Millicom International Cellular SA (TIGO) 2024 Q4 法說會逐字稿

Hello, everyone, and welcome to our fourth quarter 2024 results call.

This event is being recorded.

Our speakers today will be our CEO, Marcelo Benitez, 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.

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.

And then on slide 3, you can see that we define the non-IFRS metrics that we will be referencing throughout today's presentation.

And you'll 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.

Thanks, Michel, and hello, everyone.

Thanks for joining us to review the company's performance in our fourth quarter.

Please turn to slide 5 for the highlights of the quarter.

As you all know by now, 2024 was a transformational year for Millicom, and as you can see on this slide, we ended the year with a very strong note with equity free cash flow of $236 million in the quarter.

For the full year equity free cash flow excluding tower sales was $728 million, a new record.

This is the result of our efficiency program, which drove our OCF margin up 8 percentage points to almost 31%, also a new record.

I want to express my profound gratitude to the exceptional DOT members who made this transformation possible.

As promised, we used the cash flow to reduce our debt and we managed to bring the leverage down below 2.5x, which was one of our key priorities for the year.

At the same time, we took key steps to sustain and accelerate revenue growth, which is our key objective in 2025.

In Q4, we added 274,000 postpaid customers and 49,000 home subscribers while maintaining a strong momentum in B2B.

This provides a solid foundation for another excellent year in 2025.

Now let's dive deeper into this key highlights starting with our mobile business on the next slide.

Our mobile business delivered another solid quarter in Q4 with organic service revenue growing more than 4%, in line with Q3.

For the full year, mobile service revenue growth accelerated to 4.6% compared to 2.4% in 2023.

This improved performance is a result of the four key strategies we focus on throughout the year.

First, we've expanded our mobile network capacity, laying the foundation to drive data consumption and monetize growth through strategic price increases, which drove improved service revenue growth in prepaid.

Second, we simplified our commercial offers, reducing complexity from too many options to not more than 10 per country, making it easier for customers to see the value we deliver.

Third, we continue to practically migrate our best prepaid customers to postpaid, increasing their days connected and ARPU.

Our postpaid customer base continued to grow every quarter, and this is an important contributor to our overall mobile service revenue growth.

And fourth, we introduced new convergence plans, driving lower churn, higher ARPU, and improved customer lifetime value.

And convergence is also driving improved net ads in our home business as you can see on next slide.

At the beginning of the year, our priority was improving profitability while addressing the fundamentals of the business.

By Q2, we said we were ready to move from a defensive mode to an offensive strategy, and that's exactly what we did.

During Q4, we added 49,000 home customers and our customer base is now up 3% year-over-year.

This is the result of our key strategic initiatives, upgrading our broadband network to deliver higher speeds, simplifying our commercial offers and accelerating convergence, focusing our sales teams in low penetrated areas, strengthening our commercial capabilities, including the opening of new stores.

And as I mentioned in the Q3 call, customer satisfaction is up and churn is down.

With this strong customer growth, we expect service revenue to return to growth in 2025.

Please turn to the next slide for a quick look at our B2B business, which continues to perform well.

B2B revenue grew 3.1% organically for the full year in 2024.

Digital solutions continue to grow rapidly with an increase of nearly 15% in 2024.

This growth was supported by our secure and robust infrastructure as well as our world class pre-sales and support team, which added about 150 new certifications during 2024.

Our revamped FMC offer was very well received by entrepreneurs and small businesses, resulting in growth of around 7% in our SME customer base over the past year.

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

The key highlight in Colombia is the EBITDA margin, which reached 38.1% for the full year.

That's up more than 6 percentage points year-over-year.

As many of you know, for most of the past decade, Colombia has been a challenging market for us and for almost every other telco in the country.

Over the past year, we have taken meaningful steps to improve the profitability of our business.

It wasn't easy and I want to express my appreciation to the extraordinary team in Colombia.

Your dedication is at the heart of this transformation.

