, resulting in a higher EBITDA margin of 29.8% in first half 25 compared to 29.6% in first half 24. EBITDA nominal pesos amounted to $985 billion pesos, 113% higher than the nominal EBITDA per first act 24, while average inflation for the same period was approximately 54.2%, and the end-of-period year-over-year inflation amounted to 39.8% and a loss of $80.2 billion from a profit of $1,193 billion pesos. from a profit of 1,193.5 billion pesos recorded in first half 24. This decrease in net income is mainly explained by financial net results, mainly due to negative effect differences as the exchange rate increased above the inflation for this period, followed by the partial liberation of the exchange restrictions in April, while in first half 24, and especially in the first quarter of 24, Financial results were highly positive as inflation was high following the steep devaluation at the Argentine baseball in December 2023. These variations in financial results were partially upset by lower income tax and higher EBITDA. The equity shareholder's net loss for the period amounted to $37.4 billion and is mainly the result of CBH's stake in Telecom. the personal assets stacked at CDH level following the changing criteria established by the fiscal authority in December 2024 regarding the basis for its calculation, and by negative financial results from the holding of bonds collected from telecoms in kind dividend payment, which had an overshooting in their valuation before the end of the fiscal year 2024, partially upset by the revaluation of a foreign currency credit at CDH level. Now let's continue on slide 9 for a discussion of the operating results for the second quarter of 2025, excluding the effect of the incorporation of TMA results. Revenues in the second quarter of 2025 increased by 3.2%. Price increases for our services in Argentina. Management of commercial discounts grants registered a decrease of 19.8%, explained by a decrease in fixed telephony copper accesses. and the effect of lower effects rate versus inflation rate for the same period on data services agreed in dollars. The main source of revenues is our fixed infrastructure. Broadband pay TV and fixed telephony and data services amounted to 50.5% of the total mobile service participation increased slightly, reaching 43.5% from 40% in second quarter 24, driven by the decrease in share of fixed telephony and data services revenues over total revenues. EBITDA in real terms increased 6.8% and margin increased to 32.2%, higher than the 29.1% margin of second quarter 24, mainly as a result of the increase in revenues and cost efficiencies obtained by the company. On slide 10, we reviewed some of the effects of the incorporation of TMA. The consolidation from the moment of the acquisition by Telecom of TMA operation includes Telecom needs in the north of the country while Telefonica is stronger in the south and most of the overlapping occurs in the center. The strategic acquisition enhances Telecom's capabilities and positions and will allow it to expand coverage and service quality across the entire country. Telecom has the fastest mobile network and it's the first operator to deploy 5G technology. Telefonica has the fastest fixed network in the country with a large fiber-to-the-home customer base with approximately 7,000 mobile. We noted that these results include the effect of new employment termination agreements and severance payments. Excluding this effect, the margins would have been significantly higher. Now let's move on to slide 11. Mobile revenues included TMA represented approximately 49.6%. of our revenues and increased 98.5% in real terms when comparing second quarter 25 versus second quarter 24, mainly explained by the incorporation of TMA and higher ARPU in real terms. In this quarter in Argentina, excluding this effect, thanks to the decrease in year-over-year inflation and the carry-on effect of price increases done during 2024, partially offset by a decrease in mobile revenues in the Paraguay operation, due to a decrease in ARPU related to the greater discounts granted to its clients according to customer retention policies and a migration to less expensive plans. Mobile prepaid subs, which generate less revenue, which had had a decrease quarter over quarter in the first quarter of 25 following price increases at the end of 2024, and were subsequently adjusted as a result of the full effect of the change in criteria regarding how many days can elapse without a client recharging his credit before it is disconnected. Excluding the effect of CMA, mobile services revenues reached 522,051 million in constant basis and increased 9.4% in real terms. Persona Argentina clients decreased 1.3% to 20.9 million, of which phosphate clients amounted to 39%, mostly the effect of the before-mentioned change in criteria. As of March 2025, TMA has 19.3 million mobile subscribers, of which 48.4% are post-paid. In Argentina, in a highly competitive environment, personal ARPU restated in content currency increased by 12.6% to 7,444 pesos in first half 25. Monthly churn increased to 2.1% from 1.6% in the first half of 24. Please turn to slide 12. Revenues for fixed services, including broadband, cable, TV, and fixed telephony and data services increased by 33.7% in real terms, mainly driven by the incorporation of TMA. Excluding the effect of TMA, revenues for fixed services remained relatively stable, decreasing 3.2%, mainly the result of lower fixed telephony and data services related to the reduction in fixed telephony clients and the effect of the lower effects rate versus inflation rate on a year-over-year basis on data services agreed in dollars, partially offset by higher cable TV revenues, higher other service revenues, and higher Internet service revenues. Legacy Copperfix Voice Service continues experiencing a reduction in accesses, partially offset by an increase in IT telephony lines. On the B2B services, Telecom strategy to position itself as an integrated service provider for large customers by offering convergent ICT solutions, including fixed and mobile voice, data, internet, multimedia, data centers, and application services through sales, consulting, management, and specialized and targeted wholesale customer services. Internet services revenues increased 32.4% year-over-year in real terms, mainly driven by the incorporation of TMA. Excluding the effect of TMA, internet services revenues increased 0.5%. Broadband subscribers remained stable at 4.1 million, while monthly churn dropped to 1.2% in the six months of 25, from 1.9% in the first half of 24. There is growth in the fiber to the