Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q3 2024 Earnings Presentation
25 slides from Millicom International Cellular's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation
Slide 2: Safe Harbor
Safe Harbor Cautionary Language Concerning Forward-Looking Statements Statements included herein that are not historical facts, including without limitation statements concerning future strategy, plans, objectives, expectations and intentions, projected financial results, liquidity, growth and prosp
Slide 3: Non-IFRS measures
Non-IFRS measures This presentation contains financial measures not prepared in accordance with IFRS. These measures are referred to as “non-IFRS” measures and include: non-IFRS service revenue, non-IFRS EBITDA, and non-IFRS Capex, among others defined below. Annual growth rates for these non-IFRS m
Slide 4: CEO Remarks
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Slide 5: Q3 Highlights
Q3 Highlights 1 Accelerated Customer Growth andSustained Robust EFCF Generation 299k 68k Postpaid Net Adds Home2 Net Adds Strongest Since Q4 2021 $271m Strongest Since Q3 2021 Equity Free Cash Flow Quarterly Record $585m 2.59x EBITDA Leverage +10% YoY (organic) -0.70x YTD 1) EFCF, EBITDA and Leverag
Slide 6: Postpaid Fueling Mobile Growth
Postpaid Fueling Mobile Growth Mobile service revenue Postpaid net adds surged in Q3 Postpaid base up double-digits US$ millions, YoY growth Postpaid net additions (thousands) Postpaid Mobile customers (millions) 788 299 7.8 759 214 6.9 199 192 178 +3.7% +13% +4.2% Q3 23 Q3 24 Q3 23 Q4 23 Q1 24 Q2 2
Slide 7: Home Improvement Continued in Q3
Home Improvement Continued in Q3 Strongest net adds since the pandemic Home customer base flat YoY Home HFC/FTTH customer net additions (thousands) Home HFC/FTTH customers (thousands) 3,947 68 3,934 3,868 3,866 3,855 11 -13 -79 -86 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Network
Slide 8: Digital Solutions and SMEs Driving B2B
Digital Solutions and SMEs Driving B2B Digital service revenue1 B2B service revenue LTM (US$ millions) and Q3 growth YoY LTM (US$ millions) and Q3 growth YoY 980 272 971 260 949 245 902 208 Panama 849 161 Projects +4.2% +25.8% +5.0% +27.0% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24
Slide 9: Colombia – Robust Customer Acquisition
Colombia – Robust Customer Acquisition Very strong Postpaid net adds… …sustaining Mobile Growth… …while Home growth recovers Mobile postpaid customers net additions (thousands) Mobile service revenue (COP $b) and Q3 2024 growth YoY HFC/FTTH Customer Net Additions (thousands) 180 40 136 133 128 -3 99
Slide 10: Guatemala – Sustained Improvement
Guatemala – Sustained Improvement Service Revenue1 EBITDA1 Local currency growth YoY Local currency growth YoY 4.0% 8.4% 8.7% 4 7.9% 3.0% 3 2.0% 2 1 52.1% 53.4% 54.0% 54.3% 55.1% 0 -1 -2 -1.5% -1.8% -3.0% -3 -2.3% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 EBITDA Margin Postpaid Mob
Slide 11: Panama – Continued Growth in Stable Market
Panama – Continued Growth in Stable Market Service Revenue EBITDA OCF Service revenue, last 12 months ($ millions) EBITDA1, last 12 months ($ millions) OCF1, last 12 months ($ millions) 717 339 248 708 331 235 698 216 315 197 193 669 296 296 639 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24
Slide 12: EFCF and Leverage Evolution
EFCF and Leverage Evolution Equity Free Cash Flow1 Leverage $ millions Net Debt / EBITDAaL 3.29x 271 3.10x 2.77x 2.59x 100 Q3 23 Q3 24 Q4 23 Q1 24 Q2 24 Q3 24 Delivering on our EFCF and Leverage commitments 1) EFCF and Leverage are non-IFRS measures. Please refer to the non-IFRS disclosures in this
Slide 13: Tower Monetization in Central America
