Cablevision Holding S.A.

Good morning and welcome to Cable Vision Holdings conference call. My name is Danish and I will be your conference operator today. After the speaker remark, there will be a question and answer session. You may submit your question throughout the event by clicking in the submit a question box on your screen. Today we will discuss Cable Vision Holding first quarter 2026 results. This call is for investor and analyst only. Therefore, question from the media will not be taken at this time. However, if you are a member of the media and have questions, please contact FIG Corporate Communication following the call. I will now introduce a speaker, Mrs. Samantha Oliveri, Head of Investors and Mr. Ignacio Soleri, Senior Analyst, additionally Mr. Ignacio Driole, Executive Director and Chairman, will also be available for today's Q&A session. The team will be discussing the result as per the earnings release. distributed last Monday, May 11th. If you have not received the report or need any assistance during today's call, please contact Fick Corporate Communication in New York at 9176-914-047 or the company in Buenos Aires at 5411-4309-3417. TVH has also posted the webcast presentation that could be found at www.cablevisionholdings.com slash investors. Comment made by management may contain forward-looking statement about cable vision holding, future performance, plans, strategies, and target. Such statements are subject to uncertainties that could cause cable vision holding, actual result, and operation to differ materially. Such uncertainties include but are not limited to the effect of the impact of new or ongoing industry and economic regulation, possible changes in demand or cable vision holdings products and services, and the effect or more general factors such as changes in general market, economic, or in regulatory conditions. Please refer to the disclaimer in the earning reports or presentation for additional information regarding forward-looking statements. It is my pleasure to turn the call over to Mrs. Samantha Oliveira. Please go ahead.

Thank you, Danish. 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. I will now pass the call to Ignacio for the macro overview.

Thank you, Samantha. Good morning, everyone. Please move to slide four for the macro overview. Argentina's economic performance in 2025 was largely defined by the government's effort to consolidate disinflation while preserving macroeconomic stability in the context of the midterm elections. Fiscal discipline and disinflation stood out as major achievements. The primary fiscal balance closed 2025 with a surplus of 1.4% of GDP, marking two consecutive years of fiscal consolidation. Inflation fell sharply, dropping from 118% at the end of 2024 to about 32% by year-end 2025. Despite volatility around elections, real GDP grew on average by 4.4%, mainly driven by agriculture, energy mining, and financial intermediation, and largely reflecting the statistical carryover from the recovery that began in the second half of 2024. However, external accounts remain a source of vulnerability, while energy exports generate the surplus The overall good trade surplus narrowed from 19 billion U.S. dollars to 11 billion, and demand for foreign currency surged following the easing of effects restrictions, accumulating 31.2 billion U.S. dollars over the year. In 2026, Argentina's economy is navigating under global uncertainty linked to the Middle East conflict. Inflation is accelerating beyond expectations, while private consumption and overall activity have remained flat so far this year. Nevertheless, the current equilibrium in public accounts and the current account of the balance of payments placed Argentina in a stronger position than in previous episodes to bear this seminal shock. Despite a decline in the official exchange rate and no growth in the money supply, monthly inflation in March reached 3.4%, marking nine consecutive months of increases. This acceleration in consumer prices was mainly driven by adjustments in regulated tariffs, seasonal factors, and higher international oil prices amid rising geopolitical tensions in the Middle East. However, March is expected to represent the peak of this inflationary surge, with April figures likely to show moderation. Economic activity, measured by the monthly economic activity estimator, reached a historical record high in January, rising 9% compared to December 2023, before declining by 2.6% in February. However, the February drop is less representative given the shorter the number of days in the month. Overall, the level of activity in the first quarter of 2026 is expected to be probably similar to that observed in the last quarter of 2025, reflecting a significant divergence across sectors. Fiscal discipline has so far been preserved as the primary balance posted a surplus of approximately 0.5% of GDP, and the financial balance a surplus of around 0.2% of GDP in the first quarter, despite real tax revenues continuing to decline, marking nine consecutive months of contraction. On the external front, Argentina remains strong, supported by robust inflows from both trade and financial channels. It is worth noting that in January, the central bank moved toward a more flexible exchange rate regime, with inflation-adjusted bonds designed to avoid further real appreciation. This framework serves as an intermediate step toward a greater exchange rate flexibility, supported by a reserve accumulation program that is advancing faster than anticipated. The central bank has purchased more than $7 million in 2026, and gross international reserves have increased by approximately $4.5 billion during the year. Despite that, the peso has gained strength, with the official exchange rate appreciating around 4% year-to-date. However, the outlook will depend on the recovery of economic activity, seasonal effects inflows, and critically, the demand for foreign currency for savings and tourism in a year marked by the FIFO World Cup. Restoring sovereign access to the markets remains a critical factor for the sustainability of the stabilization program. Although Argentina's country risk has declined significantly following the elections, it remains above that of regional peers and has shown resistance to breaking below the 500 basis point level. Looking ahead, the 2026 outlook offers a window of opportunity in a non-election year to further consolidate macroeconomic stability and advance structural reforms. However, partly due to uncertainty stemming from the Middle East conflict, projections for key fundamentals such as inflation and economic activity have been revised. According to the latest central bank survey based on the projections of the Tomten participants, inflation in 2026 is expected to reach 33%, while GDP growth is projected to average 2.5%. The inflation forecast is probably similar to 2025, implied and opposed in this inflation process. Yet, this pattern is not unusual compared to other successful stabilization programs, such as Israel in the mid-1980s and Uruguay in the early 2000s, which on average took more than seven years to bring inflation down to single digits. On activity, if growth materializes as projected, Argentina will achieve two consecutive years of disinflation and expansion under fiscal balance and unprecedented outcome in historical perspective. Still, the heterogeneity of growth across sectors and regions and its impact on employment will be critical in shaping social approval of the economic program. Having gone through the macro overview, I will now pass the call back to Samantha. Thank you, Ignacio.