LUXEMBOURG - Millicom (NASDAQ:TIGO), a prominent telecommunications provider in Latin America, announced the appointment of Maxime Lombardini as its Interim Non-Executive Chair of the Board. This leadership change comes as Mauricio Ramos steps down from his role as director and Chair of the Board effective September 30, 2024.
Ramos, who joined Millicom in 2015 and has served as CEO before becoming Executive Chair in September 2023, is credited with pivoting the company's focus to Latin America. Under his tenure, Millicom exited six African markets to concentrate on Latin American expansion, including the acquisitions of Cable Onda and Telefonica (NYSE:TEF)'s mobile subsidiaries in Panama and Nicaragua.
Millicom's Board expressed gratitude to Ramos for his strategic guidance, which has positioned the company as a leading telecom platform in the region. Xavier Niel of Atlas (NYSE:ATCO) Investissement praised Ramos for his strategic vision and execution, which have provided Millicom with a significant strategic and financial upside.
Lombardini, who has been with Millicom since September 2023 as COO and President, will now lead the Board while stepping down from his executive roles. The Board highlighted Lombardini's deep company knowledge and successful execution of a comprehensive efficiency strategy that increased cash flow generation as key factors in his appointment.
The Nominations Committee will submit a proposal for the election of a permanent Chair at the next annual general meeting of Millicom shareholders. As of June 30, 2024, Millicom employed approximately 15,000 people and served over 45 million customers with a fiber-cable footprint of over 14 million homes passed.
This leadership transition is based on a press release statement from Millicom and reflects the company's continued commitment to its strategic direction and growth in the Latin American telecommunications market.
In other recent news, Millicom International Cellular SA (NASDAQ:TIGO) has been subject to noteworthy developments. The company's Q2 financial performance was robust, with a 20% increase in organic EBITDA and a surge in equity free cash flow to $268 million. Service revenue rose by 5.5% YoY to $1.36 billion, and EBITDA increased to $634 million, marking a 23.1% YoY growth.
In other developments, Atlas increased its stake in Millicom to 40.4% from 29.2%. However, this did not result in Atlas securing a majority of voting rights, leading to the expiration of consent solicitations to amend the Senior Notes. Scotiabank maintained its Sector Perform rating and a $30.00 stock price target for Millicom, noting these recent changes.
Furthermore, Millicom recently announced a significant $2.4 billion merger and acquisition deal in Colombia, expected to consume approximately 18 months of the company's equity free cash flow. This has introduced an element of uncertainty regarding the company's ability to maintain its previous cash distribution policies. These are recent developments and represent Millicom's ongoing efforts to bolster its operations and cash generation.
InvestingPro Insights
As Millicom (NASDAQ:TIGO) gears up for a leadership transition with Maxime Lombardini taking the helm as Interim Non-Executive Chair, the company's financial metrics and market performance provide a broader context for evaluating its strategic direction. Millicom's market capitalization stands at approximately $4.7 billion, reflecting its substantial presence in the telecommunications sector. The company's revenue growth over the last twelve months as of Q2 2024 has been moderate at 5.68%, showcasing its steady progress in the Latin American markets.
InvestingPro Tips suggest that Millicom is expected to see net income growth this year, which aligns with the company's strategic refocusing efforts under the guidance of outgoing Chair Mauricio Ramos. Additionally, Millicom's valuation implies a strong free cash flow yield, indicating that the company is generating healthy cash flows relative to its share price—a positive sign for investors looking for value.
With Lombardini's expertise in operational efficiency and cash flow generation, these financial indicators could play a significant role in shaping Millicom's future. It is also worth noting that analysts predict Millicom will be profitable this year, which could further bolster investor confidence during this period of leadership change. For those interested in a deeper dive into Millicom's financial health and future prospects, InvestingPro offers additional tips, with a total of 10 InvestingPro Tips available for TIGO at: https://www.investing.com/pro/TIGO.
InvestingPro Data further reveals that Millicom is trading near its 52-week high, with its price at 99.38% of this peak. This suggests strong market confidence in the company's performance and potential. Moreover, the company has experienced a significant price uptick over the last six months, with a 40.59% total return, underscoring the positive investor sentiment surrounding its strategic moves and market execution.
This financial overview, coupled with the strategic insights provided by the InvestingPro Tips, offers a comprehensive picture of Millicom's positioning in the telecommunications industry as it continues to focus on growth and efficiency in the Latin American region.
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