Nortel Inversora S.A. Announces Consolidated First Half Results for Fiscal Year 2014

BUENOS AIRES, Argentina, July 30, 2014 /PRNewswire/ -- Nortel Inversora S.A. (NYSE: NTL) whose sole material activity is holding 54.74% of the capital stock of Telecom Argentina S.A. ("Telecom") informs that Telecom has repurchased 15,221,373 of its own stock as of June 30, 2014. As a result, the political and economic rights of Nortel have increased to 55.60 % of Telecom's outstanding stock as of such date.

Nortel announces consolidated income of Ps.$ 1.831 million for the six-month period ending June 30 of fiscal year 2014, of which Ps.$ 999 million correspond to Nortel as controlling shareholder.

Relevant matters

Summary of the Resolutions approved by the Ordinary and Extraordinary General Meeting held on April 29, 2014

The Ordinary and Extraordinary General Meeting held on April 29, 2014 resolved, among other items:

  1. to approve the Annual Report and Financial Statements as of December 31, 2013;
  2. to allocate the non-appropriated profit amount as of December 31, 2013, of Ps. $ 1,720 million, to the already existing "Voluntary Reserve for the Future Distribution of Dividends", for the future distribution of dividends, authorizing the Board of Directors to approve the timing and amounts to be deducted from the Voluntary Reserve for the Future Distribution of Dividends, taking into account the Company's future economic and financial conditions, and liquidity, and the subsequent distribution of such amounts as cash dividends.
  3. the appointment of the members of the Board of Directors to serve from the date of this Stockholders' Meeting and for three fiscal years;
  4. the appointment of the members of the Supervisory Committee for fiscal year 2014.      

Distribution of cash dividends

The Company's Board of Directors, during its meeting held on May 28, 2014, decided to deduct an amount of Ps.$ 332 million from the "Voluntary Reserve for the Future Distribution of Dividends" and distributed such amount as cash dividends, of which Ps.$ 163 million correspond to Series "B" Preferred Shares and Ps.$ 169 million correspond to common stock. The above mentioned dividends were made available as from June 13, 2014.

(Financial Tables below)


Six Month Period of Fiscal Year ending December 31, 2014

(in millions of Argentine Pesos)










Consolidated Income Statement

June 2014

June 2013










Revenues and other income            

15,615

12,726

Operating costs    

(13,007)

(10,673)

Operating income   

2,608

2,053

Financial results, net      

162

214

Net income before income tax expenses   

2,770

2,267

Income tax expense   

( 939)

(799)

Net income  

1,831

1,468

Other comprehensive income, net of tax

233

29

Total comprehensive income for the period

2,064

1,497










Consolidated Balance Sheet     

June 2014

December 2013




Current assets     

8,405

9,836

Non-current assets

15,309

13,381

Total assets   

23,714

23,217

Current liabilities   

8,372

9,086

Non-current liabilities  

2,094

2,029

Total liabilities  

10,466

11,115

Equity attributable to Nortel  

7,354

6,603

Equity attributable to non-controlling shareholders 

5,894

5,499

Total equity  

13,248

12,102

Total liabilities and equity   

23,714

23,217










Ratios












Liquidity (a)  

1.00

1.08

Indebtedness (b)

0.79

0.92







(a)      Current assets to current liabilities



(b)     Total liabilities to shareholders' equity.



SOURCE Nortel Inversora S.A.




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