Millicom Reports Strong Q4 2024 Earnings with Growth Momentum
Millicom (Tigo) Reports Fourth Quarter and Full Year Earnings
Millicom (NASDAQ: TIGO) has recently shared its impressive financial performance for the fourth quarter of 2024. The latest results indicate a notable growth trajectory that reinforces the company’s commitment to enhancing digital connectivity throughout Latin America.
Q4 Financial Performance Highlights
During the fourth quarter, Millicom achieved a revenue of $1.43 billion, reflecting a robust operational performance. The operating profit for this quarter amounted to $373 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $618 million. These figures highlight the company’s strong market presence and efficient business operations.
Year-End Overview
Millicom's net income for Q4 was $31 million, with an equity free cash flow totaling $236 million. By the year's end, the company reported a leverage ratio of 2.42x, indicating financial stability and the ability to invest in growth. Commercial activities also flourished, with significant additions in the mobile segment, adding 274,000 postpaid mobile subscriptions and 49,000 net additions in Home Fiber to the Home (FTTH).
Full Year Highlights and Growth
For the full year, Millicom reported total revenues of $5.80 billion, translating to a 2.5% increase compared to the previous year. The operating profit surged by 62.5%, reaching $1.34 billion. This significant rise in profitability underscores the successful implementation of strategies over the past year.
Millicom’s Revenue Breakdown
Net income for the full year stood at $253 million, equating to $1.47 per share. The EBITDA for the entire year was reported at $2.47 billion, reflecting a 16.9% organic growth. The company also posted an impressive equity free cash flow of $777 million, with a focus on enhancing profitability and cash generation capabilities.
CEO’s Remarks on 2024 Success
Millicom’s Chief Executive Officer, Marcelo Benitez, expressed gratitude towards his team for navigating the restructuring process effectively. He emphasized the company's ongoing commitment to connecting communities through digital innovation. "Our strong financial results, lower leverage, and improved outlook have led the Board to reinstate shareholder remuneration," he stated, signaling a positive turn for investors.
Future Focus and Goals
As Millicom looks toward 2025, the company aims to generate sustainable equity free cash flow of around $750 million. Key priorities also include strategic initiatives in Costa Rica and Colombia, along with finalizing the planned divestment of tower assets.
Forward-Looking Financial Targets
The financial targets set for 2025 are expected to benefit from the efficiency measures that were introduced throughout 2024. However, the company is also cautious about the potential impact of foreign exchange rates and legal challenges on its operations in the coming year.
Additional Investor Resources
Millicom is organizing a video conference for investors and analysts to discuss these results further and provide insights on future plans. Interested parties are encouraged to register online to participate. The company also plans to release detailed presentations regarding its financial performance, available on their investor relations website for stakeholders.
About Millicom
Operating in the telecommunications sector since 1990, Millicom (NASDAQ: TIGO) continues to serve as a vital provider of both fixed and mobile services in Latin America. Their brands, TIGO and Tigo Business, cater to over 46 million customers, providing essential communication services that contribute to economic development in the region.
Frequently Asked Questions
What were Millicom's Q4 2024 earnings results?
Millicom's Q4 2024 results highlighted revenues of $1.43 billion, with an operating profit of $373 million and an EBITDA of $618 million.
What strategic initiatives is Millicom focusing on for 2025?
Millicom aims to enhance equity free cash flow and focus on strategic initiatives in Costa Rica and Colombia while finalizing their tower divestment.
How did Millicom perform financially in 2024 compared to 2023?
In 2024, Millicom reported a revenue increase of 2.5% year-on-year, with significant growth in operating profit and net income.
What does the CEO of Millicom say about the company's future?
CEO Marcelo Benitez emphasized a commitment to driving efficiency and revenue growth while maintaining a focus on connecting communities through digital services.
How can investors learn more about Millicom's performance?
Investors can access detailed presentations, register for earnings conferences, and review financial statements on Millicom’s investor relations website.
About The Author
Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.