Nortel Inversora S.A. Announces Consolidated First Half Results for Fiscal Year 2016

BUENOS AIRES, Argentina, Aug. 10, 2016 /PRNewswire/ -- Nortel Inversora S.A. (NYSE: NTL)

Nortel Inversora S.A. ("Nortel" or the "Company") announces consolidated income of AR$ 1,728 million for the six- month period ending June 30 of fiscal year 2016, of which AR$ 950 million correspond to Nortel as parent company of Telecom Argentina S.A. ("Telecom"). 

The sole material activity of Nortel is holding 54.74% of the capital stock of Telecom, representing a holding of 55.60% of the voting and economic rights of Telecom as a result of Telecom's holding of 15,221,373 shares of treasury stock. The holding of such shares of treasury stock has been extended for up to three additional years pursuant to the resolution of the Ordinary and Extraordinary Stockholders Meeting of Telecom held on April 29, 2016. 

Relevant Matters

Summary of the Resolutions approved by the Ordinary and Extraordinary General Stockholders Meeting held on April 29, 2016

The Ordinary and Extraordinary General Stockholders Meeting held on April 29, 2016 resolved, among other issues:

1. to approve the Annual Report and Financial Statements as of December 31, 2015;
2. to allocate the non-appropriated profit amount as of December 31, 2015, of AR$ 1,891 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 2016.

Dividends Payment

At its meeting held on April 29, 2016, pursuant to the authorization granted by the Stockholders Meeting, the Board resolved to deduct an amount of Argentine Pesos three hundred eighty million (AR$ 380,000,000) from the "Voluntary Reserve for the Future Distribution of Dividends" and to distribute such amount as cash dividends. That was made available to Nortel shareholders as from May 17, 2016.

Other Relevant Matters

Law N° 26,893 and Decree N° 2,334/13 arranged that dividends and profits, in cash or in any kind – except in shares or installments- distributed by companies and other entities established in the country made available as from September 23, 2013, were subject to a withholding tax of 10% excluding dividends perceived by corporations and other local entities, which were still not computable for the purposes of the tax.

N° 27,260 Law derogated the disposition above mentioned so that as from July 23, 2016 all dividends and profits, in cash or in any kind, distributed by companies and other entities established in the country (as in the case of Nortel), whatever their subject beneficiary are not reached by the aforementioned retention.

(Financial Tables below)

Six Month Period of Fiscal Year ending December 31, 2016 (in millions of Argentine Pesos)
Consolidated Income Statement	June 2016	June 2015
Total sales and other income	25,426	18,507
Operating costs	(21,721)	(15,374)
Operating income	3,705	3,133
Financial results, net	(1,035)	(97)
Net income before income tax expenses	2,670	3,036
Income tax	(942)	(1,058)
Net income	1,728	1,978
Other comprehensive income, net of taxes	240	(49)
Total comprehensive income for the period	1,968	1,929

   

Consolidated Balance Sheet	June 2016	December 2015
Current assets	12,619	11,569
Non-current assets	29,118	26,973
Total assets	41,737	38,542
Current liabilities	20,392	16,945
Non-current liabilities	2,992	3,944
Total liabilities	23,384	20,889
Equity attributable to Nortel	10,260	9,605
Equity attributable to non-controlling shareholders	8,093	8,048
Total equity	18,353	17,653
Total liabilities and equity	41,737	38,542

   

Ratios
Liquidity (a)	0.62	0.68
Indebtedness (b)	1.27	1.18
(a) Current assets to current liabilities
(b) Total liabilities to shareholders' equity

María de los Angeles Blanco Salgado
Officer in Charge of Market Relations

 

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SOURCE Nortel Inversora S.A.

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