Q2 2024 Millicom International Cellular SA Earnings Call

Operator: Hello everyone, and welcome to our second quarter 2024 results call. This event is being recorded.

Operator: Hello everyone and welcome to our second quarter 2024 results call. This event is being recorded. Our speakers today will be our CEO, Marcelo Benitez, our COO, Maxime Lombardini, and our CFO, Bart Vanhaeren. The slides for today's presentation are available on our website, along with the earnings release and our financial statements.

Speaker Change: Hello, everyone, and welcome to our second quarter 2024 results call.

Michel Morin: Our speakers today will be our CEO, Marcelo Benitez, our COO, Maxime Lombardini, and our CFO, Bart Van Heren. 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 that involve risks and uncertainties, and these could have a material impact on our results. On slide three, we define the non-IFRS metrics that we will be referencing today throughout the presentation, and you can find reconciliation tables in the back of our earnings release, as well as on our website. With those disclaimers out of the way, let me turn the call over to our CEO, Marcelo Benitez. Marcelo? Thanks, Michel.

Speaker Change: This event is being recorded.

Speaker Change: Our speakers today will be our CEO , Marcelo Benitez.

Speaker Change: our COO, Maxime Lombardini, and our CFO , Bart Van Heren.

Speaker Change: The slides for today's presentation are available on our website, along with the earnings release and our financial statements. Now, please turn to slide 2 for the Safe Harbor Disclosure. We will be making forward-looking statements, which involve risks and uncertainties, and these could have a material impact on our results.

Operator: Now please turn to slide two for the Safe Harbor disclosure. We will be making forward-looking statements, which involve risks and uncertainties, and these could have a material impact on our results. On slide three, we defined the non-IFRS metrics that we will be referencing today throughout the presentation, and you can find reconciliation tables in the back of our earnings release as well as on our website.

Speaker Change: On slide three, we define the non-IFRS metrics that we will be referencing today throughout the presentation, and you can find reconciliation tables in the back of our earnings release, as well as on our website. With those disclaimers out of the way, let me turn the call over to our CEO , Marcelo Benitez. Marcelo?

Operator: With those as claimers out of the way, let me turn the call over to our CEO, Marcelo Benitez.

Marcelo Benitez: Marcelo? Thanks, Michele, and hello everyone. Thanks for joining us to discuss the company's performance during the second quarter. This has been an outstanding quarter for us at Millicom, and before we begin, I want to express my heartfelt thanks to all the members of the Tingo team. We have strength and Tingo's market leadership and successfully implemented a more efficient platform to ensure the company's profitable growth for the years to come. Once again, a huge thank you.

Michel Morin: Thanks, Michel, and hello everyone. Thanks for joining us to discuss the company's performance during the second quarter. This has been an outstanding quarter for us at Millicom, and before we begin, I want to express my heartfelt thanks to all the members of the Tingo team. We have strengthened Tego's market leadership and successfully implemented a more efficient platform to ensure the company's profitable growth for the years to come. Once again, a huge thank you.

Marcelo Benitez: Thanks, Michelle, and hello, everyone. Thanks for joining us to discuss the company's performance during the second quarter.

Marcelo Benitez: This has been an outstanding quarter for us at Millicom, and before we begin, I want to express my heartfelt thanks to all the members of the Tingo team.

Speaker Change: We have strengthened Tego's market leadership and successfully implemented a more efficient platform to ensure the company's profitable growth for the years to come. Once again, a huge thank you.

Marcelo Benitez: Now please turn to slide five for the highlights of the second quarter. The key highlight is this quarter is our equity free cash flow, which reached 268 million and is consistent with our current capital allocation priorities. We use this cash flow to reduce our net debt. So our leverage ended the quarter at 2.7 times. Thanks also to the organic EBITDA growth of almost 20%, which is coming from continued growth in mobile and B2B business and from the very significant efficiencies that we have unlocked over the past year. During this quarter, we've also made significant progress on several strategic projects.

Marcelo Benitez: Now please turn to slide 5 for the highlights of the second quarter. The key highlight this quarter is our equity-free cash flow, which reached $268 million. And consistent with our current capital allocation priorities, we use this cash flow to reduce our net debt, so our leverage ended the quarter at 2.7 times.

Speaker Change: Now please turn to slide 5 for the highlights of the second quarter.

Speaker Change: The key highlight this quarter is our equity-free cash flow, which reached $268 million, and consistent with our current capital allocation priorities, we use this cash flow to reduce our net debt.

Speaker Change: So our leverage ended the quarter at 2.7 times, thanks also to the organic EBITDA growth of almost 20%.

Marcelo Benitez: Thanks also to the organic EBITDA growth of almost 20%, which is coming from continued growth in mobile and B2B business and from the very significant efficiencies that we have unlocked over the past year. During this quarter, we've also made significant progress on several strategic projects that have the potential to greatly improve EFCF and return on capital across the group for the years to come. Bart will give you an update on some of these projects toward the end of today's presentation.

Speaker Change: which is coming from continued growth in mobile and B2B business, and from the very significant efficiencies that we have unlocked over the past year.

Speaker Change: During this quarter, we've also made significant progress on several strategic projects that have the potential to greatly improve EFCF and return on capital across the group for the years to come.

Marcelo Benitez: I have the potential to greatly improve ESF and return on capital across the group for the years to come. But we'll give you an update on some of these projects toward the end of today's presentation.

Speaker Change: Bart will give you an update on some of these projects toward the end of today's presentation.

Marcelo Benitez: Now let's review each of the highlights in more detail, beginning with our mobile business on the next slide. For a second consecutive quarter, mobile service revenue grew 5% in Q2. This is just an acceleration compared to growth of just over 2% that we experienced during 2023. And there are four key drivers behind our stronger mobile growth this year. First, our network. We have invested in all our operations to enhance our mobile network capacity to support the growing demand of mobile data. This has enabled us to increase our pool to carefully plan price increases, beginning with prepaid.

Marcelo Benitez: Now let's review each of these highlights in more detail, beginning with our mobile business on the next slide. For a second consecutive quarter, mobile service revenue grew 5% in Q2. This is just an acceleration compared to growth of just over 2% that we experienced during 2023. And there are four key drivers behind our stronger mobile growth this year. First, our network.

Bart: Now let's review each of these highlights in more detail, beginning with our mobile business on next slide.

Bart: For a second consecutive quarter, mobile service revenue grew 5% in Q2.

Bart: This is just an acceleration compared to growth of just over 2% that we experienced during 2023.

Bart: And there are four key drivers behind our stronger mobile growth this year.

Marcelo Benitez: We have invested in all our operations to enhance our mobile network capacity to support the growing demand for mobile data. This has enabled us to increase our pool through carefully planned price increases, beginning with prepaid. Second, phosphate.

Bart: First, our network. We have invested in all our operations to enhance our mobile network capacity to support the growing demand of mobile data. This has enabled us to increase output through carefully planned price increases, beginning with prepaid.

Marcelo Benitez: Second, post-paid. We have continued to actively migrate our best prepaid customers to postpaid. This explains about half of our post-paid net ads, which have been consistently strong over the past year. As you can see on the chart on the left. Third, convergence. We continue to promote our converges offerings, and these drives lower turn, higher output, and better customer lifetime value. Fourth and finally, improve market dynamics in Panama and Guatemala. As many of you know, the teleconfector requires ongoing investments to keep up with the growing demands of poor consumers. This ongoing need makes it challenging for small players to remain competitive over time and has contributed to a lower trend of consolidation into two or three leading players.

Marcelo Benitez: We have continued to actively migrate our best prepaid customers to PostPay. This explains about half of our PostPay net ads, which have been consistently strong over the past year, as you can see on the chart on the left. Third, convergence.

Bart: [inaudible]

Bart: We have continued to actively migrate our best prepaid customers to postpaid. This explains about half of our postpaid net ads, which have been consistently strong over the past year. As you can see on the chart on the left.

Marcelo Benitez: We continue to promote our convergence offerings, and this drives lower churn, higher output, and better customer lifespan value. Fourth, and finally, improve market dynamics in Panama and Guatemala. As many of you know, the telecom sector requires ongoing investments to keep up with the growing demands of all consumers. This ongoing need makes it challenging for small players to remain competitive over time and has contributed to a global trend of consolidation into two or three leading players, fully in line with this trend you have seen in recent announcements in Colombia and Costa Rica. Please turn to the next slide to look at our home-based lessons.

Bart: Third, convergence. We continue to promote our convergence offerings, and this drives lower churn, higher output, and better customer lifetime value.

Bart: Fourth and finally, improve market dynamics in Panama and Guatemala. As many of you know, the telecom sector requires ongoing investments to keep up with the growing demands of all consumers.

Bart: This ongoing need makes it challenging for small players to remain competitive over time and has contributed to a global trend of consolidation into two or three leading players.

Marcelo Benitez: Full in line with this trend, you have seen all recent announcements in Colombia and Costa Rica.

Bart: Fully in line with this trend, you have seen on recent announcements in Colombia and Costa Rica.

Marcelo Benitez: Please turn to the next slide to look at our phone business. As most of you know, over the past year, we have prioritized profitability and cash flow over growth in this business. We have continued to charge installation fees, driving quality of our growth acts. We have implemented price increases across all markets, and we have become a more return focus on our network expansion. This initiative has led to strong output improvement, and as you can see, the benefit to evidence and cash flow is very clear, especially in Colombia. Now we are ready to move from a defensive mode to an offensive strategy with very significant upgrades on HFC networks, offers simplification and increased commercial aggressiveness in open trading notes, and we have strengthened all this evolution and strong push on HFC.

Bart: Please turn the next slide to look at our home business.

Marcelo Benitez: As most of you know, over the past year, we have prioritized profitability and cash flow over growth in this business. We have continued to charge installation fees, driving quality for GrossAX. We have implemented price increases across all markets, and we have become more return focused on our network expansion. These initiatives have led to strong ARPU improvements. And as you can see, the benefit to EBITDA and cash flow is very clear, especially in Colombia.

Bart: As most of you know, over the past year we have prioritized profitability and cash flow over growth in this business.

Bart: We have continued to charge installation fees, driving quality for gross ads. We have implemented price increases across all markets. And we have become a more return-focused on our network expansion.

Bart: These initiatives have led to strong ARPU improvement, and as you can see, the benefit to EBITDA and cash flow is very clear, especially in Colombia.

Marcelo Benitez: Now we are ready to move from a defensive mode to an offensive strategy with very significant upgrades on HFC networks, offering simplification and increased commercial aggressiveness in low-penetrating nodes, and we have strengthened our distribution and a strong push on FMC.

Bart: Now we are ready to move from a defensive mode to an offensive strategy, with very significant upgrades on HFC networks, offer simplification and increased commercial aggressiveness in low penetrating nodes, and we have strengthened our distribution and strong push on FMC.

Marcelo Benitez: All of these initiatives combined have had an immediate benefit that impact on customer experience and have a lot to reduce turn by 60 basis points. And we are starting to see our net ads back in positive territory in Q2, as you can see in the chart on the right. We expect this improving trend to continue in the second half of this year, and if we can deliver on this, our home business should be in a position to grow service revenue again in 2025.

Marcelo Benitez: All of these initiatives combined have had an immediate beneficial impact on customer experience and have allowed us to reduce churn by 60 basis points. And we are starting to see our net outback in positive territory in Q2, as you can see in the chart on the right. We expect this improving trend to continue in the second half of this year. And if we can deliver on this, our home business should be in a position to grow service revenue again in 2025.

Bart: All of these initiatives combined have had an immediate beneficial impact on customer experience and have allowed us to reduce churn by 60 basis points. And we are starting to see our net ads back in positive territory in Q2, as you can see in the chart on the right.

Bart: We expect this improving trend to continue in the second half of this year, and if we can deliver on this, our home business should be in a position to grow service revenue again in 2025.

Marcelo Benitez: Please turn to the next slide to look at B2B, which had another solid quarter. B2B service revenue grew almost 6% organically this quarter. Over the last two of the months, our B2B business generated $970 million in service revenue. A big part of this growth is coming from digital solutions that grew 30% in Q2 and is now a quarter of a million-dollar business. The two large Panama projects have contributed meaningfully to a growth on the past year, and this will create a tougher comparison for us as we get to Q4. But we continue to see solid underlying trends, and we hope to win more of these kind of large projects in the future.

Marcelo Benitez: Please turn to the next slide to look at B2B, which had another solid quarter. B2B service revenue grew almost 6% organically this quarter. Over the last 12 months, our B2B business generated $970 million in service revenue. A big part of this growth is coming from digital solutions, which grew 30% in Q2 and is now a quarter of a million dollar business. The two large Panama projects have contributed meaningfully to our growth in the past year, and this will create a tougher comparison for us as we get to Q4.

Bart: Please turn to the next slide to look at B2B, which had another solid quarter.

