Millicom (Tigo) Q4 2023 Earnings Release
Millicom (Tigo) Q4 2023 Earnings Release
Luxembourg, February 27, 2024 – Millicom is pleased to announce its fourth quarter 2023 results. Please find below links to the Q4 2023 Earnings Release and IAS 34 Interim Condensed Consolidated Financial Statements.
Highlights*
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Revenue grew 6.8% driven by Service revenue up 7.7%, reflecting the effect of stronger currencies and organic growth of 3.2%, up from 1.8% in Q3 thanks mostly to large B2B contracts in Panama, as well as faster growth in Colombia and Bolivia.
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Operating profit declined 3.8%, while EBITDA grew 1.6%, and both were impacted by $42 million of one-off severance costs in the quarter.
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Excluding severance and the benefit of stronger currencies, EBITDA grew 5.3% organically, with Colombia up 24.5%, as margins continued to expand in the country.
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Operating cash flow was $294 million in Q4 and $1.3 billion for the full year, up 12.3% organically excluding severance and other one-offs thanks largely to improved performance in our Colombia operation.
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For the full year 2023, Equity free cash flow was negative $18 million1 and was impacted by $106 million in severance and other one-off costs, as well as increased spectrum renewal and purchase activity.
| Financial highlights ($ millions) | Q4 2023 | Q4 2022 | % change | Organic % Change | FY 2023 | FY 2022 | % change | Organic % Change |
| Revenue | 1,475 | 1,381 | 6.8% | 2.5% | 5,661 | 5,624 | 0.7% | 1.5% |
| Operating Profit | 228 | 238 | (3.8)% |
| 826 | 915 | (9.8)% |
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| Net Profit / (Loss) | (63) | 57 | NM |
| (82) | 177 | NM |
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| Non-IFRS measures (*) |
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| Service Revenue | 1,375 | 1,276 | 7.7% | 3.2% | 5,250 | 5,171 | 1.5% | 2.3% |
| EBITDA | 557 | 548 | 1.6% | (2.2)% | 2,111 | 2,228 | (5.2)% | (4.6)% |
| Capex | 262 | 266 | (1.2)% |
| 809 | 973 | (16.8)% |
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| Operating Cash Flow | 294 | 282 | 4.2% | (3.1)% | 1,302 | 1,255 | 3.7% | 4.4% |
| Equity free cash flow** | 39 | 206 | (81.0)% |
| (18) | 171 | NM |
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*See page 11 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures. **Excluding Africa and Lati taxes.
Millicom Chief Executive Officer Mauricio Ramos commented:
"During Q4, we put in place the last remaining building blocks to position the company to drive a material and sustainable increase in annual equity free cash flow generation beginning in 2024. Specifically:
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we implemented Phase 2 of Project Everest, which we anticipate will drive significantly higher EBITDA from each country and lower centrally-managed costs going forward;
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we acquired 5G spectrum jointly with Telefonica's Colombia subsidiary and we advanced a mobile network combination, marking another important step to optimize our capital investment, improve profitability, and increase free cash flow generation in this country;
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we sustained market leadership and saw encouraging pricing and growth trends in Guatemala, and we started to utilize recently-acquired spectrum to optimize our network investment in that country;
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we maintained our B rating from CDP, demonstrating Millicom’s commitment to climate change mitigation;
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we launched the Lati monetization process, aimed at optimizing Millicom's investment and capital structure.
