Millicom(TIGO)2025-05-08 20:31Revenue and Profitability - Revenue for Q1 2025 was $1,374 million, a decrease of 7.6% compared to $1,487 million in Q1 2024[7] - Operating profit increased to $423 million, up 30.6% from $324 million in the same period last year[7] - Net profit for the period was $219 million, significantly higher than $82 million in Q1 2024, representing a 167.1% increase[7] - Earnings per share (basic and diluted) rose to $1.14, compared to $0.54 and $0.53 in Q1 2024, respectively[7] - Total comprehensive income for the period was $212 million, up from $88 million in the previous year[9] - Service revenue for Q1 2025 reached $1,438 million, a 7.4% increase from $1,526 million in Q1 2024[44] - Adjusted EBITDA for Q1 2025 was $738 million, slightly down from $741 million in Q1 2024[48] - The Group's net profit for the period was $171 million, compared to $219 million in the same period last year[78] - Net profit attributable to owners of the company was $193 million, up 110.2% from $92 million in Q1 2024, including approximately $95 million in one-time gains[92] Cash Flow and Financial Position - Cash and cash equivalents decreased to $534 million from $699 million at the beginning of the year[14] - The company reported a cash flow from operating activities of $348 million, an increase from $240 million in Q1 2024[13] - Equity free cash flow (EFCF) was $135 million, a significant increase of $172 million compared to negative $37 million in Q1 2024[84][94] - The company targets 2025 EFCF of around $750 million and aims for year-end leverage below 2.5x[85] - Total assets as of March 31, 2025, were $13,662 million, slightly down from $13,737 million at the end of 2024[10] - Total liabilities increased to $10,309 million from $10,163 million at the end of 2024[11] - Total debt and financing as of March 31, 2025, was $5.772 billion, slightly down from $5.815 billion as of December 31, 2024[62] - Cash balance was $535 million, down $165 million from $699 million at the end of 2024[98] Shareholder Returns and Dividends - An interim dividend of $0.75 per share was approved, following a previous interim dividend of $1.00 per share paid on January 10, 2025[16] - The share repurchase program resulted in a cash outflow of $119 million during the quarter[14] - The company repurchased 4,216,397 shares for a total of $119 million during the three-month period ended March 31, 2025[16] - The company signed a binding agreement to sell Lati Paraguay to Atis Group and proposed an annual dividend of $3.00 per share[86] Capital Expenditures and Investments - Capital expenditures for Q1 2025 totaled $142 million, compared to $124 million in Q1 2024[46] - Millicom added property, plant, and equipment worth $113 million during the period, compared to $89 million in the same period last year[58] - Tigo Colombia's capital expenditures for the three-month period ended March 31, 2025, included $33 million in Guatemala and $40 million in Colombia[44] - Capital commitments as of March 31, 2025, amounted to $277 million, with $268 million due within one year[69] Market Performance and Customer Metrics - Customer net additions included 262,000 Postpaid Mobile and 62,000 Home FTTH/HFC[87] - The mobile business ended Q1 2025 with 41.6 million customers, reflecting a 2.3% year-on-year increase and net additions of 89,000 during the period[105] - Mobile ARPU declined by 5.2% year-on-year to $6.0, primarily due to weaker foreign exchange rates, despite positive ARPU growth in local currency terms in most countries[107] - Home ARPU also declined to $24.8 in Q1 2025 from $28.3 in Q1 2024, with home service revenue at $340 million[137] Strategic Initiatives and Acquisitions - Millicom entered into a definitive agreement to acquire Telefonica's 67.5% equity stake in Coltel for a purchase price of $400 million, subject to adjustments[29] - The company continues to focus on enhancing its service offerings and expanding its market presence through strategic initiatives and potential acquisitions[1] Financial Risks and Challenges - The adoption of amendments to IAS 21 resulted in a negative impact of $188 million on the financial statements for the three-month period ended March 31, 2025[25] - Tax risks exposure for the Group's subsidiaries was estimated at $296 million, with provisions of $46 million recorded[68] - The average foreign exchange rate for Bolivia showed a significant depreciation of 40.4% year-on-year, impacting revenue calculations[141]