UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of February 2026

Commission File Number: 001-13464

Telecom Argentina S.A.

(Translation of registrant’s name into English)

General Hornos, No. 690, 1272 

Buenos Aires, Argentina 

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Telecom Argentina S.A.

TABLE OF CONTENTS

Item

Exhibit 1 - Consent of Price Waterhouse & Co. S.R.L., Independent Auditors

Telecom Argentina S.A. hereby designates this report on Form 6-K as being incorporated by reference into its registration statement on Form F-3 (Registration No. 333-280720) dated July 8, 2024 (including any prospectuses forming a part of such registration statement) and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

Telefónica Móviles Argentina Sociedad Anónima

Consolidated Financial Statements 

For the fiscal year ended 

December 31, 2024 and 2023

Telefónica Móviles Argentina Sociedad Anónima

Tax Identification No. (CUIT): 30-67881435-7

Legal Domicile: Av. Corrientes 707, ground floor, Autonomous City of Buenos Aires, Argentina.

Fiscal Year No. 32 started January 1, 2024

Consolidated Financial Statements as of December 31, 2024 and 2023

and for fiscal years ended December 31, 2024 and 2023

Company’s main activity: Provision of mobile telephone services

Date of registration with the Public Registry of Commerce: December 1, 1994

Date of registration with the Public Registry of Commerce of the last amendment to By-laws: September 26, 2024

Registration number with the Inspección General de Justicia (General Board of Corporations): 12,454 - Book 116 - Volume A

Registration number with the Inspección General de Justicia

of the last amendment to By-laws: 17,696 - Book 119

Expiration date of the social contract: November 30, 2093

Controlling Company’s interest in the capital stock and votes as of December 31, 2024: 99.9996%

CAPITAL STRUCTURE

(in Pesos)

Telefónica Móviles Argentina Sociedad Anónima

Consolidated Statements of Financial Position as of December 31, 2024 and 2023

Notes 1 to 23 are an integral part of these consolidated statements of financial position.

Telefónica Móviles Argentina Sociedad Anónima

Consolidated Income Statements for the years ended December 31, 2024 and 2023

Notes 1 to 23 are an integral part of these consolidated income statements.

Consolidated Statements of Comprehensive Income for the years ended December 31, 2024 and 2023

Notes 1 to 23 are an integral part of these consolidated statements of comprehensive income.

Telefónica Móviles Argentina Sociedad Anónima

Consolidated Statement of Changes in Equity for the year ended December 31, 2024

Notes 1 to 23 are an integral part of this consolidated statement of changes in equity.

Telefónica Móviles Argentina Sociedad Anónima

Consolidated Statement of Changes in Equity for the year ended December 31, 2023

Notes 1 to 23 are an integral part of this consolidated statement of changes in equity.

Telefónica Móviles Argentina Sociedad Anónima

Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023

As of December 31, 2024 and 2023, there are outstanding payments to PP&E suppliers. These amounts are detailed under PP&E suppliers in Note 13. The details of non-monetary transactions relating to additions of PP&E and rights-of-use assets are as follows:

Notes 1 to 23 are an integral part of these consolidated statements of cash flows.

Telefónica Móviles Argentina S.A. 

Notes to Consolidated Financial Statements 

as of December 31, 2024 and 2023, and for 

fiscal years ended December 31, 2024 and 2023

The Company has prepared these Consolidated Financial Statements (the “Financial Statements”) for the sole purpose of Telecom Argentina S.A. to comply with Rule 3-05 of Regulation S-X. These Financial Statements were approved by resolution of the Board of Directors and authorized for issuance on December 10, 2025.

Telefónica Móviles Argentina S.A. (the "Company" or "TMA") is a company governed by the laws of Argentina. Before the events discussed in Note 23a) TMA was controlled by TLH HoldCo S.L. ("TLH HoldCo"), a company governed by the laws of the Kingdom of Spain, whose sole shareholder is Telefónica, S.A. ("Telefónica" or "TSA"). The Company was registered with the Inspección General de Justicia ("IGJ") on December 1, 1994, and its expiration date is November 30, 2093. The Company is an integrated telecommunications provider, focused on mobile voice and data services, fixed voice services, broadband, television, and other digital services.

The Company's registered office in Argentina is located at Av. Corrientes 707, City of Buenos Aires, Argentina.

The Company does business under the commercial brands "Movistar" and "Tuenti."

TMA is subject to several laws and regulations in Argentina. Licenses must be obtained under specific circumstances for the provision of services. The most prominent regulatory aspects and the licenses held by TMA are detailed in Note 4 and Note 19.

The Company has evolved since its inception through a series of corporate transactions. The most significant transaction was the acquisition and subsequent merger of TMA with Compañía de Radiocomunicaciones Móviles, S.A. ("CRM") in 2005. Additionally, during the fiscal year 2017, TMA merged with Compañía Internacional de Telecomunicaciones S.A. ("Cointel"), Telefónica Holding de Argentina S.A. ("THA"), and Telefónica Móviles Argentina Holding S.A. ("TMAH") in a transaction among entities under common control. After this reorganization, and following several capital increases, TMA increased its interest in Telefónica de Argentina S.A. ("TASA"), holding, as of December 31, 2023, a 79.06% interest in TASA's capital until its merger.

In March 2023, the merger process between TMA and TASA began, with the merger having as effective date January 1, 2024.

As of the effective date of the merger, TMA continued with TASA's activities, with the corresponding operational, accounting and tax effects. As of that date, all assets and liabilities, including registered assets, rights, and obligations of TASA, as the absorbed company, were incorporated into TMA’s assets, as the absorbing and continuing company, along with the transfer of all human resources (see Note 22).

On January 23, 2024, the merger was filed for registration with the IGJ, and on March 4, 2024, the merger was finally registered. As a result of the merger, the absorbed company was dissolved without liquidation, and the shares representing its capital stock were canceled.

These Financial Statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

3.1 Basis of Presentation

a) Functional and presentation currency

The functional currency of TMA is the Argentine peso (“Peso” or “ARS”). Therefore, all balances and transactions denominated in currencies other than the Peso are considered foreign currency transactions.

