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Nortel Inversora S.A. Announces Consolidated First Quarter Results For Fiscal Year 2016
[May 10, 2016]

Nortel Inversora S.A. Announces Consolidated First Quarter Results For Fiscal Year 2016


BUENOS AIRES, Argentina, May 10, 2016 /PRNewswire/ -- Nortel Inversora S.A. ("Nortel") (NYSE: NTL)announces consolidated income of AR$ 934 million for the first quarter of fiscal year 2016, of which AR$ 514 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 facts

Telecom Italia - Fintech Telecom LLC Transaction

On March 7, 2016, the Ente Nacional de Comunicaciones (National Agency of Communications or "ENACOM") authorized the acquisition by Fintech Telecom LLC ("Fintech") of 51% of the common stock of Sofora Telecomunicaciones S.A. ("Sofora") pursuant to Resolution No 277/2016. As a result, the transfer of 51% of Sofora from the Telecom Italia Group to Fintech was closed on March 8, 2016.

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. Dividends shall be made available to Nortel shareholders as from May 17, 2016.

 





(Financial Tables below)


First Quarter, Fiscal Year 2016

(in millions of Argentine Pesos)


Consolidated Income Statement 

March 2016

March 2015




Total sales and other income

12,466

8,879

Operating costs 

(10,475)

( 7,204)

Operating income

1,991

1,675

Financial results, net

( 550)

( 78)

Net income before income tax expenses

1,441

1,597

Income tax

(   507)

(  554)

Net income

934

1,043

Other comprehensive income, net of taxes

189

---

Total comprehensive income for the period

1,123

1,043










Consolidated Balance Sheet

March 2016

December 2015




Current assets

12,682

11,569

Non-current assets

28,244

26,973

Total assets

40,926

38,542

Current liabilities

18,200

16,945

Non-current liabilities

3,950

3,944

Total liabilities

22,150

20,889

Equity attributable to Nortel

10,186

9,605

Equity attributable to non-controlling shareholders

8,590

8,048

Total equity

18,776

17,653

Total liabilities and equity

40,926

38,542










Ratios









Liquidity (a)

0.70

0.68

Indebtedness (b)

1.18

1.18







(a)     Current assets to current liabilities



(b)     Total liabilities to shareholders' equity




 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nortel-inversora-sa-announces-consolidated-first-quarter-results-for-fiscal-year-2016-300265892.html

SOURCE Nortel Inversora S.A.


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