Millicom International Cellular S.a. · NASDAQ:TIGO
Millicom International Cellular — Q2 2024 Earnings Presentation
28 slides from Millicom International Cellular's earnings presentation, Aug 2, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 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 & COO Remarks
CEO & COO Remarks
Slide 5: Q2 Highlights
Q2 Highlights 1 Strong financial results driven by operational efficiencies and growth in Mobile and B2B Equity Free Cash Flow $268 million EBITDA Leverage +20% 2.77x year-on-year (organic) -0.51x YTD Growth Strategic Efficiencies Mobile & B2B Projects 1) EFCF, EBITDA and Leverage are non-IFRS measu
Slide 6: Mobile Momentum Continues
Mobile Momentum Continues 1 Postpaid subscriber growth… …driving mobile service revenue1 (millions) Mobile service revenue ($ million), % growth YoY1 792 7.5 787 +12% 7.3 774 7.1 759 6.9 6.7 738 +7.3% +4.7% Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Reported Organic Key Drivers Netw
Slide 7: Home Foundation Stronger
Home Foundation Stronger Key levers… … driving return to positive net additions (HFC & FTTH Customer Relationships, Net Additions, 000s) Network Investment 11 Churn -13 Speed Upgrades -0.6 p.p. YoY 2-year low -79 Commercial -86 Initiatives -91 TARGET Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Fixed-Mobile Conver
Slide 8: B2B Nearing Billion Dollar Target
B2B Nearing Billion Dollar Target 1 Digital service revenue B2B service revenue (LTM, $ millions , and Q2 growth YoY) (LTM, $ millions, and Q2 growth YoY) 260 971 245 949 208 902 849 Panama 834 154 161 Projects +36.3% +10.1% +30.1% +5.9% Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Re
Slide 9: Colombia – Record EBITDA Margin
Colombia – Record EBITDA Margin1 Sustaining Mobile Growth Home stabilizing EBITDA Margin1 Mobile service revenue (COP$b) and Q2 2024 growth YoY HFC/FTTH Customer Net Additions (000) % 39.5 -3 36.5 36.0 -21 33.2 -57 29.1 +25% -73 +9% -87 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 10: Guatemala – Sustained Improvement
Guatemala – Sustained Improvement1 Service Revenue EBITDA Local currency growth YoY Local currency growth YoY1 3.0% 7.9% 8.4% 3.0 2.5 2.0% 2.0 1.5 1.0 0.5 0.0 -1.8% -0.5 -3.0% -1.0 -1.5 -1.6% -1.5% -7.7% -2.0 -2.5 -2.3% Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 ✓ Postpaid growth ✓
Slide 11: Panama – Solid Mobile and OCF Growth
Panama – Solid Mobile and OCF Growth Mobile Acceleration OCF Mobile service revenue ($ millions), YoY % growth OCF1 ($ millions), YoY % growth 78 74 72 70 72 69 69 53 Everest 50 severance 40 +14% +37% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 YoY % growth ✓ Cust
Slide 12: A more efficient company
Efficiency Focus 1 Central Functions Decentralized activities to accelerate decision-making and lower cost 2 Employee Cost Significantly reduced headcount in every geography and at all levels 3 External Services In-sourced or renegotiated contracts 4 Programming Streamlined channel offering and rene
Slide 13: Leverage Improving Rapidly
EFCF and Leverage Evolution Equity Free Cash Flow1 Leverage $ millions Net Debt / EBITDAaL 3.29x +268 3.10x 2.77x -24 Q4 23 Q1 24 Q2 24 Q2 2023 Q2 2024 Leverage Improving Rapidly 1) EFCF and Leverage are non-IFRS measures. Please refer to the non-IFRS disclosures in this presentation for a descripti
Slide 14: Q2 2024 Financial Review
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Slide 15: Financial Highlights