The amounts presented in these Financial Statements are expressed in Pesos unless otherwise indicated.

b) The Financial Statements have been restated to reflect the effects of inflation

International Accounting Standard No. 29 “Financial Reporting in Hyperinflationary Economies” (“IAS 29”) requires that the financial statements of an entity whose functional currency is that of a hyperinflationary economy, whether they are based on a historical cost approach or a current cost approach, shall be stated in terms of the measuring unit current at the end of the reporting period. In general terms, this requires adjusting non-monetary items for inflation from the date of acquisition or revaluation, as applicable. These requirements also apply to comparative financial information.

To determine whether an economy qualifies as highly inflationary under IAS 29, the standard outlines a series of factors to consider, including a cumulative inflation rate over three years that approaches or exceeds 100%. Based on these criteria, Argentina has been classified as a high-inflation economy under IAS 29 since July 1, 2018.

Additionally, Law No. 27,468 (published in the Official Gazette on 12/04/2018) amended Section 10 of Law No. 23,928, as amended, establishing that the repeal of all legal or regulatory provisions allowing for price indexation, monetary correction, cost variation, or any other form of debt, tax, price or tariff adjustment to goods, works or services does not apply to financial statements, and that Section 62 in fine of General Companies Law No. 19,550 (amented text of 1984), as amended, will continue to be applicable to them. Furthermore, such law repealed Decree No. 1269/2002 of July 16, 2002, as amended, and delegated in the National Executive Branch (“PEN”), through its regulatory agencies, the power to determine the effective date of these provisions concerning financial statements. Accordingly, through its General Resolution No. 10/2018 (published in the Official Gazette on 12/28/2018), the IGJ established that entities under its supervision must apply the financial statement restatement method in constant currency, as outlined in IAS 29, to annual, interim, and special financial statements ending on or after December 31, 2018.

Under IAS 29, the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy shall be stated in terms of the measuring unit current as of the date of the financial statements. Statement of financial position amounts not already expressed in terms of the measuring unit current at the end of the reporting period must be restated by applying a general price index. All the items in the statement of comprehensive income must be expressed in terms of the measuring unit current as of the date of the financial statements. Therefore all amounts need to be restated by applying the change in the general price index from the date when the items of income and expense were initially recorded in the financial statements.

The inflation adjustment on opening balances was calculated by using the indexes established by the Federación Argentina de Consejos Profesionales en Ciencias Económicas (Argentine Federation of Professional Councils in Economic Sciences or “FACPCE”), based on the price indexes published by the Instituto Nacional de Estadísticas y Censos (The Argentine National Statistics and Censuses Institute or “INDEC”).

The indexes at the beginning, end, average, and annual inflation used for the years ended December 31, 2024 and 2023 were as follows:

The Financial Statements as of December 31, 2023 have been restated in constant pesos as of December 31, 2024.

The main procedures for the above mentioned inflation adjustment are as follows:

Upon the initial application of the inflation adjustment, equity accounts were restated as follows:

3.2 Accounting Policies

Subsidiaries are all entities over which the Company has control. The Company controls an entity where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement of financial position respectively.

Inter-company transactions, balances and unrealised gains on transactions between TMA and its subsidiaries are eliminated.

The subsidiaries’ financial statements cover the same periods and are prepared as of the same closing date and in accordance with the same accounting policies as those of the Company.

Intangible assets are recorded at their acquisition or production cost, less accumulated amortization and any accumulated impairment losses, if applicable. These assets are reviewed for recoverability if certain events or circumstances indicate that their carrying amount may not be fully recoverable.

Intangible assets, such as licenses and spectrum, may have (i) an indefinite useful life when, based on an analysis of all relevant factors, it is concluded that there is no foreseeable limit to the period during which the asset is expected to generate net cash flows for the consolidated entities, or (ii) a finite useful life in all other cases.

Intangible assets with indefinite useful lives are not amortized. However, at the end of each fiscal year, or whenever indications of impairment arise, TMA’s Management reviews the remaining useful life of these assets to determine whether it remains indefinite and, if not, takes appropriate measures to amortize the asset.

Note 19 to these Financial Statements presents the main licenses and spectrum held by TMA for 2024 and 2023.

Intangible assets with a finite useful life are amortized on a straight-line basis as follows:

Software under development is recognized solely and exclusively if the following elements are proved: (i) the technical feasibility of completing the intangible asset so that it is available for use; (ii) the intention to complete and use the intangible asset; (iii) the ability to use the intangible asset; (iv) the manner in which the intangible asset will generate future economic benefits; (v) the availability of adequate technical, financial and other resources to complete development and use the intangible asset; and (vi) the ability to reliably measure the expenditure attributable to the intangible asset during its development.

The initially recognized amount for internally generated intangible assets, consisting mainly of software, is the sum of expenses incurred from the date the intangible asset first meets the recognition criteria listed above. When no internally generated intangible asset can be recognized, development expenses are recorded in the income statement in the year in which they are incurred.

After initial recognition, internally generated intangible assets are carried at cost, less accumulated amortization and any accumulated impairment losses, in the same way as separately acquired intangible assets.

PP&E are measured at acquisition cost, less accumulated depreciation and any impairment losses.

The acquisition cost includes, among other things, direct labor costs incurred for installation and indirect costs necessary to complete the investment.

TMA depreciates its PP&E from the moment they are available for use, using the straight-line method over their estimated useful lives, which are determined based on technical studies that are periodically reviewed in accordance with technological advances and the dismantling rate, as detailed below:

TMA records investment properties - those held to earn rental income, for capital appreciation, or both - at cost less accumulated depreciation. TMA’s investment properties primarily consist of land and buildings. These properties are not occupied by TMA for its own operations.

Investment properties are initially measured at cost. After initial recognition, they are carried at cost less accumulated depreciation.

The Company depreciates its investment properties on a straight-line basis, with an estimated useful life of 50 years, determined based on technical studies that are periodically reviewed.

