Millicom International Cellular (TIGO) Q2 2024 earnings summary

Executive summary

• Revenue grew 4.7% year-over-year to $1.46 billion, with EBITDA up 23.1% to $634 million and equity free cash flow (EFCF) at $268 million, supporting deleveraging and operational efficiency.

• Net income reached $78 million ($0.46 per share), reversing a net loss of $22 million in Q2 2023.

• Leverage improved to 2.77x, down from 3.1x in Q1, with net debt reduced by $325 million to $5.65 billion.

• Strategic projects in Colombia and Costa Rica, efficiency programs, and CEO transition to Marcelo Benitez in June 2024.

Financial highlights

• Service revenue reached $1.36 billion, up 5.5% year-over-year; organic growth was 2.1% excluding FX and large B2B projects.

• Operating profit rose 74.1% to $345 million, with net profit at $78 million versus a $22 million loss in Q2 2023.

• CapEx for the quarter was $134 million, down 26.3% year-over-year; full-year CapEx expected below $700 million.

• EBITDA margin improved to 43.5%, the highest in 10 years.

Outlook and guidance

• EFCF target for 2024 raised to above $600 million, with leverage expected to approach 2.5x by year-end, excluding tower sale proceeds.

• CapEx expected to remain efficient and aligned with revenue growth in coming years.

• H2 priorities include achieving EFCF and leverage targets, executing strategic agenda, and preparing for a stronger 2025.