Millicom(TIGO)2024-08-02 17:25Financial Data and Key Metrics Changes - Equity free cash flow reached 24 million in Q2 2023 [18][26] - Service revenue increased by 5.5% year-on-year to 634 million, driven by service revenue growth and cost savings from efficiency projects [16][17] Business Line Data and Key Metrics Changes - Mobile service revenue grew by 5% in Q2, an acceleration from just over 2% growth in 2023, driven by network enhancements and customer migrations [4][5] - B2B service revenue grew almost 6% organically, with digital solutions growing 30% in Q2 [7] - Home business focused on profitability, leading to strong ARPU improvement and a reduction in churn by 60 basis points [6] Market Data and Key Metrics Changes - Colombia's EBITDA margin reached a record 39.5%, with significant cost reductions and improved profitability in the home business [8][21] - Guatemala's service revenue grew 3%, up from 2% in Q1, reflecting a more rational competitive environment [9][19] - Panama's mobile service revenue accelerated to 14%, attributed to market consolidation and cost savings [10][20] Company Strategy and Development Direction - The company is focused on executing strategic projects in Colombia and Costa Rica to enhance equity free cash flow and market position [28][32] - Plans to acquire Telefonica's stake in Coltel and merge operations in Costa Rica to create a leading fixed-mobile operator [28][29] - Emphasis on efficiency improvements and return-focused investments to sustain growth and profitability [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining and growing equity free cash flow beyond 2024, despite potential risks [27][32] - The company is optimistic about the improving competitive dynamics in Guatemala and the potential for further growth in Colombia [9][21] - Management highlighted the importance of network quality and customer experience in driving future growth [40][44] Other Important Information - The company expects full-year CapEx for 2024 to be below 100 million compared to 2023 [18][27] - The leverage ratio improved to 2.77 times, down from 3.1 times in Q1 2024, reflecting effective debt reduction strategies [26] Q&A Session Summary Question: Long-term plan improvements and ambitions in Colombia - Management indicated that operational and efficiency initiatives are expected to yield sustainable benefits in the coming years, with a focus on strengthening networks and capturing data growth [34][36][38] Question: CapEx guidance and focus areas - Management acknowledged the shift in CapEx focus towards efficiency and network upgrades, with a commitment to maintaining a balance between investment and returns [39][42][44] Question: Dependency within Colombia transaction offers - Management clarified that the merger of entities is a prerequisite for the transaction, with all parties needing to agree for synergies to be realized [45][47] Question: Additional efficiency measures - Management highlighted ongoing efforts to reduce employee costs and optimize contracts, with a focus on improving both operational efficiency and top-line growth [49][50] Question: Competition response in Guatemala - Management noted a more rational market in Guatemala, with expectations of improved commercial dynamics and customer retention despite some subscriber losses [56][57]