The Company values its non-current assets at the lower of their carrying amount or their fair value less costs to sale. Assets are classified as held for sale if it is expected that their carrying amounts will be recovered primarily through sale, rather than through continued use.

At each reporting period, the presence of any indications of possible impairment of non-current assets is assessed, or if there are certain events or changes indicating that the carrying amount might not be fully recoverable. Additionally, given that impairments have been recognized on the Company's non-current assets during the years 2020 and 2022, the presence of indications that the recorded losses could be reversed is also evaluated. Upon the presence of such indications (both of additional impairment and recovery of previously recognized impairments) or, in the case of assets subject to an annual impairment test for having an indefinite useful life, the recoverable amount is estimated. The recoverable amount of an asset is the higher of its fair value (less selling costs) and its value in use. Such value in use is determined by discounting the estimated future cash flows, net of tax effects, using an after-tax discount rate reflecting the time value of money and considering the risks specific to the evaluated asset, provided the result obtained is the same as it would be when discounting future cash flows before tax effects using a pre-tax discount rate. For management purposes, the business is analyzed based on a customer-centric approach and therefore operates in a single operating segment, which is the provision of several telecommunications services to its customers, both in the mobile and fixed-line businesses. If the analysis determines that the recoverable amount of the assets is lower than their carrying amount, an additional impairment is recognized; if the recoverable amount is higher, a reversal of the previously recorded loss is recognized up to the new recoverable amount or up to the value the assets would have had if the impairment had never been recorded.

A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

At the lease commencement date (i.e., the date when the underlying asset is available for use), the lessee recognizes a liability for the present value of the lease payments due over the lease term, along with a right-of-use asset representing the right to use the underlying asset during the contract term. Right-of-use assets are measured at cost, less accumulated depreciation and impairment losses, and adjusted for any revaluation of lease liabilities. The cost of the right-of-use assets includes the amount of any initial direct costs incurred and any lease payments made before the commencement date, less any lease incentives received. The depreciation of right-of-use assets is calculated on a straight-line basis over the shorter of their estimated useful life or the lease term.

The Company does not separately recognize non-lease components from lease components for all asset categories where the relative importance of non-lease components is not significant compared to the total lease value.

Lease payments include fixed payments (including fixed payments in substance) less any lease incentives receivable, variable lease payments tied to an index or rate, and any amounts expected to be paid for residual value guarantees. To calculate the present value of lease payments, TMA uses the incremental borrowing rate at the lease commencement date. After the commencement date, the lease liability is increased to reflect the accrual of interest and reduced by payments made. Additionally, the lease liability value is adjusted in certain cases, such as changes in the lease term or changes in future lease payments due to a change in an index or rate used to determine such payments. The revaluation amount will generally be recognized against an adjustment to the right-of-use asset.

There are two exemptions to recognition: leases of "low-value" assets (an exemption TMA applies to office equipment) and short-term leases (an exemption TMA applies to all leases with a term of 12 months or less). For these cases, accrued amounts are recognized as an expense on a straight-line basis over the lease term.

The Company determines the lease term as the non-cancelable period of the contract, along with any period covered by an extension (or termination) option that is at TMA's discretion, if there is reasonable certainty that it will be exercised (or not exercised). In its evaluation, TMA considers all information available in the industry depending on the asset category and analyzes the relevant factors (technology, regulation, competition, business model) that provide an economic incentive to exercise or not exercise a renewal/termination option. In particular, TMA considers the planning horizon of its strategic business activities. After the commencement date, TMA re-assesses the lease term upon the occurrence of a significant event or a change in the circumstances under its control which could affect its ability to exercise (or not) a renewal or termination option (e.g., a change in the business strategy)

Leases in which TMA acts as lessor and retains a significant portion of the risks and rewards inherent to the ownership of the leased asset are classified as operating leases. Otherwise, the lease is considered a financial lease.

Financial assets and liabilities are recognized when the entity becomes a party to the contractual provisions of the financial instruments in question.

Initial Measurement

Financial assets and liabilities are initially measured at their fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and liabilities (other than financial assets and liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or liabilities, as appropriate, assigned on the initial recognition date. Transaction costs directly attributable to the acquisition of financial assets or liabilities at fair value are recognized immediately in the income statement.

Financial Assets

Classification of financial assets

TMA classifies its financial assets into the following measurement categories:

The classification depends on TMA's business model for managing financial assets and the contractual terms of the cash flows of each financial instrument.

For assets measured at fair value, and according to the accounting analysis conducted by the company, gains and losses will be recorded in the profit or loss statement or in OCI. For investments in equity instruments that are not held for trading, it will depend on whether TMA has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (“FVOCI”).

The company reclassifies debt investments only when its business model for managing those assets changes.

Subsequent measurements

Debt instruments

Subsequent measurements of debt instruments depend on TMA’s business model for managing the asset and the characteristics of the asset’s cash flows. TMA uses three measurement categories to classify its debt instruments:

Derecognition of financial liabilities

The company derecognizes a financial liability only upon the discharge, cancellation or expiration of the obligations. The difference between the carrying amount of the financial liability derecognized and the consideration paid or payable is recognized in the income statement.

Impairment

The company assesses expected credit losses associated to its debt instruments in advance. The impairment method applied depends on whether there has been a significant increase in credit risk.

For trade receivables, TMA applies the simplified approach included in IFRS 9, which requires recognizing expected losses over the lifetime of the asset from the initial recognition of trade receivables.

Derivatives and hedging financial instruments

The accounting treatment of any gain or loss resulting from changes in the fair value of a derivative depends on whether it meets the criteria for hedge accounting and, if applicable, the nature of the hedge.

Changes in the fair value of derivatives that have been designated and meet the requirements for hedge accounting as fair value hedges are recognized in the income statement, along with changes in the fair value of the hedged item that are attributable to the hedged risk.

Changes in the fair value of derivatives that qualify and have been designated as cash flow hedges, which are highly effective, are recognized in the statement of comprehensive income and accumulated under the "Hedge result" item. Gains or losses related to hedge ineffectiveness are recognized in the income statement when they occur. Changes in fair value previously recognized in equity are recognized in the income statement in the period the hedge is applied to the result.

