Millicom (Tigo) Q2 2024 Earnings Release
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.
Millicom (Tigo) ha riportato risultati solidi per il secondo trimestre del 2024, con un fatturato in crescita del 4,7% a 1,46 miliardi di dollari e un EBITDA aumentato del 23,1% a 634 milioni di dollari. L'utile operativo è balzato del 74,1% a 345 milioni di dollari, mentre il reddito netto ha raggiunto 78 milioni di dollari (0,46 dollari per azione). L'azienda ha generato 268 milioni di dollari di flusso di cassa libero da azioni e ha ridotto il leverage a 2,77x.
Il CEO Marcelo Benitez ha evidenziato gli sforzi di trasformazione dell'azienda, concentrandosi sull'aumento della generazione di flusso di cassa, sull'ottimizzazione delle operazioni e sul miglioramento della produttività. Millicom sta dando priorità alla crescita dell'ARPU nel Mobile, alla riduzione del churn nel settore Home e ad un'accelerazione della crescita B2B. L'azienda punta a superare 600 milioni di dollari di flusso di cassa libero da azioni nel 2024 e prevede di ridurre il leverage vicino a 2,5x entro la fine dell'anno.
Millicom (Tigo) reportó resultados sólidos para el segundo trimestre de 2024, con ingresos que aumentaron un 4,7% a 1,46 mil millones de dólares y EBITDA que creció un 23,1% a 634 millones de dólares. La utilidad operativa se disparó un 74,1% a 345 millones de dólares, mientras que el ingreso neto alcanzó 78 millones de dólares (0,46 dólares por acción). La compañía generó 268 millones de dólares en flujo de caja libre y redujo su apalancamiento a 2,77x.
El CEO Marcelo Benitez destacó los esfuerzos de transformación de la empresa, centrando su atención en aumentar la generación de flujo de caja, optimizar operaciones y mejorar la productividad. Millicom está priorizando el crecimiento del ARPU en móvil, reduciendo la pérdida de clientes en el hogar y acelerando el crecimiento B2B. La compañía tiene como objetivo un flujo de caja libre superior a 600 millones de dólares en 2024 y aspira a reducir el apalancamiento cerca de 2,5x para fin de año.
밀리콤 (티고)은 2024년 2분기에 강력한 실적을 보고했으며, 매출은 4.7% 증가한 14억 6천만 달러에 EBITDA는 23.1% 증가하여 6억 3천4백만 달러에 달했습니다. 운영 이익은 74.1% 증가하여 3억 4천5백만 달러에 이르렀고, 순이익은 7천8백만 달러 (주당 0.46 달러)에 도달했습니다. 회사는 2억 6천8백만 달러의 자본 자유 현금을 창출했으며 레버리지를 2.77배로 줄였습니다.
CEO 마르셀로 베니테스는 회사의 변혁 노력을 강조하며, 현금 흐름 생성 증가, 운영 최적화 및 생산성 향상을 중점적으로 추진하고 있습니다. 밀리콤은 모바일의 ARPU 성장, 홈의 이탈 고객 감소 및 B2B 성장 가속화에 우선 순위를 두고 있습니다. 회사는 2024년까지 자본 자유 현금 흐름을 6억 달러 이상으로 목표하고 있으며, 연말까지 레버리지를 2.5배로 낮추는 것을 목표로 하고 있습니다.
Millicom (Tigo) a annoncé de solides résultats pour le deuxième trimestre 2024, avec des revenus en hausse de 4,7 % à 1,46 milliard de dollars et un EBITDA en augmentation de 23,1 % à 634 millions de dollars. Le bénéfice d'exploitation a grimpé de 74,1 % pour atteindre 345 millions de dollars, tandis que le revenu net a atteint 78 millions de dollars (0,46 dollar par action). L'entreprise a généré 268 millions de dollars de flux de trésorerie libre et a réduit son endettement à 2,77x.
