Q4 2023 Millicom International Cellular S.A. Earnings Call

Operator: I know you dream Hello, everyone, and welcome to our fourth quarter 2023 results call. This event is being recorded.

Sure.

[music].

Hello, everyone and welcome to our fourth quarter 2023 results call. This event is being recorded.

Operator: Our speakers today will be our CEO, Maurizio Ramos, our president and COO, Maxime Lombardini, and our CFO, Sheldon Bruja. The slides for today's presentation are available on our website, along with the earnings release and our financial statement. Now, please turn to slide two for the safe harbor disclosure.

Our speakers today will be our CEO, Mauricio Ramos, our president and CEO Maximo on both <unk> and our CFO Sheldon Bruha.

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 two for the Safe Harbor disclosure, we will be making forward looking statements, which involve risks and uncertainties and could have a material impact on our results and on slide three we define the non <unk> metrics that we will reference throughout the presentation and you can find reconciliation tables in the back of our earnings.

Operator: We will be making forward-looking statements that involve risks and uncertainties and could have a material impact on our results. And on slide three, 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, Maui So'ao. Good morning and good afternoon, everyone.

Please and on our website with those disclaimers out of the way, let me turn the call over to our CEO, while we still help us.

Good morning, and good afternoon, everyone. Thanks for joining us today as you likely recall, we said four key priorities at the beginning of 2023, we will update you in detail on each of these priorities in the next several slides, but here are the key highlights.

Maurizio Ramos: Thanks for joining us today. As you likely recall, we set four key priorities at the beginning of 2023. We will update you in detail on each of these priorities in the next several slides, but here are the key highlights.

Maurizio Ramos: First, we continue to make very meaningful strides in executing Project Everest to improve our operational efficiency across the business. During the fourth quarter, we implemented phase two of the project in each of the nine countries where we operate. The headline is that we are exceeding our own expectations for cost savings. Second, in Colombia, the strategy we laid out some years ago and our increased focus on driving profitability are now really paying off in a combined manner. EBITDA was up more than 24% year-on-year excluding severance, and the margin reached 38%, which is another record for this business. This, even as we continue to build our mobile subscriber base.

First we continue to make very meaningful strides in executing project Everest to improve our operational efficiency across the business.

During the fourth quarter, we implemented phase two of the projects in each of the nine countries, where we operate the headline is that we are exceeding our own expectations for cost savings.

Second in Colombia, the strategy, we laid out some years ago on our increased focus on driving profitability are now really paying off in a combined <unk> <unk>.

EBITDA was up more than 24% year on year, excluding severance and the margin reached 38%, which is another record for this business.

Even as we continue to build our mobile subscriber base. We are achieving this while also optimizing our capex because we are now harvesting the very significant investments we have made in Colombia over the past several years.

Maurizio Ramos: We are achieving this while also optimizing our CAPEX because we are now harvesting the very significant investments we have made in Colombia over the past several years. As I told you during our Q3 call, we're not done yet with improving Colombia. In fact, our performance in Q4 does not yet reflect the additional actions we have taken in the quarter and in January of this year. So stay tuned for more on Colombia.

<unk> told you during our Q3 call we're not done yet can improve in Colombia in fact, our performance in Q4 does not yet reflect the additional actions were taken in the quarter and in January of this year, So stay tuned for more on Colombia.

Maurizio Ramos: Third, in Guatemala, the strategic initiatives we've put in place over the past couple of years to protect our business are also now paying off. During Q4, we were able to build on the progress we made throughout the year, and we had strong prepaid service revenue growth on a sequential basis compared to Q3, much higher than what we have seen in the last few years. You will recall that we raised prices on our most popular prepaid plans in mid-September.

Third in Guatemala.

<unk> initiatives were put in place over the past couple of years to protect our business are also now paying.

During Q4, we were able to build on the progress we made throughout the year and we had strong prepaid services revenue growth on a sequential basis compared to Q3 much higher than what we have seen in the last few years, you will recall that we raised prices on our most popular prepaid plans in mid September.

Maurizio Ramos: The market has reacted positively, and we decided to put through a price increase on all of our remaining plans in early February of this year. So we continue to feel cautiously optimistic about the outlook for top-line growth in Guatemala going forward. For Monlati, our regional tower portfolio, we launched the monetization process during Q4. Because this is an ongoing M&A process, that's all we can say about that for now. So again, stay tuned for Monlati.

Market has reacted positively and we have decided to put through a price increase on all of our remaining plans in early February of this year. So we continue to feel cautiously optimistic about the outlook for topline growth in Guatemala going forward.

Unlucky a regional power portfolio, we launched a monetization process. During Q4, because this is an ongoing M&A process as all we can say about this for now so again stay tuned on that team.

Maurizio Ramos: And finally, here's the combined effect of all these initiatives put together. The punchline, if you will, is that we are raising our outlook and we're now targeting equity free cash flow of around 550 million for 2024. As a result, for the three-year period between 2022 and 2024, the community value is now around 700 million dollars of equity free cash flow.

And finally, here's the combined effect of all this initiatives put together a punch line. If you will we are raising our outlook and we're now targeting equity free cash flow of around $550 million for 2024 as.

As a result for the three year period between 2022 and 2020 for the cumulative outlook is now for around $700 million.

Free cash flow.

Maurizio Ramos: You may often have heard us say that our equity-free cash flow for the 2022-2024 period would be back-ended and that 2024 would be the year of the cash flow. We're now ready to deliver on our promise. The strategic initiatives initiated over the past few years, combined with a revamped and reinforced focus on profitability, are making this happen. Now, let's review each of these points in more detail, beginning with Project Everest on slide 6. For this reason, I have asked our COO, Maxime Lombardini, to share with you the key components of this extensive program. Thank you, Mauricio, and hello everyone.

Often you have heard us say that our equity free cash flow for 2022, 2024 period would be backend.

And at 2024 would be the year of the cash flow.

We're now ready to deliver on that promise the strategic initiatives initiated over the past few years combined with our revamped reinforced focus on profitability are making this happen now.

Now, let's review each of these points in more detail beginning with project efforts on slide six.

Or at least I have asked our.

<unk> maximum lombardi to share with you the key components of the extensive program.

Thank you Maurizio and Aloha everyone.

Maxime Lombardini: As many of you recall, Millicom began implementing its efficiency program at the beginning of 2023 and initially communicated an ambition of achieving run rate savings of more than $100 million by year-end. Shortly after I joined the company in early September, we increased the scope of phase two of the program to include deeper headcount reductions and cost savings initiatives in our centralized functions. During Q4, we extended Phase 2 to each one of our country operations, unlocking total savings of more than $250 million. And it is important to emphasize that we have already implemented a vast majority of the initiatives that are needed to deliver those savings this year.

As many of you will recall Billy come began implementing its efficiency program at the beginning of 2023.

And initially communicated an ambition of achieving savings of more than $100 million by year end 'twenty four.

Shortly after I joined the company in early September.

<unk> the scope of phase two of the program to include deeper it count reductions and cost savings initiatives.

In our centralized functions.

During Q4, we extended phase II to each one of our country operations unlocking total savings of more than $250 million.

And it is important to emphasize that we have already implemented the vast majority of the initiatives that are needed to deliver those savings. This year. So it should the ability of our targeted savings and ultimately largely in our control, but also already in the bank.

Maxime Lombardini: So the achievability of our targets and savings is not only largely in our control but is also already in the bank. You can start to see some of the savings in our Q4 results, with ABDA, excluding severance, reaching almost $600 million, which is a record high for the company. And I'm pleased to tell you today that we are off to an excellent start in the first two months of the year on both service revenue and profitability. On this slide, we have summarized for you the most important actions that we have taken and the areas where we have concentrated our efforts. I won't discuss each point, but suffice to say that the efficiency program is not just about reducing the number of employees. Yes, it counts as an important contributor, and close to 5,000 employees left the group.

You can start to see some of these savings in our Q4 results.

EBITDA, excluding severance, reaching almost $600 million.

We achieved a record high for the company.

And I am pleased to tell you today that we are off to an excellent start in the first two months of the year on both service revenue and profitability.

On this slide we have summarized for you the most important actions that we have taken.

Areas, where we are for choose to or a false.

I won't discuss.

Each points, but suffice to say that the efficiency program is not just about reducing head count.

Yes, it would count as an important contributor in.

And close to 5000 employees left the group.

Maxime Lombardini: But, as I told you on the Q3 call, we have been reviewing all of our spending. Strong control on OPEX, employee recurring costs, content, external services, real estate optimization, IT, and network OPEX. And the huge work on optimizing CAPEX has been done too. We invest where and when it has a strong impact on quality and sales. This cost control is backed by an ambitious simplification plan.

So it sounds I told you on the Q3 call we have been reviewing all of our spending strong control on the Opex per.

<unk> had a carrying cost contents external services, our real estate optimization.

Network Opex.

And the huge work on optimizing capex has to be done too.

We invest where and when it has a strong impact on liquidity and sales.

These costs portfolio is backed by an ambitious simplification plan.

Maxime Lombardini: We are simplifying the legacy of our portfolio and streamlining IT to make it more flexible and less expensive. And even though we are still in February, I'm already beginning to work with the teams to identify the next round of opportunities that will allow us to reduce costs further in 2025 without sacrificing any of the investments that are needed to grow our customer base and revenues and sustain our network quality and market leadership. And one more thing.

We are simplifying the legacy of the portfolio and streamlining the <unk> to.

To make it more flexible and less expensive.

And even though we are still in February.