Tower Monetization in Central America Long-Term Partnership with SBA Communications Agreement to sell Lati International S.A. to SBA Communications Corp. › Portfolio of more than 7,000 towers in Central America › Build-to-suit agreement for additional 2,500 towers over 7 years › Consideration $975 m
Slide 14: Q3 2024 Financial Review
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Slide 15: Financial Highlights
Financial Highlights 1 Service Revenue EBITDA EFCF % Organic2 growth YoY EBITDA ($m) and Q3 2024 growth YoY EFCF ($m) and Q3 2024 growth YoY 1,344 585 271 1,320 533 100 +1.8% +9.8% +$171m +2.4% +10.2% Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Reported Organic2 EBITDA margin 37.4% 40.9% EFCF $540m year-to-
Slide 16: Q3 2024 Service Revenue by Country
Q3 2024 Service Revenue by Country Service revenue1 ($m), and YoY growth Guatemala (26%2) Colombia (25%) Panama (13%) 331 350 333 331 170 160 +5.7% -0.6% +5.8% +4.0% +1.6% Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Bolivia (11%) Paraguay (10%) Others3 (16%) 151 152 138 212 214 133 +1.1% -3.7% +0.8% +1.1% Q
Slide 17: Q3 2024 EBITDA by Country
Q3 2024 EBITDA by Country EBITDA1 ($m), and YoY growth Guatemala (33%2) Colombia (20%) Panama (13%) 220 133 84 199 114 77 +10.4% +16.1% +10.1% +8.7% +18.8% Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 52.1% 55.1% 33.2% 39.0% 42.9% 47.4% Bolivia3 (10%) Paraguay (10%) Others4 (15%) 66 65 100 63 90 57 +3.2% +11
Slide 18: Equity Free Cash Flow and Leverage
Equity Free Cash Flow and Leverage1 $ millions 585 -245 51 Net Debt 5,650 5,405 2.77x 2.59x Leverage -125 -9 -54 Q2 Q3 -118 25 271 -83 +48 +78 +3 +18 +3 +19 -10 +11 +171 EBITDA Cash Capex Spectrum Working Taxes Paid Finance Lease Honduras EFCF Capital Charges Payments Repatriation Change YoY & Other
Slide 19: 2024 Financial Targets
2024 Financial Targets 1 1 Equity Free Cash Flow around $650 million Up from “more than $600 million” previously 2 Leverage near 2.5x at year-end (1) The 2024 Equity free cash flow target excludes approximately $41 million of net proceeds for the previously-announced tower sale in Colombia and taxes
Slide 20: Appendix
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Slide 21: Group Financial Highlights – Q3 2024
Group Financial Highlights – Q3 2024 Group Consolidated Financial Statements Selected P&L data Observations $ million Q3 2024 Q3 2023 % Var Revenue 1,431 1,424 0.5% •A Efficiencies driving costs and opex lower Equipment, programming and other (341) (363) 6.1% direct costs A Operating expenses (504)
Slide 22: Debt Maturity Schedule
Debt Maturity Schedule Q3 24 Average maturity 4.8 Years Average cost of debt 6.4% Comcel $744m 5.125% 15 Cable 31s 29s Telecel Onda $775m $616m $290m $557m 4.500% 6.250% 5.875% 4.500% 15 32s 28s $450m $360m 7.375% SEK 5.125% 26s 2.25bn $148m SOFR + 6.625% 3.496%1 October repayments 22 1) Fully swapp
Slide 23: Capital Structure
Capital Structure Debt profile** As of September 30, 2024 Fixed or Swapped Variable 82% 18% Local USD 40% 60% 5Y or more Less than 5Y 56% 44% Latam HQ 58% 42% HQ Bonds OpCos Bonds Banks & Others 34% 41% 25% *El Salvador's official unit of currency is the U.S. dollar, while Panama uses the U.S. dolla
Slide 24: Debt Summary
Debt Summary1 Honduras Guatemala: (not consolidated): Gross: $1,232m Gross: $376m Net: $1,183m Net: $339m Leverage: 1.48x Nicaragua: Leverage: 1.23x Gross: $141m Net: $134m Group: El Salvador: Leverage: 1.37x Gross: $6,172m Gross: $70m Net: $5,405m Net: $50m Leverage: 0.29x Colombia: Leverage: 2.59x
Slide 25: Millicom Tigo – The Digital Lifestyle
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