Bart: B2B service revenue grew almost 6% organically this quarter.

Bart: Over the last 12 months, our B2B business generated $970 million in service revenue. A big part of this growth is coming from digital solutions that grew 30% in Q2 and is now a quarter of a million dollar business.

Bart: The two large Panama projects have contributed meaningfully to our growth in the past year and this will create a tougher comparison for us as we get to Q4. But we continue to see solid underlying trends and we hope to win more of these kind of large projects in the future.

Marcelo Benitez: But we continue to see solid underlying trends, and we hope to win more of these kinds of large projects in the future. Our solid B2B performance is also coming from continued growth in the SME client segment, especially in mobile. Now let's review our performance in our three largest countries, beginning with Colombia on the next slide. The key highlight in Colombia this quarter is its EBITDA margin at 39.5%. This is a new record for us in Colombia.

Marcelo Benitez: Our solid B2B performance is also coming from continued growth in the SME client segment, especially in mobile.

Bart: Our solid B2B performance is also coming from continued growth in SME client segments, especially in mobile.

Marcelo Benitez: Now let's review our performance in our three largest countries, beginning with Colombia on the next slide. The key highlight in Colombia this quarter is EBITDA margin at 39.5%. This is a new record for us in Colombia. There are three key drivers to include margins in Colombia. First, as you know, we have taken a lot of cost out of our business over the past year. Second, and as I mentioned earlier, we also make commercial decisions that have significantly improved the profitability in cash flow profile of performance. and Colombia is our largest market for firm services. And third, we continue to grow and gain scale in our mobile business.

Bart: Now let's review our performance in our three largest countries, beginning with Colombia, on next slide.

Bart: The key highlight in Colombia this quarter is EBITDA margin at 39.5%. This is a new record for us in Colombia.

Marcelo Benitez: There are three key drivers for improved margins in Colombia. First, as you know, we have taken a lot of costs out of our business over the past year. Second, and as I mentioned earlier, we also make commercial decisions that have significantly improved the profitability and cash flow profile of our home base, and Colombia is our largest market for home services. And third, we continue to grow and gain scale in our mobile business.

Bart: There are three key drivers for improved margins in Colombia. First, as you know, we have taken a lot of cost out of our business over the past year.

Bart: Second, and as I mentioned earlier, we also make commercial decisions that have significantly improved the profitability and cash flow profile of our home business. And Colombia is our largest market for home services.

Bart: And third, we continue to grow and gain scale in our mobile business. And this incremental revenue growth comes with very high margins, especially because most of the growth is coming from ARPA-increase.

Marcelo Benitez: And this incremental revenue growth comes with very high margins, especially because most of the growth is coming from our point of view.

Marcelo Benitez: And this incremental revenue growth comes with very high margins, especially because most of the growth is coming from ARPA increases. Let's take a quick look at our Q2 performance in Guatemala on the next slide. As you'll recall, our Guatemala business has faced some intense competitive pressure over the past two years, and competition remains very intense in the market. That said, we have seen a bit more stability since the second half of last year. Let us not forget that we had two successful spectrum auctions last year. As a result, we now have spectrum parity, which has fostered a return to a more rational competitive environment.

Marcelo Benitez: Let's take a quick look at our Q2 performance in Guatemala on the next slide. As you'll recall, our Guatemala business faces some intense competitive pressure over the past two years. And competition remains very intense in the market. That said, we have seen a bit more stability since the second half of last year. Let's not forget that we had two successful spectrum auctions last year. As a result, we now have spectrum parity, which has fostered a return to a more rational competitive environment. We saw signs of this beginning of Q1, and this improving trend continuing Q2, with service revenue accelerating to 3% from 2% in Q1.

Bart: Let's take a quick look at our Q2 performance in Guatemala on the next slide.

Bart: As you recall, our Guatemala business faces some intense competitive pressure over the past two years, and competition remains very intense in the market.

Bart: That said, we have seen a bit more stability since the second half of last year. Let's not forget that we had two successful spectrum auctions last year. As a result, we now have spectrum parity, which has fostered a return to a more rational competitive environment.

Marcelo Benitez: We saw signs of this beginning in Q1 and this improving trend continuing in Q2, with service revenue accelerating to 3% from 2% in Q1. And the savings from our efficiency programs have allowed us to translate low single-digit revenue growth into high single-digit EBITDA growth. Now, let's take a look at Panama on the next slide.

Bart: We saw signs of this beginning of Q1 and this improving trend continued in Q2 with service revenue accelerating to 3% from 2% in Q1.

Marcelo Benitez: And the savings from our efficiency programs have allowed us to translate low single-digit revenue growth into high single-digit EBITAB growth.

Bart: And the savings from our efficiency programs have allowed us to translate low single-digit revenue growth into high single-digit EBITDA growth. Now let's take a look at Panama on the next slide.

Marcelo Benitez: Now let's take a look at Panama on the next slide. The key highlight this quarter is our mobile service revenue growth, which accelerated to 14%. This is the fastest growth we've seen since the post-pandemic boom we've experienced when mobility restrictions were lifted. A big driver of this acceleration in Q2 was the consolidation of the market from 3 to 2 players, which contributed to our mobile customer growth this quarter. On the right, you can see how the combination of mobile growth and cost and capital savings from efficiency programs have translated in a sharp increase in quarterly OCEF since the beginning of the year.

Marcelo Benitez: The key highlight this quarter is our mobile service revenue growth, which accelerated to 14 percent. This is the fastest growth we've seen since the post-pandemic boom we experienced when mobility restrictions were lifted. A big driver of this acceleration in Q2 was the consolidation of the market from 3 to 2 players, which contributed to our mobile customer growth this quarter. On the right, you can see how the combination of mobile growth and cost and CAPEX savings from efficiency programs have translated into a sharp increase in quarterly OCF since the beginning of the year.

Speaker Change: The key highlight this quarter is our mobile service revenue growth, which accelerated to 14%. This is the fastest growth we've seen since the post-pandemic boom we've experienced when mobility restrictions were lifted.

Speaker Change: A big driver of this acceleration in Q2 was the consolidation of the market from three to two players, which contributed to our mobile customer growth this quarter.

Speaker Change: On the right you can see how the combination of mobile growth and cost and CapEx savings from efficiency programs have translated in a sharp increase in quarterly OCF since the beginning of the year.

Marcelo Benitez: Panama, with its stable and dollar economy, is securing its position as the second largest contributor to Millicom's equity in free cash flow.

Marcelo Benitez: Panama, with its stable and dollarized economy, is securing its position as the second largest contributor to Millicom's equity free cash flow. Now, let me turn the call over to Maxime to say a few words about our efficiency programs and the impact this has had on cash flow and leverage this quarter.

Speaker Change: Panama, with its stable and dollarized economy, is securing its position as the second-largest contributor to Millicom's equity-free cash flow.

Maxime Lombardini: Now let me turn the gold over to Maxime to say a few words about our efficiency programs and the impact this has had on cash flow and leverage in this quarter.

Speaker Change: Now let me turn the gold over to Maxime to say a few words about our efficiency programs and the impact this has had on cash flow and leverage on this quarter.

Maxime Lombardini: Thank you, Marcelo.

Maxime Lombardini: Thank you, Marcelo. First, I want to congratulate you on your appointment as CEO. The company is in good hands, and it's a pleasure working with you and the team for the end of this year and to support you beginning in January in my role on the board. Now, on to efficiency. As you know, it was the rear that I focused on immediately when I joined as CEO less than a year ago.

Maxime Lombardini: First, I want to congratulate you on your equipment as CEO. The company is in good hands, and it's a pleasure working with you and the team to the end of this year and to support you beginning in January from my role on the ball.

Maxime Lombardini: Thank you Marcelo. First I want to congratulate you on your appointment as CEO . The company is in good hands and it's a pleasure working with you and the team for the end of this year and to support you beginning in January from my role on the board.

Maxime Lombardini: Now, on to efficiency, as you know, it has been the rear that I focused on immediately when I joined a CEO-less Euro group. One try to raise wasn't the way, but there was opportunity to go well beyond the initial scope. Specifically, we focused on six key areas of opportunity as we prepared the budget for 2024. You can see these listed on the chart. We took action, and it commented most of this during Q4 2023. And this is why we have been able to deliver such from the final full performance in the first half of this year.

Maxime Lombardini: Now, on to efficiencies. As you know, it has been the area that I focused on immediately when I joined as CEO less than a year ago. Contract Everest was underway, but there was opportunity to go well beyond the initial scope.

Maxime Lombardini: Franchet Everest was underway, but there was opportunity to go well beyond the initial scope. Specifically, we focused on six key areas of opportunity as we prepared the budget for 2024. You can see these listed on the chart.

Speaker Change: Specifically, we focused on six key areas of opportunity as we prepare the budget for 2024. You can see these listed on the chart.

Maxime Lombardini: We took action and implemented most of this during Q4 2023, and this is why we have been able to deliver such strong financial performance in the first half of this year. Let me give you a few examples. We reduced by 24% the cost of centralized functions that generated no revenue. We reduced headcount by more than 20% year-on-year, with reductions of between 15% and 30% in most geographies. As a result, total employee costs are down 15% organically, excluding structuring costs.

Speaker Change: We took action and implemented most of this during Q4 2023. And this is why we have been able to deliver such strong financial performance in the first half of this year.

Maxime Lombardini: Let me give you a short example. We reduced by 24% the cost of centralized functions that generated no revenue. We reduce the outcome by more than 20% here on year, with reductions of between 15 and 30% in most geographies. As a result, full total of 3 costs have down 15% and are uniquely excluding as to 3 costs. And we are not replacing on previous response items. The contrary, we are also reduced pending on external services by more than 15%, and then we rejuvenate every programming and content agreement and every software license that we added, and we found opportunities to switch to lower cost and in-house solutions or to drop some vendors completely.

Speaker Change: Let me give you a few examples.

Speaker Change: We reduced by 24% the cost of centralized functions that generated no revenue.

Speaker Change: We reduced headcount by more than 20% year-on-year, with reductions of between 15% and 30% in most geographies.

Speaker Change: As a result, all total project costs are down 15% organically, excluding structuring costs.

Maxime Lombardini: And we are not replacing employees with consultants. To the contrary, we have also reduced spending on external services by more than 15%. Then, we reviewed every programming and content agreement and every software license that we added, and we found opportunities to switch to lower cost and in-house solutions or to drop some vendors completely. We successfully negotiated many contracts. Overall, we have reduced our spending on programming by almost 20%, and our IT spend by more than 10%.

Speaker Change: And we are not replacing employees with consultants. To the contrary, we have also reduced spending on external services by more than 15%.

Speaker Change: Then, we reviewed every programming and content agreement and every software license that we added, and we found opportunities to switch to lower cost and in-house solutions, or to drop some vendors completely.

Maxime Lombardini: We successfully have been negotiated many contracts. Overall, we have reduced our spending on programming by almost 20%, and I think it's spent by more than 10%.

Speaker Change: We successfully renegotiated many contracts.

Speaker Change: Overall, we have reduced our spending on programming by almost 20% and IT spend by more than 10%.

Maxime Lombardini: And finally, you have seen that our capex has declined meaningfully. Most of these declines are the result of a focus on efficiency. A back is now the key world when challenging capex. The capex strategy is also supporting an ambitious network creative improvement. As Marcelo explained a few minutes ago, we have invested to increase speed on our own HFC network; the same for mobile, where we pay attention to network quality. This provides a strong customer satisfaction, which translates internal improvement.

Maxime Lombardini: And finally, you have seen that our CAPEX has meaningfully declined. Most of this decline is the result of our focus on efficiency. Payback is now the key word when challenging Catholicism.

Speaker Change: And finally, you have seen that our CAPEX has declined meaningfully. Most of this decline is the result of our focus on efficiency. Payback is now the key word when challenging CAPEX.

Maxime Lombardini: The CAPEX strategy is also supporting an ambitious advocacy improvement. As Marcelo explained a few minutes ago, we have invested to increase speed on our HFC network. The same for mobile, where we pay attention to network quality.

Speaker Change: The CAPAC strategy is also supporting an ambitious network-related improvement.

Speaker Change: As Marcelo explained a few minutes ago, we have invested to increase speed on our HFC network.

Marcelo Benitez: The same for mobile, where we pay attention to network quality. This provides a strong customer satisfaction, which translates in churn improvement.

Maxime Lombardini: This provides strong customer satisfaction, which translates into improvement. As a result of this efficiency focus during the last quarters, Millicom is becoming a more efficient company, both in terms of process and economy. We are doing more, faster, with less OPEX and CAPEX, and we are generating cash. It's a new DNA for the company. As you can see on the next slide, this has translated into a very strong improvement in equity free cash flow in the second quarter of this year compared to last year.

