Nortel Inversora S.A. Announces Consolidated Second Quarter Results for the Fiscal Year Ending December 31, 2010

^{Published on 2010-08-10 17:00:31 - Market Wire}
 

Nortel Inversora S.A. Announces Consolidated Second Quarter Results for the Fiscal Year... -- BUENOS AIRES, Argentina, Aug. 10 /PRNewswire-FirstCall/ --

BUENOS AIRES, Argentina, Aug. 10 /PRNewswire-FirstCall/ -- Nortel Inversora S.A. (NYSE: NTL), 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. 469 million for the second quarter of fiscal year 2010.

Nortel's consolidated financial results for the second quarter of fiscal year 2010 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.

Relevant matters

Summary of the resolutions passed by the Annual and Extraordinary and Special Class A Preferred Stockholders' Meeting held on April 30, 2010.

On April 30, 2010, Nortel held its Annual and Extraordinary and Special Class A Preferred Stockholders' Meeting. Among other points, the Shareholders' Meetings approved:

• Fiscal years 2008 and 2009 Annual Reports and Financial Statements.
• The proposal to carry forward all non-appropriated profit amounts as of December 2009, due to the Company's lack of liquidity.
• The designation of Price Waterhouse & Co. as independent accountants of the Company.

Dividends

At Telecom's ordinary and extraordinary shareholders' meeting held on April 28, 2010, the shareholders approved a cash dividend distribution in the amount of Ps. 1,053 million, payable in two installments, the first one of which was paid on May 5, 2010, in an amount of Ps. 689 million (of which Ps. 377 million was received by Nortel) and the second of which is scheduled to be paid on December 20, 2010, in an amount of Ps. 364 million (of which Ps. 200 million are scheduled to be received by Nortel).

(*) 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.

SOURCE Nortel Inversora S.A.