Already beginning to work with the teams that we don't see five makes trauma opportunities that will allow us.

To reduce costs further in 'twenty five.

Out sacrificing any of the investments that are needed to grow our customer base and revenues.

So staying on network quality and market leadership.

And one more thing.

Maxime Lombardini: Being back to profitability is good news for the shareholders, but it is important for the employees and managers to, I feel, strong support for the strategy. Mauricio, back to you.

Being back to profitability is a good news for the shareholders.

It is important for the employees and managers to see the strong support to the strategy.

Maurizio it back to you.

Maurizio Ramos: Thank you, Maxime. I want to recognize and thank both you and ATLAS for helping us take Project Everest, and please do excuse the pun, to new heights. Atlas has helped make the project far more ambitious, it's reached wider, and it's execution faster, and your leadership in execution has been fantastic. Now, let's look at Columbia in more detail on slide 7. As I told you a few moments ago, our plan to improve profitability in our second-largest country operation is really beginning to pay off. EBITDA is up more than 24 percent year-on-year, excluding severance, thanks to record margins. As Maxime mentioned, we optimized CAPEX, and this drove a very strong increase in OCF in 2023. And we have achieved this while maintaining strong commercial momentum in our mobile and B2B business, and we also saw improving trends in our own business during the fourth quarter, even though we continue to remain very disciplined in Colombia.

Thank you Maxime I want to recognize and thank both U Annapolis for helping us take project at risk.

Please do excuse the pun into new high.

Atlas has helped make the projects are more ambitions, it's reach wider and it's execution pasture on your leadership and execution has been fantastic.

Now, let's look at Colombia, and more detail on slide seven.

As I told you a few moments ago, our plan to improve profitability in our second largest country operation is really beginning to pay off.

EBITDA is up more than 24% year on year, excluding severance thanks to record margins as vaccine mentioned, we optimized capex. This drove a very strong increasing this year in 2023.

And we have achieved these while maintaining strong commercial momentum in our mobile and PDP businesses and we also saw improving trends in our home business during the fourth quarter, even though we continue to remain very disciplined in Colombia.

Maurizio Ramos: The point we're making is that we are beginning to harvest the very significant strategic decisions and investments that we have made in Colombia over the past several years, including the following. First, we bought a new spectrum that has allowed us to add coverage and capacity to our mobile network. This has led to a big improvement in customer experience, and it has also helped to strengthen our brand.

The point, we're making is that we're beginning to harvest the very significant strategic decisions and investments we have made in Columbia the past several years, including the following first we bought into the new spectrum that has allowed us to add coverage and capacity on our mobile network.

This has led to a big improvement in customer experience I need at wholesale helped to strengthen our brand.

Maurizio Ramos: And we have gained market share despite the arrival of a new and disruptive venture in the marketplace. The strategic move and its associated investment wave started in 2020 during the pandemic, and it is now winding down. Second, over these years, we have deployed tens of thousands of kilometers of fiber.

And we have gained market share despite the arrival of a new and disruptive entrant in the marketplace. The strategic move and its associated investment wave started in 2020 during the pandemic and it is now winding down.

Second over this year, we have deployed tens of thousands of kilometers of pipe. We built state of the our data centers and we retooled our sales force to capture our share of the rapid growth, we're seeing from cloud and other digital services from our <unk> clients again much of this investment is also behind us.

Maurizio Ramos: We built state-of-the-art data centers and retooled our sales floor to capture our share of the rapid growth we're seeing for cloud and other digital services from our B2B clients. Again, much of this investment is also behind us. Third, and after many years of investing to upgrade and replace our legacy corporate network and to grow our customer base, we implemented a number of commercial initiatives in early 2023 aimed at reducing churn and improving the profitability of our own business in Colombia. Looking forward, we expect to see further improvement in the financial performance of our Colombian business. Specifically, our agreement with Telefonica to combine our mobile networks and spectrum portfolios will unlock very important cost, topics, and spectrum synergies beginning this year. You already saw that at the end of December when we bought 5G spectrum in Colombia jointly with Telefonica, thanks to this initiative. We should benefit from the various actions taken as part of Project Everest during Q4 and in January of this year.

And after many years of investing to upgrade and replace our legacy copper network and to grow our customer base, we implemented a number of commercial initiatives in early 2023 aimed at reducing churn and improving the profitability of our home business in Colombia looking forward, we expect to see further improvement in the financial performance of our Colombian business.

Typically our agreement with Telefonica to combine our mobile networks and spectrum portfolios will unlock very important cost capex and spectrum synergies beginning this year you already saw that at the end of December when we bought <unk> spectrum in Colombia jointly with Telefonica. Thanks to this initiative.

And we should benefit from the various actions taken as part of project coverage during Q4 and in January this year.

Maurizio Ramos: When we put all of this together, and this is a key point, we see Colombia showing a very significant improvement in equity-free cash flow in 2024. In fact, because of these initiatives combined, we expect Colombia will be the biggest country contributor to the year-on-year improvement in cash flow in 2024. And we are targeting that Colombia will be equity-free cash flow breakeven this year. With that, all of our country operations are expected to be equity-free cash flow positive this year. Now, please turn to slide eight to look at Guatemala.

When we put all of these together and that is the key point, we see Colombia, showing a very significant improvement in equity free cash flow in 2024.

In fact, because of these initiatives combined we expect Columbia.

Biggest country contributor to the year on year improvement in cash flow in 2024, and we are targeting at Columbia will be equity free cash flow breakeven. This year with that all of our country operations are expected to be equity free cash flow positive this year.

Now please turn to slide eight to look at Guatemala, as you know our focus over the past year or two has been to help bring about a more stable competitive dynamic most critical prerequisite for the basis of a level playing field with regards to spectrum and two networks as you know for the last three years, our competitor perceived studied had an advantage on spec.

Maurizio Ramos: As you know, our focus over the past year or two has been to help bring about a more stable competitive dynamic. The most critical prerequisite for this is to have a level playing field with regard to spectrum and network. As you know, for the last three years, our competitor perceived that it had an advantage on spectrum, and its attempt to leverage that perceived advantage led to disruptive pricing in the market. As you know, we have now sold for these after completing two very successful and transparent spectrum auctions. This has freed up a lot of capacity on our networks, and there's now spectrum parity, and we're starting to see more rational pricing behavior in the market. As you may recall, we raised prices on some of our prepaid plans in mid-September, and we've seen the market react positively to this. As a result, we saw an encouraging uptick in prepaid revenue when you compare Q4 sequentially to Q3. This is working out the way we had expected, and we have gone ahead and implemented a similar price increase on our remaining prepaid plans in early 2024.

And its attempt to leverage that perceived advantage led to disruptive pricing in the market. As you know we have now sold for these after completing two very successful and transparent spectrum auctions. This has freed up a lot of capacity on our networks and Theres now spectrum clarity and we're starting to see more rational pricing behavior in the market. So you may have.

Recall raised prices on some of our prepaid plans in mid September and we've seen the market react positively to this as a result, we saw an encouraging uptick in prepaid revenue when you compare Q4 sequentially to Q3.

This is working out the way we had expected.

Had and implemented a similar price increase on our remaining prepaid plans in early 2024, so the outlook for what the model is improving as we don't expect it at book, while investing in spectrum, a net capacity. We're now modestly optimistic surprising and revenue trends have started lives efficiencies from project at Bruce a lift to margins and risk.

Maurizio Ramos: So the outlook for Guatemala is improving, as we all expected it would, while investing in spectrum and network capacity. We're now modestly optimistic as pricing and revenue trends have stabilized, efficiencies from Project Everest are lifting margins, and the spectrum we acquired is allowing us to optimize our network investments. So, in summary, our plan for Guatemala is beginning to show it is working. As a result, we expect Guatemala to be the second biggest contributor to the year-on-year improvement in equity free cash flow in 2024. Now let's move to slide 9 on LAPI.

Spectrum, we acquired is allowing us to optimize network investments. So in summary, our plan for what the model is beginning to show in New York.

We expect about tomorrow, we'd be the second biggest contributor to the year on year improvement in equity free cash flow in 2024.

Now, let's move to slide nine.

Maurizio Ramos: As I said during my introduction, we launched the monetization process during Q4. This process is marching on, so there is not much that we can or should say at this point, as we're in the middle of active M&A activity. Before turning the call over to Sheldon, I would like to very briefly summarize what we have done to prepare the company for this moment to make it the platform that it currently is to help make 2024 the year of our cashflow. First, we invested heavily in network and spectrum. Some of you may recall a time when TIGO was primarily a prepaid mobile operator with a legacy copper network in Colombia.

Drew my introduction, we launched the monetization process during Q4.

This process is marching on so there is not much we can or should said the point is we're in the middle of active M&A activity.

Before turning the call over to Sheldon I would like to very briefly summarize what we have done to prepare the company for this moment.

To make it the platform that it currently is.

<unk> 2020 for the year of our cash.

First we invested heavily in network and spectrum. Some of you will recall a time when <unk> was primarily a prepaid mobile operator with a legacy copper network in Colombia.

Maurizio Ramos: Today, we're market leaders in mobile, and we have become one of the top providers of fixed services to both residential and a growing number of B2B customers. This is a direct result of the very significant investments we have made to deploy fiber and other digital infrastructure across our entire footprint. Second, as we evolved from prepaid to subscription-based customer relationships and revenue streams, we invested to make sure we could deliver the best possible customer experience, and we embraced the use of digital tools to do this in a cost-effective manner.

