- TEO's stock suffered after the Argentinian crisis, inflation and price control of its services.
- However, if the situation improves, it is not clear TEO will return to the profitability it enjoyed before 2017.
- The reason is it has to pay more fixed costs than it did before the crisis and the Argentinian borrowing wants instituted price control over the industry.
- In addition, risky borrowing before the Argentinian crisis has left the company in a less than optimal financial condition.
For further details see:
Telecom Argentina Is Trading Above Its Earning Potential