Maxime Lombardini: As a result of this efficiency focus during the last quarter, Millicom is becoming a more efficient company both in terms of process and economics. We are doing more faster with less effects on capex, and we are generating cash. It's a new DNI company. As you can see on the next slide, this has translated into very strong improvement in equity free cash flow in the second quarter of this year compared to last year. This combination of on-gbg grows and cash flow generation is bringing the leverage down very quickly, as you can see on the chart on the right.

Speaker Change: As a result of this efficiency focus during the last quarters, Millicom is becoming a more efficient company, both in terms of process and economics.

Speaker Change: We are doing more, faster, with less OPEX and CAPEX, and we are generating cash. It's a new DNA-phobic company.

Speaker Change: As you can see on the next slide, this has translated into very strong improvements in equity-free cash flow in the second quarter of this year compared to last year.

Maxime Lombardini: This combination of strong EBG growth and cash flow generation is bringing the leverage down very quickly, as you can see on the chart on the right. And while we are very pleased with these results, I can tell you there is still more that can be done. And we are already taking steps to ensure that the company can continue to sustain and grow its cash flow well beyond this year. Now, let me turn the call over to Matt to review the financials for the quarter.

Speaker Change: This combination of strong EBG growth and cash flow generation is bringing the leverage down very quickly, as you can see on the chart on the right.

Maxime Lombardini: And while we are very pleased with these results, I can tell you there is still more that can be done, and we are already taking steps when sure that the company can continue to sustain and grow its cash flow well beyond this year.

Speaker Change: And while we are very pleased with these results, I can tell you there is still more that can be done, and we are already taking steps to ensure that the company can continue to sustain and grow its cash flow well beyond this year.

Bart Vanhaeren: Now let me turn the globe over to Matt to review the financials of the quarter.

Speaker Change: Now let me turn the call over to Matt to review the financials for the quarter.

Bart Van Heren: Thank you, Maxime. Now let's look at our financial performance, beginning on slide 15. Service revenue was $1.36 billion in the quarter. This is up 5.5% year-on-year from $1.29 billion a year ago. For the second quarter in a row, we have some tailwinds coming from FH.

Bart Vanhaeren: Thank you, Maxime. Now let's look at our financial performance beginning on slide 15. Service revenue was 1.36 billion in the quarter. This is up 5.5% year on year from 1.29 billion a year ago. For the second quarter in a row, we have some tailwinds coming from FAQ. Excluding these impacts, organic growth was 2.1% in the second quarter. And this is similar to our growth rate in recent periods when we exclude the large B2B projects in Panama. Our mobile business is amid single digits. Fueled by RPGROB, while fixed and other services declined low. Think of this.

Matt: Thank you, Maxime. Now let's look at our financial performance beginning on slide 15.

Matt: Service revenue was $1.36 billion in the quarter. This is up 5.5% year-on-year from $1.29 billion a year ago.

Matt: For the second quarter in a row, we have some tailwinds coming from FX. Excluding these impacts, organic growth was 2.1% in the second quarter, and this is similar to our growth rate in recent periods when we exclude the large B2B projects in Panama.

Bart Van Heren: Excluding these impacts, organic growth was 2.1% in the second quarter, and this is similar to our growth rate in recent periods when we exclude the large B2B projects in Panama. Our mobile business is up mid-single-digit, fueled by ARPA growth, while fixed and other services declined low-single-digit. The performance in fixed reflects mid-single-digit growth in B2B, which partially accepts a mid-single-digit decline in our home business. EBDA was up 23.1% year-on-year to $634 million.

Matt: Our mobile business is at mid-single-digit, fueled by ARPA growth, while fixed and other services declined low-single-digit. The performance in fixed reflects mid-single-digit growth in B2B, which partially offset a mid-single-digit decline in our home business.

Bart Vanhaeren: The performance in fixed reflects mid-single-digit growth in B2B, which partially has set a mid-single-digit decline in our home business. ABDA was up 23.1% year-on-year to 634 million. As indicated to you last quarter, restriction and other one-off-house continued to be part of the business for a while, and this quarter amounted up to $23 million. This is included within the 634 million of ABDA; we are not adjusting for it. The very strong growth reflects the combined effect of the service revenue growth and just discussed, but more importantly, cost savings from our efficiency programs. Equities with cash flow for the quarter was 268 million, which compares to an outflow of 24 million in quarter two of last year.

Matt: EBDA was up 23.1% year-on-year to $634 million. As indicated to you last quarter, restructuring and other one-off costs continued to be part of the business for a while, and this quarter amounted up to $23 million.

Bart Van Heren: As indicated to you last quarter, restructuring and other one-off costs continued to be part of the business for a while, and this quarter they amounted to $23 million. This is included within the $634 million of EBDA; we are not adjusting for it.

Speaker Change: This is included within the $634 million of EBDA. We are not adjusting for it.

Bart Van Heren: The very strong growth reflects the combined effect of the service revenue growth I just discussed, but more importantly, cost savings from our efficiency project. Equity free cash flow for the quarter was $268 million, which compares to an outflow of $24 million in quarter two of last year. The significant improvement is coming primarily from the EBITDA growth that I just discussed, from a significant reduction in CAPEX, and from better working capital management.

Speaker Change: The very strong growth reflects the combined effect of the service revenue growth I just discussed, but more importantly, cost savings from our efficiency projects.

Speaker Change: Equity-free cash flow for the quarter was $268 million, which compares to an outflow of $24 million in Q2 of last year.

Bart Vanhaeren: The significant improvement is coming primarily from the EBDA growth that I just discussed, from a significant reduction in CAPEX, and from better working capital management. Regarding the CAPEX, although we have benefited somewhat from a slower phasing of our CAPEX than this year, we continue to expect that our CAPEX for the flu year 2024 will be significantly lower than in 2023. More specifically, we now expect full year CAPEX of less than 700 million, which means a reduction of more than $100 million compared to last year.

Speaker Change: The significant improvement is coming primarily from the EBITDA growth that I just discussed, from a significant reduction in CAPEX, and from better working capital management.

Bart Van Heren: Regarding CAPEX, although we have benefited somewhat from a slower phasing of our CAPEX spend this year, we continue to expect that our CAPEX for the full year 2024 will be significantly lower than in 2023. More specifically, we now expect full-year CAPEX of less than $700 million, which means a reduction of more than $100 million compared to last year.

Speaker Change: Regarding the CAPEX, although we have benefited somewhat from a slower phasing of our CAPEX spend this year, we continue to expect that our CAPEX for the full year 2024 will be significantly lower than in 2023.

Speaker Change: More specifically, we now expect full-year CAPEX of less than $700 million, which means a reduction of more than $100 million compared to last year.

Bart Vanhaeren: Turning down further to the service revenue by country on the next slide. As Marcelo already mentioned, Guatemala grew 3%. This compares to a growth of 2% in quarter one. As we now have the full quarter benefit of the free paid price increase, we implemented in February. Colombia's service revenue was once again flat and local currency. We continued to sustain high single-digit growth in mobile, but this was upset by a double-digit decline in our home business. Adding to what Marcelo mentioned, we now see improving that in our home business, and we hope this is the beginning of a new trend that will translate into a higher revenue going forward.

Bart Van Heren: Drilling down further to the service revenue by country on the next slide, as Marcelo already mentioned, Guatemala grew 3%. This compares to a growth of 2% in quarter one. As we now have the full quarter benefit of the prepaid price increase we implemented in February, Columbia Service revenue was once again flapping in local currency.

Speaker Change: Drilling down further to the service revenue by country on the next slide.

Speaker Change: As Marcelo already mentioned, Guatemala grew 3%.

Speaker Change: This compares to a growth of 2% in Q1.

Marcelo Benitez: As we now have the full quarter benefit of the prepaid price increase we implemented in February .

Marcelo Benitez: Colombia's service revenue was once again flapped in local currency.

Bart Van Heren: We continued to sustain high single-digit growth in mobile, but this was offset by a double-digit decline in our home business. Added to what Marcelo mentioned, we now see improving NetApp in our home business, and we hope this is the beginning of a new trend that will translate into higher revenue going forward. Panama's service revenue grew 6.3%, fueled by strong growth in B2B and mobile, where we benefited from a full quarter effect of consolidation in the mobile market. Marcelo mentioned this already.

Marcelo Benitez: We continued to sustain high single-digit growth in mobile, but this was offset by a double-digit decline in our home business.

Marcelo Benitez: Adding to what Marcelo mentioned, we now see improving NetApp in our home business and we hope this is the beginning of a new trend that will translate into a higher revenue going forward.

Bart Vanhaeren: Panama's service revenue grew 6.3%, fueled by strong growth in B2B and mobile, where we benefited from a full quarter effect of consolidation in the mobile market. Marcelo mentioned this already. Believe your service revenue was flat with growth in mobile and B2B, upset by a decline in home, where we continue to invest fruitfully given the continued macroeconomic uncertainty in the country. Paraguay service revenue grew 1.8% in local currency. You'll notice that growth has slowed down from 4% in quarter one, but this is largely due to a very strong quarter to last year. When service revenue grew 9.6%, making this a high standard too much.

Speaker Change: Panama's service revenue grew 6.3%, fueled by strong growth in B2B and mobile, where we benefited from a full quarter effect of consolidation in the mobile market.

Bart Van Heren: Bolivia's service revenue was flabbed with growth in mobile and B2B, offset by a decline in home. But we continue to invest prudently, given the continued macroeconomic uncertainty in the country. Paraguay's service revenue grew 1.8% in local currency. You'll notice that growth has slowed down from 4% in Q1, but this is largely due to a very strong Q2 last year, when service revenue grew 9.6%, making this a high standard to match. Service revenue in our other segment, comprised of El Salvador, Nicaragua, and Costa Rica, increased 2.2% in dollars, as mid-signal digit growth in mobile and B2B more than offset a mid-signal digit decline in home. Now, please turn to the next slide for a look at Eid al-Adha by country.

Marcello: Marcelo mentioned this already.

Speaker Change: Bolivia's service revenue was flapped, with growth in mobile and B2B offset by a decline in home. But we continue to invest prudently, given the continued macroeconomic uncertainty in the country.

Speaker Change: Paraguay's service revenue grew 1.8% in local currency. You'll notice that growth has slowed down from 4% in Q1, but this is largely due to a very strong Q2 last year, when service revenue grew 9.6%, making this a high standard to match.

Bart Vanhaeren: Service revenue in our other segments, comprise of El Salvador, Nicaragua, and Costa Rica, increased 2.2% in dollars. As Mitsigo-digit wrote in mobile and B2B, more than upset a Mitsigo-digit decline in home.

Speaker Change: Service revenue in our other segment comprised of El Salvador, Nicaragua, and Costa Rica increased 2.2% in dollars.

Speaker Change: As mid-signal digit growth in mobile and B2B more than offset a mid-signal digit decline in home.

Bart Vanhaeren: Now please turn to the next slide or look at the Dubai country. 73. Guatemala, EBDA increased 8.4% in local currency terms. The margin is now reaching 54.3%. Both the growth and the margin were slightly better than our performance in quarter one, which reflects the full quarter effect of our February price increase, as I mentioned earlier. Colombia, EBDA, growth accelerated to 34%, and the margin reached 39.5%, which is a new record for the business. We are very pleased with our improved profitability in Colombia, and we are now starting to reinvest in the business in order to accelerate service revenue.

Speaker Change: Now please turn to the next slide for a look at Eid al-Adha by country.

Bart Van Heren: Guatemala EBITDA increased 8.4% in local currency terms, and the margin is now reaching 54.3%. Both the growth and the margin were slightly better than our performance in quarter one, which reflects the full quarter effect of our February price increase, as I mentioned earlier. Colombia IVIDA growth accelerated to 34%, and the margin reached 39.5%, which is a new record for the business. We are very pleased with our improved profitability in Colombia, and we are now starting to reinvest in the business in order to accelerate service revenue.

Speaker Change: Guatemala IVIDA increased 8.4% in local currency terms, and the margin is now reaching 54.3%. Both the growth and the margin were slightly better than our performance in Q1, which reflects the full quarter effect of our February price increase as I mentioned earlier.

Speaker Change: Colombia IVIDA growth accelerated to 34% and the margin reached 39.5% which is a new record for the business.

Speaker Change: We are very pleased with our improved profitability in Colombia and we are now starting to reinvest in the business in order to accelerate service revenue.

Bart Vanhaeren: For this reason, I want to caution everyone that we are not expecting additional margin expansion in the second half of the year in Colombia. Regarding the possible acquisition of Telephonic at Colombia, I would just say that nothing changes in the short term as there is still a lengthy process ahead, which may or may not result in a transaction. But I would add that this does bring renewed enthusiasm for the business after last year's struggles, and it sets us on a path to create a strong number two player in a rejuvenated industry, and at the same time unlock meaningful synergies to allow us to responsibly invest in network and customer experience within our new return-focused investment strategies.