They were market leaders in mobile and we have become one of the top providers of fixed services to both residential and to a growing number of <unk> customers. This is a direct result of a very significant investments we have made to deploy fiber on other digital infrastructure across our entire footprint.

Second as we evolve from prepaid to subscription base customer relationships and revenue streams, we invested to make sure. We can deliver the best possible customer experience and we embrace the use of digital tools to do this in a cost effective manner.

Maurizio Ramos: Third, these city investments have helped to fortify the strength of our brand. Tinkoff is top of mind in all of our markets, not only as a leading provider of world-class telecom services but also as an employer of choice that attracts the best local talent and leads by example by doing business the right way. Fourth, we have reallocated capital in a very, very meaningful way by disposing of all of our assets in Africa, where we have no scale, and by reinvesting to build what is today a number one position in Panama, both in mobile and fixed, in just over four years. Panama is the most stable and fastest growing country in the region with a dollar economy and a stable industry structure today.

Third.

Steady investments have helped to fortify the strength of our brand is.

He is top of mind in all of our markets not only as a leading provider of world class Telecom services, but also as an employer of choice, which attracts the best local Italian.

By example by doing business the right way.

We have reallocated capital in a very very meaningful way.

Closing of all of our assets in Africa, where we have no scale and by reinvesting to Bill what is today a number one position in Panama, both in mobile and fixed in just over four years and remains the most stable and fastest growing country in the region with a dollar economy on a stable industry structure today until.

Maurizio Ramos: And to increase our ownership in Guatemala, our most cash-generative operation and also a stable economy with a stable currency and a stabilizing two-player market. Based on our 2024 budget, we expect these two stable countries, Guatemala and Panama, where we have deployed most of our capital over the past few years, to be the two largest contributors to our group's equity-free cash flow in 2024. Again, Guatemala and now Panama.

And to increase our ownership in Guatemala, our most cash generative operation and cultural stable economy, but a stable currency and stabilizing two player market.

Based on our 2020 for budget, we expect this to stable countries, Guatemala, and Panama, where we have deployed most of our capital over the past few years to be the two largest contributors to our group equity free cash flow in 2024 again similar in my opinion.

Maurizio Ramos: The significant capital allocation decisions over the past few years have helped us create the platform that we have today. And, as Maxime explained earlier, we are now actively moving to a cost structure that will help us harvest the fruits of these investments, set colloquially to make the platform now profitable, to drive a maturing increase in equity-free cash flow beginning in 2024, to make 2024 the year of our cash flow. With that, I will hand it over to Sheldon to discuss the financials for the quarter. Thank you, Mauricio.

This significant capital allocation decisions over the past few years off helped us create the platform that we have today.

Vaccine explained earlier, we are now actively are moving to a cost structure that would help us harvest. The fruits of these investments set locally to make the platform now profitable to drive a material increase in equity free cash flow beginning in 2024 to make 2020 for the year of our cash flow.

With that I will hand, it over to Sheldon to discuss the financials for the quarter.

Thank you Mauricio now, let's look at our Q4 financial performance beginning on slide 12.

Sheldon Bruja: Now, let's look at our Q4 financial performance beginning on slide 12. Service revenue was $1.38 billion in the quarter, which was up from $1.28 billion a year ago. Excluding the impact of FX, organic growth was 3.2% in the fourth quarter.

Service revenue was 1.38 billion in the quarter, which was up from $1 $2 $8 billion, a year ago, excluding the impact of FX.

Organic growth was three 2% in the fourth quarter.

Sheldon Bruja: Our mobile businesses had low single digits, while fixed and other services grew mid-single digits. The faster growth in fixed largely reflects the contribution of large B2B contracts during the quarter. B2B, which includes mobile, fixed, and digital services, grew at 19.6%, our strongest growth rate in recent years. Going down further on slide 13 for service revenue by country. Guatemala declined 2.3% mainly due to the benefit of the World Cup in Q4 of 2022. Excluding this effect, the service revenue decline narrowed to half a percent versus last year, the second consecutive quarter of improving revenue trends. Columbia service revenue grew 3.4% in local currency as mid single-digit growth in mobile and high single-digit growth in B2B more than offset the decline in home. Panama's service revenue grew 18.9%, fueled by large B2B contracts and strong growth in mobile.

Mobile business is up low single digits, while fixed and other services grew mid single digits with faster growth in fixed largely reflects the contribution of large <unk> contracts during the quarter.

<unk>, which includes mobile fixed and digital services grew at 19, 6% our strongest growth rate in recent years.

Drilling down further on slide 13, the service revenue by country.

Automotive declined two 3% mainly due to the benefit of the World Cup in Q4 of 2022, excluding this effect the service revenue decline narrowed it to half a percent versus last year, the second consecutive quarter of improving revenue trends.

Colombia service revenue grew three 4% in local currency as mid single digit growth in mobile and high single digit growth in <unk> to be more than offset the decline in home.

Panama Service revenue grew 18, 9% fueled by large <unk> contracts and the strong growth in mobile service revenue grew <unk>, 8% with growth in mobile and b to be offset by a decline in home, where we continue to prioritize price discipline.

Sheldon Bruja: Bolivia's service revenue grew 0.8%, with growth in mobile and B2B offset by a decline in home, where we continue to prioritize price discipline. This was the first positive quarterly service revenue growth in five quarters as we have now fully lapped the prepaid data regulatory impact from August of last year. Paraguay's service revenue grew 5% in local currency, with all three business units contributing.

This was the first positive quarterly service revenue growth in five quarters as we have now fully lapped the prepaid data regulatory impact from August of last year.

Paraguay service revenue grew 5% in local currency with all three business units contributing this rounded off a very strong year for this business in which service revenue grew 7% in 2023.

Sheldon Bruja: This rounded off a very strong year for this business, in which service revenue grew 7% in 2023. Finally, our remaining markets in Central America performed reasonably well. El Salvador's performance was flat, but this compares against a robust performance in Q4 of 2022. Okay, turning to EBITDA on slide 14. EBITDA of $557 million was up 1.6% year-on-year from $548 million a year earlier. However, excluding the impact of foreign exchange, EBITDA declined 2.2% on a constant currency basis year-on-year.

Finally, our remaining markets in Central America performed reasonably well El Salvador performance was flat, but this compares against the robust performance in Q4 of 2022.

Okay, turning to EBITDA on slide 14.

EBITDA of $557 million was up one 6% year on year from $548 million from a year earlier.

Excluding the impact of foreign exchange EBITDA declined two 2% on a constant currency basis year on year. However included in Q4, EBITDA were $42 million of one off severance costs related to project Everest, which I'll talk about later excluding.

Sheldon Bruja: However, included in Q4 EBITDA were $42 million of one-off severance costs related to Project Everest, which I'll talk about later. Excluding severance incurred in Q4, EBITDA would have been approximately $600 million and would have grown 5.3% organically. Now turning to slide 15.

Excluding severance incurred in Q4, EBITDA would have been approximately $600 million and would have grown five 3% organically.

Now turning to slide 15.

Sheldon Bruja: During Q4 2023, we continued the implementation of the second phase of Project Everest, which resulted in one-off severance expenses in all nine of our countries of operations. All of the Q4 2003 figures on this slide have been adjusted to exclude such severance. Guatemala EBITDA was nearly flat; excluding the effect of the World Cup in Q4 of 2002, EBITDA would have grown 2.6%, marking a notable improvement from recent trends, driven by improved pricing trends in prepaid mobile, as well as our cost initiatives. Columbia EBITDA accelerated 24.5% organically due to both mobile revenue growth and home price discipline as well as savings from Project Everest. The EBITDA margin was a record 38.4%.

During Q4 2023, we continue the implementation of the second phase of project Everest, which resulted in one off severance expenses in all nine of our countries of operations.

Although the Q4 2003 figures on this slide have been adjusted to exclude such severance.

Quite a while EBITDA was nearly flat excluding the effects of the World Cup in Q4 of 2002 EBITDA would have grown two 6% marking a notable improvement from recent trends driven by improved pricing trends in prepaid mobile as well as our cost initiatives.

Colombia, EBITDA accelerated 24, 5% organically due to both mobile revenue growth and home price discipline as well as savings from project Everest. The EBITDA margin was a record 38, 4%.

Sheldon Bruja: Panama EBITDA grew 10.8%. As I mentioned earlier, we had a lot of B2B revenue in the quarter, and some of this is coming in with lower margins, which is why you see the margin decline year over year. Paraguay EBITDA also grew 10.8% organically, and the EBITDA margin expanded to 45.2%. We are very pleased with the performance in Paraguay during the quarter and for 2023 as a whole. Believe EBITDA declined 4.6% due to a $3 million regulatory fine attributable to the historical year. Otherwise, EBITDA was flat year over year. The falvonary of a day declined by 0.9%.

Panama EBITDA grew 10, 8% as I mentioned earlier, we had a lot of <unk> revenue in the quarter and some of this is coming in with lower margins, which is why you see margin decline and year over year.

Paraguay EBITDA also grew 10, 8% organically in the EBITDA margin expanded to 45, 2%.

We're very pleased with our performance in Paraguay in the quarter and for 2023 as a whole.

Believe EBITDA declined four 6% due to a $3 million regulatory fine or triple to historical year, otherwise EBITDA was flat year over year.

El Salvador EBITDA declined <unk>, 9% as I mentioned earlier Q4 of 2022 was a strong quarter. So we had a more challenging comparison there.

