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Nortel Inversora S.A. Announces Consolidated Results for Fiscal Year Ended December 31, 2016

BUENOS AIRES, Argentina, March 8, 2017 /PRNewswire/ -- Nortel Inversora S.A. (NTL) Nortel Inversora S.A. ("Nortel" or the "Company") announces consolidated income of AR$ 3,987 million for the fiscal year ended December 31, 2016, of which AR$ 2,192 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

Dividends Payment

The Company´s Board,

(i) at its meeting held on August 9, 2016, pursuant to the powers granted by the Stockholders´ Meeting, decided to deduct an amount of AR$ 172 million from the "Voluntary Reserve for the Future Distribution of Dividends" and distribute such amount as cash dividends, which were made available to the shareholders as from August 30, 2016, of which AR$ 84 million were cash dividends for the Class "B" Preferred Shares and AR$ 88 million were cash dividends for the shares of common stock; and

(ii) at its meeting held on October 24, 2016, approved the distribution of AR$540 million as cash dividends in advance, subject to the ratification by the General Stockholders´ Meeting in which the annual Financial Statements shall be considered, of which AR$ 264 million were cash dividends in advance to the Class "B" Preferred Shares, and AR$ 276 million were cash dividends in advance to the shares of common stock. The dividends in advance were made available to the shareholders as from November 7, 2016.

Destination of Retained Earnings

In respect to the Retained Earnings, according to Section 27, Chapter II of Title II of the CNV Rules, (N.T. 2013), Shareholders´ Meetings of Companies that exhibit cumulative positive results in their annual financial statements not subject to restrictions for its distribution, should adopt an express resolution regarding its allocation to either one or a combination of the following: cash dividend distribution, share capitalization or creation of reserves, where it should be specifically foreseen in the Agenda of Shareholders Meeting that deals with the treatment of the distributable earnings.

In relation to these alternatives, the Board of Directors proposes to allocate the amount of the Retained Earnings of AR$ 1,652 million to the Voluntary Reserve for Future Dividends Payments.

Moreover, it is proposed that the Shareholders´ Meeting determines the amount to be withdrawn from the Voluntary Reserve for Future Dividends Payments and the opportunity and conditions for the cash dividend payment to Shareholders, notwithstanding the faculty of the Board of Directors to determine the payment of anticipated dividends in accordance to that contemplated in Section 224, second paragraph of the General Corporations Law.

NORTEL INVERSORA S.A.


FISCAL YEAR ENDING DECEMBER  31, 2016

(In millions of Argentine Pesos, except statistical and ratio data)


Consolidated Income Statement


2016


2015






Total sales and other income


53,322


40,539

Operating costs


(45,517)


(34,334)

Operating income


7,805


6,205

Financial results, net


(2,214)


(1,067)

Net income before income tax expenses


5,591


5,138

Income tax expense


(1,604)


(1,704)

Net income


3,987


3,434

Other comprehensive income, net of tax


263


257

Total comprehensive income for the period


4,250


3,691






 

Consolidated Balance Sheet


2016


2015






Current assets


15,620


11,569

Non-current assets


32,354


26,973

Total assets


47,974


38,542

Current liabilities


16,524


16,945

Non-current liabilities


11,527


3,944

Total liabilities


28,051


20,889

Equity attributable to Nortel


10,797


9,605

Equity attributable to non-controlling shareholders


9,126


8,048

Total equity


19,923


17,653

Total liabilities and equity


47,974


38,542











Ratios










Liquidity (a)





Indebtedness (b)










(a)     Current assets to current liabilities


0.95


0.68

(b)     Total liabilities to shareholders' equity


1.41


1.18

 

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

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