home segment, resulting in an increase in average speeds. At-home real terms increased to approximately 23,755.4 pesos. The effective pricing policy implemented low promotion in 2025. TMA has 1.6 million broadband subscribers, of which 93% are fiber-to-the-home. 92% of customers have accesses with speeds of 100 megabytes or higher versus 86% in the first half of 2024. Moving to the cable TV subscribers, the customer base increased to 3.4 million, mainly explained by the success of Flow Flex, which is 100% digital, with no decoder or installation needed. Flow unique customers achieved 1.6 million, a 10.9% increase from figures observed over a year ago. Through its proposal as content aggregator, Flow includes not only linear TV series, on-demand movies, documentaries, and co-productions, but also music, gaming, and exclusive events. ARPU in real terms increased by 5.3% to 16,297.1 pesos during the first half of 2025, mainly due to the decrease in year-over-year inflation and the carry-on effect of price increases done during 2024, and lower discounts granted according to customer retention policy. Monthly churn decreased to 1.5%. As of March 2025, TMA contributed 408.6,000 pay TV subs. Let's move on to slide 13 for a review of the cost structure before we discuss quarter-over-quarter EBITDA performance. Amongst the most significant operating costs and expenses are salaries, fees for services, maintenance, materials, and supply costs, and taxes and fees with a regulatory authority. On slide 14, We show the performance of EBITDA and the behavior of different components of revenues and costs. The company continues with its stock management efforts and has shown positive results despite a challenging economic context. Before the effect of DMA, operating costs, excluding cost of equipment and handsets, decreased in real terms 0.2%. This is a result of efficiencies obtained by the company. mainly lower interconnection and transmission costs and lower fees for services, maintenance, materials, and supplies, partially upset by higher expenses related to the increase in revenues, such as taxes and fees with the regulatory authority and programming and content costs. The rest of the expenses, while may increase slightly above inflation, remain relatively stable with higher quantities, and total operating costs, including cost of equipment and handsets before the incorporation of the TMA, It decreased 2.1%, with a slight increase in revenues, thus EBITDA margin before the effect of incorporation of TMA reached 32.2%, higher than the 29.1% margin of second quarter 24. EBITDA from the incorporation of TMA for the second quarter 25 resulted in 154.3 million pesos, with a 21.7% EBITDA margin, lower than the margin before this effect, Therefore, consolidated margin resulted in 27.5%. It should be noted that these results include the effect of new employment termination agreements and severance payments. Excluding this effect, the margins would have been higher. Please move on to Sites of theme. In the second quarter, 25 investments as a percentage of revenues was 17.8% or 15.4% before rights of use from lease. Higher than the same period as the previous year, related to the expansion of both fixed and mobile networks, particularly fiber-to-the-home and the 5G infrastructure. Technical capex was mainly allocated to network and technology and customer-premises equipment, or CPE. The balance was allocated for international operations in Paraguay and Uruguay. During this quarter, the company continued with the deployment and upgrading of existing sites and expansion of the fiber-to-the-home network, including the overlay with the HFC network, and adding The CAPEX program will continue evolving according to Argentina's economic condition, network performance, expansion objectives, and customers' requirements. Going to the debt financial position as per slide 17. As of June 2025, we have reported a total financial debt of 4,416.4 billion pesos and net debt of 4,033.8 billion pesos, equivalent to 3.3 billion in U.S. dollars, mainly as a result of the debt to finance the acquisition of TMA, partially assessed by the effect of lower effects variations versus inflation year over year. The total debt, 68.8%, is mostly cross-border dollar denominated, but includes the hard dollar local issuance of 2024, 27.4% deferred in time pesos, including dollar linked local emissions, and the rest is in Guaranis and Renminbi. During the past years, Telecom has been accessing the local and international debt markets for its financing needs, and will do so for future potential needs. During May, Telecom issued $800 million in Class 24 notes due to 2033, followed by an additional $200 million issued during July when Telecom re-tapped the market. If the proceeds were applied to the E, test maturities remain manageable. Net test to adjusted EBITDA coverage ratio as of the end of June 2025 was 2.5 times, a significant achievement considering the new indebtedness for the acquisition of TMA and the adjusted EBITDA used in this prior calculation only includes four months of TMA EBITDA, a testament of the company's resilience to challenging microeconomic conditions. That concludes our comments. We are now ready to take your questions. Operator?

Thank you. At this time, we will open the floor for your questions. If you would like to ask a question, please type in the box and click send. We will now pause for a few seconds in order to follow participants to write their questions.

Again if you have a question please type it in the box.

We have a question from Julia Isager, Samantha. Which would have been a bit the margin for TMA in 2Q25, excluding severance payments? Should we expect further severance payments looking forward in TMA?

Thank you, Julia. The severance payments for TMA in the second quarter impacted TMA's EBITDA margin in approximately seven points. So it's seven points above the margin for this quarter. And there is a plan in place, so we should expect some additional severance payments during this year. It's an ongoing retirement plan that was initiated in this course.

If you have a question please type in the box.

And it appears that we have no questions at this time. I would like to turn the program back over to Samantha Oliveri for any closing remarks.

Thank you, Steve. Thank you all for your interest in CVH and your questions. Should you have any further questions, do not hesitate to contact our IR team. I look forward to seeing you for the next quarter results. Have a great day.

the conference has now concluded thank you for attending today's presentation you may now disconnect