And while our focus has been on improving profitability, we have not lost sight of the need to continue to take care of our customers and capture our fair share of new customer growth.

We did just that again in Q4 with very strong net additions in both our postpaid mobile and our home business, and we are confident that this momentum in net additions will drive faster service revenue growth in 2025.

Now, please turn to the next slide to look at our performance in Guatemala, our largest market.

Let me start with the punch line. 2024 was a record year for cash flow in Guatemala with OCF up about 10% to $692 million.

This is mostly the result of our efficiency program, which drove the full year '24 EBITDA margin to 54%, our highest margin in more than five years.

Meanwhile, we've also produced some CapEx savings as we optimized our network by putting to work the new spectrum that we acquired in 2023.

Most importantly, we delivered this strong cash flow while also driving top line growth.

2024 was our strongest year since 2021 in terms of service revenue growth, this came mostly from a combination of ARPU increase in prepaid and an acceleration in our postpaid customer base.

And our strategy is delivering results as reflected in the fourth straight quarter of mobile revenue growth.

Now let's look at our 2024 performance in Panama on next slide.

2024 was a truly exceptional year for our business in Panama as you can see here.

Service revenue grew close to 5% thanks to the strong performance in both mobile and B2B, which more than offsets the decline of our home business.

Importantly, growth in mobile accelerated through the year and our home business improved in Q4.

Meanwhile, we had a record year in B2B.

Thanks largely to the two governmental projects.

This will create a tougher comparison in 2025, but we are very well positioned to compete and land more of these type of contracts in the future.

And finally, on the right hand side of the slide, you can see the key takeaway, Panama, with its stable and dollarized economy generated more than $0.25 billion of OCF in 2024.

Now please turn to the next slide to look at equity free cash flow and leverage.

Over the past year, we've told you about all the initiatives we've implemented as part of our efficiency program, and these have paid off.

As I mentioned at the start of my remarks, we have successfully and permanently turned around the company's financial profile, delivering $728 million of equity free cash flow in 2024, and we use this cash to reduce our leverage, which ended the year at 2.4 times, which is within our target range.

Some of you will recall that we had initially guided to 2024 EFCF of around $550 million, and we increased this guidance throughout the year as we executed on every component of our efficiency program in every one of the nine countries where we operate.

We are very pleased with these results, but rest assured that we are already taking steps to ensure that the company can continue to sustain and grow its cash flow in '25 and beyond.

Before handing the call over to Bart, I'd like to take a moment to update you on the strategic initiatives we have previously announced.

First, regarding the sale of Lati International to SBA.

We file for antitrust approval in every country where this was required.

We remain on track to close this transaction on either Q2 or Q3 of this year.

Second, with respect to Colombia, we filed for regulatory approval and we made great progress towards formalizing our agreement with Telefonica to acquire their 67.5% stake in ColTel.

We also remain committed to offering the same price per share to the minority partner, the government of Colombia.

And we are pleased to see that they have now hired financial and legal advisors who will help them to launch and manage the process to sell their stake under the privatization law 2 to 6.

And as we have already told you, we are also ready to acquire our partner's 50% stake in our own Colombia operation.

If EPM decides to sell, we will offer up to the same valuation multiple agreed for ColTel, which is the best possible valuation comparable for a transaction like this.

Third and finally in Costa Rica where we've agreed to combine our operations with those of Liberty Latin America the regulatory process is ongoing and expected to be completed later this year.

Now let me turn the call over to Bart to review the finances for this quarter.

Thank you, Marcelo.

Now let's look at our financial performance beginning on slide 15.

Service revenue was $1.34 billion in the quarter, which is 2.9% down from $1.38 billion a year ago.

Operationally, this is not what we see.

In fact, the [PxQ] is growing quarter-over-quarter.

But there are two elements to consider in analyzing this quarter indiscernible.

One, Panama B2B projects, which we have consistently referred to that had a peak revenue recognition in Q4 of last year and in Q1 of this year.

