Millicom Q1 Revenue Up 8.6% to $1.2B on B2B Deals

TL;DR

Millicom's Q1 revenue hit $1.2B, up 8.6% thanks to big B2B deals in Panama and more subs.

AI Summary

Millicom International Cellular S.A. (Tigo) reported its Q1 2024 earnings on May 8, 2024. Revenue grew 8.6% to $1.2 billion, driven by an 8.8% increase in service revenue, with organic growth at 3.8%. This growth was boosted by significant B2B contracts in Panama and a rise in mobile data and fixed broadband subscriptions.

Why It Matters

The company's performance indicates successful execution of its B2B strategy and growth in core services, suggesting positive momentum for its operations in emerging markets.

Risk Assessment

Risk Level: medium — The filing shows revenue growth, but the reliance on specific B2B contracts and currency fluctuations introduces some level of risk.

Key Numbers

• $1.2 billion — Q1 2024 Revenue (Represents an 8.6% increase year-over-year.)
• 8.6% — Revenue Growth (Driven by service revenue and organic growth.)
• 3.8% — Organic Growth (An improvement from 3.2% in Q4 2023.)

Key Players & Entities

• Millicom International Cellular S.A. (company) — Registrant
• Tigo (company) — Brand name of Millicom
• May 8, 2024 (date) — Date of earnings release
• March 31, 2024 (date) — End of reporting period
• Panama (location) — Location of B2B contracts

FAQ

Key Financial Figures

• $30 million — grew 24.5% (20.0% organically) despite $30 million of restructuring costs incurred in the
• $18 million — ecord EBITDA margin of 36.5% despite an $18 million restructuring charge. Excluding this on
• $519 m — ing cash flow rose 53.0% organically to $519 million, reflecting both the robust EBITD
• $92 million — ompared to 2023. • Net income of $92 million in Q1 2024 was up strongly from $3 mill
• $3 million — million in Q1 2024 was up strongly from $3 million in Q1 2023, reflecting the significant
• $550 million — ur 2024 Equity Free Cash Flow target of $550 million. As recently-communicated, Millicom's
• $450 million — MIC SA completed the issuance of 7.375% $450 million Senior Notes due 2032. A portion of the
• $200 million — net proceeds was used to repay in full $200 million of certain bank loans with DNB. On Apr
• $40 million — issued a COP160 billion (approximately $40 million) three-year bond with a fixed interest
• $15 million — value repurchased during the month was $15 million of MICSAs 2028s and $25 million of the
• $25 million — nth was $15 million of MICSAs 2028s and $25 million of the Telecel 2027s. As part of the s
• $17 m — offerings. Operating expenses declined $17 million, or 3.4% year-on-year, as savings
• $247 m — eciation increased 1.3% year-on-year to $247 million, as the effect of the stronger Co
• $87 million — investment. Amortization was stable at $87 million. Share of profit in our Honduras joint
• $13 m — nduras joint venture increased 20.3% to $13 million, as improved operating performanc

Filing Documents

• dp210997_6k.htm (6-K) — 558KB
• image_001.jpg (GRAPHIC) — 29KB
• image_021.gif (GRAPHIC) — 0KB
• image_032.gif (GRAPHIC) — 0KB
• 0000950103-24-006466.txt ( ) — 600KB

Financial Statements for the three-month period ended March 31, 2024

Financial Statements for the three-month period ended March 31, 2024. Item 1 Earnings Release Q1 2024 Luxembourg, May 8, 2024 Millicom (Tigo) Q1 2024 Earnings Release Highlights* • Revenue grew 8.6% driven by Service revenue up 8.8%, due to stronger currencies and organic growth of 3.8%, up from 3.2% in Q4 attributable to large B2B contracts in Panama and a return to positive growth in Guatemala. • Operating profit increased 70.6%, reflecting the revenue increase and a 3.4% decline in operating expenses, while EBITDA grew 24.5% (20.0% organically) despite $30 million of restructuring costs incurred in the period. • Colombia EBITDA rose 50.3% (24.2% organically) with a record EBITDA margin of 36.5% despite an $18 million restructuring charge. Excluding this one-off, Colombia's EBITDA margin was 41.4%. • Operating cash flow rose 53.0% organically to $519 million, reflecting both the robust EBITDA growth and a 38.9% reduction in capex due mostly to slower phasing of investments in 2024 compared to 2023. • Net income of $92 million in Q1 2024 was up strongly from $3 million in Q1 2023, reflecting the significant increase in operating profit. • Leverage declined to 3.10x at the end of March 2024 from 3.29x at year-end 2023. Financial highlights ($ millions) Q1 2024 Q1 2023 % change Organic % Change Revenue 1,487 1,369 8.6% 3.8% Operating Profit 324 190 70.6% Net Profit 92 3 NM Non-IFRS measures (*) Service Revenue 1,376 1,264 8.8% 3.8% EBITDA 632 507 24.5% 20.0% Capex 113 185 (38.9)% Operating Cash Flow 519 322 61.0% 53.0% Equity Free Cash Flow 1 (133) NM *See page 10 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures. Millicom Chief Executive Officer Mauricio Ramos commented: "I am very pleased to report that 2024 is off to a good start, as the combination of key investments and strategic initiatives implem

Business

Business units We discuss our performance under two principal business units: 1. Mobile, including mobile data, mobile voice, and mobile financial services (MFS) to consumer, business and government customers; 2. Fixed services, including broadband, Pay TV, content, and fixed voice services for residential (Home) customers, as well as voice, data and value-added services and solutions to business and government customers. On occasion, we also discuss our performance by customer type, with B2B referring to our business and government customers, while B2C includes residential and personal consumer groups. Market environment The macroeconomic environment remained relatively stable during the period, with little movement in average foreign exchange rates, with the exception of the Costa Rica colón and Colombian peso, which both appreciated approximately 3% during the quarter, having appreciated approximately 10% and 22%, respectively, over the past year. Foreign exchange rates and movements are presented on page 13. Key Performance Indicators During Q1 2024, our mobile customer base increased by 16,000 to end at 40.7 million. Postpaid continued to perform very strongly with net additions of 214,000 in Q1, our strongest performance since seasonally-strong Q4 of 2022. In Colombia, we added 133,000 postpaid customers, as we continued to gain customers reflecting our superior network quality and value proposition. Mobile ARPU increased 8.6% year-on-year, with every country seeing positive ARPU growth in local currency terms. At the end of Q1 2024, our fixed networks passed 13.4 million homes, an increase of 52,000 during the quarter. HFC/ FTTH customer relationships declined 13,000 in Q1 2024. Many countries experienced positive customer net additions, while Colombia saw a significant improvement in churn and fewer customer losses during the quarter, even as we continued to prioritize pricing and investment discipline in that market. Home ARPU increased 9.5

View Full Filing

View this 6-K filing on SEC EDGAR