LUXEMBOURG - Millicom International Cellular (NASDAQ:TIGO) reported a robust first quarter for 2024, with revenue exceeding analyst expectations. The telecommunications company announced a revenue of $1.49 billion, surpassing the consensus estimate of $1.45 billion.
This represents an 8.6% increase from the first quarter of the previous year, with an organic growth of 3.8%. Following the earnings release, Millicom's stock price rose by 4.2%, indicating a positive investor response to the company's financial performance.
The company attributed its strong revenue growth to several factors, including large B2B contracts in Panama, a return to positive growth in Guatemala, and favorable currency movements. Operating profit saw a significant jump of 70.6% compared to the same quarter last year, while adjusted EBITDA grew by 24.5%, or 20.0% organically, despite incurring $30 million in restructuring costs. Notably, Colombia's EBITDA margin reached a record 36.5%, which would have been 41.4% excluding a one-time restructuring charge.
Millicom's net income also showed a remarkable improvement, standing at $92 million for the quarter, a substantial increase from just $3 million in the first quarter of 2023. The company's operating cash flow grew organically by 53.0% to $519 million, aided by the strong EBITDA performance and a 38.9% reduction in capital expenditures due to slower investment phasing in 2024.
Millicom's CEO, Mauricio Ramos, expressed satisfaction with the quarter's results, highlighting the positive impact of strategic initiatives and cost-saving measures from Project Everest.
Ramos also mentioned the company's focus on cash flow generation and the achievement of their 2024 Equity Free Cash Flow target of $550 million. He noted the success in Colombia, improved mobile pricing in Guatemala, and market leadership in Panama as key contributors to the quarter's success.
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