Q1 2025 Millicom International Cellular SA Earnings Call Transcript
Key Points
- Millicom International Cellular SA (MLCMF) reported strong customer growth with post-pay net additions of 262,000, a significant increase from the previous year.
- The company's efficiency program has led to higher profitability, with an operating cash flow (OCF) margin increase to 36.7%, outperforming many other telecom companies.
- Equity-free cash flow was robust at $135 million in Q1, despite it typically being the weakest quarter for cash flow generation.
- The home business saw a positive turnaround with 62,000 net additions, reversing a decline from the previous year, and broadband customer base increased by almost 7%.
- Millicom International Cellular SA (MLCMF) achieved record adjusted EBITDA margins in several key markets, including Panama and Paraguay, indicating strong operational efficiency.
- Service revenue declined by 6.6% year-on-year, impacted significantly by weaker foreign exchange rates, particularly a 40% devaluation of the Boliviano.
- The mobile business experienced a slowdown in growth compared to previous quarters, partly due to tougher year-on-year comparisons.
- B2B services saw a 6.4% organic decline, attributed to the absence of large projects that had boosted previous results.
- Leverage increased slightly to 2.47 times, influenced by dividend payments and a share buyback program.
- The company faced challenges in maintaining service revenue growth in certain markets, with declines noted in Nicaragua and Costa Rica.
Hello everyone, and welcome to our first quarter 2025 results call. This event is being recorded. Our speakers today will be our CEO Marcelo Benitez and our CFO Bart Vanhaeren. The slides for today's presentation are available on our website along with the earnings release and our financial statements. Now, please turn to slide 2 for the safe harbour disclosure. We will be making forward-looking statements which involve risks and uncertainties and could have a material impact on our results.
On slide 3, we define the non IFRS metrics that we will reference throughout the presentation, and you can find reconciliation tables in the back of our earnings release and on our website. With those disclaimers out of the way, let me turn the call over to our CEO Marcelo Benitez.
Thanks, Michelle, and hello, everyone. Thanks for joining us to review the company's performance in the 1st quarter. As you will see throughout today's presentation, the restructuring program that was
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