Bart Van Heren: For this reason, I want to caution everyone that we are not expecting additional margin expansion in the second half of the year in Colombia. Regarding the possible acquisition of Telecom Colombia, I would just say that nothing changes in the short term, as there is still a lengthy process ahead, which may or may not result in a transaction.

Speaker Change: For this reason, I want to caution everyone that we are not expecting additional margin expansion in the second half of the year in Colombia. Regarding the possible acquisition of Telefonica Colombia, I would just say that nothing changes in the short term, as there is still a lengthy process ahead, which may or may not result in a transaction.

Bart Van Heren: But I would add that it does bring renewed enthusiasm for the business after last year's struggles, and it sets us on a path to create a strong number two player in a rejuvenated industry and, at the same time, unlock meaningful synergies to allow us to responsibly invest in the network and customer experience within our new return-focused investment strategy. Padamaya Iveda grew 22.6%, and the margin was 47.8%. This was our highest margin in the last five years.

Speaker Change: But I would add that it does bring renewed enthusiasm for the business after last year's struggles.

Speaker Change: and it sets us on a path to create a strong number two player in a rejuvenated industry and at the same time unlock meaningful synergies to allow us to responsibly invest in network and customer experience within our new return-focused investment strategies.

Bart Vanhaeren: But I'm not even that grew 22.6%, and the margin was 47.8%. This was our highest margin in the last five years, and what you are seeing is one, the textbook operating leverage on the new revenue coming in from the former digital customers to our B2B growth, as well as three very material savings from our efficiency programs. Paraguay is that I've grown 12% organically, and the margin was 48.3%. This is up almost 5% at points year and year, and flat compared to Q1. Going forward, we will be closely watching the currency rate, which we can 3% during quarter two.

Speaker Change: Padma Iveda grew 22.6% and the margin was 47.8%. This was our highest margin in the last five years. And what you are seeing is one, the textbook operating leverage on the new revenue coming in from the former Digicel customers.

Bart Van Heren: And what you are seeing is one, textbook operating leverage on the new revenue coming in from the former Digicel customers, two, our B2B growth, as well as three varied material savings from our efficiency program. Paraguay EBDA grew 12% organically, and the margin was 48.3%. This is up almost 5 percentage points year-on-year and flat compared to Q1. Going forward, we will be closely watching the currency rate, which weakened 3% during quarter two.

Speaker Change: Two, our B2B growth, as well as three varied material savings from our efficiency programs.

Speaker Change: Paraguay EB-DAG grew 12% organically and the margin was 48.3%, this is up almost 5 percentage points year-on-year and flat compared to Q1.

Speaker Change: Going forward, we will be closely watching the currency rate, which weakened 3% during quarter 2.

Bart Vanhaeren: Any further weakness would potentially pressure our margins, given that some costs such as programming and international bandwidth are denominated in U.S. dollars. That said, as you may have seen, Modi's recently upgraded submarine rating to investment grade, so hopefully this will help attract foreign investment into the country and help support or even strengthen the currency over time. Bolivia increased 9.2% due to savings from efficiency projects and reduced commercial activity in home. The even the margin increased more than 4% point over the past year to 42.5%. We continue to prioritize profitability and cash flow over growth in Bolivia, even the very uncertain macro and political situation.

Bart Van Heren: Any further weakness would potentially pressure our margins, given that some costs, such as programming and international bandwidth, are denominated in U.S. dollars. That said, as you may have seen, Modi's recently upgraded sovereign rating to investment grade, so hopefully, this will help attract foreign investment into the country and help support or even strengthen the currency over time. Bolivia's IVIDAR increased 9.2% due to savings from efficiency projects and reduced commercial activity at home.

Speaker Change: Any further weakness would potentially pressure our margins, given that some costs, such as programming and international bandwidth, are denominated in U.S. dollars.

Speaker Change: That said, as you may have seen, Moody's recently upgraded sovereign rating to investment grade. So, hopefully, this will help attract foreign investment into the country and help support or even strengthen the currency over time.

Speaker Change: Bolivia IVIDAR increased 9.2% due to savings from efficiency projects and reduced commercial activity at home.

Bart Van Heren: The EBITDA margin increased more than 4 percentage points over the past year to 42.5%. However, we continue to prioritise profitability and cash flow over growth in Bolivia given the very uncertain macro and political situation. A word of caution here is that although the business is performing very well, we are no longer able to access a sufficient amount of U.S. dollars to pay international vendors and continue to actively pursue conversion of U.S. dollar contracts into local currency accounts.

Speaker Change: The E-DAT margin increased more than 4 percentage points over the past year to 42.5%.

Speaker Change: We continue to prioritize profitability and cash flow over growth in Bolivia, given the very uncertain macro and political situation.

Bart Vanhaeren: A word of caution here is that although the business is performing very well, we are no longer able to access a sufficient amount of U.S. dollars to pay international vendors and continue to actively pursue on version of U.S. dollar contracts in local currency countries. Even though in our other segments increased 14% in dollar terms, driven by revenue growth and cost reduction. International Cellular Cellular Cellular Cellular Cellular Cellular Cellular Cellular Cellular Cellular Cellular Cellular. As we've already discussed, even after the quarter was $634 million, that's up $190 million from last year. Cash CapEx was $164 million; this was down $70 million versus last year.

Speaker Change: A word of caution here is that although the business is performing very well, we are no longer able to access sufficient amount of U.S. dollars to pay international vendors and continue to actively pursue conversion of U.S. dollar contracts in local currency contracts.

Bart Van Heren: EBITDA and our other segments increased 14% in dollar terms, driven by revenue growth and cost reduction and Ida Daguro in all three countries in this segment. Now please turn to slide 18 for a look at equity-free cash flow. As we've already discussed, EBITDA for the quarter was $634 million.

Speaker Change: EBITDA and our other segments increased 14% in dollar terms, driven by revenue growth and cost reduction.

Speaker Change: EWIA grew in all three countries in this segment.

Speaker Change: Now please turn to slide 18 for a look at equity-free cash flow.

Speaker Change: As we've already discussed, EBITDA for the quarter was $634 million. That's up $190 million from last year.

Bart Van Heren: That's up $190 million from last year. Cash CapEx was $154 million, which was down $70 million versus last year. And Spectrum was $22 million.

Speaker Change: Cash CapEx was $154 million. This was down $70 million versus last year. And Spectrum was $22 million. This was also down $26 million year-on-year.

Bart Vanhaeren: Inspectorum was $22 million; this was also down $26 million a year and a year. Changes in working capital and honor was positive $60 million; this is $85 million better than last year on the back of an increased focus in this area and from unwinding some negatives working capital movements on quarter one. Taxes paid were $82 million, which is almost unchanged versus last year, and financial charges were $105 million. This is $4 million, increased largely due to higher commissions on US dollar purchases in Bolivia, as I just mentioned, but also currency in fact and anticipated interest on a repurchased bond.

Bart Van Heren: This was also down $26 million year on year. Changes in working capital and other were positive $60 million. This is $85 million better than last year on the back of an increased focus in this area and from unwinding some negative working capital movements from quarter one. Taxes paid were $82 million, which is almost unchanged versus last year, and financial charges were $105 million.

Speaker Change: Changes in working capital, another was positive $60 million. This is $85 million better than last year on the back of an increased focus in this area and from unwinding some negative working capital movements from quarter one.

Speaker Change: Taxes paid were $82 million, which is almost unchanged versus last year.

Bart Van Heren: This is a $4 million increase, largely due to higher commissions on U.S. dollar purchases in Bolivia, as I just mentioned, but also currency impacts and anticipated interest on repurchase bonds. Lease payments were $90 million, an increase of $17 million due to the Columbia Tower sale, for which we are now paying rent, and currency effects in Columbia, as well as annual inflation adjustments to our leases. Altogether, equity-free cash flow was $268 million during the quarter.

Speaker Change: and financial charges were $105 million. This is a $4 million increase, largely due to higher commissions on U.S. dollar purchases in Bolivia, as I just mentioned, but also currency impacts and anticipated interest on repurchased bonds.

Bart Vanhaeren: These payments were $90 million, an increase of $17 million due to the Columbia Power Sale, for which we are now paying rent and currency effects in Columbia, as well as annual inflation adjustments to our lease. Altogether, equity free cash bill was $268 million during the quarter; this represents an increase of $292 million compared to quarter to 2023. And such is now well on our way to achieving our 2024 EFCF guidance. We use the cash loads to reduce our net debt, which has declined by $325 million to $5.65 billion. And as Maxime already mentioned, this resulted in failure acceleration of our deleveraging with acquired two leverage at 2.77, down from 3.1 at quarter one and 3.3 at the end of the last year.

Speaker Change: Lease payments were $90 million, an increase of $17 million due to the Columbia Tower sale for which we are now paying rent.

Speaker Change: and CurrencyFX in Colombia, as well as annual inflation adjustments to our leases.

Speaker Change: Altogether, equity-free cash flow was $268 million during the quarter. This represents an increase of $292 million compared to Q2 2023 and sets us now well on our way to achieving our 2024 EFCF guidance.

Bart Van Heren: This represents an increase of $292 million compared to quarter 2, 2023 and sets us now well on our way to achieving our 2024 EFCF guidance. We used this cash flow to reduce our net debt, which has declined by $325 million to $5.65 billion. And as Maxime already mentioned, this resulted in further acceleration of our deleveraging with a Q2 leverage of 2.77, down from 3.1 at Q1 and 3.3 at the end of last year.

Speaker Change: We used this cash flow to reduce our net debt, which has declined by $325 million to $5.65 billion.

Speaker Change: And as Maxime already mentioned, this resulted in further acceleration of our deleveraging, with a Q2 leverage at 2.77, down from 3.1 at Q1 and 3.3 at the end of last year.

Bart Vanhaeren: In addition, you will be able to see in the appendix to this presentation that we have a very comfortable maturity schedule and a balanced credit profile, well aligned with our treasury policy objectives.

Bart Van Heren: In addition, you will be able to see in the appendix to this presentation that we have a very comfortable maturity schedule and a balanced credit profile well aligned with our treasury policy objectives. Now, please turn to slide 19 to review our financial targets for 2024. You will recall that we recently raised our equity-free cash flow target to above $600 million in 2024. And we are well on our way toward this target, given, one, a very strong target performance in Q2, and secondly, the fact that the second half is usually seasonally stronger than the first. For avoidance of doubt, please do not use our quarter two equity-free cash flow as the run rate going forward.

Maxime Lombardini: In addition, you will be able to see in the appendix to this presentation that we have a very comfortable maturity schedule and a balanced credit profile.

Maxime Lombardini: well aligned with our treasury policy objectives.

Bart Vanhaeren: Now please turn to slide 19 to review our financial targets for 2024. We will recall that we recently raised our equity free cash flow target to above $600 million in 2024. And we are well on our way to what this target, even at one, a very strong target performance in Q2. And secondly, the fact that the second half is usually seasonally stronger than the first half. Their avoidance of doubt, please do not use our quarter to equity free cash flow as the run rate going forward. We do have phasing of topics that will accelerate seasonality effect and several risk factors to take into account.

Maxime Lombardini: Now, please turn to slide 19 to review our financial targets for 2024.

Speaker Change: You will recall that we recently raised our equity-free cash flow target to above $600 million in 2024.

Maxime Lombardini: And we are well on our way toward this target, given that, one, a very strong target performance in Q2, and secondly, the fact that the second half is usually seasonally stronger than the first half.

Maxime Lombardini: For avoidance of doubt, please do not use our Quarter 2 equity-free cash flow as the run rate going forward. We do have phasing of CapEx that will accelerate, seasonality effects, and several risk factors to take into account.

Bart Van Heren: We do have phasing of CapEx that will accelerate seasonality effects and several risk factors to take into account. This free cash flow generation, combined with strong EBITDA growth, has put leverage on track to end 2024 near our intermediate term target of 2.5. As a reminder, these targets exclude any cash proceeds and related costs and taxes from a potential tower transaction.

Bart Vanhaeren: This free cash flow generation, combined with strong EBDA growth, has put leverage on track to end 2024 near our intermediate term target of 2.5. As a reminder, this target excludes any cash proceeds, a related cost, and taxes from a potential tower transaction.

Maxime Lombardini: This free cash flow generation, combined with strong EBITDA growth, has put leverage on track to end 2024 near our intermediate term target of 2.5.

Maxime Lombardini: As a reminder, these targets exclude any cash proceeds and related costs and taxes from a potential tower transaction.