This creates a year-on-year difference for Q4 of about $25 million.

And two, FX mainly in Colombia, where Q4 average exchange rate was about 5.8% weaker in Q4 than in Q3 or 9.5% year-on-year.

This represents approximately $30 million.

Now on a good note, that trend is curved in Q1 as we see the cup appreciating now.

So to conclude, we report 2.9% revenue decrease excluding effects in Panama projects.

We see operationally a growth of about 1.3%.

EBITDA was up 11% year-on-year to $618 million.

This included $30 million of restructuring and other one-off charges.

We have now significantly completed our restructuring program, spending a total of about $150 million, which again is all included within the reported numbers.

We will obviously continue to focus on efficiencies across the grid, but going forward we'll consider associated cost to be business than usual.

Equity free cash flow excluding net proceeds (inaudible) was $236 million, up almost $200 million compared to $39 million in Q4 of last year.

Equity free cash flow for the full year was $728 million, again excluding the $49 million in tower modernization, which was well ahead of our most recent guidance of around $650 million.

On the next slide, let's drill down further on service revenue by country.

Marcelo has already talked about revenue trends in Guatemala, Colombia, and Panama, so we'll be very brief.

One, Guatemala, back to growth, check.

Two, Colombia hit by FX.

As I mentioned, we have approximately $30 million negative impact from FX without which revenues would've been flat.

Panama, as mentioned before, approximately $25 million of difference year-on-year related to B2B projects.

So a tough quarter to compare on year-on-year.

But if you look sequentially quarter-on-quarter, we will see Panama grew 1.6%, which annualizes to 6.5%.

Then looking at Bolivia, service revenue increased 2.5% with positive growth in mobile and B2B, offset by flat performance in (inaudible) where we continue to prioritize profitability in light of the challenging macroeconomic environment, especially as it pertains to the lack of dollars.

As many of you know, the Boliviano exchange rate is currently pegged at a rate of 6.91 to the US dollar.

However, we are having to pay commissions of as much as 70% to buy dollars at that exchange rate.

Beginning in Q1 2025, we expect to begin using an estimated spot rate for our financial reporting, consistent with the latest amendment to accounting standard IAS 21, which went into effect in January.

This is expected to negatively impact service revenue, EBITDA and basically the entire P&L as reported in US dollars.

A massive exercise to convert costs into local currency has been performed this year in addition to a natural hedge of local currency debt, both somewhat mitigating these negative effects on the organic business.

We're expecting nonetheless low to mid-double-digit million US dollars impact on our group EFCF due to the upstream costs.

Paraguay service revenue was $136 million, and the year-on-year growth accelerated to 4.7% in local currency, driven primarily by solid growth in mobile and B2B.

This was a nice improvement compared to growth of just over 1% in Q3.

Service revenue in other markets comprised of El Salvador, Nicaragua and Costa Rica declined 3% in US dollar terms with positive growth in Nicaragua more than offset by declines in El Salvador and Costa Rica.

The decline in El Salvador relates primarily from a noncash adjustment to B2B revenue from prior periods.

Now please turn to the next slide for a look at EBITDA by country.

Guatemala EBITDA was relatively stable, increasing 0.7% in local currency terms to $215 million, reflecting service revenue growth and efficiencies, which were partially offset by the impact of $8 million in restructuring charges in the quarter.

Colombia EBITDA declined 5.2% to $122 million due to the weaker Colombian peso.

In local currency terms, EBITDA increased 3.7%, now reaching 37.1% as we continue to take steps to make our second largest operation profitable on a sustainable basis.

Panama EBITDA grew 19.9% year-on-year and the margin reached a new record of 50%.

I hereby want to congratulate our Panama team with this landmark achievement, welcoming them as a second country in our IFRS perimeter into our Club 50, an internal competition for our countries to reach 50% EBITDA profitability.

