Gustavo Piras's questions to Millicom International Cellular SA (TIGO) leadership • Q3 2024
Question
Gustavo Piras of UBS Group AG asked for commentary on the B2B segment's performance, noting lower sequential growth, and inquired about the project pipeline, growth avenues, and margin outlook. He also sought clarification on the timing of the $40 million annual free cash flow impact from the tower sale leaseback.
Answer
Executive Marcelo Benitez outlined three B2B growth drivers: converging services for the SME segment, upselling digital solutions like cloud and cybersecurity (which grew 27%), and cross-selling to large corporate clients. Executive Bart Vanhaeren added that the sequential slowdown in B2B was impacted by adverse currency exchange rates. He also clarified that the $40 million negative impact on free cash flow from the tower deal is an annual run-rate figure that would begin pro-rata after the deal closes, expected mid-next year.