Bart Vanhaeren: Now please turn to slide 20 for an update on some of the strategic projects that we have been working on. First in Colombia, we announced on Wednesday that we signed a non-binding term sheet with Telefonica to acquire their stake in Coltell, their Colombian operation, for $400 million equity value. As part of the agreement, we also intend to offer to purchase the remaining 32.5% of Coltell owned by the Government of Colombia, and we intend to offer to buy ETM's 50% stake in our own Colombian operation, altogether for a total of $1 billion equity value. This transaction would roughly double our size in Colombia and unlock significant synergies in line with comparable transactions, giving us the scale needed to compete and invest responsibly. We turn focused, as we say, in the digital infrastructure that the country needs.

Bart Van Heren: Now please turn to slide 20 for an update on some of the strategic projects that we have been working on. First, in Colombia, we announced on Wednesday that we signed a non-binding term sheet with Telefónica to acquire their stake in Coltel, their Colombian operation, for $400 million in equity. As part of the agreement, we also intend to offer to purchase the remaining 32.5% of Coltel owned by the Government of Colombia, and we intend to offer to buy EPM's 50% stake in our own Colombian operation, all together for a total of $1 billion in equity value.

Maxime Lombardini: Now, please turn to slide 20 for an update on some of the strategic projects that we have been working on.

Bart Van Heren: This transaction would roughly double our size in Colombia and unlock significant synergies in line with comparable transactions, giving us the skills needed to compete and invest responsibly, with a turn focus, as we say, on the digital infrastructure that the country needs. Our non-binding agreement is just the first step of what we expect will be a lengthy process to negotiate and finalize long-form binding agreements, as well as obtain regulatory approval.

Maxime Lombardini: First in Colombia, we announced on Wednesday that we signed a non-binding term sheet with Telefónica to acquire their stake in Coltel, their Colombian operation, for a $400 million equity value.

Maxime Lombardini: As part of the agreement, we also intend to offer to purchase the remaining 32.5% of Coltel owned by the Government of Colombia, and we intend to offer to buy EPM's 50% stake in our own Colombian operation.

Maxime Lombardini: all together for a total of $1 billion equity value.

Maxime Lombardini: This transaction would roughly double our size in Colombia and unlock significant synergies in line with comparable transactions, giving us the skill needed to compete and invest responsibly – with turn focus, as we say, in the digital infrastructure that the country needs.

Bart Vanhaeren: Our non-binding agreement is just the first step of what we expect will be a lengthy process to negotiate and finalize long form binding agreements, as well as obtaining regulatory approvals. As I said earlier, we're enthusiastic about the potential to create a much stronger cynic operator that will help to rejuvenate the entire industry in Colombia. We expect to finance this investment with our equity cash flow generation, consistent with our long range plan that was recently disclosed.

Maxime Lombardini: Our non-binding agreement is just the first step of what we expect will be a lengthy process to negotiate and finalize long-form binding agreements, as well as obtaining regulatory approvals.

Bart Van Heren: As I said earlier, we're enthusiastic about the potential to create a much stronger clinical operator that will help to rejuvenate the entire industry in Colombia. We expect to finance this investment with our equity cash flow generation, consistent with our long-range plan that was recently disclosed. Second, in Costa Rica, we announced yesterday that we have agreed to combine our operations with those of Liberty Latin America in a cashless merger. This transaction would create the clear number one fixed mobile operator in Costa Rica and give us the combined scale needed to accelerate fiber deployment in the country.

Maxime Lombardini: As I said earlier, we're enthusiastic about the potential to create a much stronger telecom operator that will help to rejuvenate the entire industry in Colombia.

Maxime Lombardini: We expect to commence this investment with our equity cash flow generation consistent with our long-range plan that was recently disclosed.

Bart Vanhaeren: Second in Costa Rica, we announced yesterday that we have agreed to combine our operations with those of Liberty Latin America in a cashless merger. This transaction would create a clear number one fixed global operator in Costa Rica and give us the combined scale needed to accelerate fiber deployment in the country. We expect to own approximately 14% of the combined entity, with some variants for usual closing conditions expected to be in the second half of 2025.

Bart Van Heren: We expect to own approximately 14% of the combined entity with some variance for usual closing conditions, expected to be in the second half of 2025. Third, and finally, regarding our power. Here as well, the status was disclosed to you a few weeks ago, and considering that negotiations on a majority of our tower portfolio are ongoing, we would want to avoid commenting further at this time. With that, I hand it over to you, Marcelo, for some final comments before we take your questions. Thank you.

Speaker Change: Second, in Costa Rica, we announced yesterday that we have agreed to combine our operations with those of Liberty Latin America in a cashless merger.

Speaker Change: This transaction would create the clear number one fixed mobile operator in Costa Rica and give us the combined scale needed to accelerate fiber deployment in the country.

Speaker Change: We expect to own approximately 14% of the combined entity with some variance for usual closing conditions expected to be in the second half of 2025.

Bart Vanhaeren: Third and finally, regarding our towers, here as well the status was disclosed to you a few weeks ago, and considering those negotiations on a majority of our tower portfolio are ongoing, we would want to avoid commenting for this time.

Speaker Change: Third and finally, regarding our towers.

Speaker Change: Here as well, the status was disclosed to you a few weeks ago, and considering those negotiations on a majority of our tower portfolio are ongoing, we would want to avoid commenting further at this time.

Marcelo Benitez: With this, I hand it over back to you, Marcelo, for some final comments before we take your questions. Thank you. Thanks, Bart.

Speaker Change: With this, I hand it over back to you, Marcelo, for some final comments before we take your questions. Thank you.

Marcelo Benitez: Thanks, Bart. Before we take your questions, I'd like to share with you the key priorities I've laid out for the second half of this year. First, we must deliver on our 2024 targets. As you can see, we are well on our way, but there are still many risks that we have to navigate. Second, we need to execute on the strategic projects that Bart just talked about. Colombia and Costa Rica are the only two countries where we have not historically been able to grow our equity-free cash flow.

Marcelo Benitez: Before we take your questions, I'd like to share with you the key priorities I've laid out for the second half of this year. First, we must deliver on our 2024 targets. As you can see, we are well on our way, but there are still many risks that we have to navigate. Second, we need to execute on the strategic projects that Bart just talked about.

Marcelo Benitez: Thanks, Bart. Before we take your questions, I'd like to share with you the key priorities I've laid out for the second half of this year.

Marcelo Benitez: And these projects should help us change that. Third, and as Maxime mentioned earlier, we are already taking steps to position the company to sustain and grow equity-free cash flow in 2025 and beyond. Now, back to you, Michelle.

Marcelo Benitez: First, we must deliver on our 2024 targets. As you can see, we are well on our way, but there are still many risks that we have to navigate.

Marcelo Benitez: Second, we need to execute on the strategic projects that Bart just talked about.

Marcelo Benitez: Colombian Costa Rica are the only two countries where we have not historically been able to grow or equity-free cash growth, and these projects should help us changes. Third, and as Maxine mentioned earlier, we are already taking steps to position the company to sustain and grow equity-free cash growth in 2025 and beyond.

Bart: Colombia and Costa Rica are the only two countries where we have not historically been able to grow our equity-free cash flow, and these projects should help us change this.

Bart: Third, and as Maxime mentioned earlier, we are already taking steps to position the company to sustain and grow equity-free cash flow in 2025 and beyond.

Operator: Now, back to you, Michelle. Thanks, Marcelo.

Michel Morin: Thanks, Marcelo. We will now begin the Q&A session, and as a reminder, if you'd like to ask a question, please let us know by emailing us at investors@millicom.com, and we'll add you to the queue. Also, before we begin, we want to caution you that we cannot answer any questions about the ongoing tender offer process, and I simply want to remind everyone that all of the information related to this process is available on our website, and we cannot provide any commentary or offer any legal interpretations of that information. So, with that disclaimer out of the way, let's go to our first question from Andres Jolson from Carnegie. Andres?

Bart: Now, back to you, Michel.

Operator: We will now begin the Q&A session. Another reminder: if you'd like to ask questions, please let us know by emailing us at investors at millicom.com, and we'll add you to the Q. Also, before we begin, we want to caution you that we cannot answer any questions about the ongoing tender offer process. And I simply want to remind everyone that all of the information related to this process is available on our website. We cannot provide any commentary or offer any legal interpretations of that information.

Michel: Thanks, Marcelo. We will now begin the Q&A session. And as a reminder, if you'd like to ask a question, please let us know by emailing us at investorsatmillicom.com, and we'll add you to the queue. Also, before we begin, we want to caution you that we cannot answer any questions about the ongoing tender offer process.

Speaker Change: And I simply want to remind everyone that all of the information related to this process is available on our website, and we cannot provide any commentary or offer any legal interpretations of that information. So, with that disclaimer out of the way, let's go to our first question from Andres Jolson from Carnegie. Andres?

Andreas Jolson: So, with that disclaimer out of the way, let's go to our first question from Andreas Jolson from Carnegie.

Andreas Jolson: Andreas? Good morning, good afternoon. So everyone, two questions from my side. First of all, on the long-term plan that you revealed a couple of weeks ago, just curious to see where you see the further improvements from where we are now, so to say, from the 600 levels, so to say, an up to the 2026 long-term target. And secondly, on the announcement this week on Colombia, you mentioned a little bit about it, Bart, but the main rationality behind the plans and ambitions that you have is to gain scale and from there grow the profitability, or are you encouraged on what you have done yourself in Colombia and feel that you can do that for a hotel as well and improve profitability through synergies on that side.

Andres Jolson: Good morning, and good afternoon to everyone. Two questions from my side. First of all, on the long-term plan that you revealed a couple of weeks ago, I'd be curious to see where you see further improvements from where we are now, so to say, from the 600 level, so to say, and up to the 2026 long-term target. And secondly, on the announcement this week about Colombia, you mentioned a little bit about it, Bart, but the main rationality behind the plans and ambitions that you have, is it to gain scale and from there grow profitability, or are you encouraged by what you have done yourself in Colombia and feel that you can do that for Coltel as well and improve profitability through synergies on that side? Thanks. Thank you very much.

Andres Jolson: Yes, good morning, good afternoon to everyone. Two questions from my side. First of all, on the

Andres Jolson: the long-term plan that you revealed a couple of weeks ago. I'm just curious to see where you see the further improvements from where we are now, so to say, from the 600 levels, so to say, and up to the 2026 long-term target. And secondly,

Bart: On the announcement this week on Colombia, you mentioned a little bit about it Bart, but

Speaker Change: the main rationality behind the plans and ambitions that you have is it

Speaker Change: to gain scale and from there grow the profitability or are you encouraged on what you have done yourself in Colombia and feel that you can do that for Coltel as well and improve profitability through synergies on that side? Thanks.

Marcelo Benitez: Thanks. Thank you very much, Andreas.

Marcelo Benitez: Thank you very much, Andreas. I will take the first question, and I will let Bart answer the second.

Marcelo Benitez: I would take the first question, and I will let Bart to answer the second. We have still six months to go in 2024, so I prefer not to comment on 25 and 26 figures, but I think it's important for you to know how the process works. Every year we update our LRP, a long-range plan. This is a very detailed update that is made with review with the countries and all the functional areas. It's also a part of our development desk in SOGS, and auditors review it, and they also challenge it. It's a process that we do every year, and on the half of the year, what we do is basically we update, including the results of H1.

Speaker Change: Thank you very much, Andreas. I will take the first question and I will let Bart to answer the second.

Marcelo Benitez: We still have six months to go in 2024, so I prefer not to comment on 25 and 26 figures. But I think it's important for you to know how the process works. Every year we update our LRP, long-range plan. This is a very, I mean, detailed update that is made after a review with the countries and all the functional areas. It's also part of our impairment test in SOX, and auditors review it, and they also challenge it.

Bart: We have still six months to go in 2024, so I prefer not to comment on that.

Speaker Change: 25 and 26.

Speaker Change: But I think it's important for you to know how the process works. Every year we update our LRP, Long-Range Plan. This is a very detailed update that is made with review with the countries and all the...

Speaker Change: and all the functional areas. It's also part of our impairment test in SOX.

Speaker Change: and auditors reviews it and they also challenge it. So it's a process that we do every year. And on the half of the year, what we do is basically we update, including the results of H1. So those are the numbers that you have seen that are out there, right?

Marcelo Benitez: So it's a process that we do every year. And at the half of the year, what we do is basically update, including the results of H1. So those are the numbers that you have seen that are out there. What I can tell you is this.

Marcelo Benitez: Those are the numbers that you have seen. They're out there. What I can tell you is that we do believe one that all operational initiatives, efficiencies, initiatives are recurring and sustainable. As Maxine mentioned, these are all an evolution of our way of working. I mean, more focus and agile organization. So this is here to stay, right, in Melbourne. Second, the benefits from all those initiatives are going to be reflected on a full-year run rate in 25 and 26. So today we are still implementing this. As you see, we have several in H1. We have a bit of several in H2, but in the coming years, you will see the full effect.

