TIGO Filings — Millicom International Cellular SA - FilingSpy
TIGO
Millicom International Cellular SA
A telecommunications company that runs mobile, internet, and cable TV services across Latin America under the Tigo brand, used by everyday consumers and businesses. It was born in 1990 when Swedish investor Kinnevik combined its cellular holdings with US-based Millicom Incorporated. The name Tigo comes from the Spanish "contigo," meaning "with you."
20-F · Fiscal year ended Dec 31, 2022 · SEC filing ↗
Revenue rose 32% to $5.6B on Tigo Guatemala consolidation while net profit fell 76% to $129M
The Guatemala buyout drove up but profit down. Revenue rose 32% to $5,624M and fell 72% to $1.27 as the prior-year $670M was absent and interest costs rose 25%. The company is larger and more leveraged, with cash flow covering needs for the next year.
Key takeaways
rose 32.0% to $5,624M, primarily from the full-year of Tigo Guatemala, which added $1,391M and offset currency in Colombia and Paraguay.
fell 76.2% to $129M because 2021 included a $670M on revaluing the prior Tigo Guatemala stake; rose 47.9% to $915M.
rose 24.6% to $617M from debt issued for the Guatemala acquisition, pressuring the despite higher .
What changed
resumption: not addressed as paid in 2022 figures here; the company did not report a 2022 dividend in this filing.
Total consolidated debt ex-leases: rose to $7,744M in 2021 from Guatemala buyout; this filing shows total assets fell 6.2% to $14.2B and recovered to 82%, addressing the prior watch on rate exposure.
Towers and Tigo Money separations: pursued per prior filings; Tigo Money served 5.7M users at year-end 2022, up from 10.3M across the group's MFS in 2020, with separation still in progress.
What to watch
Tigo Money user growth from the 5.7M base and progress on its structural separation
Refinancing and trajectory of Guatemala acquisition debt as rose to $617M
Colombia spectrum renewals in 2023 (AWS and 1900 MHz) and any regulatory price actions
Any declaration for 2023 after the suspension and non-payment reported here
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Millicom manages interest rate, FX, and non-repatriation risks via a fixed/floating debt target, local-currency borrowing, and derivatives under a board-reviewed policy.
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At year-end 2022, 82% of borrowings were at fixed rates (or swapped to fixed), up from 64% in 2021, aligning with the >75% fixed-rate target.
A 100 parallel shift in floating rates would change pre-tax profit by approximately $12 million (2021: $28 million).
rose 34.3% to $1,284M and reached $765M, supported by Tigo Guatemala and .
recovered to 82% of borrowings from 64% in 2021, above the company's 75% target.
The company exited Africa with the Tanzania disposal in 2022, concentrating capital on nine Latin American markets under the Tigo brand.
Guatemala bridge loan refinancing: not reported as outstanding here; rose 24.6% to $617M from the acquisition debt.
Latin America organic trend: Group was nearly flat at $6,203M as was offset by FX, versus the 2020 decline and 2021 rebound flagged earlier.
FX fluctuations caused a $84 million loss in 2022 (2021: $42 million); a hypothetical 10% USD move against functional currencies would impact pre-tax profit by $20 million.
The company uses cash flow hedges (cross-currency and interest rate swaps) on SEK, Colombia, and El Salvador debt, with a net derivative liability of $34 million at year-end 2022.
Non-repatriation risk is monitored: no current exchange controls materially restrict cash upstreaming, but tightening or new controls could limit fund transfers and payments.
Millicom faces material risks from emerging market volatility, intense competition, heavy regulation, and the financial strain of its Guatemala acquisition.
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The $2.2 billion acquisition of the remaining 45% stake in the Guatemala business has significantly increased , making debt service and dependent on strong cash flow from that operation.
Intense price competition, particularly in mobile services and the key Colombian market, pressures margins and increases customer , exacerbated by high prepaid customer bases and inflationary pressures.
Operations in emerging markets expose the company to political instability, currency devaluation, and unpredictable legal and tax systems, with a recent $16.2 million tax ruling and a new DOJ subpoena concerning Guatemala.
Rapid technological change requires substantial, risky capital investment in networks like FTTH and 5G, with no guarantee of returns due to intense competition from larger players and new entrants.
Regulatory actions, such as mandated free services during COVID-19, price caps in Colombia, and restrictions on prepaid data deductions in Bolivia, can abruptly and materially reduce .
The company is dependent on a limited number of key suppliers for network equipment and handsets, creating vulnerability to supply chain disruptions like the global microchip shortage and potential U.S. trade sanctions.
Millicom provides cable and mobile digital services under the Tigo brand across nine Latin American markets, serving 40.6 million mobile and 4.8 million fixed customers.
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The company operates two principal service categories: Mobile (57% of 2022 service ) and Cable & other fixed services (41%), alongside equipment sales.
Mobile services include data, voice, SMS, and the Tigo Money mobile financial services platform, which served 5.7 million users as of year-end 2022.
Cable and fixed services provide broadband, pay-TV, and fixed voice to residential (Home) and business (B2B) customers, with 4.1 million customer relationships on / networks.
Millicom's strategy focuses on expanding broadband networks, monetizing mobile data via 4G/5G, accelerating B2B ICT services, driving fixed-mobile convergence, and enhancing digital customer experience.
The company exited Africa with the 2022 Tanzania disposal and 2021 Ghana divestiture to concentrate capital on Latin America, where it sees low broadband penetration as a growth opportunity.
As of December 31, 2022, the company held licenses across multiple bands in nine countries, with key renewals approaching in 2023 for AWS and 1900 MHz spectrum in Colombia.
Millicom's 2022 revenue rose 32% to $5.6B driven by Tigo Guatemala consolidation, while net profit fell 76% to $129M on higher costs and absence of prior-year revaluation gain.
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Consolidated increased 32.0% to $5,624 million, primarily due to the full-year consolidation of Tigo Guatemala, which added $1,391 million, partially offset by currency in Colombia and Paraguay.
Group , which includes Honduras and Guatemala on a pro-forma basis, was nearly flat at $6,203 million as was offset by the of the Colombian peso and Paraguayan guarani.
dropped 76.2% to $129 million, mainly because 2021 included a non-recurring $670 million gain from revaluing the previously held 55% stake in Tigo Guatemala.
rose 47.9% to $915 million, but higher interest expenses (+24.6% to $617 million) from debt issued for the Guatemala acquisition pressured bottom-line results.
improved to $1,284 million from $956 million, and reached $765 million, supported by the consolidation of Tigo Guatemala and higher .
The company expects its available cash, borrowings, and subsidiary funds to cover operating and capital expenditure needs for at least the next 12 months.