Nortel Inversora S.A. Announces Consolidated Nine-Month Period and Third Quarter Results for the Fiscal Year Ending December 31, 2011

Nov 03, 2011, 09:27 ET from Nortel Inversora S.A.

BUENOS AIRES, Argentina, Nov. 3, 2011 /PRNewswire/ -- Nortel Inversora S.A. (NYSE: NTL), whose sole substantial activity is owning 54.741682% of the stock of Telecom Argentina S.A. ("Telecom") and whose sole substantial source of cash income is cash dividends and other distributions paid on such stock, today announced consolidated net income of Ps. 1,008  million for the nine-month period of fiscal year 2011.

Nortel's consolidated financial results for the third quarter of fiscal year 2011 are substantially identical to Telecom's results for the same period, after accounting for minority interest and financial income and expenses at the holding-company level.

Relevant matters

The Annual and Extraordinary General Meeting and Special Class "A" Preferred Stockholders Meeting held on April 7, 2011 – together with the meeting of the Board of Directors held on April 18, 2011 in connection with the last three issues-approved, among other matters:

  • The Annual Report and Financial Statements as of December 31, 2010
  • The appointment of Price Waterhouse & Co. as external auditors of the Company
  • The ratification of the payment of a provisional dividend declared by the Board of Directors on its October 5, 2010 meeting
  • The scheduled redemption of 242,454 Class "A" Preferred Shares for a total redemption price of AR$ 196,232,576.23
  • The payment of the basic dividend accumulated by the Class "A" Preferred Shares subject to the scheduled redemption mentioned above for a total amount of AR$32,408,111.67

The Annual and Extraordinary General Meeting and Special Class "A" Preferred Stockholders Meeting held on August 2, 2011, together with the meeting of the Board of Directors held on August 17, 2011, approved:

  • The scheduled redemption of 418,202 Class "A" Preferred Shares for a total redemption price of AR$ 349,069,142.39
  • The payment of the basic dividend accumulated by the Class "A" Preferred Shares subject to the scheduled redemption mentioned above for a total amount of AR$ 57,634,577.63
  • The distribution of AR$ 24,817,545.21 as an additional distribution, payable only and exclusively to those holders of Class "A" Preferred Shares subject to redemption who have executed, before August 15, 2011, a settlement agreement with the Company, to the Company's satisfaction, releasing and irrevocably and definitively terminating any claim relating to the redeemed shares

FINANCIAL TABLES BELOW

NORTEL INVERSORA S.A.

THIRD QUARTER, FISCAL YEAR ENDING DECEMBER 31, 2011

(In millions of Argentine pesos, except statistical and ratio data)

Consolidated Balance Sheet (*)

2011

2010

Current assets

4,556

3,827

Non-current assets

8,676

8,353

Total assets

13,232

12,180

Current liabilities

4,680

4,691

Non-current liabilities

1,190

1,121

Total liabilities

5,870

5,812

Minority interests

3,420

2,949

Total shareholders' equity

3,942

3,419

Total liabilities and shareholders' equity

13,232

12,180

(*) As a consequence of the application of the new rules, the comparative information for the intermediate periods of the Annual Financial Statements should be the one corresponding to the last complete fiscal year. The comparative information of the Income Statement, evolution of Shareholders' Equity and Cash Flow Statements should be the one corresponding to the equivalent period of the previous fiscal year.

Consolidated Income Statement

2011

2010

Net revenues

13,386

10,484

Cost of services provided administrative and selling expenses

(10,336)

(8,169)

Operating Profit

3,050

2,315

Financial  results, net

139

(31)

Other, net

(355)

(205)

Income tax

(985)

(754)

Minority interest

(841)

(599)

Net Income

1,008

726

Ratios

2011

2010

Liquidity (a)

0.97

0.82

Indebtedness (b)

0.80

0.91

(a) Current Assets to current liabilities

(b) Total liabilities to shareholders' equity plus third party interests.

Jorge Alberto Firpo Responsible for Market Relations

Contacts: Jorge Firpo Nortel Inversora S.A. (5411) 4 968-3630

SOURCE Nortel Inversora S.A.