Bolivia EBITDA increased 39.8% to $71 million, and the EBITDA margin expanded to 45.3% as we continue to focus on profitability here as well.

Again, I want to point out to the FX issues as a cautionary statement.

Paraguay EBITDA grew 37.6% to $66 million in Q4 2024, and the EBITDA margin was 46.7%.

We were pleased to see Paraguay deliver both strong margins and top line acceleration in Q4.

EBITDA in our other segments increased 1.5% in US dollar terms as savings from our efficiency program offset the decline in revenue that I've already mentioned.

Now please turn to the next slide for a look at equity free cash flow and leverage.

As we already discussed, EBITDA for the quarter was $618 million, that is up $61 million from last year.

Cash CapEx was $162 million, and that's down $52 million from last year.

Spectrum $26 million, down almost $100 million compared to last year when we acquired some new spectrum in Guatemala and Colombia.

As a reminder, spectrum is always a little bit bumpy quarter-on-quarter.

Changes in working capital and other was positive $30 million and stable versus last year.

Taxes paid were $65 million, which is up $10 million from last year due to the increase in pre-tax income over the past year.

Finance charges were $101 million and has been steadily declining as we've reduced debt over the past year and is partially offset by Bolivia conversion charges.

Lease payments were stable at $80 million.

We've seen an increase in lease payments in local currency terms, but this was largely offset by FX as most of our lease obligations are denominated in local currency.

Honduras repatriation was $23 million in the quarter and just shy of $90 million for the full year 2024.

That's up about $3 million from 2023, which is a good outcome given the capital controls that continue to impact our access to dollars in the country.

As a result of all these factors, equity free cash flow for the quarter was $236 million.

This is up almost $200 million compared to Q4 2023.

To conclude on this slide, as you can see on the top right, the equity free cash flow was used to reduce our debt, which declined $230 million during Q4.

Our leverage therefore ended at 2.42, nicely within our stated targets.

Now please turn to the next slide for a look at our equity free cash flow and leverage for the full year 2024.

I won't go over each of these points individually, and I will simply highlight that most of the improvement came from a mix of higher EBITDA for $357 million lower CapEx for a similar amount and about $100 million lower spectrum charges.

And more importantly, we did what we told you we were going to do.

We used that incremental year-on-year cash flow to reduce our net debt and with that bringing our leverage below 2.5 times.

Now please turn to the next slide to review our financial targets for 2025.

As you have seen, we generated record equity free cash flow of $728 million in 2024.

This excludes $49 million in Colombia tower monetizations and includes more than $150 million of one-off charges, mostly related to our restructuring program which is now largely completed and is expected to produce additional savings in 2025 based on the run rate savings already achieved in Q4.

Now there are factors that may negatively impact our equity free cash flow in 2025.

As you know, we operate in emerging markets that are sometimes volatile and hard to predict.

This includes Bolivia, where the adoption of an estimated spot rate in our financial reporting will negatively impact our EBITDA and leverage.

And of course, FX is also a risk factor in Colombia and Paraguay.

Finally, we also have some ongoing legal disputes that may impact equity free cash flow in 2025 if we can't win those cases.

With all this in mind, we're targeting 2025 equity free cash flow of around $750 million, and we expect to end the year with a leverage below 2.5.

I want to caution you that leverage may go up a bit in Q1 given the usual seasonality of our cash flows and considering also the shareholder remuneration on the one side the dividend paid in January and on the other side the ongoing share buyback program.

Nonetheless, again, we target to end below 2.5 at the end of the year.

Also, I should remind you that these targets do not include the impact of any of the strategic projects that Marcelo talked about.

Finally, as we have previously communicated, the Board has recently decided to resume shareholder remuneration.

We paid an interim dividend of $1 per share in January.

Yesterday, the Board approved another interim dividend of $0.75 per share to be paid in April, and the Board will propose to the AGM in May a new quarterly dividend of $0.75 per share with the explicit intent to sustain or grow this dividend every year.

