Q2 2024 Millicom International Cellular SA Earnings Call Transcript
Key Points
- Millicom International Cellular SA (TIGO) reported a significant increase in equity free cash flow, reaching $268 million, which was used to reduce net debt.
- The company achieved organic EBITDA growth of almost 20%, driven by growth in mobile and B2B business and significant efficiencies.
- Mobile service revenue grew 5% in Q2, marking an acceleration from the previous year's growth.
- The B2B segment showed strong performance with a 6% organic growth in service revenue, supported by a 30% growth in digital solutions.
- Millicom's efficiency programs have led to a reduction in employee costs by 15% and a significant decrease in spending on external services and programming.
- The company faces intense competitive pressure in Guatemala, although there is some market stability.
- Colombia's home business experienced a double-digit decline, offsetting mobile growth.
- There is uncertainty surrounding the potential acquisition of Telefónica Colombia, with a lengthy process ahead.
- Millicom's CapEx for 2024 is expected to be significantly lower than in 2023, which may impact future growth opportunities.
- The company is no longer able to access sufficient US dollars in Bolivia, affecting its ability to pay international vendors.
Hello everyone and welcome to our second quarter 2024 results call. This event is being recorded. Our speakers today will be our CEO, Marcelo Benitez; our COO, Maxime Lombardini; and our CFO, Bart Vanhaeren. The slides for today's presentation are available on our website, along with the earnings release and our financial statements.
Now please turn to slide 2 for the Safe Harbor disclosure. We will be making forward-looking statements which involve risks and uncertainties, and these could have a material impact on our results.
On slide 3, we defined the non-IFRS metrics that we will be referencing today throughout the presentation, and you can find reconciliation tables in the back of our earnings release, as well as on our website. With those disclaimers out of the way, let me turn the call over to our CEO, Marcelo Benitez. Marcelo?
Thanks, Michel. And hello, everyone. Thanks for
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