Millicom(US:TIGO)2025-08-08 20:21Financial Performance - Group revenue decreased by 6.8% ($199 million) year-on-year to $2,746 million in H1 2025, primarily due to weaker currencies in Bolivia, Colombia, and Paraguay[11]. - Net profit attributable to the owners of the Company was $869 million or $5.17 per share for H1 2025, compared to a net profit of $170 million or $0.99 per share in H1 2024[22]. - Revenue for the six months ended June 30, 2025, was $2,746 million, a decrease of 6.7% compared to $2,945 million for the same period in 2024[43]. - Operating profit increased to $780 million for the six months ended June 30, 2025, compared to $669 million in the same period of 2024, reflecting a growth of 16.6%[43]. - Net profit for the period reached $891 million, significantly up from $160 million in the prior year, marking a year-over-year increase of 455.6%[44]. - Earnings per share for the six months ended June 30, 2025, were $5.17 (basic) and $5.15 (diluted), compared to $0.99 for both in the same period of 2024[43]. - The total revenue for the six months ended June 30, 2025, was $3,067 million, down from $3,262 million in the same period of 2024, representing a decrease of approximately 6%[82]. - Q2 2025 revenue was $1.372 billion, a decrease of 5.9% year-over-year, primarily due to weaker foreign exchange rates[135]. - The company reported a net cash provided by operating activities of $794 million for the six months ended June 30, 2025, compared to $716 million in the same period of 2024[47]. Operating Expenses and Costs - Operating expenses decreased by 11.3% ($106 million) year-on-year to $838 million, attributed to weaker currencies and the completion of the cost reduction project "Everest"[14]. - Equipment, programming, and other direct costs decreased by 14.1% ($104 million) year-on-year to $631 million, mainly due to weaker currencies and lower costs related to government projects in Panama[12]. - Financial income (expenses), net decreased by $14 million year-on-year to $329 million, mainly due to lower debt levels and bank charges in Bolivia[18]. - Tax expense increased to $173 million in H1 2025 from $148 million in H1 2024, driven by higher profitability and the sale of infrastructure[21]. Cash Flow and Dividends - A special interim cash dividend of $2.50 per share was approved, to be distributed in two equal installments of $1.25 per share on October 15, 2025, and April 15, 2026[30]. - Cash and cash equivalents increased to $1,283 million as of June 30, 2025, compared to $699 million at the end of December 2024[45]. - Cash and cash equivalents at the end of the period increased to $1,283 million as of June 30, 2025, compared to $792 million in 2024, representing a 62% increase[48]. - Net cash used in financing activities was $(415) million for the six-month period ended June 30, 2025, compared to $(354) million in 2024, indicating a 17% increase in cash outflow[48]. - The cash flow from financing activities included $295 million in dividends paid to owners of the company, marking a significant cash outflow[48]. Acquisitions and Sales - Millicom entered into a definitive agreement to acquire Telefonica's controlling 67.5% equity stake in Coltel for $400 million, subject to regulatory approvals[60]. - The company announced a definitive agreement to acquire 100% of Telefónica Móviles del Uruguay S.A. for an enterprise value of $440 million, pending regulatory approvals[62]. - Millicom signed a definitive agreement to acquire Telefónica's telecommunications operations in Ecuador for $380 million, also subject to regulatory approvals[63]. - The company completed the sale of Lati Paraguay to Atis Group on June 3, 2025, as part of its strategy to optimize its asset portfolio[67]. - Completed closings have generated approximately $546 million in net proceeds and a receivable of $144 million, with a gain on sale of $604 million recognized from transactions with SBA and Atis[68]. Assets and Liabilities - Total assets as of June 30, 2025, amounted to $15,000 million, an increase from $13,737 million at the end of December 2024[45]. - Total equity attributable to owners of the Company decreased to $3,537 million from $3,628 million at the end of December 2024[46]. - Non-current liabilities rose to $8,315 million as of June 30, 2025, compared to $7,050 million at the end of December 2024[46]. - The total debt and financing as of June 30, 2025, amounted to USD 5,912 million, an increase from USD 5,815 million as of December 31, 2024[112]. - Total liabilities amounted to $11.502 billion, with total equity at $3.498 billion as of the end of Q2 2025[140]. Market and Economic Conditions - The Colombian peso and Paraguayan guarani depreciated by around 6% year-on-year, impacting the company's financial results[24]. - The company continues to prioritize price increases in markets affected by currency depreciation and inflation, particularly in Bolivia where inflation reached 24.0%[157]. - Millicom is navigating risks related to global economic conditions, competitive pressures, and regulatory changes that may impact future performance[172]. Customer and Service Metrics - Mobile business ended Q2 2025 with 41.8 million customers, a 2.8% year-on-year increase, with postpaid subscribers growing by 14.4%[158][160]. - In Colombia, service revenue grew 4.9% year-on-year to $339 million, driven by mobile and B2B growth[164]. - Mobile ARPU decreased to $6.0 in Q2 2025 from $6.4 in Q2 2024, while Home ARPU fell to $24.0 from $28.1 in the same period[189][191].