Millicom(US:TIGO)2021-02-12 08:19Financial Data and Key Metrics Changes - The company reported a solid operating cash flow of $1.5 billion, exceeding the target of $1.4 billion, which reflects a strong recovery from the pandemic [12][25][33] - Service revenue and EBITDA were essentially flat year-on-year in Q4, indicating a significant recovery from the low point in Q2 [10][22] - The company reduced net debt by $0.5 billion during the year, demonstrating effective cash flow management [13][34] Business Line Data and Key Metrics Changes - In mobile, the company added a record 2.3 million users in Q4, with a total of 1.9 million users added for the full year, marking a 5% year-on-year increase [9][10] - Cable business saw strong growth with 277,000 new home customers added for the year, including 103,000 in Q4, indicating resilience during the pandemic [9][10] - The pay TV customer base grew at mid-single-digit rates, ending the year with 4.5 million customers [9] Market Data and Key Metrics Changes - Colombia experienced record net adds of over 875,000 mobile users in Q4, contributing to a total of 42 million mobile users in Latin America [9][10] - El Salvador showed a 9% year-on-year growth in Q4, while Guatemala reported a 6.6% increase, driven by strong mobile performance [28][29] - Panama faced economic challenges with a 20% GDP decline in 2020, but the consumer business remained resilient [52] Company Strategy and Development Direction - The company aims to continue its organic growth strategy, focusing on network-centric and convergence-driven services to enhance customer experience [37][38] - Investment in broadband infrastructure is prioritized, with plans to expand 4G coverage to nearly 80% of the population in key markets [44][39] - The company is committed to reducing net debt and investing in long-term growth rather than resuming dividends or buybacks [39] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2021, acknowledging ongoing uncertainties due to the pandemic and potential economic impacts [38][44] - The company plans to maintain a flexible and prudent management approach, similar to its successful strategy in 2020 [38][59] - There is a recognition of the growing demand for broadband services, which will drive future investments [39] Other Important Information - The company achieved significant improvements in customer satisfaction, with NPS scores increasing by 13% year-on-year [15] - The company launched initiatives to support communities during the pandemic, including lifeline services and educational programs [16][18] Q&A Session Summary Question: Outlook for 2021 and operating cash flow target - Management acknowledged the cautious tone due to uncertainties but emphasized a strong underlying business performance and the importance of maintaining investment flexibility [42][43] Question: Performance in Guatemala and Colombia - Management expressed confidence in continued growth in both markets, highlighting strong mobile net adds and improved network capabilities [47][49] Question: Macroeconomic impacts post-pandemic - Management noted that while GDP projections are optimistic, they remain cautious about the pace of recovery and consumer challenges [57][59] Question: El Salvador's performance and bad debt management - Management credited improved management and network investments for El Salvador's turnaround, while also indicating that bad debt levels are expected to normalize [63][67]