Telecom Argentina’s Subsidiary Pays Significant Tax Due to Recent Acquisition

Telecom Argentina ( (TEO) ) just unveiled an announcement.

On May 15, 2025, Telecom Argentina’s subsidiary Telefónica Móviles Argentina S.A. (TMA) made a significant tax payment of ARS $83,070,480,057 to the Argentine tax authorities. This payment was necessary due to the acquisition of TMA by Telecom Argentina on February 24, 2025, which occurred before the completion of a two-year period required for a tax-free merger under Argentine law. The merger between TMA and Telefónica Argentina S.A. (TASA), effective January 1, 2024, was part of a tax-free corporate reorganization. However, since the acquisition took place before the two-year condition was met, TMA was required to pay the taxes by May 25, 2025, impacting the company’s financial obligations.

The most recent analyst rating on (TEO) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Telecom Argentina stock, see the TEO Stock Forecast page.

Spark’s Take on TEO Stock

According to Spark, TipRanks’ AI Analyst, TEO is a Neutral.

Telecom Argentina’s stock is moderately attractive, bolstered by its strong valuation and steady cash flows. The company exhibits robust revenue growth and asset management, but faces challenges with profitability and technical momentum. Improving operational efficiency and profitability will be key to enhancing its stock performance.

To see Spark’s full report on TEO stock, click here.

More about Telecom Argentina

Telecom Argentina S.A. operates in the telecommunications industry, providing a range of services including mobile and fixed telephony, data transmission, and internet services. The company primarily focuses on the Argentine market, where it serves as a key player in the telecommunications sector.

Average Trading Volume: 208,537

Technical Sentiment Signal: Strong Buy

Current Market Cap: $4.86B

For a thorough assessment of TEO stock, go to TipRanks’ Stock Analysis page.