Nortel Inversora S.A. Announces Consolidated Nine Month Period And Third Quarter Results For Fiscal Year 2015

03 Nov, 2015, 08:58 ET from Nortel Inversora S.A.

BUENOS AIRES, Argentina, Nov. 3, 2015 /PRNewswire/ -- Nortel Inversora S.A. ("Nortel" or the "Company")(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 September 30, 2015. 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.$ 2,775 million for the nine-month period ending September 30 of fiscal year 2015, of which Ps.$ 1,530 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, 2015

The Ordinary and Extraordinary General Meeting held on April 29, 2015 resolved, among other items:

  1. to approve the Annual Report and Financial Statements as of December 31, 2014;
  2. to allocate the non-appropriated profit amount as of December 31, 2014, of Ps. $ 2,039 million, to the already existing "Voluntary Reserve 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 Supervisory Committee for fiscal year 2015.      

Resolution issued by AFTIC on the request for authorization by Fintech Group to acquire the controlling stake in Sofora Telecomunicaciones S.A.

On October 25, 2014 the Company informed the CNV (Comisión Nacional de Valores) that Telecom Italia SpA ("Telecom Italia"), an indirect parent company of Telecom  and Nortel, had accepted an offer from Fintech Group ("Fintech") to amend and restate the original agreement signed on November 13, 2013, regarding the acquisition of the entire interest in Telecom , that Telecom Italia and its subsidiary Telecom Italia International NV had at that time through Sofora Telecomunicaciones SA ("Sofora") and Nortel .

The Company also informed that the sale of the 51% controlling interest in Sofora was conditional upon obtaining regulatory approval by the Argentine Secretary of Communications and would not occur until after such approval is obtained. In the interim, a 17% minority interest in Sofora was sold to Fintech, as informed to CNV through a relevant fact filed on October 29, 2014.

On October 15, 2015, it was published on the website of AFTIC a statement in which the Directors Board of AFTIC resolved to refuse authorization for the transfer to Fintech of the controlling interest that Telecom Italia owns in Sofora. This statement was published on the Official Bulletin of October 16, 2015 under AFTIC Resolution No. 491/2015.

(Financial Tables below)

Nine Month Period of Fiscal Year ending December 31, 2015

(in millions of Argentine Pesos)

Consolidated Income Statement

September 2015

September 2014

Revenues and other income

28,605

24,223

Operating costs

(24,166)

(20,394)

Operating income 

4,439

3,829

Financial results, net

(167)

242

Net income before income tax expenses

4,272

4,071

Income tax expense 

(1,497)

(1,393)

Net income

2,775

2,678

Other comprehensive income, net of tax

(86)

233

Total comprehensive income for the period 

2,689

2,911

 

Consolidated Balance Sheet                           

September   2015

December  2014

Current assets

9,734

6,581

Non-current assets

24,360

19,924

Total assets

34,094

26,505

Current liabilities

14,528

9,115

Non-current liabilities 

2,889

2,454

Total liabilities

17,417

11,569

Equity attributable to Nortel 

9,116

8,185

Equity attributable to non-controlling shareholders

7,561

6,751

Total equity

16,677

14,936

Total liabilities and equity  

34,094

26,505

 

Ratios

Liquidity (a)  

0.67

0.72

Indebtedness (b)     

1.04

0.77

(a)     Current assets to current liabilities

(b)     Total liabilities to shareholders' equity.

SOURCE Nortel Inversora S.A.



RELATED LINKS

http://www.nortelsa.com.ar