When the hedged item gives rise to the recognition of a non-financial asset, both gains and losses are included in the initial cost of the asset.

i) Inventories

Inventories, which primarily consist of handsets, are valued at the lower of the weighted average cost or the net realizable value. Net realizable value represents the estimated selling price of the inventory less all estimated costs of completion and the necessary costs to carry out its sale.

Obsolete, defective or slow-moving inventories are written down to their estimated net realizable value. Any impairment loss on inventories is recognized in the income statement. The recoverable amount is calculated based on their age and turnover.

j) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and in banks, demand deposits, and other short-term, highly liquid investments with maturities of less than three months, readily convertible to cash and exposed to a low risk of changes in value. These items are measured, depending on their nature, at historical cost, amortized cost or fair value, which does not differ significantly from the realizable value.

k) Employee Benefits

Termination plans are compensation resulting from agreements between the company and the employees who accept voluntary retirement. These compensations generally consist of an initial payment, and in some cases, may also include deferred compensation that is settled in monthly installments. These provisions are calculated individually based on the terms agreed with employees, considering the present value of committed payments at the closing date of each fiscal year.

l) Pensions and Other Commitments with Employees

The provisions required to recognize liabilities accrued under defined benefit plans are determined using the “projected unit credit” method. This calculation is based on demographic and financial assumptions and takes into account the macroeconomic environment. Actuarial assumptions are based on market interest rates, past experience, and management’s the best estimate of future economic conditions. Changes in these assumptions may affect future costs and future benefit obligations. Actuarial gains and losses are recognized in the statement of comprehensive income.

m) Revenues and Expenses

TMA’s revenues are derived from the provision of telecommunications services to customers, mainly from voice and data traffic charges, network usage fees, interconnection, network and equipment rentals, and other digital services, including value-added services, maintenance services and handset sales. Products and services can be sold separately or together in commercial packages.

Revenues from calls made on TMA’s networks (“traffic”) are subject to a variable calling fee, depending on the duration, distance, and type of service. For prepaid services, unused traffic generates a contractual liability recorded under “Trade and other payables in the statement of financial position. Prepaid cards and any contractual liability related to prepaid traffic are charged directly to the income statement when the prepaid service expires, at which point TMA no longer has the obligation to provide the service after the expiration date.

Revenues earned from the sale of traffic and services offered at a fixed rate for a specified period (“flat rate”) are recognized on a straight-line basis over the period covered by the service paid for by the customer.

All other services are recognized in the income statement as the service is provided.

Interconnection revenues from fixed-mobile and mobile-fixed calls, as well as other services used by customers, are recognized in the period in which the calls are made.

Revenues from handset and equipment sales are recognized when the sale is considered completed. Generally, the sale is considered completed when the handsets are delivered to the end customer. Discounts on handsets and equipment sales are recognized as a reduction in revenues.

For commercial packages combining several goods and services such as telephone, data, internet, and television services, revenues are allocated to each performance obligation based on the selling price of each individual component relative to the total price of the package, and is recognized when (or as) the obligation is satisfied, regardless of whether there are pending deliverables. To the extent that packages are marketed with discounts on equipment and penalties for terminating the service contract before a stated date, an increase in revenues from the sale of equipment is recorded, which will be generally recognized at the time of delivery to the customer, at the expense of recurring service revenues in later periods until the end of the period in which the termination penalty applies. The difference between the revenues from equipment and handset sales and the amount received from the customer at the start of the contract is recorded as a contractual asset in the statement of financial position. Also, certain contractual modifications are recorded retrospectively (as a continuation of the original contract), while others are recognized prospectively as a separate contract, accounting for the termination of the existing contract and the creation of a new one.

IFRS 15 establishes a global framework for determining when and how to recognize revenue from ordinary activities and its amount. The basic principle is that an entity should recognize revenue from ordinary activities in such a way that it reflects the transfer of goods or services committed to the customer in exchange for an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services.

Costs associated with contracts with customers are recognized as an asset when these costs are incremental to obtaining a contract (sales commissions and other third-party expenses) and are expected to be recovered, with the subsequent allocation to the income statement to the same extent as the revenue related to that asset is recognized. The Company recognizes the costs of obtaining contracts as expenses when incurred if their expected amortization period is one year or less. A similar treatment applies to costs of contract performance, such as labor and materials associated with that contract.

In the Company, connection fees are recognized in the income statement on a straight-line basis over the customer’s average life span.

There are certain contracts for Irrevocable Rights-of-use, in which TMA transfers the use of certain network capacity to a third party for a specified period. These transactions require the separate recognition of revenue from the financial component embedded in the agreements with customers when it is significant.

n) Income Tax

The income tax charge represents the sum of current income tax and deferred income tax.

Current Tax

The current tax is based on the taxable result for the period. The taxable result differs from the result before tax presented in the income statement due to items of income or expenses that are taxable or deductible in other years and items that are never taxable or deductible. TMA's current tax is calculated using the applicable tax rates published or about to be published by the end of the year.

Deferred Income Tax

Deferred income tax is recognized on temporary differences between the net carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases used to calculate the taxable result. Generally, deferred income tax liabilities are recognized for all taxable temporary differences. Additionally, deferred income tax assets are recognized for all deductible temporary differences when it is probable that there will be tax benefit against which these deductible temporary differences can be set off. These deferred income tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that does not affect the tax result or the accounting result. In addition, temporary differences are not recognized with respect to the initial recognition of goodwill.

Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, associates, and joint ventures, except when TMA can control the reversal of the temporary difference and it is not likely to reverse in the foreseeable future. Deferred income tax assets arising from deductible temporary differences related to these investments and interests are only recognized when it is probable that sufficient taxable profits will be available against which these temporary differences can be offset, and it is probable that they will be reversed in the foreseeable future.

