Millicom (TIGO) Q2 2024 earnings summary

Executive summary

• Revenue rose 4.7% year-over-year to $1.458 billion; EBITDA increased 23.1% to $634 million, and operating profit rose 74.1% to $345 million.

• Net income was $78 million, or $0.46 per share, versus a $22 million loss in Q2 2023.

• Equity free cash flow (EFCF) reached $268 million, up $292 million year-over-year; leverage improved to 2.77x.

• Organic EBITDA growth was nearly 20%, supported by Mobile and B2B performance and efficiency gains.

• Efficiency programs reduced centralized-function costs by 24% and headcount by 20%.

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.

• EBITDA included $23 million in restructuring and one-off costs.

• Net debt fell $325 million during the quarter to $5.65 billion.

• Q2 operating cash flow increased 50.2% year-over-year to $500 million.

• H1 revenue rose 6.6% to $2.945 billion; operating profit was $669 million versus $388 million, and net profit attributable to owners was $170 million versus a $19 million loss.

Outlook and guidance

• 2024 EFCF target raised to above $600 million; year-end leverage target is near 2.5x. Targets exclude proceeds from the Colombia tower sale and any future tower transactions.

• H2 priorities include meeting EFCF and leverage targets, advancing the strategic agenda, and preparing for a stronger 2025.

• CapEx was $134 million in Q2, down 26.3% year-over-year; full-year CapEx was expected below $700 million.