Millicom (Tigo) Q2 2024 Earnings Release

Rhea-AI Summary

Millicom (Tigo) reported strong Q2 2024 results with revenue up 4.7% to $1.46 billion and EBITDA up 23.1% to $634 million. Operating profit surged 74.1% to $345 million, while net income reached $78 million ($0.46 per share). The company generated $268 million in equity free cash flow and reduced leverage to 2.77x.

CEO Marcelo Benitez highlighted the company's transformation efforts, focusing on increasing cash flow generation, streamlining operations, and enhancing productivity. Millicom is prioritizing ARPU growth in Mobile, reducing churn in Home, and accelerating B2B growth. The company targets equity-free cash flow above $600 million in 2024 and aims to reduce leverage to near 2.5x by year-end.

Positive

• Revenue increased 4.7% to $1.46 billion in Q2 2024
• EBITDA grew 23.1% to $634 million
• Operating profit surged 74.1% to $345 million
• Net income reached $78 million, compared to a loss in Q2 2023
• Equity free cash flow of $268 million, a significant improvement from Q2 2023
• Leverage reduced to 2.77x
• Colombia EBITDA margin improved to 39.5%
• Company on track to achieve 2024 targets

Negative

• Capex decreased by 26.3% to $134 million, potentially impacting future growth

Millicom (Tigo) Q2 2024 Earnings Release

Luxembourg, August 02, 2024 – Millicom is pleased to announce its second quarter 2024 results. Please find below links to the Q2 2024 Earnings Release and IAS 34 Interim Condensed Consolidated Financial Statements.

Q2 Highlights*

• Revenue $1.46 billion, up 4.7%
• Operating profit $345 million, up 74.1%  
• EBITDA $634 million, up 23.1% - Colombia EBITDA margin 39.5%
• Net income $78 million ($0.46 per share)
• Equity free cash flow $268 million
• Leverage 2.77x

Financial highlights ($ millions)	Q2 2024	Q2 2023	Change %	Organic Change %	H1 2024	H1 2023	Change %	Organic Change %
Revenue	1,458	1,393	4.7%	1.4%	2,945	2,762	6.6%	2.6%
Operating Profit	345	198	74.1%		669	388	72.4%
Net Profit (Loss)	78	(22)	NM		170	(19)	NM
Non-IFRS measures (*)
Service Revenue	1,362	1,291	5.5%	2.1%	2,738	2,555	7.1%	2.9%
EBITDA	634	515	23.1%	19.7%	1,266	1,022	23.8%	19.9%
Capex	134	182	(26.3)%		247	367	(32.7)%
Operating Cash Flow	500	333	50.2%	44.7%	1,018	655	55.5%	48.8%
Equity Free Cash Flow	268	(24)	NM		269	(157)	NM

*See page 10 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures.

Millicom Chief Executive Officer Marcelo Benitez commented:

"Millicom has undergone an important transformation aimed at significantly increasing the company's equity free cash flow generation. These efforts began to pay off in Q2, with EBITDA up almost 20% organically, EFCF of $268 million and leverage down significantly to 2.77x, putting the company on track to achieve its 2024 targets.

Meanwhile, we are streamlining our product offerings and internal processes, which is enhancing productivity and generating cost savings beyond the initial targets of the efficiency project Everest. Additionally, we are prioritizing ARPU growth in Mobile, reducing churn in Home, and accelerating growth in B2B. We are also making return-focused investments to sustain our market leadership and drive customer growth in the second half of 2024. All these actions are designed to ensure continued EFCF growth in 2025 and beyond, in line with our long-term plan.

As we wrap up my initial quarter as CEO, I want to express my gratitude to the entire Millicom team for their tremendous energy and dedication, even amid significant challenges and uncertainties. Together, we are transforming into a more agile and efficient platform to fulfill our mission of building digital highways that connect people, improve lives, and develop our communities.”

2024 Financial Targets

Millicom targets equity-free cash flow above $600 million in 2024, excluding proceeds for the previously-announced tower sale in Colombia. Millicom also targets leverage to near 2.5x at year-end 2024. Excluded from both targets are cash proceeds and related taxes stemming from any potential future tower transaction.

• Q2 2024 Earnings Release

• IAS 34 Interim Condensed Consolidated Financial Statements

Millicom is planning to host a video conference for the global financial community on August 2, 2024, at 14:00 (Stockholm) / 13:00 (London) / 08:00 (Miami).

Registration for the interactive event is required at the following link. After registering, you will receive a confirmation email containing details about joining the video conference. Participants who wish to ask a question during the live event must notify the Investor Relations team via email to investors@millicom.com after the start of the event.

Participants may also join the conference in listen-only mode by dialing any of the following numbers and entering the Webinar ID: 886 2640 8960:
US: +1 929 205 6099                                                   Sweden: +46 850 539 728
UK: +44 330 088 5830                                                Luxembourg: +352 342 080 9265

Additional international numbers are available at the following link. Accompanying slides and a replay of the event will be available on the Millicom investors website.
For further information, please contact:

Press: Sofía Corral, Communications Director press@millicom.com

Investors: Michel Morin, VP Investor Relations investors@millicom.com

About Millicom

Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of June 30, 2024, Millicom, including its Honduras Joint Venture, employed approximately 15,000 people and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint about 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.

Regulatory Statement

This information was prior to this release inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on August 2, 2024.

 

Attachments

• Millicom - Earnings Release - Q2 2024
• Millicom - IAS34 - Q2 2024

FAQ

What was Millicom's (TIGO) revenue in Q2 2024?

Millicom (TIGO) reported revenue of $1.46 billion in Q2 2024, representing a 4.7% increase compared to the same period last year.

How much did Millicom's (TIGO) EBITDA grow in Q2 2024?

Millicom's (TIGO) EBITDA grew by 23.1% to $634 million in Q2 2024 compared to Q2 2023.

What is Millicom's (TIGO) equity free cash flow target for 2024?

Millicom (TIGO) targets equity-free cash flow above $600 million in 2024, excluding proceeds from the previously-announced tower sale in Colombia.

What was Millicom's (TIGO) net income in Q2 2024?

Millicom (TIGO) reported a net income of $78 million ($0.46 per share) in Q2 2024, compared to a net loss in Q2 2023.

What is Millicom's (TIGO) leverage target for the end of 2024?

Millicom (TIGO) targets to reduce its leverage to near 2.5x by year-end 2024.