Marcelo Benitez: We do believe, first, that all our operational initiatives and efficiency initiatives are recurring and sustainable. As Maxime mentioned, these are all an evolution of our way of working. I mean, a more focused and agile organization. So this is here to stay, right, at Millicom. Second, the benefits from all of these initiatives are going to be reflected in a full year run rate in 2025 and 2026. So today, we are still implementing these, as you see.

Speaker Change: What I can tell you is this.

Speaker Change: We do believe, one, that our all operational initiatives, efficiency initiatives, are recurring and sustainable. As Maxime mentioned, these are all...

Maxime Lombardini: and evolution of our way of working. I mean, a more focused and agile organization.

Maxime Lombardini: So this is here to stay, right, in Millicom. Second, the benefits from all these initiatives are going to be reflected on a full year run rate in 2025 and 2026.

Marcelo Benitez: I mean, we have Severance in H1. We also have a bit of it in H2. But in the coming years, you will see the full effect. CAPEX is going to grow a little bit, but very much in line with revenues. And the focus on CAPEX is going to be to strengthen our networks in order to capture the data growth in mobile and fixed. So with all that, we feel our view is that these levels of EFCS are sustainable over the coming years.

Speaker Change: So today we are still implementing this, as you see, I mean, we have severance in H1, we have a bit of severance also in H2, but in the coming years you will see the full effect.

Marcelo Benitez: Capuch is going to grow a little bit, but very much in line with revenues, and with the focus on Capuch is going to be to strengthen our networks in order to capture the data, the data growth in mobile and fixed. So, with all that, we feel our view is that these levels of ESF are sustainable over the coming years.

Speaker Change: CAPEX is going to grow a little bit, but very much in line with revenues, and the focus on CAPEX is going to be to strengthen our networks in order to capture the data growth in mobile and fixed.

Speaker Change: So with all that, we feel, our view is that these levels of EFCF are sustainable over the coming years.

Bart Vanhaeren: Thank you, Barcelona. Maybe also just to add, you know, on the mathematics. If you look at the ESF for the second half, that would put us well on track for reaching that number for next year. That's the problem for the modeling guys.

Marcelo Benitez: Thank you, Marcelo. Maybe also just to add, you know, on the mathematics: if you look at the EFCA for the second half, that would put us well on track for reaching that number for next year. That's for the modeling guys.

Marcelo Benitez: Thank you, Marcelo.

Speaker Change: Maybe also just to add, you know, on the mathematics, if you look at the EFCA for the second half, that would put us well on track for reaching that number for next year. That's for the modeling guys. As it comes to Columbia, I would want to start,

Bart Van Heren: As it comes to Colombia, I would want to start with last year. You know, we had a tough year last year. We capitalized together with our partner, the business, and at the same time launched a rigorous transformation plan, right? So last year we were negative, a very significant negative, equity-free cash flow transformed the business, and we are well on our way to being nicely positive this year. So very strong in our organic business and full confidence ahead. Now the market is a challenging market where we have more than four, well, four mobile network operators, low ARPUs, and high spectrum costs. So it's a tough environment.

Bart Vanhaeren: And this comes to Colombia. I would want to start the last year. You know, we had a tough year last year. We capitalized together with our partner and the business at the same time, launched a rigorous transformation plan. And so last year, we were negative, very significant, negative equity-free cash flow transformed the business and well on our way to be a nicely positive this year. So very strong in our organic business and full confidence ahead. Now, the market is a challenging market where we have more than four mobile network operators, low ARPUs, high spectrum cost.

Speaker Change: Last year, you know, we had a tough year last year. We capitalized together with our partner, the business

Speaker Change: and at the same time launched a rigorous transformation plan, right? And so last year we were negative, very significant negative, equity-free cash flow transformed the business.

Speaker Change: and well on our way to be nicely positive this year. So, very strong in our organic business and full confidence ahead. Now, the market is a challenging market.

Speaker Change: where we have more than four, well, four mobile network operators, low ARPUs, high-spectrum costs.

Bart Vanhaeren: So it's a tough environment. Market rationalization totally makes sense, combining the two business synergy of scale, allowing them, you know, better returns, better financial stability of the company that will then allow to responsibly invest in the network and ultimately in customer experience. And then, on its turn, you know. translating to sustainable and profitable equity free cash flow for Colombia. So it's a bit of a mix of scale, rationalization, and then, you know, creating a strong number two operator that is able to invest into the networks. Perfect, thank you.

Bart Van Heren: Market rationalization totally makes sense, combining the two businesses, synergies of scale, allowing them, you know, better returns, better financial stability of the company that will then allow it to responsibly invest in the network and ultimately in customer experience. And then, on its turn, translating to a sustainably and profitable equity-free cash flow for Colombia. So it's a bit of a mix of scale, rationalization, and then, you know, creating a strong number two operator that is able to invest in the networks.

Speaker Change: So, it's a tough environment. Market rationalization totally makes sense, combining the two businesses.

Speaker Change: Synergy of Skill

Speaker Change: allowing them better returns, better financial stability of the company that will then allow to responsibly invest in the network and ultimately in customer experience and then on its turn, you know...

Speaker Change: translating to sustainably and profitable equity-free cash flow for Colombia.

Speaker Change: So it's a bit of a mix of scale, rationalization, and then, you know, creating a strong number two operator that is able to invest into the networks.

Bart Van Heren: Perfect. Thank you.

Michel Morin: Thanks for that. Next, we're going to go to Stefan Gauthier at D&D.

Stefan Gauffin: Thanks, Andreas. So next we're going to go to Stefan Gauffin, via D&D. Yes, hello, two questions, if I may. And hi, Marcelo, nice to see you. And I'll start with the question for you. You mentioned that you talk about the return-focused investments to sustain market leadership and drive customer growth in the second half of 2024. You also mentioned investments in Colombia in the home business, but this is specifically focused on home, or is it both home and mobile? And then secondly, it's more broad-based across market. So any information you can give me there.

Speaker Change: Perfect, thank you. Thanks, Andres. So next, we're gonna go to Stéphane Gauthier at D&D.

Stefan Gauthier: Yes, hello. Two questions, if I may. And hi, Marcelo. Nice to see you.

Stéphane Gauthier: Yes, hello. Two questions, if I may. Hi Marcelo, nice to see you.

Marcelo Benitez: And I'll start with a question for you. You mentioned that you talk about the return focused investments to sustain market leadership and drive customer growth in the second half of 2024. You also mentioned investments in Colombia in the home business but is this specifically focused on home or is it both home and mobile and then secondly is it more broad-based across markets so any information you can give me there and then I have a question perhaps for Maxime but feel free the others to to jump in but you say now that CapEx for this year will be below 700 million a couple of years ago the the, The guidance was for around 1 billion of CapEx on sort of a yearly basis.

Stéphane Gauthier: And I'll start with a question for you, you mentioned that you talk about the return focused investments to sustain market leadership and drive customer growth in the second half of 2024.

Speaker Change: You also mentioned investments in Colombia in the home business, but is this

Speaker Change: specifically focused on home, or is it both home and mobile? And then secondly, is it more broad based across markets? So any information you can give me there. And then I have a question.

Stefan Gauffin: And then I have a question, perhaps for Maxime, but feel free, the others to jump in. But you say now that CapEx for this year will be below 700 million. A couple of years ago, the guidance was for around 1 billion of CapEx on sort of a yearly basis. The lower CapEx is partly coming from a slowdown in the rollout of the fixed network and the homes connected. So how should we think about the CapEx a little bit more medium term? I mean, this year we're talking more about 12% CapEx sales, whereas historically more like 15%.

Speaker Change: Perhaps for Maxime, but feel free the others to jump in. But you say now that CapEx for this year will be below 700 million. A couple of years ago, the...

Speaker Change: The guidance was for around 1 billion of CAPEX on sort of a yearly basis.

Marcelo Benitez: The lower capex is partly coming from a slowdown in the rollout of the fixed network and Homes Connected. So how should we think about the CapEx a little bit more medium term? I mean, this year we're talking more about 12% of CapEx to sales, whereas historically, more like 15%. So any guidance on how we should think here? Thank you.

Speaker Change: The lower capex is partly coming from a slowdown in the rollout of the fixed network.

Speaker Change: and Homes Connected. So how should we think about the CapEx a little bit more medium term? I mean, this year we're talking more about the 12% CapEx to sales, whereas historically more like 15%.

Marcelo Benitez: So, any guidance here on how we should think there. Thank you. Thank you, Devon. Thanks for your questions. When we say return focus, what we mean is first, we believe that our network is the main driver or to capture this demand we see in mobile and fixed. And also it's a big driver for experience. Right. So what we're doing is we're strengthening our fixed and mobile networks to capture this demand. And then after we go, I mean, after this first step, what we do basically start to monetize this increase on demand in pre-paid was very, very well done pricing increases than migration to both paid, then convergence that is the third step and the same comes in fixed.

Speaker Change: So, any guidance here on how we should think here?

Marcelo Benitez: Thank you, Stefan. Thanks for your questions. When we say return focus, what we mean is, first, we believe that our network is the main driver or to capture this demand that we see in mobile and fixed. And also, it's a big driver for experience, right? So, what we're doing is strengthening our fixed and mobile networks to capture this demand. And then, after we go, I mean, after this first step, what we do basically is start to monetize this increase in demand for prepaid with very, very well-planned price increases, then migration to postpaid, then convergence. That is the third step. And the same comes in fixed, right?

Speaker Change: Thank you.

Speaker Change: Thank you, Stefan. Thanks for your questions.

Speaker Change: When we say return focus what we mean is first we believe that our network is the main driver or to capture this demand we see in mobile and fixed.

Speaker Change: And also, it's a big driver for experience, right? So what we're doing is we're strengthening our fixed and mobile networks to capture this demand. And then after we go, I mean,

Speaker Change: After this first step, what we do basically is...

Speaker Change: start to monetize.

Speaker Change: this increase on demand in prepaid with very, very well-planned price increases, then migration to postpaid, then convergence.

Marcelo Benitez: Investment in networks, increase in speed, monetization, developing our customers, and then it all ends up in convergence. So in Colombia, that's what we're doing, right? Last year it was about focusing on short-term cash flow, but immediately we started to strengthen our fixed network. Then we started to see a much more stable customer base, churn reducing early, and now we're ready to grow. So what we're doing is strengthening our commercial initiatives.

Speaker Change: That is the third step, and the same comes in fixed, right? Investment in networks, increase of speed, monetizing, developing of the customers, and then it all ends up in convergence.

Marcelo Benitez: Right. Investment in networks, increase of speed, monetizing, developing out of the customers, and then it all ends up in convergence. So in Colombia, that's what we're doing. Right. Last year was about focusing on short-term cash flow, but immediately we started to strengthen our fixed network. Then we started to see much more stable customer base, turn reducing, early turn reducing, and now we're ready to grow. So what we're doing is strengthening our commercial initiatives. We have more or less installed in the last four to five months, 90 stores in Colombia that increase our capillarity and our reach to our cost-pay customers.

Speaker Change: So in Colombia, that's what we're doing, right? Last year was about

Speaker Change: focusing on short-term cash flow, but immediately we started to strengthen our fixed network. Then we started to see a much more stable customer base, churn reducing, early churn reducing, and now we're ready to grow. So what we're doing is strengthening our commercial initiatives.

Speaker Change: We have more or less...

Marcelo Benitez: We have installed, more or less, 90 stores in Colombia that increase our capillarity and our reach to our postpaid customers, and we are working on all our channels in order to increase productivity and volume. So that's what you are going to see. And actually, in Colombia, we are at the deflection point because in Q2, I mean, at the end of Q2, we start seeing net ads positive in home. And as you know, this is our largest home business in the group.

Speaker Change: installed in the last four to five months.

Speaker Change: 90 stores in Colombia that increase our capillarity and our reach.

Marcelo Benitez: And we are working on all our channels in order to increase probably productivity and volume. So that's what you are going to see. And actually in Colombia we are at an inflection point because in Q2, I mean at the end of Q2 we start seeing net ads positive in home and, as you know, this is our largest home business in the group, right? And then in terms of longer-term capex, which I think was the other part of your questions, the finance, as you know, and as Maxime said, there's been a lot of focus on efficiencies, not just on op-ex, but as well as on capex.

Speaker Change: to our postpaid customers.

Speaker Change: and we are working on all our channels.

Speaker Change: in order to increase productivity and volume.

Speaker Change: So that's what you are going to see, and actually in Colombia, we are at the deflection point because in Q2, I mean at the end of Q2, we start seeing net ads positive in home and as you know, this is our largest home business in the group.

Speaker Change: Bye.

Bart Van Heren: And then in terms of longer-term CapEx, which I think was the other part of your question, Stefan, as you know, and as Maxime said, there's been a lot of focus on efficiencies, not just on OpEx but also on CapEx, and that's what you're seeing reflected in our performance this year. We obviously haven't given longer-term guidance, but as Maxime said, a lot of what we've been doing over the past year is sustainable and recurring in nature.

