Millicom(US:TIGO)2021-05-02 08:09Financial Data and Key Metrics Changes - Q1 2021 was a strong quarter with record net additions in both Cable and Mobile, surpassing pre-COVID levels across almost all KPIs [9][10][16] - Service revenue grew 2% organically in Q1, with March showing a growth of 5.6%, indicating strong revenue momentum [17][18] - EBITDA for LatAm reached $638 million, up $38 million year-on-year, with an EBITDA margin of 41.7%, the highest recorded [49] Business Line Data and Key Metrics Changes - The Cable business added 166,000 customers in Q1, a record high, with a total of almost 450,000 new Cable customers added during the pandemic [19][20] - Mobile business saw an addition of 1.1 million customers in Q1, marking the strongest Q1 in net adds in the past decade [26] - B2B segment is recovering, with a growth in SME customers, ending Q1 with 10,000 more SME customers than pre-COVID [35] Market Data and Key Metrics Changes - Every country in the region showed positive service revenue growth rates in Q1, with Guatemala and El Salvador posting particularly strong results [29][47] - Colombia's Home business grew more than 7.5%, the fastest growth rate in over five years, driven by strong network investments [47] - Bolivia is showing signs of recovery with strong net adds in both Mobile and Home segments, attributed to more rational pricing from state-owned Intel [90] Company Strategy and Development Direction - The company is focused solely on Latin America after selling its last operations in Africa, reallocating capital to strengthen its position in the region [8] - A network-centric strategy is emphasized, with continued investments in infrastructure to support long-term growth [37][110] - The company aims to deliver at least $1.4 billion in operating cash flow while maintaining flexibility for further investments [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the worst economic impacts of the pandemic are behind, with a stronger business performance than pre-COVID [40] - The outlook for growth is positive, with expectations for sustained revenue momentum in Q2 and beyond [66] - The company is prepared to invest more to capture growth opportunities as they arise [65] Other Important Information - The company has made significant investments in its networks, spending $1 billion on CapEx in 2020, which has contributed to its competitive advantage [38] - The company has improved its collection processes, resulting in lower bad debt charges, which are expected to continue [94][96] Q&A Session Summary Question: Outlook on service revenue growth targets - Management acknowledged a strong start to the year but emphasized a cautious approach to medium-term targets, focusing on sustainable long-term growth [61][68] Question: Impact of new competitor in Colombia - The new entrant's launch had limited impact on operations, with the company well-prepared to compete through its new network and marketing strategies [71][76] Question: Competitive updates in Paraguay and Bolivia - Paraguay is stabilizing with positive net adds, while Bolivia is showing improved performance due to rational pricing from competitors [84][90] Question: Impact of lower bad debt - The company reported a significant reduction in bad debt charges, attributed to improved collection processes and customer commitment [93][94] Question: Mobile Financial Services and M&A focus - The company is building its FinTech platform and is currently focused on organic growth rather than pursuing M&A opportunities [99][104] Question: Strategic endeavors for the next few years - The strategic focus remains on growing the core business, enhancing broadband demand, and building infrastructure and FinTech platforms [108][110]