Sheldon Bruja: As I mentioned earlier, Q4 of 2022 was a strong quarter, so we had a more challenging comparison there. Nicaragua's DDA increased 8.4% in local currency, with all business units contributing to the solid performance. Finally, for Honduras, which we do not consolidate, EVTA rose 5.7% in the quarter and for the full year, with EVTA margins of 46.3%, the second highest of the group. Now, please turn to slide 16 for an update on Project Everest. During the fourth quarter, we continued the implementation of phase two, which involved headcount reductions of approximately 20% on average in each of our nine countries of operations. This is on top of the almost 40% headcount reductions we previously announced in our headquarters and centrally managed functions. This resulted in $42 million of additional severance costs for the quarter, bringing the full year total to $87 million.

Nicaragua EBITDA increased eight 4% in local currency with all business units contributing to the solid performance.

Finally for Honduras, which we do not consolidate EBITDA rose five 7% in the quarter as well as for the full year with EBITDA margins of 46, 3%.

<unk> highest of the group.

Now please turn to slide 16 for an update on project Everest.

During the fourth quarter, we continued the implementation of phase two which in both head count reductions of approximately 20% on average in each of our nine countries of operations. This is on top of the almost 40% head count reductions, we previously announced in our headquarter in centrally managed functions.

This resulted in $42 million of additional severance costs for the quarter, bringing the full year totaled $87 million.

Sheldon Bruja: In addition, as we finalize phase two in the first few months of 2024, we anticipate taking additional charges of between 30 and 35 million dollars in the first half of this year. Most of this relates to Columbia, where we implemented a voluntary retirement program in January. As a result of all these actions, we now anticipate to realize total savings of more than $250 million from this program.

In addition, as we finalized phase two in the first few months of 2024, we anticipate taking additional charges of between 30% and $35 million in the first half of this year.

Most of this relates to Colombia, where we executed on our voluntary retirement program in January.

As a result of all these actions we now anticipate to realized total savings of more than $250 million from this program. This is more than double our initial ambition and is Maxine commented a vast majority of these cost saving initiatives have already been implemented and so we are highly confident in our ability to deliver these savings in 2024.

Sheldon Bruja: This is more than double our initial ambition, and as Maxine commented, a vast majority of these cost-saving initiatives have already been implemented, and so we are highly competent in our ability to deliver these savings in 2024. Now please turn to slide 17 for our usual net debt bridge. During the quarter, net debt declined by $53 million to NQ4, or just under $6 million in net debt. The key factors that contributed to the decline in net debt were $39 million of equity-free cash flow generation during the quarter, $74 million benefit from our partner's share of the equity capitalization in Colombia, and $13 million from having repurchased bonds below par value. During the quarter, we repurchased and cancelled $80 million in face value of bonds.

Now please turn to slide 17 for our usual net debt bridge during.

During the quarter net debt declined by $53 million to end Q4, with just under $6 billion of net debt.

The key factors that contributed to the decline in net debt were $39 million of equity free cash flow generation during the quarter.

$74 million benefit from our partner's share of the equity capitalization in Colombia.

And $13 million from having repurchased bonds below par value during the quarter, we repurchased and canceled $80 million based on your bonds. Additionally, we repurchased and canceled just over another $100 million base value of bonds and the beginning of 2024.

Sheldon Bruja: Additionally, we repurchased and cancelled just over another $100 million face value of bonds at the beginning of 2024. These factors are partially offset by $48 million from the revaluation effect of the stronger Colombian peso on our local currency denominated debt. $17 million of taxes related to the carve out of Lassie and approximately $7 million of share repurchases and other minor items. Beginning in Q4 2023, we have amended our definition of leverage to conform with our most common practices amongst our peers. We now define leverage as the ratio of our net debt over the latest 12 months of EBITDA after leases, and on this basis, leverage ended Q4 at 3.29 times, down from 3.32 times at the end of Q3.

These factors were partially offset by $48 million from the revaluation effects of a stronger Colombian peso on our local currency denominated debt.

$17 million of taxes related to the carve out of <unk> and approximately $7 million of share repurchases and other minor items.

Beginning in Q4 2023, we have amended our definition of leverage to conform with their most common practices amongst our peers.

We now define leverage as the ratio of our net debt over the latest 12 months of EBITDA after leases and on this basis leverage ended Q4 at 329 times down from $3 three two times at the end of Q3.

Now please turn to slide 18 for a look at our equity free cash flow in 2023 compared to 2022.

Equity free cash flow in 2023 was an outflow of $18 million, excluding $17 million flat the carve out taxes.

Sheldon Bruja: Now please turn to slide 18 for a look at our equities for cash flow in 2023. Compared to 2022, equity free cash flow in 2023 was an outflow of $18 million, excluding $17 million Latte carve-out tax. And this compares to an inflow of $171 million, including Africa, in 2022. The changes year on year are explained primarily by the following items. On the negative side, we had a $143 million increase in spectrum payments to acquire new spectrum in the 2.6 gigahertz and 700 megahertz bands in Guatemala and to renew our 1900 megahertz license in Colombia. $117 million decline in EPA from continuing operations primarily due to $106 million of one-off expenses related to organizational restrictions and to an adverse ruling in Colombia, as well as increased competitive intensity in Guatemala.

And this compares to an inflow of $171 million, excluding Africa in 2022.

The changes year on year are explained primarily by the following items on the negative side, we had $143 million increase in spectrum payments to acquire new spectrum in the two six gigahertz and 700 megahertz band in Guatemala and to renew our 9800 megahertz license in Colombia.

$117 million decline in EBITDA from continuing operations, primarily due to $106 million of one off expenses related to the organizational restructuring and to an adverse rulings in Colombia as well as increased competitive intensity in Guatemala.

And $71 million increase in finance charges due to an extra 23 million semi annual coupon on the Guatemala Commscope bonds issued in January 2020 to higher rates on our variable rate debt primarily in Colombia.

And commissions on the purchase of dollars in Bolivia.

On the positive side, we had the following items $84 million reduction in tax payments due to lower taxable profit in 2023, and the impact of a $40 million tax amnesty in 2022.

Sheldon Bruja: And $71 million increase in finance charges due to an extra $23 million semiannual coupon on the Guatemalan Comcel bonds issued in January 2022, higher rates on our variable rate debt, primarily in Colombia, and commissions on the purchase of dollars in Bolivia. On the positive side, we have the following items: $84 million reduction in tax payments due to lower taxable profit in 2023 and the impact of a $40 million tax amnesty in 2022. 50 million dollars reduction in working capital due to collections on receivables from a large B2B contract in Panama, as well as the effect of severance and legal ruling expenses not yet paid, and $26 million reduction in cash CapEx, reflecting lower levels of commercial activity and investment in our home business units, especially in Colombia and Bolivia. Now, please turn to slide 19.

With $2 million reduction in working capital due to collections on receivables from our large b to b contract in Panama as well as the effect of severance and legal ruling expenses not yet paid.

And $26 million reduction in cash capex, reflecting lower levels of commercial activity and investments in our home business unit, especially in Colombia and Bolivia.

Now please turn to slide 19.

As we have announced today, we are targeting equity free cash flow of around $550 million in 2024.

Free cash flow of around $700 million for the 2022 to 2024 period, which compares to our previous three year target of around $600 million that we communicated in December.

Underpinning the increased target and a stronger equity free cash flow outlook in 2024 are higher expected savings from project Everest that we discussed earlier in the presentation lower expected capital expenditures and spectrum spend as well as the strong start to the year that we're seeing in January and February that Max Ive indicated earlier.

Sheldon Bruja: As we announced today, we are targeting equity-free cash flow of around $550 million in 2024. This implies free cash flow of around $700 million for the 2022 to 2024 period, which compares to our previous three-year target of around $600 million that we communicated in December. Underpinning the increased target and the stronger equity-free cash flow outlook in 2024 are higher expected savings from Project Everest that we discussed earlier in the presentation, lower expected capital expenditures and spectrum spend, as well as the strong start to the year that we are seeing in January and February that Maxim indicated earlier. This outlook for free cash flow generation puts us back on track to bring leverage down below 2.5 times by 2025. This target excludes any cash proceeds and related taxes stemming from a potential LATI transaction and excludes cash proceeds from the separate terror transaction we announced in Colombia. Thank you, Sheldon.

This outlook for free cash flow generation puts us back on track to bring leverage down below two five times by 2025.

This target excludes any cash proceeds and related taxes stemming from the potential lastly transaction.

And that excludes cash proceeds from the separate tower transaction, we announced in Colombia.

With that we're now ready to answer your questions.

Thank you Sheldon.

We will now begin the Q&A session and as a reminder, if you would like to ask a question. Please let us know by emailing us at investors at Millicom Dot Com and we will add you to the queue.

Our first question is coming from Marcello Santos at Jpmorgan Aceto dinosaurs.

Thank you good morning, <unk>, Thanks for taking my questions.

I wanted to ask two the first is regarding the outlook for Colombia margins, we reached a new record.

What's the ambition here and.

Our margins a bit.

Normally low because youre not adding so much broadband adds so.

Operator: We'll now begin the Q&A session. And as a reminder, if you would like to ask a question, please let us know by emailing us at investors at millicom.com. And we will add you to the queue. Our first question is coming from Marcelo Santos at J.P. Morgan. Marcelo, the line is yours. Thank you. Good morning to all.

What's the impact of <unk>.

You're more like.

I imagining the future you want to add more Ed. So if you will back to the normal pace of.

What would be the impact on margins and the second question is.

On project Everest.

I think part of those costs were already cost savings are already reflected on 2023 numbers. So what's the incremental cost saving of 2024 versus 2023 I understand there is a run rate, but what should we see is incremental savings versus what was already reported the year. Thank you.