Le PDG Marcelo Benitez a souligné les efforts de transformation de l'entreprise, en mettant l'accent sur l'augmentation de la génération de flux de trésorerie, la rationalisation des opérations et l'amélioration de la productivité. Millicom accorde la priorité à la croissance ARPU dans le secteur mobile, à la réduction du taux de désabonnement dans le secteur domestique et à l'accélération de la croissance B2B. L'entreprise vise à atteindre un flux de trésorerie libre supérieur à 600 millions de dollars en 2024 et prévoit de réduire son endettement à environ 2,5x d'ici la fin de l'année.
Millicom (Tigo) hat starke Ergebnisse für das zweite Quartal 2024 berichtet, mit einem Umsatzanstieg von 4,7% auf 1,46 Milliarden Dollar und einem EBITDA-Anstieg um 23,1% auf 634 Millionen Dollar. Der Betriebsgewinn sprang um 74,1% auf 345 Millionen Dollar, während der Nettogewinn 78 Millionen Dollar (0,46 Dollar pro Aktie) erreichte. Das Unternehmen erzielte 268 Millionen Dollar an frei verfügbarem Cashflow und reduzierte den Verschuldungsgrad auf 2,77x.
CEO Marcelo Benitez hob die Transformationsanstrengungen des Unternehmens hervor, die darauf abzielen, die Generierung von Cashflow zu erhöhen, die Abläufe zu optimieren und die Produktivität zu steigern. Millicom priorisiert das Wachstum des ARPU im Mobilbereich, senkt die Kundenabwanderung im Wohnbereich und beschleunigt das B2B-Wachstum. Das Unternehmen strebt einen frei verfügbaren Cashflow von über 600 Millionen Dollar im Jahr 2024 an und plant, die Verschuldung bis Ende des Jahres nahe 2,5x zu reduzieren.
- 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
- Capex decreased by 26.3% to $134 million, potentially impacting future growth
Insights
Millicom's Q2 2024 results demonstrate a significant turnaround in the company's financial performance. The 74.1% increase in operating profit to
The most striking aspect of this report is the dramatic improvement in Equity Free Cash Flow (EFCF), which reached
Speaking of debt, the reduction in leverage to 2.77x is a positive sign, moving closer to the company's year-end target of 2.5x. This deleveraging should improve Millicom's financial flexibility and potentially lower its cost of capital.
The company's focus on ARPU growth in Mobile, reducing churn in Home and accelerating B2B growth suggests a strategic shift towards higher-value services and customer retention. If successful, this could lead to more sustainable revenue growth and improved margins in the long term.
However, investors should note that while the organic revenue growth of
Millicom's Q2 2024 results reflect a broader trend in the telecom industry towards operational efficiency and cash flow generation. The company's focus on streamlining product offerings and internal processes, as evidenced by the success of the Everest efficiency project, is a smart move in an increasingly competitive market.
The Colombia EBITDA margin of 39.5% is particularly impressive for a developing market. This suggests that Millicom has found a successful formula for balancing growth and profitability in its key markets. The planned tower sale in Colombia, while not reflected in these results, could further optimize the company's asset structure and provide additional financial flexibility.
The company's emphasis on "digital highways" aligns well with the global trend towards increased digitalization and connectivity. This positioning could be particularly advantageous in Millicom's Latin American markets, where there's still significant room for growth in digital services.
However, the 26.3% decrease in Capex to
The new CEO's focus on agility and efficiency is timely, as telecom operators globally are grappling with the need to be more nimble in response to changing market conditions and customer expectations. If Millicom can successfully execute this transformation, it could position itself as a leader among emerging market telecom operators.
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 , up4.7% - Operating profit
$345 million , up74.1% - EBITDA
$634 million , up23.1% - Colombia EBITDA margin39.5% - 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 | | | 2,945 | 2,762 | | |
| Operating Profit | 345 | 198 | | 669 | 388 | | ||
| Net Profit (Loss) | 78 | (22) | NM | 170 | (19) | NM | ||
| Non-IFRS measures (*) | ||||||||
| Service Revenue | 1,362 | 1,291 | | | 2,738 | 2,555 | | |
| EBITDA | 634 | 515 | | | 1,266 | 1,022 | | |
| Capex | 134 | 182 | (26.3)% | 247 | 367 | (32.7)% | ||
| Operating Cash Flow | 500 | 333 | | | 1,018 | 655 | | |
| 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
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
• 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.
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