Deferred income tax assets and liabilities are measured using the tax rates that are expected to apply in the period when the liability is settled or the asset is realized, based on the tax rates set forth in the tax laws that have been enacted or are about to be enacted at the end of the year.

The valuation of deferred income tax liabilities and assets reflects the tax consequences that would arise from the manner in which TMA expects, at the end of the period, to recover or settle the net carrying amount of its assets and liabilities.

Current and deferred income tax of the year

The current and deferred income tax are recognized in the income statement, except to the extent that they relate to items directly recognized in Other comprehensive income or directly in equity. In this case, the current and deferred income tax are also recognized in Other Comprehensive income or directly in equity, respectively.

o) Non-Current and Current Assets and Liabilities

The presentation in the Financial Statements distinguishes between current and non-current assets and liabilities. Assets and liabilities are considered current if they are expected to be settled within one year or within TMA's normal commercial cycle, or if they are held for sale. Non-current assets and liabilities include all other types of assets and liabilities.

p) Significant Lawsuits and Use of Estimates

The follows an analysis of the key assumptions made by TMA in preparing its projections regarding its future performance and other relevant sources of uncertainty as of the closing date, which could have a significant effect on the Financial Statements for next year.

Property, Plant, Equipment, Intangibles and Rights-of-use assets (Notes 4, 5, 6, and 7)

The accounting treatment of PP&E, intangibles and rights-of-use assets involves making estimates to determine the useful life for depreciation or amortization purposes, as well as to determine the fair value at the acquisition date, in the particular case of assets acquired in business combinations.

Useful life determination requires estimates regarding expected technological developments and the alternative uses of assets. Assumptions regarding the technological framework and its future development involve a significant degree of judgment, as the timing and nature of future technological changes are difficult to predict.

The decision to recognize an impairment loss involves making estimates, including, without limitation, analyzing the causes of the potential impairment, as well as the timing and expected amount thereof. Additionally, factors such as technological obsolescence, the suspension of certain services, and other changes in circumstances that indicate the need to assess a possible impairment are taken into consideration.

TMA periodically evaluates the performance of its cash-generating unit to identify potential impairment of its fixed assets. Determining the recoverable amount of the cash-generating unit also involves the use of assumptions and estimates and requires a significant degree of judgment.

Deferred Income Tax (Note 17)

TMA assesses the recoverability of deferred income tax assets based on estimated future results of each of its taxable entities, considering all possible alternatives to achieve a result and selecting the most tax-efficient option within the regulatory framework. This recoverability ultimately depends on TMA’s ability to generate taxable income over the period in which the deferred income tax assets are deductible. The analysis takes into account the estimated timing of deferred income tax liability reversals as well as estimates of taxable income, based on internal projections that are continuously updated to reflect the most recent trends.

The recognition of tax-related items depends on several factors, including the estimated timing and realization of deferred income tax assets, the tax rate applicable on each date, and the expected timing of tax payments. The actual cash flows for income tax payments and collections of TMA’s subsidiaries may differ from TMA’s estimates due to changes in tax legislation or unforeseen future transactions that may affect tax balances.

Provisions (Note 15)

Provisions are recorded when, as a result of a past event, the company has a present obligation that is likely to require an outflow of resources and can be reliably estimated. Such obligations may be legal or constructive, arising from factors including regulations, contracts, customary business practices or public commitments that have created a valid expectation among third parties regarding the assumption of certain responsibilities. The provision amount recorded represents the Company’s best estimate of the disbursement required to settle the obligation, considering all available information as of the reporting date, including the opinion of independent experts such as legal advisors or consultants.

Due to the inherent uncertainties of the estimates required to determine the amount of provisions, actual disbursements may differ from the originally recognized amounts based on these estimates.

In general, TMA uses third-party spaces for the installation of certain equipment. Since TMA is required to dismantle the assets placed on leased sites, a dismantling liability is recorded based on the discounted value of dismantling costs. Upon initial recognition of this liability, TMA records this cost as a right-of-use, which is depreciated over the shorter of the estimated life of the asset at the leased site or the lease term.

Revenue recognition (Note 18)

The offers of commercial packages that combine different goods and services are analyzed to determine whether the different elements identified should be separated, applying the appropriate revenue recognition criterion in each case. The total revenue from the package is allocated among the identified elements based on their respective fair values.

Determining the fair values of each identified element requires complex estimates due to the nature of the business.

q) New accounting policies adopted by TMA

The following standards and amendments to existing standards issued by the IASB apply to fiscal years beginning on or after January 1, 2024:

The adoption of these amendments did not have a significant impact on TMA.

r) New IFRS and amendments to IFRS not effective as of December 31, 2024.

As of the date of these financial statements, the following standards, amendments to standards and interpretations have been issued by the IASB but are not yet mandatory and have not been early adopted.

No other IFRS, interpretations or amendments that are not yet effective have been issued and are expected to have a significant impact on the Company.

The Company is currently assessing the impact these standards, amendments or interpretations will have in the future reporting periods.

3.3 Comparative Financial Statements

In accordance with IAS 1 and in view of TASA’s and TMA’s corporate reorganization described in Notes 2 and 22, the Company's Financial Statements as of December 31, 2024, and for the year ended December 31, 2024, have been presented with the following comparative information:

Certain figures from the financial statements for the year ended December 31, 2023, have been reclassified for comparative purposes with those for the current year.

As a result of the aforementioned corporate reorganization, as of December 31, 2024, there are no balances or transactions attributable to non-controlling interest.

The composition and movements of net intangible assets for the years 2024 and 2023 have been as follows:

Fiscal Year 2024

Fiscal Year 2023

The original value, accumulated amortization and accumulated impairment losses (if any) of intangible assets as of December 31, 2024 and 2023 are detailed below:

Balance as of 12/31/2024

Balance as of 12/31/2023

On October 24, 2023, the Auction for the provision of Reliable and Intelligent Telecommunications Services (STeFI) was held, in which the ENACOM, through Resolution 1473/2023, registered the STeFI Service in the name of TMA, awarding Lot 3B, Bands 3550-3600 MHz, for an amount of 175 million U.S. dollars. On November 1, 2023, the payment was made in pesos at the official exchange rate. The use of the spectrum is for 20 years, starting on October 24, 2023. The amount included in additions to intangible assets for fiscal year 2023 was 211,283 million pesos.