Financial Highlights 1 Service Revenue EBITDA EFCF % Organic2 growth YoY EBITDA ($m) and Q2 2024 growth YoY EFCF ($m) and Q2 2024 growth YoY 1,362 634 268 1,291 515 +5.5% +23.1% +$292m +2.1% +19.7% Q2 23 Q2 24 -24 Q2 23 Q2 24 Reported Organic2 Q2 23 Q2 24 › Mobile ARPU › Service revenue growth › Ope
Slide 16: Q2 2024 Service Revenue by Country
Q2 2024 Service Revenue by Country Service revenue1 ($m), and YoY growth Guatemala (25%2) Colombia (25%) Panama (13%) 335 348 347 171 302 161 +3.7% +15.1% +6.3% +3.0% +0.2% Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Bolivia (11%) Paraguay (10%) Others3 (16%) 150 150 137 212 217 134 +0.4% -1.7% +2.2% +1.8%
Slide 17: Q2 2024 EBITDA by Country
Q2 2024 EBITDA by Country EBITDA1 ($m), and YoY growth Guatemala (32%2) Colombia (21%) Panama (13%) 217 141 90 199 91 73 +9.1% +54.6% +22.6% +8.4% +34.0% Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 50.6% 54.3% 29.1% 39.5% 43.1% 47.8% Bolivia (9%) Paraguay (10%) Others3 (14%) 64 67 97 59 85 62 +9.2% +14.0% +
Slide 18: Q2 2024 Equity Free Cash Flow
Q2 2024 Equity Free Cash Flow1 $ millions 634 -325 Net Debt 5,975 5,650 60 3.10x 2.77x Leverage -154 -22 Q1 Q2 -82 -105 26 268 -90 42% Conversion Rate +119 +70 +26 +85 +1 -4 -17 +13 +292 EBITDA Cash Capex Spectrum Working Taxes Paid Finance Lease Honduras EFCF Capital Charges Payments Repatriation C
Slide 19: 2024 Financial Targets
2024 Financial Targets 1 1 Equity Free Cash Flow above $600 million in 2024 ✓ 2 Leverage near 2.5x at year-end 2024 ✓ (1) The 2024 Equity free cash flow target excludes proceeds for the previously-announced tower sale in Colombia, and both targets exclude cash proceeds and related taxes stemming fro
Slide 20: Strategic Project Update
Strategic Project Update Transactions in progress to further enhance returns 1. Colombia 2. Costa Rica Millicom and Liberty Latin America to combine operations in Costa Rica Millicom to acquire Telefonica's 67.5% equity › Would create #1 fixed-mobile convergent telco in Costa Rica stake in Coltel fo
Slide 21: Wrap up
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Slide 22: H2 Priorities
H2 Priorities 1 Achieve 2024 EFCF and leverage targets 2 Execute on our strategic agenda Prepare for a stronger 2025 3 22
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Slide 24: Group Financial Highlights – Q2 2024
Group Financial Highlights – Q2 2024 Group Consolidated Financial Statements Selected P&L data Key Observations $ millions (except EPS in $ per share) Q2 2024 Q2 2023 % Var Revenue 1,458 1,393 4.7% • Operating profit up 74%, as Revenue and most cost A Equipment, programming and other direct costs (3
Slide 25: Debt Maturity Schedule
Debt Maturity Schedule Q2 24 Average maturity 4.7 Years Average cost of debt 6.4% Comcel $744m 5.125% Telecel $442m 5.875% Cable 31s 29s Onda $775m $630m $557m 4.500% 6.250% 4.500% 32s 28s $450m $379m 7.375% SEK 5.125% 26s 2.25bn $148m SOFR + 6.625% 3.496%1 25 1) Fully swapped currency
Slide 26: Capital Structure
Capital Structure Debt profile** As of June 30, 2024 Fixed or Swapped Variable 82% 18% Local Other 39% 61% 5Y or more Less than 5Y 54% 46% Latam HQ 59% 41% HQ Bonds OpCos Bonds Banks & Others 33% 42% 25% *El Salvador's official unit of currency is the U.S. dollar, while Panama uses the U.S. dollar a
Slide 27: Net Debt by country
1 Net Debt by country Honduras Guatemala: (not consolidated): Gross: $1,281m Gross: $358m Net: $1,183m Net: $337m Leverage: 1.52x Nicaragua: Leverage: 1.27x Gross: $148m Net: $139m Group: El Salvador: Leverage: 1.46x Gross: $6,391m Gross: $74m Net: $5,650m Net: $48m Leverage: 0.29x Colombia: Leverag
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