TIGO Earnings Prediction
The chart below shows how TIGO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TIGO sees a -8.57% change in stock price 10 days leading up to the earnings, and a +1.02% change 10 days following the report. On the earnings day itself, the stock moves by +6.31%. This data can give you a slight idea of what to expect for the next quarter's release.
TIGO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.43B
0.49%
-1.85%
Gross Margin
55.21%
8.60%
0.62%
Operating Margin
19.99%
43.09%
-12.48%
Net Margin
3.98%
335.50%
-25.61%
EPS
0.30
--
-34.78%
No Data Available
TIGO Earnings Analysis
Millicom International Cellular S.A. Common Stock Corporation (TIGO.O) Earnings Conference Call
Positive
Record Equity Free Cash Flow: 1. Record Equity Free Cash Flow: Millicom achieved a record equity free cash flow of $271 million in Q3 2024, more than doubling from $100 million in Q3 2023.
Customer Growth Surge: 2. Strong Customer Growth: The company reported nearly 300,000 postpaid net additions and almost 70,000 home net additions, marking the strongest customer growth since 2021.
EBITDA Increase Despite Costs: 3. EBITDA Growth: EBITDA increased by 9.8% year-on-year to $585 million, despite $73 million in restructuring costs, demonstrating operational efficiency.
B2B Service Revenue Growth: 4. B2B Revenue Growth: The B2B segment saw a 5% organic growth in service revenue, with digital solutions growing by 27% in Q3 2024.
Leverage Ratio Improvement: 5. Improved Leverage Ratio: The company's leverage ratio improved to 2.59 times, down from 2.77 in the previous quarter, reflecting effective debt management.
Negative
Rising One-off Charges: 1. Increased One-off Costs: The company incurred $73 million in restructuring and other one-off charges in Q3 2024, significantly higher than the $33 million in Q3 2023, impacting overall profitability.
Home Service Revenue Decline: 2. Declining Home Service Revenue: The Home business in Colombia experienced a double-digit decline in service revenue, indicating ongoing challenges in this segment despite some customer growth.
Guatemala Market Challenges: 3. Competitive Pressure in Guatemala: Increased competition in Guatemala has led to pressure on ARPU and customer growth, with a reported negative gross add of 90,000 in the quarter, highlighting market challenges.
Cash Flow Guidance Reduction: 4. Lowered Full-Year Cash Flow Guidance: The company adjusted its full-year equity free cash flow guidance down to around $650 million, citing expected pressures from increased cash CapEx and reduced working capital tailwinds in Q4.
Paraguay Service Revenue Stagnation: 5. Weak Performance in Paraguay: Service revenue in Paraguay increased only 1.1% year-on-year, with low single-digit declines in mobile, indicating stagnation in growth in this market.
TIGO FAQs
How does TIGO typically perform around its earnings report dates?
Is Millicom International Cellular S.A. (TIGO) Q3 2024 Earnings Call Summary positive or negative?
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TIGO Earning Call Sentiment
Millicom International Cellular S.A. (TIGO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TIGO.O
0.98%Positive
The earnings call summary reflects strong financial performance with increased equity free cash flow and EBITDA, despite restructuring costs. The leverage ratio improvement and optimistic guidance for 2024 further support a positive outlook. The Q&A section suggests confidence in CapEx management and potential shareholder remuneration once leverage targets are met. Although there are risks like competitive pressure and currency headwinds, the overall sentiment is positive. Given the market cap, the stock price is likely to react positively, within a 2% to 8% range over the next two weeks.