Note 19 presents a detail of TMA's licenses and spectrum with definite and indefinite useful lives, as well as their expiration year, if applicable.

TMA assesses the recoverability of the carrying amount of its net assets based on fair value less costs of disposal and using the discounted cash flow method.

The process to determine the discounted cash flow method to determine the recoverable amount of assets, mentioned in note 3.2 f), is based on a series of assumptions, judgments, and estimates regarding cash flows, such as the revenue growth rate, future investment and working capital estimates, as well as discount rates. The assumptions for the cash flow projections are based on estimates made by the Company's management, market surveys, and macroeconomic projections. The discount rate applied to the cash flow projections is the Weighted Average Cost of Capital (“WACC”). The resulting valuation is classified at Level 3 of the fair value hierarchy in IFRS 13.

According to economic analysis techniques, the recoverable value assessment is made for a five-year period, and subsequently, the assumptions are taken to perpetuity based on the Company’s ability to continue operations for an indefinite period. The Company's Management believes that using a five-year period for making its estimates is appropriate.

The Company’s Management documents and approves the key assumptions of the projections it makes, on the basis of TMA’s historical performance and macroeconomic data taken from market financial projections.

The recoverability analysis of TMA's net assets is carried out at least annually based on the projections of the Financial Statements prepared by the Company as of December 31, 2024, and 2023, and on the growth projections and operating results for the years ending on those dates.

The assets as of December 31, 2023, and 2024 reflect the effect of the impairment recorded during years 2020 and 2022, resulting from the evaluation of the recoverability analysis of net assets made by the Company in those years.

During fiscal years 2023 and 2024, high inflation levels led to a significant increase in asset values, with an appreciation of the Argentine peso in real terms during 2024 of around 80%. In this regard, although the Company has met the business plans outlined as of December 31, 2023, and the revision of these plans at the end of 2024 is in the same direction, as of December 31, 2024, the Company's Management has concluded that the value of net assets exceeds the recoverable value thereof (both in terms of value in use and fair value, which are similar). As a result, the Company has recognized an impairment loss in Intangible Assets for 467,855 million pesos (Note 4) and in PP&E for 899,909 million pesos (Note 6), with a balancing entry in impairment loss (Note 18). Additionally, as a consequence of this impairment, the deferred income tax liability associated with the inflation adjustment of those assets has been partially reversed in the amount of 478,717 million pesos.

Main assumptions used in the calculations of the recoverable value:

The main assumptions used in the calculation of asset recoverability in 2024 are as follows:

The composition and movements of the items comprising property, plant & equipment in years 2024 and 2023 are as follows:

Fiscal Year 2024

Year 2023

In fiscal year 2024, the residual value of transfers corresponds to the net amount of asset reclassifications due to dismantling arising from "Rights-of-use assets", totaling 23,844 million pesos.

The original value, accumulated depreciation and accumulated impairment losses (if any) of PP&E, plant as of December 31, 2024 and 2023 are detailed below:

Balance as of 12/31/2024

Balance as of 12/31/2023

Additions to PP&E in progress include the acquisition of network assets, mainly for network deployment, transport, and “Fiber To The Home” (“FTTH”). Investments made for the acquisition of assets relating to the maintenance and prevention plan, Asymmetric Digital Subscriber Line (“ADSL”), copper and other lines aim to strengthen service delivery to customers and expand the deployment of the 4G network and support services for corporate customers based on infrastructure investments.

TMA has acquired insurance policies to reasonably cover the potential risks to which its PP&E used in operations are exposed, with appropriate limits and coverage.

On October 27, 1994, ENTel, in liquidation, issued Resolution No. 96/94, in which it committed to carry out all necessary actions to complete the transfer of title to registrable assets for as long as required, and to notify the Company, with at least sixty days’ notice, the deadline set in connection with the commitment undertaken. Furthermore, this resolution acknowledged that the licensees would retain the right to claim the compensation provided for in the Transfer Agreement for any properties that had not been officially transferred by the expiration of the specified term. As of the closing date of these Financial Statements, these assets have a residual value of 233,320,819,087, with approximately 169,751,882,601 of them registered under the Company's name (both balances have been restated as described in Note 3.b.). In the opinion of the Company's Management, the registration of most of the relevant assets transferred by ENTel will be successfully completed and therefore the final resolution of this matter will not have a significant impact on the Company's operating results and/or financial position.

The composition and movements of the items included in rights-of-use assets for fiscal years 2024 and 2023 were as follows:

Fiscal Year 2024

Fiscal Year 2023

In fiscal year 2024, the residual value of transfers corresponds to asset reclassifications due to the dismantling of PP&E, totaling 23,844 million pesos.

The original value and accumulated depreciation of rights-of-use assets as of December 31, 2024 and as of December 31, 2023, are detailed below:

Balance as of 12/31/2024

Balance as of 12/31/2023

In 2024 and 2023, expenses relating to short-term leases or low-value leases, with variable rent payments not included in the liability estimate, are included in operating income, with 19,025 million pesos and 21,250 million pesos corresponding to supplies, and 36,478 million pesos and 28,720 million pesos corresponding to leases under the caption Other expenses, respectively.

a)            Investment Properties

The composition and movements of the items included in Investment properties for fiscal years 2024 and 2023 were as follows:

Fiscal Year 2024

Fiscal Year 2023

The original value and accumulated depreciation of Investment properties as of December 31, 2024 are detailed below:

Balance as of 12/31/2024

Balance as of 12/31/2023

During fiscal years 2024 and 2023, revenues from investment properties amount to 1,088 million pesos and 1,535 million pesos, respectively.

b)            Assets Classified as Held for Sale

As of December 31, 2024, the balance of Assets classified as held for sale primarily consists of recoverable base station equipment totaling 2,260 million pesos, for which the Company’s management expects the sale to occur within the next twelve months.

