Millicom(TIGO) - 2024 Q4 - Annual Report

Financial Performance - Operating Profit for 2024 increased by 62.5% to $1.34 billion, with Net Income attributable to owners reaching$253 million ($1.47 per share), a significant recovery from a net loss of$82 million in 2023[38]. - Net Cash Provided by Operating Activities totaled $1.60 billion, leading to a record Equity Free Cash Flow of$777 million, enabling debt reduction and bringing leverage within target range[38]. - The company experienced net foreign exchange losses of $43 million in fiscal year 2024, compared to net foreign exchange gains of$31 million in fiscal year 2023[164]. - As of December 31, 2024, the company's consolidated indebtedness excluding lease liabilities was $5,815 million, with total indebtedness including lease liabilities amounting to$6,769 million[193]. - The company funded acquisitions in Panama and Nicaragua primarily through additional indebtedness, including a $750 million bond issued in March 2019 and a$600 million bond issued in November 2019[195]. Cost Management - Employee-related cost reductions achieved approximately 15% savings through a 27% average headcount reduction over the past two years[40]. - Operational expenses were reduced by approximately 21% on programming, 18% on information technology, and 18% on external services through renegotiated supplier contracts[40]. - Capital investment decreased by 30% over the past two years while improving customer broadband speeds and reducing churn[40]. - The company is committed to achieving operational goals and strategic plans, including cost-reduction projects and cash flow growth[61]. Strategic Acquisitions and Partnerships - Millicom signed a definitive agreement to acquire Telefónica's controlling 67.5% equity interest in Coltel, aiming to enhance its telecom capabilities in Colombia[40]. - A binding agreement was signed with Liberty Latin America to merge operations in Costa Rica, facilitating accelerated deployment of FTTH and 5G networks[43]. - The company entered into a definitive agreement to acquire 67.5% of Telefónica Colombia for approximately $1 billion, with plans to acquire the remaining 32.5$16.2 million ruling against its business related to taxes on incoming international calls and interest expense deductibility in 2010[169]. - The company is subject to various national and local laws, and any significant changes could adversely impact its business and financial condition[156]. Future Outlook and Strategy - The company has established a clear strategy and set ambitious targets for 2025, focusing on execution and long-term value creation[50]. - The company is exploring acquisition opportunities to enhance its market position and operational efficiency[61]. - The company’s cash flow generation is highly dependent on the performance of its subsidiaries and joint ventures, particularly in emerging markets[213][215]. - The company may need to resort to additional external financing if it cannot generate sufficient cash flow[215].