Millicom International Cellular (TIGO) Q4 2024 earnings summary

Executive summary

• Achieved record equity-free cash flow of $728 million for 2024 (excluding disposals), surpassing the $650 million target and reducing leverage to 2.42x, driven by efficiency programs and margin expansion.

• Net income for FY 2024 was $253 million ($1.47/share), reversing a prior-year loss, with operating profit up 62.5% to $1.34 billion.

• Strong customer growth: 965,000 postpaid net adds and 115,000 home net adds for 2024, with record OCF margin of 30.9%.

• Strategic initiatives advanced, including M&A in Colombia and Costa Rica, and tower sale process.

• Restructuring program completed, enabling reinstatement of shareholder remuneration and new dividend policy.

Financial highlights

• FY 2024 revenue grew 2.5% year-over-year to $5.80 billion; Q4 service revenue was $1.34 billion, down 2.9% year-over-year.

• Q4 EBITDA was $618 million, up 11% year-over-year; full-year EBITDA was $2.47 billion, up 16.9%.

• Q4 equity-free cash flow was $236 million, up from $39 million in Q4 2023.

• Full-year CapEx booked at $677 million; Q4 CapEx was $264 million.

• Net income for FY 2024 was $253 million, with EPS of $1.47.

Outlook and guidance

• 2025 EFCF target set at around $750 million and year-end leverage below 2.5x.

• Expect continued growth in mobile, Home, and B2B segments, with Home returning to positive growth by Q2 2025.

• CapEx expected to remain stable, with no significant margin pressure anticipated.

• Dividend policy resumed, with $0.75 per share quarterly and ongoing $150 million share buyback; new annual dividend policy of $3.00/share proposed.

• Priorities include sustaining EFCF, advancing initiatives in Costa Rica and Colombia, and completing tower divestment.