Maurizio Ramos: Thanks for taking my questions. I wanted to ask two. The first is regarding the outlook for Colombian margins; will you reach a new record? What's the ambition here? Aren't margins a bit abnormally low because you're not adding so many broadband ads? So what's the impact of your more like, I imagine in the future, you want to add more ads. So if you were back to the normal pace of ads, what would the impact on margins be? And the second question is, on Project Everest. I imagine part of those costs were already cost savings were already reflected in 2023 numbers. So what's the incremental cost saving of 2024 versus 2023? I understand there's a run rate, but what should we see as incremental savings versus what was already reported in the year? Thank you.

Thank you Marcello as usual, let me take Colombia, a little bit Big picture first.

The outlook for Colombia, and then of course, I'll hand, it over to a combination of Sheldon I'm seeing who can give you the operational capex and financial details on projects to address.

Listen on Columbia the outlook.

<unk> dramatically improved seems backing this summer when we were dealing with a capital infusion.

Some of the uncertainty around whether we would be able to put together or not the final details around the combination of our network with telefonica over the last couple of years as you know we've been able to invest 700 megahertz network, which is supposed to be phenomenal for us to gain more market share volume.

Maurizio Ramos: Thank you, Marcelo. As usual, let me give you a little bit of the big picture first and the outlook for Columbia. And then, of course, I'll hand it over to Sheldon and Maxime, who can give you the operational capex and financial details on Project Everest. Listen, on Columbia, the outlook has dramatically improved since back in the summer when we were dealing with a capital infusion and a ton of uncertainty around whether we would be able to put together or not the final details around the combination of our network with Telefonica. Over the last couple of years, as you know, we've been able to invest in a 700 megahertz network, which has proved to be phenomenal for us to gain mobile market share. Pricing has become more stable as the new incumbent has realized that that is a better strategy for them to grow revenue in the marketplace.

<unk> has become more stable.

The new incumbent has realized that that is a better strategy for them to grow revenue in the marketplace and of course, we've put a joint network with Telefonica that has allowed us to buy spectrum together. So we're already beginning to see the improvements on Colombia.

All of these combined more rationale pricing market and our ability to combine network and spectrum with Telefonica.

The pickup in volume that we have had as a result of the 700 megahertz and now significant savings from Everest and efficiencies coming for Everest make the outlook for Colombia.

Positive and that's why you heard us saying during the call that we believe Columbia going forward.

Deliver a lot more and as a matter of fact as a country as you've heard US say many many times that was not making equity free cash flow in 2024, we're aiming for breakeven or positive and that makes it the largest contributor to our equity free cash flow swing now at risk.

Maurizio Ramos: And, of course, we've put in place a joint network with Telefonica that has allowed us to buy spectrum together. So we're already beginning to see the improvements on Columbia. All of these combined with a more rational pricing market and our ability to combine network and spectrum with Telephonica, the pickup in volume that we have had as a result of the 700 megahertz and now significant savings from Everest and efficiencies coming from Everest make the outlook for Colombia quite positive, and that's why you heard us say during the call that we believe Colombia, going forward, can deliver a lot more. And as a matter of fact, it Now Everest, in its revamped, strengthened form, has also had an impact in Colombia, and I'll hand it over to Sheldon and Maxine to give you more details.

And it's revamped strengthened four also had an impact in Colombia, and I'll hand, it over to Sheldon and it seem to give you more details.

I'd like to make just a few comments just on just on Colombia first of all.

Look.

You would've seen in our in our subsequent advance of our <unk> of our earnings release that we had we'd also just implemented a new voluntary separation plan.

In Colombia here and it just launched in January.

Occurred about $17 million of costs related to that so far and that's ongoing but look I think.

Highlighting there is that just builds an extra cushion here for us on margin on that business.

To absorb things like Youre, saying, if we accelerate more on the home side. So so I do feel like.

Sheldon Bruja: Well, I can make a few comments just on just on Columbia. First of all, look, you would have seen in our subsequent events of our in of our earnings release that we had we'd also just implemented a new voluntary separation plan in Columbia here in the just launched in January. We've incurred about $17 million of costs related to that so far. And that's ongoing.

That's the severance program or that separation program plus other initiatives going in place in terms of simplification and other things we're trying to do around the business do provide us here some flexibility buffer here.

On the margin side too.

To absorb a pick up on the on the home.

Sheldon Bruja: But look, I think what I'm highlighting there is that that just builds in an extra cushion here for us on margin in that business, you know, to absorb things like you're saying if we accelerate more on the home side. So, I do feel like, you know, that the severance program or that separation program, plus other initiatives going in place in terms of simplification and other things we're trying to do around the business do provide us here some flexibility and buffer on the margin side to absorb or pick up on the, you know, on the home. On Everest, in terms of how we're exiting the year, we're not being sort of specific, maybe as we had been on some of the other programs; I would just, I would highlight the following. I think what it's important to highlight is really where we're exiting the year on a, you know, on an EBITDA basis from, you know, on a run rate, you can see, if you add back the Our EBITDA for the quarter was just under $600 million, like $599.

On Everest in terms of how we're exiting the year, we're not being sort of specific maybe as we had been on some of the other programs I would just I want to highlight the following I think what's important to highlight is is really where we're exiting the year on a on an EBITDA basis from a you know on a run rate you can see if you add back the severance charges that we had here in.

In Q in Q4 of about $42 million, our EBITDA for the quarter was just under $600 million and $5 99.

That's a good reflection of sort of.

A fan of the run rate of the business is exiting the year.

It was $2 $4 billion on a run rate basis, if you annualize that.

That does not reflect all of the opportunities yet there were still have to implement a we did mentioned a lot of that a lot of those opportunities have been have been implemented but theres still some stuff to come the Columbia, one, which I just mentioned so so I will expect to see further opportunity on from.

Everest rolling into the numbers in 2024.

Benefit EBITDA line as well as as well service revenue growth, which we anticipate as well.

Sheldon Bruja: You know, that's a good reflection of sort of, you know, kind of the run rate of the business exiting the year. It was $2.4 billion on a run rate basis. If you analyze that, you know, that does not reflect all of the opportunities yet that we're still have to implement. And we, you know, we did mention a lot of that; a lot of those opportunities have been, have been implemented, but there's still some stuff to come, like the Columbia one, which I just mentioned. So, you know, I will expect to see further opportunity from Everest rolling into the numbers in 2024 to benefit the EBITDA line, as well as, you know, as well as service revenue growth, which we'll anticipate as well for the business.

For the business.

Okay, Tim anything to add to that.

Just kind of a few comments.

To explain why we increased.

The run rate saving on project they've raised I joined the company in September we started immediately with the team to reduce the headcounts.

Good quarter, and then we increased the scope of this.

Good call protection, but as you can imagine we cannot execute derisking immediately so most of it have been done during the Q4, but part of it is still ongoing that.

That is the first 0.2nd point is that.

There are many complex with commitments at the end of 'twenty three.

Sheldon Bruja: Okay, anything to add to that? I just can catch a few comments just to explain why we increased the run rate saving on Project Everest. I joined the company in September. We started immediately with the team to reduce the headcount at the headquarters, and then we increased the scope of this headcount reduction. But, as you can imagine, we cannot do everything immediately.

We've cut but the full effect will come later, we've come in 'twenty four.

Including important contents upfronts.

And subcontractors.

The effects of the simplification of the way we work the way we organize the companion to process.

We take full effect in 'twenty four.

Maxime Lombardini: So most of it has been done during Q4, but part of it is still ongoing. That is the first point. The second point is that there were many contracts with commitment at the end of 23 that we cut, but the full effect will come later, will come in 24, including important content and subcontractors. All the effects of the simplification of the way we work, the way we organize the company, the process, will take full effect in 24. And many other smaller items, such as the way we organize advertising, the way we manage roaming, the way we optimize real estate. Everything has been addressed during the end of 23, but you will see the full effect in 24.

And many other I would say it was more items such as the way we organize advertising.

We manage the roaming the way we optimize the real estate.

Everything has been during the end of 'twenty, three but you will see the full effect in 'twenty four.

It is the reason why the saving.

Quite comfortable with.

We've disclosed because most of them.

Already as we said in the bank.

And we have still room for maneuver.

Overall, the seller feels like Columbia is now.

Understood and under control pricing is more stable we got network.

<unk> senior do the spectrum renegotiations are behind US we have the ability to work on network and spectrum Telefonica. So it really is.

On a more positive outlook in Colombia overall.

Yeah.

Okay.

Thanks Marcelo.

Maurizio Ramos: That is the reason why the rent rate saving. We are quite comfortable with the figures that we've disclosed, because most of them are already, as we said, in the bank, and we still have room for maneuver. Overall, Marcelo, it feels like Colombia is now well understood and under control. Pricing is more stable. We have network and Catholic synergies, and spectrum radio negotiations are behind us. We have the ability to work on network and spectrum telephony. So it really is a more positive outlook on Colombia overall. Thanks, Marcelo. Next, we're going to go to Fanny Canemiri at HSBC. Fanny, the line is yours.

Next we're going to go to Fannie.

At HSBC and <unk>.

Yes.

Thanks, everyone for taking my questions. The first one is on your free cash flow guidance, but when we met last time during the third quarter conference call equal five.

You hired up.

And when it does that it's a 500 million and now you're having to almost 900 million.

All these all the incremental guidance coming from organic growth.

<unk> list or is there some kind of inorganic contribution.

Can you also talk about going after any one off impacts like the legal case that telefonica.

