For the fourth quarter, Telecom Argentina reported a net loss of ARS 214m ($67.7m), compared with a net loss of ARS 93m ($12.3m) in the 2001 fourth quarter. For the full year it reported a net loss of ARS 4.35bn ($1.38bn), compared with a net profit of ARS 99m ($31.3m) in 2001. Revenue figures were not available at the time of writing.
The loss was mainly due to the deep currency devaluation. Argentina’s peso has slumped approximately 70% against the dollar since the devaluation in January 2002, and telephone companies have not been permitted by the government to raise their service rates, despite a general inflation rate of 41% last year.
Last year, Telecom Argentina defaulted on its debt in the wake of the country’s disastrous currency devlauation. It is struggling with its creditors regarding its proposal to buy back a portion of its defaulted debt. The buyback offer covers only a portion (approximately $305m) of Telecom Argentina’s ARS 11.2bn ($3.5bn) total debt. It is also trimming 1,361 employees, from its workforce of 14,876 in March 2001.
Telecom Argentina is controlled by a holding company, equally held by France Telecom and Telecom Italia. It is Argentina’s number one telephone company, but is rivaled by the local unit of Spain’s Telefonica.
Source: Computerwire