Speaker Change: And then in terms of longer-term

Speaker Change: CapEx, which I think was the other part of your question, Stefan. As you know, and as Maxime said, there's been a lot of focus on efficiencies.

Speaker Change: not just on OPEX but as well as on CAPEX and that's what you're seeing reflected in our performance this year. We obviously haven't given longer term guidance but you know as Maxime said a lot of what we've been doing over the past year is you know sustainable and recurrent in nature.

Marcelo Benitez: And that's what you're seeing reflected in our performance this year. We obviously haven't given longer-term guidance, but you know, as Maxime said, a lot of what we've been doing over the past year is sustainable and recurrent in nature.

Maxime Lombardini: Just to complement, Stephan, on CAPEX, we did something quite simple at home. We focused on the HFC upgrade. We had a strong feeling, which was that it was possible to get much more from the current footprint in terms of bandwidth. So it is something which has been partially done already that we will try to finish by the end of this year.

Maxime Lombardini: Just to compliment Stefan, on capex, we did something quite simple on the home. We focused on HFC upgrade. We had a strong feeling, which was that it was possible to get much more from the current footprint in terms of bandwidth. So it is something which has been partially done already that we would try to finish by the end of this year. And it provides immediate form for the current customers in terms of curve, in terms of satisfaction, and in terms of acquisition. It is one of the explanations why the KPIs on HOMA are strongly improving on mobile.

Maxime Lombardini: Just to complement Stefan, on CAPEX, we did something quite simple on the home. We focused on HFC upgrade.

Maxime Lombardini: We had a strong feeling, which was that it was possible to get much more from the current footprint.

Stefan: in terms of bandwidth.

Maxime Lombardini: So it is something which has been partially done already, that we will try to finish by the end of this year. And it provides immediate strong return for the current customers in terms of churn.

Maxime Lombardini: And it provides immediate strong return for the current customers in terms of terms of term, in terms of satisfaction, and in terms of acquisition, which is one of the explanations why the KPIs on home are strongly improving. On mobile, we are focusing on network quality. Very important because the volume of data that our consumers are using is growing, as well. And we want to deliver a perfect service. We are very selective about the payback of the new coverage, both in the home and mobile, and we are doing FTTH in a very practical way, not expanding everywhere but really going where we have the need because we have customers with a high RQ or because there is, I would say, a green field where we have strong opportunities. And last but not least, we have renegotiated very strongly many, many contracts with the vendors or with the IT providers, and this has an effect in the medium term too.

Maxime Lombardini: In terms of satisfaction and in terms of acquisition, it is one of the explanations why the KPIs on HOMA are strongly improving.

Maxime Lombardini: We are focusing on network quality. Very important because the volume of data that our consumers are using is growing, as you know, and we want to deliver a perfect service. So we are very selective on the feedback of the new coverage, both on home and mobile, and we are doing on home the FTH in a very practical way. Not expanding everywhere, but really growing where we are needed, because we have customers with a high option, because there are green fields where we have stronger opportunities. And the lovers, at least, we are very appreciated. There is currently many, many contracts with the vendors, or with the IT providers, and this has an effect in the region, too.

Speaker Change: On mobile, we are focusing on network quality. Very important because the volume of data that our consumers are using is growing, as you know, and we want to deliver a perfect service. So

Speaker Change: We are very selective on the payback of the new coverage, both on home and mobile, and we are doing on home the FTTH on a very tactical way.

Speaker Change: Not expanding everywhere, but really going where we have a need, because we have customers with a high option, or because there is, I would say, a green field where we have strong opportunities.

Speaker Change: And the last but not least, we have renegotiated very strongly many, many contracts with the vendors or with the IT providers, and this has an effect in the medium term too.

Operator: Okay, perfect. Thank you.

Michel Morin: Okay, perfect. Thank you.

Operator: Thank you, Stefan. And, as a reminder, if you want to ask a question, please let us know by emailing us at investors.milacom.com.

Speaker Change: Okay, perfect. Thank you.

Phani Kanumuri: Thank you, Stephan. And as a reminder, if you want to ask a question, please let us know by emailing us at investors at Millicom.com. Next, we're going to go to Phani at HSBC.

Speaker Change: Thank you, Stefan. And as a reminder, if you want to ask a question, please let us know by emailing us at investors at millicom.com. Next, we're going to go to Phani at HSBC.

Fannie: Next, we're going to go to Fannie at HSBC. Thanks, everyone, for taking my question. So the first one is on Columbia transaction. It's actually a combination of three different offers that you're making to the three different sellers. How is the dependency within those offers? That is, if the transaction with telephone cut doesn't go through, would you still offer to buy out the man-autistic in EPM? Or what is the dependency that you're seeing within these transactions? The second is how far along the process we are, and what are the next steps in the process that you're looking at in the same Columbia transaction?

Phani Kanumuri: Actually, a combination of three different offers that you're making to three different sellers. How is the dependency within those offers? That is, if the transaction with the telephone card didn't go through, would you still offer to buy out the minority stake in EPM?

Fanny: Thanks everyone for taking my questions. So the first one is on Columbia transaction. It's actually a combination of three different offers that you're making to the three different sellers. How is the dependency within those offers?

Phani: That is, if the transaction with a telephone card doesn't go through, would you still offer to buy out the minority stake in EPM, or what's the dependency that you're seeing within these transactions? The second is...

Phani Kanumuri: Or what's the dependency that you're seeing within these transactions? The second is how far along the process we are and what are the next steps in the process that you're looking at in the same Columbia transaction. So those are the questions regarding the Columbia transaction. And maybe one more question for Maxime. So you did mention you have some more efficiency measures that are yet to be implemented that could still give better operating results. Could you please mention what are the additional efficiency measures that could improve margins going forward? Thank you.

Speaker Change: How far along the process we are and what is the next steps in the process that you're looking at in the same Columbia transaction? So that's the questions regarding our Columbia transaction and maybe one more question for Maxime

Fannie: So that's the questions regarding Columbia Transaction.

Bart Vanhaeren: Now maybe one more question for Maxime. So you did mention you have some more efficiency measures that I had to be that could still give a better operating resource. Could you mention water the additional efficiency measures that could improve margins going forward? Thank you. Thank you, Phani. I think I'll take the first question. So we are early in the process, right? So we have a non-binding agreement with Telefonica on their majority stake in Cortel, and we engage to offer to La Nación and to EPM to buy out their minority positions in Cortel, and then in our own operation that we're joining home.

Speaker Change: So, you did mention you have some more efficiency measures that could still give better operating results. Could you mention what are the additional efficiency measures that could improve margins going forward? Thank you.

Bart Van Heren: You're funny. I think I'll take the first question.

Bart Van Heren: So we are early in the process, right? So we have a non-binding agreement with Telefonica for their majority stake in Cortel. And we engaged to offer to La Nacion and to EPM to buy out their minority positions in Cortel and then in our UNE operation that we jointly own, in terms of dependencies. What obviously would need to happen is a merger between the two entities, right? We cannot sit here and say that we own half of UNE and then two thirds of COTEL and then put it in a silo or have things.

Speaker Change: So we are early in the in the process, right? So we have a non-binding agreement with Telefonica their majority stake in Cortel.

Speaker Change: And we engaged to offer to La Nacion and to EPM to buy out their minority positions in CORTEL and then in our UNE operation that we jointly own.

Bart Vanhaeren: In terms of dependencies, what obviously would need to happen is a merger in between the two entities, right? We cannot sit where we own half of one and then two thirds of Cortel, and then put it in a silo or having something. So there is an absolute condition that the merger is allowed that goes through a regular regulatory approval, and hence, our partners in both companies have an absolute yes or no vote, because that would need to agree to a merger of the two entities as well. So all four parties will need to agree to this transaction, but in order to allow synergies and to allow all the benefits that mentioned before, we need to have the merge.

Speaker Change: In terms of dependencies,

Speaker Change: What obviously would need to happen is a merger in between the two entities, right? We cannot sit where we own...

Speaker Change: half of UNE and then two-thirds of COTEL and then put it in a silo or having having things so there is an absolute condition that the merger is allowed that goes through a regular regulatory approval etc and hence

Bart Van Heren: So there is an absolute condition that the merger is allowed that goes through regular regulatory approval, etc. Hence, our partners in both companies have an absolute yes or no vote because they would need to agree to a merger of the two entities as well. So all four parties will need to agree to this transaction. But in order to allow synergies and to allow all the benefits that have been mentioned before, we need to have a merger.

Speaker Change: Our partners in both companies have an absolute yes or no vote because they would need to agree to a merger of the two entities as well. So all four parties will need to agree to this transaction, but in order to allow synergies and to allow...

Speaker Change: and all the benefits that I mentioned before, we need to have a merger. So that's the dependency, is that the merger happens.

Bart Vanhaeren: So that's the dependency; is that the merger happens. Then, you know, our partners have been very good partners for the last 10 years, and I think, and I'm not speaking on Telefonica's behalf, but I think that relationship there wasn't very well as well. So they're very welcome to stay and drive with us on potential synergies, but at the same time, I think it's a very good liquidity option for the minority partners to step out. They've both indicated in the past that there would be willing to sell, and hence, I think it's a win-win for everyone, and we are willing to step in.

Bart Van Heren: So that's the dependency is that the merger happens. Then our partners have been very good partners for the last 10 years. And I think, and I'm not speaking on behalf of Telefonica, but I think that relationship there went very well as well.

Speaker Change: Then, you know, our partners have been very good partners for the last 10 years.

Speaker Change: and I think...

Speaker Change: And I'm not speaking on Telefonica's behalf, but I think that relationship there went very well as well. So they're very welcome to stay and drive with us on potential synergies, but at the same time, I think it's a very good liquidity option.

Bart Van Heren: So they're very welcome to stay and work with us on potential synergies. But at the same time, I think it's a very good liquidity option for the minority partners to step out. They've both indicated in the past that they would be willing to sell. And hence, I think it's a win-win for everyone. And we are willing to step in. Next steps in the process are now making long-form agreements with all the parties, with the government, and with EPM. This is a privatization technically called Colombian law 226, that's the privatization law, and which has a number of steps that need to unfold.

Speaker Change: for the minority partners to step out. They've both indicated in the past that they would be willing to sell. And hence, I think it's a win-win for everyone and we are willing to step in.

Bart Vanhaeren: Next steps in the process is now making long-form agreements with all the parties, with the government and with EPM. This is a privatization, technically, which is called in Colombia law, two to six, that's the privatization law, and which has a number of steps that needs to unfold. First determining a minimum price, and then an auction of those shares in which we will present an offer. So that will take a number of months, and then it will take a number of months for regulatory approval. So don't expect, you know, still this year, or the beginning of next year to close; there's still some work to do, but very positive momentum and positive reactions so far.

Speaker Change: Next steps in the process is now making long-form agreements with all the parties.

Speaker Change: wins.

Speaker Change: the government and with EPM.

Speaker Change: This is a privatization, technically, which is called in Colombia law 226, that's the privatization law.

Speaker Change: and which has a number of steps that needs to unfold. First determining a minimum price and then an auction of those shares in which we will present an offer. So that will take a number of months.

Bart Van Heren: First, determining a minimum price and then an auction of the shares, in which we will present an offer. So that will take a number of months, and then it will take a number of months for regulatory approval. So don't expect, you know, still this year or the beginning of next year for this to close. There is still some work to do, but very positive momentum and positive reactions so far. So it's good to start.

Speaker Change: And then it will take a number of months for regulatory approval, so don't expect, you know...

Speaker Change: Still this year, or the beginning of next year, for this to close, there is still some work to do. But very positive momentum and positive reactions so far. So, good to start.

Maxime Lombardini: So good to start. Actually, yes, so on efficiency, as Marcelo said, many are working progress on the ESE, on the employees' costs. We are continuing to reduce until the end of the year, beginning of next year, so it will have a full impact next year and the years after. On the contractors, all the contracts that we have, we serve party providing services on the sales, on field services, on IT, on GNA. We are really starting the work, and we are confident we can decrease part of that. On content, we were locked in a big contract till the end of 24.

Maxime Lombardini: Yes, so on efficiency, as Marcelo said, many are a work in progress on the ERC, on employees' costs. We are continuing to reduce them till the end of the year and the beginning of next year, so they will have a full impact next year and the years after.

Speaker Change: Thank you.

Speaker Change: Yes, so on efficiency, as Marcelo said, many are a work in progress.

Speaker Change: On the ESE, on the employees' costs, we are continuing to reduce until the end of the year, beginning of next year, so it will have a full impact next year and the years after.