The following is a breakdown of Inventories, as stated in the statement of financial position as of December 31, 2024 and 2023:

Movements of handsets, accessories and prepaid cards in 2024 and 2023 are as follows:

Movements in the provision for inventory write-down in 2024 and 2023 are as follows:

The amount of TMA's inventory purchase commitments was not significant for fiscal years 2024 and 2023.

TMA has insurance policies to cover the costs and expenses that may arise from potential future losses relating to inventories.

Changes in the provisions for inventory write-down are recognized under the caption Supplies in the income statement.

The related parties of the Company include, apart from its subsidiaries, associates, jointly controlled entities and those of TSA, the key management personnel of TMA and all individuals related to them by a family relationship up to the second degree of consanguinity and/or first degree by marriage, as well as entities over which key management personnel can exercise significant influence or control.

Below there is a detail of the balances and transactions between TMA and other related parties.

Transactions with the Controlling Company and Related Parties

Cash Pooling Agreements

During fiscal year 2023, TASA, a company now merged with TMA, entered into several agreements with Telfisa Global, B.V. ("Telfisa"), a financial company whose sole shareholder is TSA, through which it placed its cash surplus. In exchange for depositing its cash surplus in Telfisa, TMA received an annual interest rate equivalent to the 30-day SOFR plus four basis points. These agreements were periodically renewed until January 2024.

Loan Agreement

In January 2024, the Company received and accepted a proposal from TSA, requesting a USD 117 million loan from TMA, to be repaid within a maximum term of 5 years, which will accrue interest calculated semiannually at a 6-month CME Term SOFR plus a spread of 200 basis points, payable at maturity. As of December 31, 2024, a receivable of 128,712 million pesos from TSA was recorded on account of this.

Trademark License Agreement

TMA has agreements with TSA governing the use of several of TSA’s brands (including, without limitation, "Movistar") within Argentina. These contracts are periodically renewed and were in effect as of the date of issuance of these Financial Statements.

According to the Trademark License Agreement, given the individual operating cash flow was positive for the corresponding previous year (defined as operating income before depreciation and amortization, minus additions to PP&E and intangibles), the Company paid a fee equivalent to 1.6% of the Company's revenues, excluding those arising from transactions with companies of the Telefónica Group, the sale of fixed assets and financial investments and the income from indemnities and litigation. In this regard, the total expense for fiscal years ended December 31, 2024 and 2023 amounted to 39,692 million pesos and 28,133 million pesos, respectively.

Management Fee Agreement

The Company receives management assistance services from TLH HoldCo to carry out corporate services, including back office support and other technical services, for which it pays a fee calculated based on the costs incurred by TLH HoldCo in providing such services, plus a profit margin.

The cost accrued for fiscal years 2024 and 2023 was of approximately 12,715 million pesos and 9,185 million pesos, respectively.

Digital Services Agreements

On April 13, 2018, TMA entered into agreements with Telefónica Digital España, S.L.U. ("TDE"), under which TMA provides digital services to both companies, which will be used exclusively outside Argentina ("TMA Digital Services Agreement"). It should be noted that, as a result of the merger of TDE and Telefónica Investigación y Desarrollo, the entity responsible for providing these services is now Telefónica Innovación Digital.

The consideration for these services includes the costs incurred in providing the service plus a margin. The contract has an initial duration of five years, starting on January 1, 2018, and will be renewed for annual periods unless otherwise indicated by any of the parties with at least 60 days’ notice.

Other Commercial Agreements

In addition to the above mentioned agreements, TMA has other agreements with other companies within the Telefónica Group as part of its normal operations, including agreements for the purchase of international data transfer capacity with Telxius Cable Argentina S.A., for the purchase and sale of international interconnection with Telefónica Global Solution, S.L., for the maintenance of systems and support services with Telefónica Global Technology S.A.U., and for technical assistance and consultancy in areas such as Business To Business (“B2B”), Business to Client (“B2C”), wholesale, human resources, digital projects, technology and technological planning, among others, with Telefónica Chile Servicios Corporativos Limitada.

Below there is a summary of the most significant balances and transactions between TMA and its related parties for years indicated. It should be noted that Telefónica, S.A. is the controlling company of TMA, and the other companies listed below are considered other related parties.

2024

Balance as of 12/31/2024

2023

Balance as of 12/31/2023

11.            Trade Receivables and Other Assets

The composition of the item Trade receivables of the statement of financial position as of December 31, 2024 and 2023 is as follows:

The balance of Accounts receivable from public sector customers as of December 31, 2024 and 2023 amounts to 25,075 million pesos and 21,154 million pesos, respectively.

Movements in the allowance for doubtful accounts during the 2024 and 2023 fiscal years are as follows:

The table below shows the aging analysis of accounts receivable from third parties as of the end of fiscal years 2024 and 2023:

The composition of the item Other assets of the statement of financial position as of December 31, 2024 and 2023 is as follows:

Movements of deferred expenses of short-term contracts for the years 2024 and 2023 are as follows:

At the end of fiscal years 2024 and 2023 the nominal amount of capital stock is as follows:

On January 17, 2023, the Company’s Board of Directors received a notifice from TLH on the terms of Section 215 of the General Companies Law, informing on the transfer of all the shares in the Company to TLH HoldCo, and proceeding to register the transfer in the Company’s Register of Shareholders. Both companies are controlled by TSA.

TLH HoldCo directly controls TMA, holding a 99.9996% interest therein.

As a result of the merger process, on March 4, 2024, a capital increase of 28,372,979,020 was registered with the Public Registry of Commerce. On April 17, 2023, the Extraordinary General Meeting of TMA, as a result of the reorganization process referred to in Note 2, approved a capital increase effective on the effective date of the merger, which occurred on January 1, 2024, through the issuance of 1,450,022,273 shares of $1 nominal amount each and entitled to one vote per share, following the capitalization of the integral capital adjustment account in the amount of 26,922,956,747, which were delivered to the shareholder TLH HoldCo in replacement of the shares it held in TASA.