In addition, we have been executing on a $150 million share buyback program.

As Marcelo said earlier, the efficiency program we implemented has changed the cash flow profile of the business in a way that we believe is permanent and sustainable, and the Board's decision to resume shareholder remuneration is consistent with this view.

We are now ready for your questions.

Thank you, Bart.

We will now begin the Q&A session.

So as a reminder, if you would like to ask a question, please send an e-mail to investors@millicom.com. We will be taking our first question from Marcelo Santos at JPMorgan.

I think we need to bring Marcelo into as a panelist.

So let's give him a second.

Okay.

Marcelo, the floor is yours.

If you can unmute it.

Thank you.

Sorry.

It took me a while to reconnect to the panelist.

Thank you very much for the opportunity to ask question.

I wanted to go back to something that was discussed in the beginning.

You mentioned that accelerating growth is a key priority for 2025.

Could you please be a bit more explicit on which markets and segments should see the main improvement as per your expectations?

And the second question is a bit related to the first.

What will be the cost of this reacceleration efforts in terms of OpEx and CapEx?

Could we expect some pressure in margins, a bit higher CapEx?

These are the questions.

Hello, Marcelo, good to see you.

Thanks for the questions.

Well, on the first one, as you can see, our mobile business that is more than 50% of our revenues is growing nicely.

I mean, year-over-year it grew 4.6% on the back of postpaid 8% and prepaid 3%.

We believe that this trend is going to be repeated in 2025, basically because our postpaid base is still too low as a percentage of the total base.

We believe that should be around 30%.

That's our target.

And today, we are at 12%.

So we have enough room to grow.

In the case of prepaid, what we are doing there is since the traffic is increasing year-over-year 16% in 2024, we are also increasing the allowances and the tickets in prepaid.

So with that, we got to grow 3% in 2024, and we plan to do the same in 2025.

On top of that, you will see home recovering from a couple of quarters of negative growth after we started adding positive net adds since October of last year.

We believe we are going to be in positive territory in Q2, somewhere in Q2 of this year.

And B2B, we do expect the same rate of growth of '24 around 3%.

So I believe with that you can play with the numbers, Marcelo, and do the math.

Regarding the pressure on margins, we do believe we can sustain the same level of CapEx.

We've been very, very focused on how we spend the CapEx.

As an example, we take a granular view on where to invest.

In mobile 27% of the municipalities represents 80% of the revenues.

So instead of investing in average to the whole network, we are investing where the demand is.

And it's the same concept we are applying to home.

So with this new framework, we've been able to keep the same level of CapEx of '24.

So we don't see any pressure on margins there.

And to your questions about countries, it's easier to answer, I mean, because this is a very -- this is a playbook that we are implementing in all the countries, but it's easier to tell you which ones are going to be more challenging.

And it's going to be one Costa Rica because basically, the operators, the two largest operators, they are very aggressive.

They became very aggressive commercially on convergence offers, and that is something that impacts directly to our customer base and to our ARPU.

And in Bolivia because of the currency devaluation.

So you will see a nice -- a very nice growth in local currency, but it's going to be affected by the devaluation.

Perfect.

Very clear.

Thank you very much.

Thanks, Marcelo.

So next we're going to go to Stefan Gauffin at DNB.

Stefan, the line is yours.

So I'll follow up on CapEx question.

So you said that CapEx could be in the same range.

But there's quite a big difference on cash CapEx and booked CapEx in 2024.

So could you comment a bit on what you see how this will develop in '25 so that we don't have a backlash on cash CapEx.

Secondly, a clarification, you made a provision for and you also -- in the cash flow guidance, you highlight risk of adverse legal rulings.

So can you please comment on what that is all about?

And then perhaps finally, given the change in reporting in Bolivia, what kind of spot rates are you looking at using for that market?

Thank you.

Yes, I will take those.

So on CapEx, the CapEx booked has come down from '23 to '24 from $809 million to $677 million.