Maxime Lombardini: On the contractors, all the contracts that we have, we're still partly providing services on the cells, on field services, on IT, on GNA. We are really starting to work, and we are confident we can decrease part of that. On content, we are locked in a big contract until the end of 2024. We hope we can do better for the future at the end of those contracts. On CAPEX, I've already mentioned, and this is very important, efficiency is not only about cost, but we think we can do better on the top line.

Speaker Change: On the contractors, all the contracts that we have, we're still partly providing services on the cells, on field services, on IT, on GNA. We are really starting to work and we are confident we can decrease part of that.

Speaker Change: On content, we were locked in a big contract till the end of 24. We hope we can do better for the future at the end of those contracts.

Maxime Lombardini: We hope we can do better for the future at the end of this contract. on Capex, I already mentioned, and very important efficiency is not only on cost, but we think we can do better on the top line. It is something which is not easy to do; you can imagine, but it is going through offers simplification, being more people. We will be more efficient. We are pushing many commercial initiatives, both in terms of optimizing their cost and then making them more efficient, and especially we are great believers in the FNC peaks and mobile convergence trend that we are pushing, both pushing the mobile on the home customer base and pushing the penetration on the home for both home and mobile.

Speaker Change: on CAPEX I've already mentioned.

Speaker Change: And very important, efficiency is not only on cost, but we think we can do better on the top line. It is something which is not easy to do, you can imagine, but it is going through offers, simplification, being more simple, we will be more efficient.

Maxime Lombardini: It is something which is not easy to do, as you can imagine, but it is going through offers, simplification, and being more simple. We will be more efficient. We are pushing many commercial initiatives, both in terms of optimizing their cost and making them more efficient, and especially, we are great believers in the FMC, fixed and mobile convergence trend that we are pushing, both pushing the mobile on the home customer base and pushing the penetration into the home for both home and mobile. That would be the main line, but we are confident that we can do it, and it is still a significant improvement in the way we generate cash.

Speaker Change: We are pushing many commercial initiatives, both in terms of optimising their cost.

Speaker Change: and making them more efficient.

Speaker Change: and especially we are great believers in the FMC peaks and mobile conversions.

Speaker Change: trend that we are pushing, both pushing the mobile on the home customer customer base and pushing the penetration on home for both home and mobile.

Maxime Lombardini: That could be the main line, but we are confident that we can do still a significant improvement in the way we generate cash. Thanks everyone. Thank you, Fani.

Speaker Change: That would be the main line, but we are confident that we can do it.

Speaker Change: still a significant improvement in the way we generate cash.

Michel Morin: Thanks, everyone. Thanks for this. Thank you, Phani.

Michel Morin: Thank you, Phani. So, we don't have any more questions in the queue, but we received a couple via email. So, the first one, I think, Bart, this is one for you on Columbia, and the question is around the transaction or potential transaction. How much incremental EBITDA would the $1 billion of additional equity investment in Columbia bring to Millicom? And then, intramarket consolidation is usually very margin-accretive. Are there any thoughts around synergy? So that's the first question, and the second question is... what we should expect for spectrum payments in the next few years at the group level in Columbia.

Speaker Change: Thanks, everyone.

Operator: We don't have any more questions in the queue, but we received a couple via email.

Speaker Change: Thank you, Phani. So, we don't have any more questions in the queue, but we received a couple via email. So, the first one, I think, Bart, this is one for you on Columbia.

Operator: The first one I think Bart, this is one for you, on Colombia, and the question is around the transaction or potential transaction, how much incremental EBITDA would 1 billion of additional equity investment in Colombia bring to Millicom, and then Intermarket Consolidation is usually very large and accretive. Are there any thoughts around synergies? That is the first question.

Bart: And the question is around the transaction or potential transaction. How much incremental EBITDA would the $1 billion of additional equity investment in Colombia bring to Millicom? And then intramarket consolidation is usually very margin accretive. Are there any thoughts around synergies?

Bart Vanhaeren: The second question is what we should expect for spectrum payments in the first one. Marge is on the additional 1 billion. So the 1 billion is equity value, so there is also the total investment enterprise value. It is bigger; you get in the debt equity. That 1 billion may still fluctuate a little bit in terms of net debt adjustments when, between now and closing, as you would logically expect. But obviously, if we look at Colombia, it is still a country that is, you know, all those; we have significant margin expansion for now at 39.5% of the BDA, but it is one of the countries that is not in the 40th.

Bart: So that's the first question, and the second question is what we should expect for spectrum payments in the next few years at the group level.

Bart Van Heren: I'll take the first one. Marginal, the additional $1 billion. The $1 billion is equity value. So there's also the depth of the total investment enterprise value, bigger, you get an adept equity. That one billion may still fluctuate a little bit in terms of net depth adjustments when it comes between now and closing, as you would logically expect.

Speaker Change: I'll take the first one.

Speaker Change: Margin on the additional $1 billion. So the $1 billion is equity value.

Speaker Change: So there's also the debt, so the total investment enterprise value is bigger, you get in the debt, equity, that $1 billion may still fluctuate a little bit.

Bart Van Heren: But obviously, if we look at Columbia, it is still a country that is... Although we have significant margin expansion, we're now at 39.5% BDA, but it is one of the countries that is not in the 40s. Millicom Group is 43.5% BDA. Somebody told me this week that it is the highest we have had in 10 years.

Speaker Change: It is still a country that is...

Speaker Change: Although we have significant margin expansion, we're now at 39.5% BDA, but it is one of the countries that is not in the 40s. Millicom Group is 43.5% BDA.

Bart Vanhaeren: Millicom group highest we had in 10 years, so well done there, but we want to have all of our countries in the 40th. So, if you think about it, that is what I would want to, at least to contribute from that investment.

Bart Van Heren: So, well done there. But we want to have all of our countries in the 40s. So, if you think about it, that's what I would want to do, at least to contribute from that investment. Now, in terms of synergies, yes, in-market, mobile-mobile, a fix-fix is typically as good as it gets. But, you know, allow me not to comment right now.

Speaker Change: Somebody told me this week it is the highest we had in 10 years, so well done there, but we want to have all of our countries in the 40s, so if you think about it, that's what I would want to do, at least to contribute from that investment.

Bart Vanhaeren: Now, in terms of synergies, yes, in market, mobile, mobile, fixed fixed is as good as it gets. But, you know, allow me not to comment right now; we are still learning the process. Let us finalize the work, and then when things are done, we can give you a full explanation and how the math will work out already better. Regarde Spectrum, I would say first that we've done through a lot of them. I mean acquiring Spectrum in Guatemala last year, Colombia, Panama, so I think most of the countries we've already gone through that process. There will be some countries like Honduras where we would need to invest.

Speaker Change: Now, in terms of synergies, yes, in-market, mobile-mobile and fixed-fixed is typically as good as it gets, but allow me not to comment right now, we're still early in the process.

Bart Van Heren: We're still early in the process. Let us finish the work. And then when things are done, we can give you a full explanation and how the math will work out on that investment. Regarding the spectrum, I would say first that we've gone through a lot of them. I mean, acquiring spectrum in Guatemala last year, Colombia, and Panama. So, I think most of the countries we've already gone through that process. There will be some countries, like Honduras, where we will need to invest.

Speaker Change: Let us finalize the work, and then when things are done, we can give you a full explanation and how the math will work out on that investment.

Speaker Change: Regarding spectrum, I would say first that we've gone through a lot of them. I mean, acquiring spectrum in Guatemala last year, Colombia, Panama.

Speaker Change: So, I think most of the countries, we've already gone through that process. There will be some countries like Honduras where we will need to invest.

Bart Van Heren: So, that's on the more organic, let's say... side of spectrum requirements for the ongoing business. And then we have 5G, where we do see some auctions coming this year and next year. But we believe all these are coming with a very rational approach. That's what we've seen in all the countries. 5G handset penetration is still very low. We're talking about 2-3% of our total customer base. So this will not come with a big CAPEX, let's say, demand. And there is a lot of rationality in the countries when they put auctions in place for 5G.

Bart Vanhaeren: So that's on the more organic, let's say, side of spectrum requirements for the OMO in business. And then we have 5G, where we do see some auctions coming this year and next year, but we believe all these are coming with a very rational approach. That's what we've seen in all the countries. 5G, hand-toed penetrations are still very low; we're talking about 2-3% of Porto del Gastromer base, so this will not come with big capics. Let's say demand, and there is a lot of rationality in the countries when they put auctions in 5G.

Speaker Change: So, that's on the more organic, let's say,

Speaker Change: side of

Speaker Change: spectrum requirements for the ongoing business. And then we have 5G, where we do see some auctions coming up this year and next year.

Speaker Change: But we believe all these are coming with a very rational approach.

Speaker Change: That's what we've seen in all the countries. 5G handset penetrations are still very low.

Speaker Change: We're talking about 2-3% of our total customer base.

Speaker Change: So, this will not come with a big CAPEX, let's say, demand.

Speaker Change: And there is a lot of rationality in the countries.

Speaker Change: when they put our auctions in 5G.

Operator: Perfect, thank you.

Stéphane Gauffin: Thank you. So we'll go back to Stéphane Gauffin, who has a follow-up question. Stephane from BNB.

Stefan Gauffin: So we'll go back to Stefan Gauffin. Where's the follow-up question, Stefan from D&D? Yes, so a question on Guatemala. So last quarter you did price increases on prepaid in Guatemala, and then you said it was uncertain how that would be adopted in the market, if competition would follow. So this quarter we did see the benefit on service revenue, but we also saw that you lost a meaningful number of subscribers in that market. So how are you seeing the progress in that market? How has competition responded, or are you seeing them following in terms of price increases?

Speaker Change: Thank you. So we'll go back to Stéphane Gauffin, who has a follow up question. Stéphane from BNB.

Marcelo Benitez: Yes, so a question on Guatemala, so last quarter you did price increases on prepaid in Guatemala, and then you said it was uncertain how that would be adopted in the market if competition would follow, so this quarter we did see the benefit on service revenue, but we also saw that you lost a meaningful number of subscribers in that market. So how are you seeing the progress in that market, how has competition responded, are you seeing them following in terms of price increases? Thank you. [inaudible]

Stéphane Gauffin: Yes, so, question on Guatemala. So, last quarter you did price increases on prepaid in Guatemala and then you said it was...

Speaker Change: uncertain how that would be adopted in the market if competition would follow. So this quarter we did see the benefit on service revenue but we also saw that you lost a meaningful number of subscribers in that market.

Speaker Change: How are you seeing the progress in that market? How has competition responded or are you seeing them following in terms of price increases? Thank you.

Stefan Gauffin: Thank you.

Marcelo Benitez: Thank you, Stefan. No, there is, as I said, there is a more rational market in Guatemala, as you can see. So we showed of that we've increased from 2% to 3% revenue growth. Of course, in the middle, in these transitions, there are some effects in the customer base, but we don't see that as an issue. We've been operating in Guatemala. We have a very strong commercial approach, good grip on the prepaid pillars. This division, we have a very good network and our pricing is also very affordable, so we don't see an issue in the midterm on the customer base.

Marcelo Benitez: Thank you, Stefan. No, there is, as I said, a more rational market in Guatemala, as you can see. As a result of that, we've increased from 2% to 3% revenue growth. Of course, in the middle of these transitions, there are some effects on the customer base, but we don't see that as an issue. I mean, we've been operating in Guatemala, we have a very strong commercial approach, a good grip on the prepaid pillars, distribution, we have a very good network, and our pricing is also very, very, I mean, it's very affordable. So, we don't see an issue in the midterm with the customer base. It's more about tactics. So, the outlook is one of a more rational market and better commercial dynamics in the coming quarters.

Stefan: Thank you, Stefan.

Speaker Change: There is, as I said, there is a more rational market in Guatemala, as you can see. As a result of that, we've increased from 2% to 3% revenue growth. Of course, in the middle, in these transitions, there are some effects.

Speaker Change: in the customer base.

Speaker Change: But we don't see that as an issue. I mean, we've been operating Guatemala. We have a very strong commercial approach.

Speaker Change: good grip on the prepaid pillars, distribution, we have a very good network, and our pricing is also very, very, I mean, it's very affordable. So we don't see an issue in the midterm on the customer base. It's more about tactics.

Marcelo Benitez: It's more about tactics.

Operator: So the outlook is one of more rational market and better commercial dynamics in the coming quarters. Okay, thank you. Okay, thanks, Stefan.

Speaker Change: So, the outlook is, one, a more rational market and better commercial dynamics in the coming quarters.

Michel Morin: Okay, thanks, Stephan. So that was our last question for today. Thank you very much, everyone, for participating, and we'll see you next quarter.

Speaker Change: Okay, thank you.

Operator: So that was our last question for today. Thank you very much, everyone, for participating, and we'll see you next quarter. Bye-bye.

Speaker Change: Okay, thanks, Stephan. So that was our last question for today. Thank you very much, everyone, for participating, and we'll see you next quarter.