Maurizio Ramos: Thank you everyone for taking my questions. So the first one is on your free cash flow guidance. So when we met last time during the third quarter conference call, you had a cumulative guidance of 500 million. Now you have increased it to almost 700 million.

Anything done yet.

You bet.

That's the first question.

Okay.

So as you can imagine.

Maurizio Ramos: All the, is all the incremental guidance coming from organic growth due to the project, or is there some kind of inorganic contribution? And can you also talk about one of the, any one of the impacts like the, you know, the legal case with Telefonica that the recent New York judge gave? That's the first question.

We would imagine yourself that there would be some questions around this rebound the guidance. So if we can.

Talk through ways to give you a holistic response to you and to everyone on the call will surely have the same kind of questions. One is.

Where each one of the big contributors to equity free cash flow our Columbia from initially will be consistent with my prepared remarks, I will give you more detail on that.

Maurizio Ramos: So, as you can imagine, we imagined ourselves that there would be some questions around this revamped guidance. So we're going to tackle it three ways to give you a holistic response to you, Fanny, and to everyone on the call who surely have the same kind of questions. One is where each one of the big contributors to equity-free cash flow PICA is coming from, and this will be consistent with my prepared remarks. I'll give you more detail on that later.

Then Sheldon will give you a little bit more detail on kind of the P&L.

Items that contribute to this equity free cash flow.

And then I'm asking.

It will further roddie.

<unk> that we see operational enriched view on base, if you get a holistic answer to this kind of lay out your questions. So number one in terms of where we see the equity free cash flow come from I really address Colombia, so I'm not going to repeat Columbia as a meaningful contributor towards swinging equity free cash.

Maurizio Ramos: Then Sheldon will give you a little bit more detail on kind of the P&L items that contribute to this equity-free cash flow, and then Maxim will further ratify that with the operational and Everest view on this. So you get a holistic answer to this, kind of lay out your questions.

<unk> for the strategic reasons that I, just mentioned and for the results of the projects that allow Colombia to growing margins and how more equity free cash flow productions, I'm not going to repeat those because we've addressed them significantly.

Maurizio Ramos: So number one, in terms of where we see the equity free cash flow coming from, I already addressed Colombia, so I'm not going to repeat. Colombia is a meaningful contributor to our swinging equity free cash flow for the strategic reasons that I just mentioned and for the results of the projects that allow Colombia to grow in margins and have more equity free cash flow production. I'm not going to repeat those because we've addressed them significantly. The second largest contributor is Guatemala.

The largest contributor is walk them up for the last three years, you have seen us to invest in the density of the network in order to quite frankly defend our market share. We also had to invest in spectrum.

In order to be able to have a better network experience spectrum priority and we've seen pricing pressure as a result of the perceived lack of spectrum or network party.

Maurizio Ramos: For the last three years, you have seen us have to invest in the density of the network in order to, quite frankly, defend our market share. We also have had to invest in spectrum in order to be able to have a better network experience and spectrum parity. And we've seen pricing pressure as a result of the perceived lack of spectrum and network parity. But that has changed dramatically over the last two quarters.

That has changed dramatically over the last two quarters, we've been able to buy spectrum with that spectrum. We are now able to optimize the network and as a result of that we're no longer investing in spectrum and the investments in the networks can be optimized in Russia, but going forward and as I said in the prepared remarks, we have a more stable a rational pricing environment.

Maurizio Ramos: We've been able to buy spectrum. With that spectrum, we're now able to optimize the network. And as a result of that, we're no longer investing in spectrum.

So as a result of that Guatemala is significantly coming back to growth and you layer on top of that margin expansion as a result of Emirates Everest on a revamped way so.

Maurizio Ramos: And the investment in the networks can be optimized and rationalized going forward. And, as I said in my prepared remarks, we have a more stable, rational pricing environment. So as a result of that, Guatemala is significantly coming back to growth. And you layer on top of that, margin expansion as a result of Everest in a revamped way.

And since this is what the model is also working so we've really put Colombia under a controlled environment growing environment. The same with Rocky Mountain and those are our two largest mark but if you add to that Panama Youll recall from my prepared remarks.

In Panama four years ago, we're now number one in Panama and it is our second largest contributor to equity free cash flow in 2024 right next to.

<unk> is the number one contributor.

So you put these three contribution then you add on top of that Everest and increased Boulder ambition of Everest and Youll get a view or why 2020 for use of your cash flow and if you look at this holistically.

Maurizio Ramos: So in synthesis, Guatemala is also working. So we've really put Colombia under a controlled environment, a growing environment. The same with Guatemala.

The last six months.

Maurizio Ramos: And those are our two largest markets. But if you add to that Panama, and you recall from my prepared remarks, we were not in Panama four years ago. We're now number one in Panama.

Once we were able to strategically start showing the work over the last few years working out in Colombia working out in Guatemala, we were able to really focus on Everest and increasing efforts.

Maurizio Ramos: And it is our second largest contributor to equity-free cash flow in 2024, right next to Guatemala as the number one contributor. So you put these three contributions together, then you add on top of that, Everest, and the increased bolder ambition of Everest, and you get a view of why 2024 is the year of cash flow. And if you look at this holistically, over the last six months, once we were able to strategically start showing the work of the last few years, working out in Colombia, working out in Guatemala, we were able to really focus on Everest and increasing Everest. And the methodology, the challenge, the support, and the execution that Atlas and Maxime brought into the team came at the right perfect time. Because the platform changes were not ready for that profitability boost.

The methodology the challenge in that.

And the execution that offers and Maxim brought into the team came up the right perfect timing because the platform changes, we're not ready for that profitability boost and Thats why.

I think you said, thank you because the timing was perfect in the methodology and the Consecution. What's was really good. So that's an additional element to this free cash flow rebound condition, but we've also as we've also said before are now in a lower spectrum spend environment.

2022, and 2002 and three as we always said were the years in which we would have to renew spectrum in Colombia by spectrum, we've done that in Colombia with Telefonica, we bought twice, but they're not of that so going forward. We're looking at more normalized views on spectrum and of course, we've invested heavily on lucky.

Maurizio Ramos: And that's why, you know, I publicly said thank you because the timing was perfect and the methodology and the execution were really good. So that's an additional element to this free control revamped ambition. But we've also, as we've also said before, are now in a lower spectrum spend environment. 2022 and 2023, as we always said, were the years in which we're going to have to renew spectrum in Colombia by 2023. We've done that 5G in Colombia with Telefónica. We bought it twice in Guatemala.

As I said earlier, we are now more on the monetization phase of Lucky, but that was an investment that happens when you put it all together it comes into 2024 will be the year of our cash flow now without sort of big picture I'll hand, it over to Sheldon to give you details in vaccine to show you. The good stuff that we're doing on the margins and efficiencies.

Sure Ben.

Your main question is sort of how do we increase the guidance parents from it from the time period from December until until until today.

I think part of this I would go probably with some conservatism in what we said in December as we were still had a lot of these plans in flight and was trying to and you don't have to use a lot of discussing your insulated I think Maxime mentioned a lot of the things that he sort of brought to bear when he started reviewing in and getting involved in sort of the Everest activities and you can see the upgrade and what we've done around it.

Maurizio Ramos: So going forward, we're looking at more normalized views of the spectrum. And, of course, we've invested heavily in LATI. And as I said earlier, we are now more on the monetization page of LATI, but that was an investment that happened. When you put it all together, it comes to 2024 being the year of our country. Now, with that sort of big picture, I'll hand it over to Sheldon to give you details, and Maxime to show you the good stuff that we're doing on margins and efficiencies. Sure, Ben.

Around the Everest ambition from sort of a 135, we talked about Q3 to.

Over 250 billion today is tantamount.

Tantamount to all of those all of those things we're doing in Q4. So I think we were a little bit cautious as we were as were sitting in December I think once we have the opportunity to see sort of how all of that out in our numbers for financial results for the full year plus the start we had at the beginning of this year in January and what we see here in February as is.

Sheldon Bruja: I think your main question is sort of how we, you know, why the increase in guidance kind of, you know, from the time period of December until today. Look, I think part of this probably was some conservatism in what we said in December, as we still had a lot of these plans in flight and were trying to, you know, a lot of this got implemented. I think Maxime mentioned a lot of the things that he sort of brought to bear when he started reviewing and getting involved in sort of the adverse activities. And you can see the upgrade and what we've done around the adverse ambition from sort of the 135 we talked about in Q3 to like the, you know, over 250 billion today is really tantamount to all those, you know, all those things we were doing in Q4. So, you know, I think we were a little bit cautious as we were sitting in December.

I was giving us the confidence to raise that outlook and reflect the numbers of providers.

And the results today.

And just.

I think if I. If you allow me I can rephrase your question, which is in a way is the cash generation for the company something valuable and just to complement it.

The words from Mauricio mentioned and I would say there are good reasons that Oh.

We look to bolt the cash generation for the medium and long term.

Maxime Lombardini: I think once we had the opportunity to see sort of how all that played itself out in our numbers for financial results for the full year, plus the start we had at the beginning of this year in January and what we see here in February, has given us the confidence to raise that outlook and raise the numbers and provide what we said in the results today. And I think, if you allow me, I can rephrase your question, which is, in a way, is cash generation for the company viable? And just to complement the words from Mauricio and Sheldon, I would say there are five good reasons that, first, will support cash generation for the medium and long term.

The first one is the way the company works, we are changing the way the company works by simplifying.

Many many things and you know that by simplifying your city costs through a more efficient more flexible that is the <unk>.