As a result of the effective merger date, and according to the exchange ratio set forth in the Preliminary Merger Agreement and the Final Merger Agreement, and the ownership interest TLH HoldCo held in TASA as of that date, TMA recognized as of that moment an issue premium for a total amount of 107,376,686,940 pesos.

On April 4, 2024, the Company entered into an agreement with TLH HoldCo, whereby the shareholder offered to make an irrevocable contribution on account of a future subscription of shares amounting to 7,455,870,000 pesos, which was approved by the Company’s Board of Directors on April 4, 2024. On May 2, 2024, the Company’s Ordinary and Extraordinary Shareholders' Meeting resolved to capitalize this irrevocable contribution and to issue 305,710,819 book-entry ordinary shares of $1 nominal amount each and entitled to one vote per share in favor of TLH HoldCo. It also resolved to capitalize the capital adjustment account of equity, which amounted to 57,504,708,733, by issuing 57,504,708,733 shares of $1 nominal amount each, which were distributed pro-rata among the shareholders.

As a result, following the capitalization of the Irrevocable Contributions, the share capital was increased to the amount of 86,461,307,278 pesos, represented by 86,461,307,278 book-entry ordinary shares of $1 nominal amount each and entitled to one vote per share.

All the preceding figures are expressed at nominal values, without restatement.

During fiscal years ended December 31, 2024 and 2023 no dividends were distributed.

As of December 31, 2024, there is a balance of 63,665 available for payment to minority shareholders and treasury shares.

All the preceding figures are expressed at nominal values, without restatement, as described in Note 3.1.b).

According to the General Companies Law, Argentine companies must allocate at least 5% of their annual profits to a legal reserve until such reserve reaches 20% of the capital stock. As of December 31, 2024, TMA's reserve amounted to 36,780,940,594.

Retained earnings include TMA's undistributed results less the dividends declared in favor of shareholders.

The Tax Reform Law enacted at the end of 2017 set forth, among other things, a reduction in the tax rate to 30% for 2019, and to 25% starting in 2020, and imposed a tax on dividends paid by Argentine entities of 7% for 2019 and 13% as from 2020, so that companies will pay the 35% rate only if they distribute all their profits to their shareholders. Subsequently, the Social Solidarity and Productive Reactivation Law suspended the reduction of the tax rate on profits to 25% and the increase in the dividend tax to 13% for fiscal years ending before January 1, 2021. As detailed in note 17, during fiscal year 2021, Law 27,630 was enacted, which once again amended the tax rate, setting forth that companies will pay a 25% tax on the first 5 million pesos of profits, 30% on profits exceeding 5 million pesos, up to 50 million pesos, and 35% on profits exceeding 50 million pesos, while maintaining the 7% dividend tax. Additionally, the tax reform enacted at the end of 2017 also repealed the equalization tax that had been in effect until 2017, which imposed a 35% withholding on dividend distributions exceeding accumulated taxable income. The tax rate on dividends may vary depending on the shareholder's country of residence, due to possible international double taxation treaties.

On March 28, 2023, the General Ordinary and Extraordinary Shareholders’ Meeting of the Company resolved to allocate the accumulated negative retained earnings as of December 31, 2022, of 28,410,356,221, expressed in the currency of that date, partially releasing this amount from the reserve for future dividends. All the preceding figures are expressed in nominal values, without restatement, as described in note 3.1.b).

On April 3, 2024, the General Ordinary and Extraordinary Shareholders’ Meeting of the Company resolved to assign the accumulated negative retained earnings as of December 31, 2023, amounting to 89,477,398,891, expressed in the currency of that date, partially releasing this amount from the reserve for future dividends. All the preceding figures are expressed in nominal values, without restatement, as described in note 3.1.b).

The balances in the statement of comprehensive income include the amounts, net of tax effects, of temporary adjustments of assets and liabilities recognized in the statement of changes in equity (through recognized income and expenses) until they are settled or realized, when they are finally recognized as equity in the income statement.

The effect of the capital increase on subsidiaries consisted of the impact on their equity due to the capital subscription in TMA's subsidiaries by TMA or by non-controlling shareholders, when not all shareholders contributed pro rata their ownership interests and the company's fair value was different from its book value. The amount was determined by the difference between the amounts subscribed and paid in each of the capital increase of a TMA subsidiary and the change in the contributor’s interest in the book value of the subsidiary’s equity. Depending on whether the contributor was TMA or another shareholder, this difference was reflected accordingly in its equity.

On January 5, February 3, and March 10, 2023, TASA entered into agreements with TMA, under which the shareholder committed to make irrevocable contributions on account future share subscriptions in the amounts of 8,000 million, 5,300 million and 703 million pesos, respectively. On March 28, 2023, TASA’s shareholders resolved to capitalize these irrevocable contributions and to issue in favor of TMA 140,030,000,000 book-entry preferred shares, of $0.10 nominal amount each and entitled to one vote per share, with the other shareholders waiving their pre-emptive rights.

Additionally, on April 24, June 23, September 4, and October 6, 2023, TASA approved new agreements with TMA, whereby the shareholder made irrevocable contributions on account of future share subscriptions in the amounts of 5,000 million, 8,400 million, 9,800 million and 4,000 million pesos, respectively. Furthermore, on May 8, 2023, TASA approved a new agreement with TLH HoldCo, whereby the shareholder made an irrevocable contribution on account of future share subscriptions in the amount of 7,613,872,598 pesos.

On October 31, 2023, TASA’s shareholders resolved to capitalize these irrevocable contributions by increasing TASA’s share capital by 34,813,872,598 pesos, represented by 348,138,725,980 book-entry preferred shares, of $0.10 nominal amount each and entitled to one vote per share, in accordance with the issuing terms.

As a result of the above referred capitalizations, TMA increased its interest in TASA from 77.64% to 79.06%, which remained unchanged until the effective date of the merger.

All the preceding figures are expressed in nominal values, without restatement, as described in Note 3.1.b).

The composition of financial assets as of December 31, 2024 and 2023 is as follows: