Millicom International Cellular (TIGO) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record equity free cash flow of $271 million, driven by restructuring, cost reduction, CapEx optimization, and strong customer growth, with nearly 300,000 postpaid and 68,000–70,000 home net adds, the highest since 2021.

• Strong operational performance across key markets, supported by network investments and commercial initiatives.

• Operating profit rose 43.1% year-over-year to $300 million, with net income positive for the third consecutive quarter.

Financial highlights

• Service revenue reached $1.344 billion, up 1.8% year-over-year (2.4% organic), with mobile service revenue up 3.7%–4.2%.

• EBITDA rose 9.8% year-over-year to $585 million, with margin improving to 40.9%.

• Equity free cash flow more than doubled year-over-year to $271 million in Q3.

• Net debt reduced by $245 million in the quarter, with leverage down to 2.59x from 2.77x in Q2.

• CapEx was $125–166 million, down year-over-year, reflecting efficiency and optimization.

Outlook and guidance

• 2024 equity free cash flow guidance raised to around $650 million, with Q4 expected to be the strongest quarter.

• Year-end leverage expected near 2.5x, excluding tower sale proceeds.

• CapEx for 2024 expected below $700 million, with similar revenue percentage planned for 2025.

• Restructuring charges expected to be significantly lower in Q4 compared to Q3.