First item. The second one is the one that we mentioned many times the cost structure. It will not be the same anymore.

On many topics that will not occur until the.

The details that you know.

The third one.

She is probably undervalued is the network optimization, we started a huge work with the contribution of Atlas.

On simplifying and optimizing the mobile network and the whole network.

Maxime Lombardini: The first one is the way the company works. We are changing the way the company works by simplifying many, many things. And you know that by simplifying, you are saving costs. You are more efficient, and more flexible. That is the first item. The second one is one that we have mentioned many times, the cost structure. It will not be the same anymore. On many topics, I will not go into the details that you know.

Total debt, we'd have the benefit of the network sharing in Colombia that is a huge benefit both on the spectrum cost efficiency coverage quality and.

Cost.

First one it is something that is not easy to to show, but that is the commercial initiatives that we're launching.

All the countries have been very impressed by the commercial team of T GUL and boost the BTC.

Maxime Lombardini: The third one, which is probably undervalued, is network optimization. We started a huge work with the contribution of ATLAS on simplifying and optimizing the mobile network and the home network. And on top of that, we have the benefit of network sharing in Colombia. That is a huge benefit both in terms of spectrum cost, efficiency, coverage, quality, and cost. The fourth one is something that is not easy to show, but that is the commercial initiatives that we are launching in all the countries. I've been very impressed by the commercial team of TECO in both B2C and B2B. They are really top guys.

To be really tough guys.

There are many things that we can do with this congested. So that we have and then the first item is something which is very simple.

It's pure mathematics cities the deleverage of the company did it reaching the company, we will improve the cash flow generation.

Ultimately funny that gives you the strategic financial and operational view.

Yes.

And that is convincing than just ship items within there.

So just my second question is regarding the pricing in the non maintain Guatemala.

Starting with becoming much more stable Phil are you seeing the computer also raising prices.

Maxime Lombardini: And there are many things that we can do with the strong assets that we have. And then the fifth item is something that is very simple. And I would say it is pure mathematics.

Do you think that you know your network better Nick Lucas helping out.

The dance that type of thing.

Maxime Lombardini: It is the leverage of the company, leveraging the company. We will improve cash generation. Hopefully, that gives you the strategic financial and operational view and, If that is convincing, then just ship items within the range. Sure, just so my second question is regarding the pricing environment in Guatemala. You said it was becoming much more stable. So are you seeing competitors also raising prices, or do you think that, you know, your network, a better network, is helping retain subscribers and increasing your ability to raise prices? Thank you. Action, do you want to take that one and provide a fresh view?

I've made it very expensive.

Actually I'm going to thank all of them and provide a fresh view.

At the moment.

Hey.

Optimistic.

And cautious.

We are back to a situation which is a.

Nice.

As I, probably should've said before the compare though not very easy because we had the world Cup effect one year ago.

But.

We increased price.

Uh huh.

The kpis are good.

We have a good team there.

The situation is I think after a troubled period stabilize them we are.

Maxime Lombardini: I would say optimistic and cautious. We are back to a situation which is quite nice. As probably Sheldon said before, the comparisons are not very easy because we had the World Cup effect one year ago, but we increased the price.

The government and there, we're seeing going doing well.

In the country, So I would say.

Maxime Lombardini: The KPIs are good, we have a good team there, the situation is, I think, after a troubled period stabilised, and now we have a government, and everything is going well in the country. So I would say reasonably optimistic about the future of Guatemala. And as you can imagine, we are spending a lot of time with the team there to be sure we have the right commercial positioning, the right network at the right place, and that all the investments that need to be made have been made. Actually speaking, as you know, we raised prices in September of last year. That created a more rational marketplace.

The optimistic.

If you travel with them alone.

And as you can imagine we're spending a lot of time with the team there to be sure. We have the right commercial positioning the right network at the right place and that pulled the investments that need to be made Amit.

Actually speaking as you know we raised prices in September of last year.

That created a more rational marketplace. So those those price increases have stuck.

Maurizio Ramos: So those price increases have stuck, and we're doing a little bit more at the beginning of this year because we believe the environment is a lot more stable with the network parity and the spectrum parity that we now have. So we are, I think we've used the words modestly, cautiously optimistic about Guatemala, but we also have the ability now to rationalize the network, which Maxime alluded to. So Guatemala is now the Kafka producer that we all know it is. Perfect, thanks everyone.

We're doing a little bit more at the beginning of this year.

Because we believe the environment is a little more stable with network parity and the spectrum in that.

Uh huh.

So we are I think we've used the words modestly cautiously optimistic about Guatemala are will soften the ability now to rationalize the network, which might seem alluded to so <unk> now the cost per user that we all know it is.

Okay. Thanks, everyone.

Operator: Thanks, Manny. All right, next, we're going to go to summit.newstreetresearch. Yeah, hi, everybody.

Thanks, Danny Alright next we're going to go to submit that that Mystic research summit.

Yes, hi, everybody thanks very much.

Operator: Thanks very much for letting me ask a question. Congratulations on the performance. A couple of things, please.

Let me ask the question and congratulations on the.

On the performance.

A couple of things, maybe just sort of pulling the.

Operator: Maybe just sort of pulling the conclusion together on equity free cash flow. It sounds like there's nothing particularly unusual in the 2024 guidance. And so should we think of $550 million as a floor number going forward? It doesn't strike me that we should think anything different. But I'd be interested in your interpretation.

The conclusion together on equity free cash flow.

Sounds like there is nothing particularly.

Unusual in.

In the 2020 full tie them until you should we think of the <unk>.

$250 million.

A poll number going forward.

Strike me that we should think anything different but I'd be interested in.

And your interpretation I wondered if there was anything.

Maurizio Ramos: I wondered if there was anything, you know, unusual in working capital, if spectrum was going to be particularly low, or if there was some sort of detail there that isn't obvious, but otherwise, I would be interested in looking beyond 2024. The first question, maybe leave it there, and I'll return with a follow-up. I know you're making everyone here very, very, very anxious with your very smart way of asking for future guidance. It's really good. I can, Michelle's not in the room, but I can hear him just trembling there, right?

Unusual in working capital, they expect and what's gonna be particularly like some sort of detail that at that.

You can talk to you otherwise would be interested in Nielsen.

Looking beyond 2020.

The first question maybe.

We tend to have a follow up please.

No no.

Clearly youre, making and everyone here very very necessary.

Actually we see our various smart way of asking for future guidance.

Really good to me.

Certainly the room, but I couldn't hear him just trembling there.

Maurizio Ramos: Let us answer twofold. One, you know, kind of, we'll provide guidance beyond 2024 at the right time. For now, we're focusing on cementing that 2024, and I think it's the right focus for us. But I will say just a little bit to make the team a little bit uncomfortable.

Right.

That list.

As you are twofold, one kind of.

We will provide guidance beyond 2024 at the right time for now we are focusing on cementing that 2024.

And I think is the right focus for us.

I will say, just a little bit to make the team a little bit uncomfortable.

Yeah.

Maurizio Ramos: It is sustainable, and it can be grown because we've now, you know, on the spectrum, reached levels that we think are more noble. As I said before, 2022 and 2023, as we always said, were the years of high spectrum spend. We've done that significantly, working in Colombia with the renegotiations and Guatemala with the acquisitions. We now have a joint venture in Colombia that allows us to tackle the Colombian spectrum in a much more efficient way. The cost structure changes that Maxim has alluded to and has been instrumental in putting in place are long-term cost structures, so the platform becomes more profitable, and all of our countries are equitably cash flow positive. Colombia has seen the darkest moments of the last couple of years, and we've been able to sort them out. Colombia seems on a track to be sorted out.

It is sustainable and it can be grown because we have now.

<unk> reached levels of income with no as I said before 2022 and 2020 as we always said where the use of high spectrum spend.

Down not significantly book in Colombia, with the renegotiations and Guatemala with acquisitions, we now have a joint venture in Colombia that allows us to tackle Colombian spectrum in a much more efficient way.

Cost structure changes that machine has alluded to and has been instrumental in putting in place our long term cost structure. So the top from becomes more and more profitable.

All of our countries our equity free cash flow positive Columbia have seen the darkest moments over the last couple of years and we've been able to sort it out Colombia seems on track to be sorted out.

Maurizio Ramos: Guatemala already alluded to us, you know; we defended our market share, and the power question. I was simply going to say that our market share remains the same, prices stable, we have spectrum parties, so Colombia seems on track, and Panama is everything we expected it would be when we acquired those two businesses four years ago. So, without giving you specifics, we are positive that this is sustainable, equity-free cash flow levels and growth. Okay, very helpful, thank you.

Rocky Mountain I already alluded to we defended our market share in the prior question I was simply going to auto market share remains the same pricing stable, we got spectrum already so Colombia it seems on track.

Is everything we expected it would be when we acquired those two businesses for years ago. So without giving you specifics we are associated with this the sustainable equity free customer levels and growth.

Okay.

Okay helpful. Thank you.

Can I just tend to.

Maurizio Ramos: Can I just turn to the top line then? There was a nice lift from the B2B contract in Panama. I think underlying revenue growth is maybe running at 2%, give or take. How do you think about that looking forward? And again, not looking for numbers, but in terms of home, I think we may be sort of flat to down slightly underlying mobile mobile growing a little bit b2b is lumpy, but just thinking how you think about the sort of overall revenue mix component and, if you can, on the ability to sort of raise that current run rate of growth, I'll give you a big picture and Maxime can definitely We're still on? Center.

Top line then.

That was a that was a nice lift from the <unk>.

