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Dec 31, 2024
Millicom Q4 2024 Earnings Report
Millicom reported lower revenue in Q4 2024, but improved profitability and strong cash flow generation.
Key Takeaways
Millicom posted revenue of $1.43 billion in Q4 2024, a 3.2% year-over-year decline due to lower B2B sales in Panama. However, operating profit surged 63.4% to $373 million, driven by efficiency gains. Net income improved to $31 million from a $63 million loss in Q4 2023. Free cash flow jumped to $213 million, reflecting disciplined capital spending and lower spectrum payments.
Revenue declined 3.2% year-over-year to $1.43 billion.
Operating profit increased 63.4% to $373 million.
Net income improved to $31 million from a $63 million loss in Q4 2023.
Equity free cash flow surged to $236 million, supporting debt reduction efforts.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Millicom expects stable revenue and improved profitability in 2025, with a focus on efficiency measures, debt reduction, and dividend payments.
Positive Outlook
- Targeting $750 million in Equity Free Cash Flow for 2025.
- Continued debt reduction efforts, with leverage expected to remain below 2.5x.
- Strategic initiatives in Costa Rica and Colombia to drive revenue growth.
- Planned sale of non-core assets expected to strengthen balance sheet.
- Resumption of quarterly dividends with a $3.00 per share annual payout.
Challenges Ahead
- Weak foreign exchange rates may impact revenue growth.
- Regulatory risks and potential legal challenges in key markets.
- Competitive pressures in mobile and fixed broadband segments.
- Macroeconomic uncertainty in Latin America could affect consumer spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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