Telecom Argentina, one of Argentina's leading telecommunications groups, announced today Net Income of $703 million for the six-month period ended June 30, 2009 or a plus of 15% when compared to the same period last year, a press release of the company stated.

During the first half of 2009, Consolidated Net Revenues increased by 14 percent to $5,754 million, mainly fuelled by the Mobile and Broadband businesses.

Moreover, Operating Profit increased by 25% ($262 million compared with the same period of 2008) to $1,311 million.

During the first half of 2009, revenues generated by these services amounted to $1,990 million, plus 13 percent vs. 2008, where in relative terms Internet revenues have grown the most ( plus 43% percent 1H08).

Total Revenues for this service reached $1,377 million in the first half of 2009 (+4% vs. 1H08). The results of this line of business are still affected by frozen tariffs of regulated services.

Monthly Charges and Supplementary Services increased by P$24 million, or 6% vs. 1H08, to $417 million, as a consequence of a higher number of lines in service (plus 2%), which reached more than 4.3 million, and 16% increase in supplementary services.

Revenues generated by traffic (Local Measured Service, Domestic Long Distance and International Telephony) totaled P$625 million, an increase of 3% vs. 1H08, despite a slight decrease in volume in local traffic (-6% vs. 1H08) and in domestic long distance traffic (-5% vs. 1H08) affected by the mobile substitution trend. Otherwise, international traffic continued growing slightly (+1% vs. 1H08).

Interconnection revenues amounted to P$213 million (+12% vs. 1H08), mainly as a consequence of traffic originated in cellular lines from other operators but transported by and terminated in the Company's fixed-line network.
Other revenues reached P$122 million (-9% vs. 1H08). This reduction is mainly as a consequence of a decrease in Public Telephony revenues (-P$10 million or -22% vs. 1H08).