<unk> contract in Panama, I think underlying revenue growth is maybe running at 2% give or take how do you think about that looking forward then.

Again, not looking for numbers, but in terms of <unk>.

I think I think we may be sort of flat to down slightly on the line.

Mobile is growing a little bit <unk> is lumpy, but just thinking how you think about that sort of overall revenue mix component.

And if you can on the ability to sort of.

<unk> parent.

Current run rate looking forward.

Thank you.

Given a big picture.

<unk> definitely I'm pleased too that we still own.

Sure Yes.

Maurizio Ramos: Okay, our camera went down, so as long as we're still on, So listen, um, Postpaid on mobile is driving a lot of growth, both in terms of additions and in terms of pricing, and you've seen that particularly in Colombia and Panama. But fee-paid is also coming back, particularly in Guatemala, and we're also seeing, you know, improving trends in mobile and mobile home, a continuation of what we said in the last couple of quarters, we're being a lot more price disciplined and maintaining It means lower volume, as you've seen in Colombia and in Bolivia, but it means sustained ARPU and sustained revenue at home.

Okay. Okay, it's our kind of either a camera it went dark sorry as long as we are still on so listen.

Postpaid on mobile is driving a lot of growth.

Both in terms of additions and in terms of pricing and you've seen that particularly in Colombia and Panama.

He paid is also coming back, particularly in Guatemala.

And we're also seeing.

Moving trends and believe beyond mobile home.

Integration of what we said in the last couple of quarters, we're being a lot more price disciplined.

Maintaining installation fees.

It means lower volume have you seen in Colombia, and Bolivia, but it means sustained our pool and sustained revenue on.

Maurizio Ramos: And I think that's the right approach, and I think Maxim and Atlas and ourselves view eye to eye on that. And B2B, as you've seen, is delivering with both the digital cloud products but also new contracts that we are achieving, particularly in Panama. So we're focused on the top line in that way. And Maxim, I can't really see you on the screen, but if you have anything to add, just shout. Yes, I think I am still on the screen for me, at least.

And I think that's the right approach and been Maxime Monopolism ourselves view eye to eye on that.

<unk> seen us delivering with both the digital and cloud products, but also new contracts that we are achieving in particularly in Panama.

So we're focused on the topline in that manner.

And Maxine I can't really see on the screen, but if you have anything to add just shocked.

Yes, I think I am still on the screen for me a bit.

Maxime Lombardini: No, I would just add some comments on the home business. The home business was a bit in a flat, flattish situation. And we started working on something quite simple, which is to upgrade the capacities of the HFC networks. We are lucky because the quality of this HFC network in most of the geographies is good. And with the limited capex, we are able to very significantly increase the bandwidth we can deliver. So from time to time, we also have to deliver a new CP to the customer. But that is something that we push on all the geographies where there is a need, and together with the revamping of some offers.

No.

Just some comments on the home business.

The home business.

It was a bit.

In a flat flattish situation.

We started working on something quite simple, which is to upgrade very significantly the capacities of the HFC networks.

We are lucky because the quality of the <unk> network and most of the geographies is good.

With the limited.

Alex we are able to.

Very significantly increase the bandwidth we can deliver so.

Thanks for the time will have to deliver also in UCP to the customer but that is something that we pushed all the geographies, where there is a need to.

Together with the revamping of some office.

Maxime Lombardini: We are able to be really competitive in the markets with a very low capex intensity to deliver something which is drastically different from the past. And that, together with the discipline that Mauricio mentioned, just to avoid putting CAPEX in a country or in a situation where the churn is very high. We are monitoring the payback of the investors, of the investors, of the subscribers, sorry. And I would say we are reasonably optimistic about what we can do with the 14 million households that we have passed in HFCP. And on mobile, I have nothing to add to what Mauricio said.

We are able to be really competitive on the markets.

These are very low.

Ex intensity to deliver some sandwiches.

Drastically different from the best.

Together with the discipline that you mentioned.

Just to avoid to put capex in a country or in a situation where the churn is very high.

We are monitoring the payback of the investors.

Okay.

Subscribers sorry.

I would say we have a reason to be optimistic on what we can do with that.

The 14 million households that we discussed.

And on mobile and nothing to add to what Mauricio said things are going well.

Maxime Lombardini: Things are going well in most of the geographies. Got it very clear, thank you. Thank you, Sumit.

Most of the geographies.

Got it very clear thank you.

Thank you Sumit, Alright next and I think that is.

Maurizio Ramos: All right, next, and I think this will be our last question, is coming from Eduardo Ruby at UBS. Eduardo, hi, thanks for taking my question. Two questions from my side. First, in terms of capital allocation, can you please compare how you evaluate capital allocation between debt reports and stock reports? And second, given the debt repurchase and the current rate and FX environment, what figures should we expect for financial expenses going into 2024? Thank you. The first one, Eduardo, I'll take it, and then I'll hand it over to Sheldon for the second one, which is more detailed.

It will be our last question is coming from Eduardo Ruby at UBS vital.

Hi, Thanks for taking my question.

Two questions from my side, Firstly in terms of capital allocation can you. Please compare how you evaluate allocation between depth to airports and stock repurchase.

And second given adapt to repurchase and curious.

<unk> and FX environment, what figure shall we expect our findings for expenses going into 2024.

Yeah.

The first one is Rocco I'll take and then I'll hand, it over to Sheldon for Sigma one enrolled more detailed.

Maurizio Ramos: Our capital allocation methodology, as you can imagine, and as we've said a number of times, is basically highest return oriented with a view to strategic investments as well, meaning, you know, stuff that has a long-term return on capital. At this point in time, with our growing cash flow and our leverage coming down to a state of 2.5, sooner than we had expected, we continue to view debt reduction as the highest return to our shareholders. So that's what our current focus is on, and that's all I'll say on that because I think that is probably the most productive answer I can give you. And for the details on question number two, I'll hand it over to Sheldon.

Our capital allocation methodology as you can imagine and as we've said on a number of times is basically highest return oriented with a view towards strategic investments as well, meaning stuffs that has long term return on capital at this point in time with our growing cash flow.

Our leverage coming down to the state at two five.

Sooner than we had expected we continue to view.

Debt reduction is the highest return to our shareholders. So that's where our current focus is on.

And that's all I'll say on that because I think that is probably the most productive I'm sure. We can give you.

The details on question number two I'll hand, it over to Sheldon.

Sure.

I would just I would just.

Maurizio Ramos: Sure. I would just highlight, yes, we expect sort of finance charge improvements this year, particularly as we deploy the cash flow generation that we've highlighted in terms of debt reduction. I'm not going to give you specific guidance on it, but absolutely, you're going to be looking for improvements there for the year. And you can kind of do some maps if you can forecast how that $550 million of equity-free cash flow will come through the year and, you know, kind of the interest rate savings associated with it. Thank you. That's okay. Very clear. Thank you very much.

Yes, we expect sort of.

Finance charge improvements this year, particularly as we deploy sort of the cash flow generation that we highlighted in terms of debt reduction.

Im not going to give you specific guidance on it but you're going to absolutely going to be looking for improvements there.

For the year and you can kind of set of do some math that you can pull or forecast how.

Now that that's 550 million of equity free cash flow will come through the year end.

Kind of the interest rate savings associated with it.

Yeah.

That's okay very clear thank you very much.

Sheldon Bruja: Thanks, Eduardo. Alright, so that wraps up the Q&A. Maui, back to you for any closing remarks. Sure. Thanks to Sheldon, Michelle, and Maxine for participating and for the entire TECO team to make this come through. Thank you all for joining us today.

Other.

Thanks Eduardo.

So that wraps up the Q&A now he stepped back to you for any closing remarks.

I'm sure Thanks to Sheldon Michelle in vaccines, we're participating in for the entire Tivo team to make this come through thank you all for joining us today.

Maurizio Ramos: As you can see, things are coming together after a lot of work by a lot of people. Colombia is under control and has an improved outlook. Guatemala is indeed under control and with an improved yet cautiously optimistic outlook. Panama is turning out to be what we expected it would be when we bought the asset, and we allocated capital to Guatemala and Panama. We're happy we did because those are our two largest capital producers. Everest, which is now revamped, increased, and broadened, is giving us a cost structure that we think will make our platform a profitable platform. And this is the wording that Maxim and I and the team speak about, a platform made to be profitable. We've now seen the worst of the spectrum renewals and the spectrum costs.

As you can see things.

Things are coming together after a lot of work.

A lot of people.

Colombia is under control and with an improved outlook, what two miler. Indeed is under control and we've got improved yet cautiously optimistic outlook, Panama is turning out to be what we expected it would be when we bought the asset and we've allocated capital to Guatemala and Panama.

We did it because those are our two largest country producers ever.

Everest, which is now revamped increased broaden is giving us a cost structure that we think will make our platform profitable platform and this is a rewarding a vaccine.

And I and the team speak about a platform we need to be profitable. We've now seen the worst of the spectrum renewals in the spectrum.

Maurizio Ramos: So going forward, we're looking at more normalized spectrum spend, as we anticipated, and we're looking forward to our ability to monetize some of that. When you put it all together in a cost structure that we think can give us increased margins and sustainable profitability, all of that leads to 2024 being, as we've often said before, the year of our country. And thank you.

So going forward, we're looking at more normalized spectrum spend as we anticipated and we're looking forward to last year and our ability to monetize some of that when you put it all together in a cost structure that we think can give us increased margins and sustainable profitability all of that leads to 2024 being as we've often said before the year.

Our country.

Yeah.

Thank you.

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