Millicom International Cellular S.A. (NASDAQ:TIGO) Q2 2023 Earnings Conference Call July 27, 2023 8:00 AM ET
Company Participants
Mauricio Ramos - CEO
Sheldon Bruha - CFO
Conference Call Participants
Andres Coello - Scotiabank
Marcelo Santos - JP Morgan
Phani Kanumuri - HSBC
Fredrik Lithell - Handelsbanken
Lucas Chaves - UBS
Stefan Ward - Pareto Partners
Operator
Hello, everyone. Thanks for taking the time to connect to our Second Quarter 2023 Results Conference Call. This event is being recorded. Our speakers today will be our CEO, Mauricio Ramos; and our CFO, Sheldon Bruha. Following their prepared remarks, we will have a Q&A session.
By now, you should have received a copy of our earnings release, which is available on our website, along with the slides that we will be referencing during today's presentation. Now please turn to slide two, where you can see our safe harbor disclosure.
We will be making forward-looking statements, which involve risks and uncertainties and could have a material impact on our results. We will also be referring to many [Indiscernible] throughout this presentation, and we define these metrics on slide four, 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, Mauricio Ramos.
Mauricio Ramos
Good morning, and good afternoon, everyone. Thank you for joining us today. Let's start right away with the highlights of the quarter on slide five. During the quarter, we saw both continued challenges and positive progress.
On the challenging side, we saw continued political and macro challenges in Bolivia, and the impact of competition and continued double-digit inflation in Colombia. These trends are impacting primarily our home business in these two countries. In response to these challenges, we have been adjusting our investment plans and commercial activity accordingly in those markets.
On the positive side, our B2B and postpaid businesses continue to perform strongly across the majority of our markets. And most of our markets continue to show positive revenue growth with Paraguay, Panama, Honduras, Nicaragua, and El Salvador, all performing well.
All in, service revenue grew 1.9% organically in the quarter. This is down a bit from 2.2% growth in the first quarter. The main reason for this is our decision to take additional steps to defend our prepaid mobile market leadership in Guatemala.
This defense is taking a bit longer than I had anticipated, but this is the correct long-term strategy. We believe it is already working, and we already see emerging signs of a healthier industry structure in Guatemala. And we'll talk about that in more detail in a moment.