Millicom International Cellular S.A. (NASDAQ:TIGO) Q2 2022 Results Conference Call July 28, 2022 8:00 AM ET
Company Participants
Sarah Inmon - IR
Mauricio Ramos - CEO
Sheldon Bruha - CFO
Conference Call Participants
Klas Danielsson - Nordea
Stefan Gauffin - DNB
Vitor Tomita - Goldman Sachs
Marcelo Santos - JPMorgan
Andres Coello - Scotiabank
Mathieu Robilliard - Barclays
Sarah Inmon
Hello, everyone. Thanks for taking the time to connect to our second quarter 2022 Results Conference Call. This event is being recorded. Our speakers today will be our CEO, Mauricio Ramos; and our CFO, Sheldon Bruha. [Operator Instructions]
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. If you turn to Slide 2, 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 non-IFRS metrics throughout this presentation. We define these metrics on Slide 4 and you can find reconciliation tables in the back of our earnings release and on our website.
With those disclaimers out of the way, let me turn the call over to our CEO, Mauricio Ramos.
Mauricio Ramos
Thank you, Sarah. Good morning and good afternoon, everyone. Thank you for joining us today to discuss our second quarter. Let’s get started right away on Slide 5. Earlier this year we hosted our Investor Day. Back then we shared with you our operational and financial plans to create shareholder value over the next several years. These plans are centered around our clear sense of purpose and reflect our commitment to focus ESG initiatives. The key message today is simply that we are on track to deliver on the commitments, financial and otherwise, that we made to you on our Investor Day. Since then, of course the Ukraine has been invaded, interest rates have begun to climb, inflation has spiked and there are increased risks of a U.S. recession in the near term. Needless to say, we don’t expect our business to be immune from a global economic slowdown. But, and this is a big but, so far the impact of these macro disturbances on our business has been somewhat limited.
One, we had a very solid Q2 even ahead of our plans. And two, although the going is getting tougher for sure and although we may lose some of the upside and leeway that we had hoped to have; as we look ahead, however, we remain very confident that we will deliver organic operating cash flow growth of around 10% on average over the next 3 years as we said we would earlier this year. And we also remain very confident that the business will generate cumulative all-in equity free cash flow of between $800 million to $1 billion over those same 3 years like we said at our Investor Day earlier this year. We’ve also continued to make meaningful progress on our plans to create separate companies for our infra and our fintech assets and to carve these out from our core connectivity business in order to help them realize their full potential and for us to harvest the equity value we have embedded in those businesses today.