BUENOS AIRES, Argentina, Aug. 10 /PRNewswire-FirstCall/ -- Nortel Inversora S.A. , whose sole substantial activity is owning 54.741682% of the stock of Telecom Argentina S.A. ("Telecom") and whose sole substantial source of cash income is cash dividends and other distributions paid on such stock, today announced consolidated net income of Ps. 52 million for the first half of fiscal year 2006.
Nortel's consolidated financial results for the second quarter of fiscal 2006 are substantially identical to Telecom's results for the same period, after accounting for minority interest and financial income and expenses at the holding company level.
Summary of the resolutions passed by the General Ordinary Shareholders Meeting, and the Class A and B Preferred Stockholders Special Meeting held on April 27, 2006.
On April 27, 2006, Nortel held its General Ordinary Shareholders Meeting and Class A and B Preferred Stockholders Special Meeting. Among other points, the Shareholders Meetings approved:
-- Fiscal year 2005 Annual Report and Financial Statements.
-- The Board's proposal that the negative Unappropiated Retained Earnings
of Fiscal Year 2005 be allocated to Fiscal Year 2006.
-- The election of regular and alternate Board members and the election of
regular and alternate members of the Supervisory Committee (for the
18th fiscal year).
-- The auditing Committee's budget for Fiscal Year 2006.
-- The designation of Price Waterhouse & Co. as external auditors of
the Company.
FINANCIAL TABLES BELOW
NORTEL INVERSORA S.A.
FIRST SIX MONTHS, FISCAL YEAR ENDING DECEMBER 31, 2006
(In millions of Argentine pesos, except statistical
and ratio data)
Consolidated Balance Sheet (*)
2006 2005
Current assets 1.509 1.550
Non-current assets 6.871 7.015
Total assets 8.380 8.565
Current liabilities 2.587 2.208
Non-current liabilities 3.765 4.443
Total liabilities 6.352 6.651
Minority interests 945 886
Total shareholders' equity 1.083 1.028
Total liabilities and
shareholders' equity 8.380 8.565
(*) As a consequence of the application of the new rules, the comparative
information for the intermediate periods of the Annual Financial
Statements should be the one corresponding to the last complete
fiscal year. The comparative information of the Income Statement,
evolution of Shareholders' Equity and Cash Flow Statements should be
the one corresponding to the equivalent period of the previous
fiscal year.
Consolidated Income Statement
2006 2005
Net revenues 3.357 2.585
Cost of services provided
administrative and
selling expenses (2.939) (2.364)
Operating Profit 418 221
Equity gain from
related companies 6 7
Financial results, net (296) 299
Other,net (87) (50)
Gain on repurchase of debt -- (15)
Income tax 66 (3)
Minority interest (55) (210)
Net Income 52 249
Ratios
2006 2005
Liquidity (a) 0.58 0.70
Indebtedness (b) 3.13 3.47
(a) Current Assets to current liabilities
(b) Total liabilities to shareholders' equity plus third party interests.
Contact:
Jose Gustavo Pozzi
General Manager
Nortel Inversora S.A.
+011-54-11-4-968-3630
