- Telecom Argentina shares are trading at multi-year lows. The last time the price was substantially lower than now was in 2001, during the largest crisis that ever hit Argentina.
- The Argentinian government imposes restrictions on price rises of Telecom services to avoid the population getting into more financial trouble during the pandemic.
- The Q4 2020 numbers, due on March 10, will show the consequences of the government price restrictions, with inflation outpacing company revenue growth by double-digit percentages.
- There's no date when Telecom Argentina can again raise prices in line with inflation, i.e. 'inflationary pricing'. Until then, the company will keep shrinking substantially in real terms.
- The government is negotiating sovereign debt-related issues. When these will be resolved is unknown. The Argentinian stock market is facing uncertainty indefinitely and Telecom Argentina too.
For further details see:
Telecom Argentina: Double-Digit Shrinkage Due To Government Restrictions On Price Increases