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.

Slide 6 shows the highlights for first quarter 26. On February 24, 2025, our subsidiary Telecom Argentina announced the acquisition of shares representing 99.999625 of Telefónica Móviles de Argentina S.A., or TMA, a company incorporated in Argentina which provides mobile and fixed-telephony, fixed broadband, and video services nationwide in Argentina. Consequently, Figures for the first quarter 26 contain the full effect of the incorporation of TMA results, while figures for the first quarter of 2025 include only one month. EBITDA excluding TMA increased compared to 2025, resulting in a higher EBITDA margin of 38% in first quarter 26, up from 33.6% in first quarter 25, in part the result of the deconsolidation of the fintech subsidiary Microsistemas as a result of the joint venture with Banco Macro, which represented a 1.4% margin impact. Telecom continues to exhibit a solid financial position following the indebtedness for the acquisition of TMA and the liability management transactions carried out in 2025 and first quarter 26. During first quarter 26, CDH shareholders resolved to pay a dividend in kind for the total of the Global Bonds 2030 received as dividends from Telecom and a cash dividend for 4 million US dollars. The payment was made on March 5th in the local market for a total gross market value of 413.81 pesos per share, with a total market value of approximately $53 million. Slide 7 shows the key finances for the first quarter 26. The company has reflected the effects of the inflation adjustment adopted by Resolution 777-18 of the Comisión Nacional de Valores, CMV, 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 reported figures corresponding to the first quarter of 2026 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 March 2025 contain the effect of the year-over-year inflation as of March 2026, which amounted to 32.6%. In this presentation, we included some figures and historical values for the sake of clarity. In addition, the reported figures corresponding to the first quarter of 2026 include the effect of the incorporation of the results from TMA from from first march 2025 hence the results for the first quarter 26 are comparable to the results of the first quarter 25. we included some figures excluding the effect of tma acquisition for comparison cbh owns 39.08 stake in po and as controlling shareholder of telecom argentina it consolidates 100 of its operations revenues and nominal terms increased 72 percent in constant currency revenues grew for For first quarter 26, 30.5% from 1,806.1 to 2,357.7 billion pesos, mostly driven by the incorporation of revenue from TMA and by higher mobile ARPU in real terms in Argentina, thanks to the effective pricing policy and the decrease in inflation rate, partially upset by lower equipment sales and fixed elephant in data services revenues and the deconsolidation of microsystems. EBITDA reached approximately 814.2 billion pesos in constant currency, a 36.9% increase compared to first quarter 25, mainly driven by the incorporation of teammates EBITDA for the fourth quarter and by cost reductions resulting in a higher EBITDA margin of 34.5% in first quarter 26 compared to 32.9% in first quarter 25. EBITDA nominal pesos amounted to 819.1 billion pesos 83 percent higher than nominal EBITDA for first quarter. While average inflation for the same period was approximately 32.7 percent on the end of period year-over-year, inflation amounted to 32.6 percent. Net income resulted in 628.9 billion pesos from 115.1 billion reported during first quarter 26. This increase in net income is mainly explained by financial net results mainly due to higher positive foreign exchange differences as a consequence of the appreciation of the peso against the dollar recorded during the first quarter of 2026, combined with inflation, generating positive exchange differences on liabilities in that currency greater than those reported in the previous year when inflation exceeded the exchange rate difference of the currency, and a higher positive charge for inflation adjustment partially upset by higher interest on loans given an increase in financial debt, the EBITDA from the incorporation of TMA for the full quarter, and cost efficiencies at telecom standalone level. These effects are partially offset by higher income tax and higher amortizations from the incorporation of TMA. The equity shareholders' net income for the period amounted to $234.7 billion and are mainly the result of CDH's stake in telecom. The personal assets tax at CBH level, following the changing criteria established by the fiscal authority in December 2024 regarding the basis for its reactivation, negative financial results from holding of bonds collected from telecoms in kind dividend payment during 2025, and negative effects as a result of the basal appreciation on foreign currency assets at CBH level, partially upset by positive inflation adjustment and interest gains. Now let's continue on slide eight for a discussion of the operating results for the first quarter 26, excluding the effect of the incorporation of TMA results. Revenues in the first quarter 26 increased by 0.2%. Price increases for our services in Argentina, management of commercial discounts granted according to customer retention policy for some of the services, and lower inflation have had positive results in terms of revenues in mobile services, even in spite of the acceleration of the inflation rate over the past month. Revenues from equipment sales decreased 39.7%, mainly as a result of prices of equipment sold increasing below inflation and lower quantities sold. Fixed telephony and data services revenues registered a decrease of 10.4%, explained by a decrease in fixed telephony copper accesses and lower ARPU for these services, which cannot match inflation, while other revenues from services decreased mainly as a result of the deconsolidation of microsystems following the joint venture with Banco Macro. The main source of our revenues is our fixed infrastructure. Broadband, pay-to-be, and fixed telephony and data services amounted to 49.6% of the total. Mobile service participation has been increasing, reaching 46.3% from 42.6% in first quarter 25, driven by the decrease in share of equipment sold over total revenues and higher ARPU increases for mobile services. At the time, real terms increased 13.5% and margin increased to 38%, higher than the 33.6% margin of first quarter 25, mainly as a result of cost efficiencies obtained by the company and the deconsolidation of microsystems. On slide nine, 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 results for the full quarter of 2026 and one month of the first quarter 2025. As of March 2026, TMA had 19.2 million mobile subscribers, including machine-to-machine subs, 1.6 million broadband subs, 2.1 million fixed telephony subs, including IT lines, and 410,000 pay TV subs. Revenues of TMA included in the first quarter 26 consolidated figures amounted to $853.5 billion, and EBITDA resulted in $241.9 billion with a 28.3 EBITDA margin. 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. Now let's move on to slide 10. Mobile revenues included TMA represented approximately 52.4% of our revenues and increased 50.3% in real terms when comparing first quarter 26 versus first quarter 25. Mainly explained by the incorporation of TMA and higher ARPU in real terms in the 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 2025 and for Square to 26, and an increase in mobile revenues in the Paraguay operation due to the appreciation of 1.0 versus the Argentine peso. Mobile prepaid subs would generate less revenue decrease as a result of the effect of the changing criteria regarding how many days can elapse without a client recharging his credit before it is disconnected. with little to no effect on revenues for this service. Excluding the effect of TMA, mobile services revenues reached 696 billion pesos in constant currency and increased 9% in real terms. Personal adjointina clients decreased 8.9% to 19.4 million, of which hospice clients amounted to 41%, mostly a defect of the before-mentioned changing criteria. As of March 2026, QMA had 19.2 million mobile subscribers, including machine-to-machine subs. 49.3% of the clients are cost-paid. In Argentina, in a highly competitive environment, personal ARPU, restated in constant currency, increased by 18.8% to 10,766.4 pesos in first quarter 26. Monthly churn increased to 2.4% from 2% in first quarter 25. Please turn to slide 11. Revenues for fixed services, including broadband cable TV and fixed telephone and data services, increased by 18.9% in real terms, mainly driven by the incorporation of TMA. Excluding the effect of TMA, revenues for fixed services remained relatively stable, decreasing 1.8%, mainly due to lower fixed telephone and data services and lower other revenues from services following the deconsolidation of microsystems, partially upset by higher pay TV revenues. Legacy Copper fixed voice services continues experiencing a reduction in accesses, partially upset by an increase in IT telephony lines. On the B2B services, Telecom Strategy is 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 center, and application services through sales, consulting, management, and specialized and targeted post-sale customer services. Internet services revenues increased 19.1% year-over-year in real terms, mainly driven by the incorporation of TMA. Including the effect of TMA, Internet services revenues remained at similar levels than the previous year, Broadband subscribers increased 3.3% to 4.2 million, while monthly churn increased to 1.3% in first quarter 26 from 1.2% in first quarter 25. There is growth in the fiber-to-the-home segment, resulting in an increase in average speeds. Apple and real terms for first quarter 26 decreased to approximately 28,389.6 pesos. As of March 2026, TMA, had 1.6 million broadband subscribers, of which more than 95% are fiber to the home. 98% of customers have accesses with speeds of 100 megabytes or higher versus 90% in first quarter 25. Moving to the cable TV subscribers, the customer base increased to 3.5 million, mainly explained by the success of FlowFlex, which is 100% digital with no decoder or installation needed. Flow unique customers achieved 1.8 million, a 16.5% increase from figures observed over a year ago. For its proposal as a content aggregator, Flow includes not only linear TV, streaming services, series, on-demand movies, documentaries, and co-productions, but also music, gaming, and exclusive events, such as Lollapalooza. During this quarter, Flow announced the first exclusive partnership with Netflix, incorporating the OTT as a new option within Flow+. Alcohol in real terms increased by 0.3% to 20,077.8 pesos during first quarter 26, mainly due to the decrease in year-over-year inflation and the carry-on effective price increases done during 2025, lower discounts granted according to customer retention policy and premium services revenues. Monthly churn increased to 1.6%. As of March 2026, TMA contributed with 410,000 pay TV subs. Now let's move on to slide 12 for a review of the cost structure before we discuss quarter-over-quarter EBITDA performance. Among the most significant operating costs and expenses are salaries, fee for services, maintenance materials, and supplies costs, and taxes and fees with a regulatory authority. On slide 13, we show the performance of EBITDA and the behavior of the different components of revenues and costs. The company continues with its cost management effort and has positive results and gained productivity. Before the effect of CMA, operating costs, excluding the cost of equipment and handsets, decreased in real terms 4.9%. This is a result of efficiencies obtained by the company, mainly lower fees for services, maintenance, materials, and supplies, lower interconnection and transmission costs, lower commissions and advertising, and lower salaries and severance payments. partially offset by higher expenses related to the increase in revenues, such as taxes and fees with a regulatory authority and programming and content costs, and by other operating expenses, including bad debt. Cost of equipment and handsets before the effect of TMA decreased 31.6% as a result of lower cost of handsets sold and lower quantities. And total operating costs, including the cost of equipment and handsets before the effect of the incorporation of TMA, decreased 6.5% with an increase in revenues. Thus, EBITDA margin before the effect of the incorporation of TMA reached 38%, higher than the 33.6% margin of first quarter 25, explained by cost efficiencies and the deconsolidation of microsystems. EBITDA from the incorporation of TMA for the first quarter 26 resulted in $241.9 million with a 28.3% EBITDA margin, lower than the margin before this effect. Therefore, consolidated margin resulted in 34.5%. It should be noted that these results include the effect of new employment termination agreements and severance expenses. Excluding this effect, the margins would have been higher. While the EBITDA margin for TMA standalone before severance payments has increased versus 2025 as a result of cost optimization efforts. Slide 14, please. First quarter 26, investment as a percentage of revenues was 21.8% or 18.4% before considering rights of use from leases. significantly higher than the same period of previous years, highlighting the commitment of the company for the expansion of both fixed and mobile networks, particularly fiber-to-the-home and 5G infrastructure. Technical CapEx was mainly allocated to network and technology and customer-premise equipment, or CPE. The balance was allocated to our international operations in Paraguay and Uruguay. During the last quarter, the company continued with the deployment and upgrading of existing sites, and expansion of the fiber-to-home network, including the overlay over the HFC network and adding 5G sites. The FACAPEX 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 16, as of March 2026, we have reported a total financial debt of 5,487.6 billion pesos and net debt of 4,400.6 billion pesos, equivalent to 3.2 billion in U.S. dollars. Relatively stable when compared to March 2025, even with higher debt in foreign currency, mainly the effect of lower effects variations versus year-over-year inflation. Of the total debt, 68.8% is mostly cross-border dollar denominated, but includes hard dollar local emissions, 20.6% is in Argentine pesos, including dollar-linked local emissions, and the rest is in Guaraníes and Remembe. 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. Exceded 21 reflects the debt profile after the issuance of the Class 27 international note for $600 million. This transaction allows the company to extend the average life of its debt and lower 2026 maturities, significantly improving its debt profile. Overall, the maturity profile of Telecom's debt is well-balanced and manageable, reducing refinancing risk. Consolidated net debt over adjusted EBITDA coverage ratio as of the end of March 2026 was 1.5 times, a significant achievement considering the new indebtedness for the acquisition of TMA, a testament of the company's resilience to changing microeconomic conditions. Next slide, please. Finally, it is worth mentioning that thanks to the efforts to increase productivity and efficiency and the ability to increase prices as microeconomic variables improve with a disinflation process, 2025 resulted in the first year with positive year-over-year trend in both revenues and EBITDA, even before considering the acquisition of TMA, a turning point for the company. And the trend that has continued in first quarter 26 which exhibits one of the highest margins since the merger with Cablevision in 2018. That concludes our comments for today. We are now ready to take your questions.

Thank you. At this time, we will open the floor for questions. If you would like to ask a question, please type it in the box and click send. Thank you. If you have a question, please type it in the box and click send. Thank you. Reminder to all the participants, if you have a question, please type it in the box and click send. Thank you. It appears we have no questions. At this time, I would like to return the program to Mrs. Oliveri for closing remarks. Over to you, ma'am.

Thank you, Danish. Thank you all for your attendance to this conference call today. Should you have any questions in the future, do not hesitate to contact our IR team. Have a great day.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.