Good morning, and thank you for joining Telecom Argentina Q3 2026 and Nine 2026 Results Conference Call. The participants of today's conference call are Roberto Nóbile, Chief Executive Officer, Manuel García Díez, Chief Financial Officer, and myself, Luis Rial Ubago, Head of Investor Relations. The purpose of this call is to share with you the results for the third quarter and nine-month period ended September 30 of 2026.
Our earnings release and presentation are available in the Investor Relations section of our website at inversores.telecom.com.ar. Before we begin, please note that during this call and the Q&A session, we may make forward-looking statements regarding Telecom's future performance, plans, strategies, and objectives. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.
A discussion of relevant risk factors is included in our earnings release dated November 12 of 2026, furnished to the SEC on Form 6-K, and in our most recent annual report on Form 20-F. Reported figures reflect the effects of inflation accounting under IAS 29. For ease of understanding, certain historical value figures may also be discussed.
Please refer to the disclaimer included in slide two of the presentation. We will begin with our business and financial highlights and then open the call for questions. I will now turn the call over to Manuel, who will begin with the presentation.
Thank you, Luis. Good morning, and welcome to everyone. The third quarter confirms the trend we anticipated in August. Profitability and cash generation continue to improve on a consistent basis. Consolidated revenues reached $1.8 billion, up 18% year-over-year in dollar terms, with service revenues above $1.7 billion. Service revenues grew almost in line with inflation year-over-year after adjusting for credit notes issued in connection with the changes to TMA's billing cycles.
Adjusted EBITDA exceeded $640 million, up 37% year-over-year. In real pesos, EBITDA grew more than 12%, and margin expanded by almost 5 percentage points to 36%. Equity free cash flow almost doubled to around $230 million, representing 36% of EBITDA. We kept investing at a high pace, with CapEx of around $350 million, or close to 20% of revenues, mainly focused on FTTH and 5G.
Net debt decreased 9% year-over-year to $2.9 billion, and net leverage improved to 1.2x from 1.36x in June. It is worth noting that dollar growth rates are amplified by real appreciation of the peso over the last 12 months, since inflation reached 33%, while the exchange rate moved only 10%. That is why we also highlight the evolution in real terms, where the main message is the same: EBITDA is growing well ahead of revenues. Turning to operations, subscriber trends remain healthy and continue to support revenue growth.
At Personal, postpaid lines grew 1% year-over-year and now represent 45% of our mobile base, up from 39% a year ago. The decline in prepaid is mainly explained by shorter inactivity period applied when disconnecting lines with no traffic, which led to a reduction in the number of prepaid accesses with no significant impact on revenues.
Broadband access grew 2.5% to 4.2 million, and FTTH already represents 40% of our broadband base, up from 28% a year ago. Pay TV accesses in Argentina grew almost 5% to 3.4 million, supported by the World Cup and by Pack Fútbol, whose subscribers grew 12%. Flow unique customers reached almost two million, up 14%. TMA also posted growth across all products. Mobile lines up 5% to around 20 million, broadband up close to 4%, and pay TV up more than 9%.
Turning to the evolution of revenue and ARPUs, service revenues grew around 19% in dollar terms, reaching above $1.7 billion. At Personal, service revenues remained broadly stable in real terms in the quarter, while ARPU growth in dollars was broad-based across our core services. At TMA, service revenues grew almost 1% in real terms year-over-year. It is worth noting that this performance includes an extraordinary impact from promotional credits, which represented approximately $26 million during the quarter.
Mobile ARPU increased more than 40% in dollars at Personal and around 24% at TMA. At Personal, broadband ARPU increased around 18% and pay TV ARPU around 25%, broadband ARPU reaching 12% growth in dollar terms versus 2025. As usual, it is important to clarify that Telecom does not participate in TMA's pricing strategy, which is defined independently.
Turning to profitability, we continue to see solid improvement, $640 million, up 37% year-over-year in dollar terms, and consolidated margin reached 36.1% compared to 31.3% a year ago. Both periods include one-off gains from copper sales linked to network decommissioning, which were larger in Q3 2025. Excluding them, margin expansion would have been even stronger.
Importantly, EBITDA has expanded consistently both year-over-year and sequentially throughout the year, reflecting increasing operating leverage across the business. At Telecom, excluding TMA, EBITDA margin reached above 42% versus roughly 35% in Q3 2025. At TMA, EBITDA margins stood at around 25%. Excluding the copper sale recorded in Q3 2025, TMA's margin would have expanded by around 2.8 percentage points year-over-year. This improvement is structural.
Telecom and TMA continue to right-size their operations and reduce labor costs, while the shift to digital self-service keeps reducing call centers and service costs. As profitability improves, we are also seeing a significant enhancement in cash generation. Equity free cash flow reached around $230 million in the quarter, compared to almost $120 million a year ago. Equity free cash flow conversion improved from 25%- 36% of the EBITDA.
This substantial improvement reflects not only stronger EBITDA generation, but also disciplined management of working capital, taxes, and capital allocation. The quarter's stronger equity free cash flow was largely supported by an extraordinary working capital benefit. Adjusting for this one-off effect, cash generation would have remained broadly consistent with the levels seen in recent quarters. Now, let me pass the call to Luis, who will continue with the presentation.
Thank you, Manuel. Importantly, the strong free cash flow growth discussed on the previous slide was not driven by lower CapEx intensity. We continue to invest heavily in our strategic infrastructure. During the quarter, CapEx reached around $350 million, close to 20% of revenues. Investments remain focused on two key priorities: the expansion of our 5G network and the acceleration of fiber deployment. We have increased our 5G footprint from approximately 600 sites to nearly 1,900 sites.
At the same time, FTTH penetration reached 40% of our broadband base and 56% including Movistar accesses. These investments strengthen our competitive position and provide the foundation for future revenue growth and service quality improvements. Turning to our financial position, Telecom maintains a strong balance sheet supported by a well-balanced debt structure and a prudent leverage. During these years, we completed several liability management initiatives that significantly improved our debt maturity profile.
As a result, Telecom now has a well-balanced debt structure with an average debt life of approximately 4.5 years. Net debt stood at $2.9 billion at quarter end, while net leverage improved to 1.2x EBITDA. Additionally, our average cost of debt remains steady and close to 8%. Taken together, these actions have eliminated any material refinancing risk, leaving us with a stronger and more flexible balance sheet.
Looking ahead, we are in the final stage of the divestiture process as we reached a divestment agreement with Metrotel for an aggregate multi-year package of $400 million, and we are progressing with all necessary operative processes to conclude the subscriber migration. This agreement represents an important milestone towards the potential future integration of the companies, subject to the relevant regulatory approvals. In this context, and subject to obtaining those approvals, we could bring forward certain efficiency initiatives.
These initiatives could have certain cost impact and consequently affect EBITDA and cash generation during the fourth quarter of 2026, with the objective of accelerating synergy capture and supporting improved performance during 2027. Overall, we believe this will unlock further value creation through future integration and the gradual realization of synergies. And with this, now we are more than pleased to answer any questions you may have. Q&A session will be open immediately. Thank you very much.