Andreas Johnsen

Andreas Johnsen asked about the planned restructuring costs for 2026 and requested an explanation for the strong sequential growth in mobile ARPU during the quarter, differentiating between FX and underlying factors. He also followed up for clarification on whether the ARPU growth discussed was sequential or year-on-year.

Answer

CFO Bart Vanhaeren stated that restructuring costs for Uruguay and Ecuador in 2025 were about $20 million, with 2026 focusing on Coltel, potentially involving a 'triple digit number.' CEO Marcelo Benitez explained that 50% of ARPU increase came from currency appreciation, and the other 50% from Prepaid to Postpaid migrations and 'more for more' Prepaid price increases. Bart Vanhaeren clarified that the ARPU growth mentioned was year-on-year, though sequential growth also occurred.

Andreas Johnson asked about the planned restructuring costs for 2026 and requested an explanation for the strong sequential growth in mobile ARPU during the quarter, differentiating between FX elements and underlying factors.

Answer

CFO Bart Vanhaeren stated that restructuring costs for Uruguay and Ecuador combined were about $20 million in 2025, primarily related to ERC restructuring. For 2026, he anticipates a 'triple digit number' for Coltel restructuring. CEO Marcelo Benitez explained that 50% of the ARPU increase came from positive currency appreciation, and the other 50% from prepaid-to-postpaid migrations (resulting in an approximate 50% ARPU uplift) and 'more for more' prepaid base management, where allowances are increased for a higher ticket price. He clarified that the growth discussed was year-on-year.