For '25, we'll see that stabilizing around that number.

We believe that's a good wallet, let's say, of to spend in our markets.

In terms of cash CapEx, indeed it went stronger down from $931 million to $575 million.

I think that the '23 number had really some payables from '22.

So that CapEx, cash CapEx in '23 was a bit artificially high.

And the $575 million is a little bit low, if you ask me.

And that is because there was a lot of Q4 delivered CapEx or executed CapEx in Q4, which then will be paid in Q1.

If you look, we didn't give guidance for '25 on CapEx level, but you can expect those two numbers to convert in the future.

Over time, those numbers need to be the same, right?

So ultimately, you pay -- and so as our CapEx booked will start to stabilize, our cash CapEx should stabilize around that same number.

On your second question regarding legal rulings, you might see in our disclosures, I mean I think it was published as well.

One was a negative ruling on Costa Rica case with Telefonica and both parties appealed.

So that's not yet in final form.

But because there was a negative ruling, we took a provision for that in the $80 million zone.

And then generally, it is LatAm, you may have negative rulings in other cases across countries.

There's not a single big one to flag out.

But it comes and goes depending on the year, similar for tax claims that may come and go.

On Bolivia, in Q3, we have paid as high as 60-something percentage of commissions to buy at the official rate.

So an implied underlying devaluation of 60-something percent.

As from January IAS 21 comes into effect.

We will adopt that for Bolivia.

So that's the high inflation accounting, let's say, hyperinflation accounting.

And as from January, we are still in discussions with the auditor on what the right number is, but I expect this to be within the 60% area to start in January, which could increase during the year.

Now what is the effect of that?

You will see a significant hit on revenues and EBITDA in US dollar because of the way we account for that.

On equity free cash flow, I think we can indicate that for '24 Bolivia did around $100 million equity free cash flow in that order of magnitude.

And so that's there somewhat the risk to our equity free cash flow in '25.

This being said, this year we have as well, let's say, $25 million of commission costs, which will disappear because you book it already in your conversion cost.

So the equity free cash flow impact is not the 60% or 70% of your country equity free cash flow, but it's a little bit less because we already have costs incurred in 2024, which now no longer will appear in the interest charge or financial charges cost.

That's perfect.

Very clear.

Thank you.

Thank you, Stefan.

And as a reminder, if you'd like to ask a question, please send us an e-mail to investors@millicom.com. Our next question is going to come from Phani at HSBC.

Phani, the floor is yours.

Thank you for taking my questions.

The first one is regarding your pricing power in Guatemala, Colombia, and Panama.

I mean you're expecting to reaccelerate growth, but is it driven more by volume?

Or do you have some pricing power in this market?

The second one is regarding the ability to reinstate dividends this year.

So why did you feel that the 2.5x net leverage target is good?

Or why did you prefer dividends over debt reduction at this point of time?

I'll take the first one and you take the second.

So to the first question, Phani, we believe that this is a very consumer-driven market.

What we do see is that the demand for data is increasing every year.

And what we do is to monetize that increase.

So the way we do it is increasing the allowances by -- and at the same time, increasing the ticket.

So it's a more-for-more equation.

That will be the case not only in Colombia and Guatemala, but in all other operations, in all the countries where we have mobile, all except Costa Rica.

And that is a trend that I believe is going to -- it's going to be for sure in 2025, but also in the next following years.

Yes.

On the leverage and dividends, so we generate about $750 million equity free cash flow.

So we decided or recommended to distribute 2/3 of that to shareholders, $500 million, which is $3 per share, which is in the $0.75 per quarter and then keep 1/3 for either deleveraging or strategic projects such as the acquisition of Telefonica in Colombia and will be a good step in the direction of financing those acquisitions.

So it's a bit of a balanced approach.

The 2.5 times leverage, it's -- we always said we would start or only consider start being shareholder distribution once we reach the 2.5 times or go below 2.5 times, which happened in November.

We went to the Board and then started the distribution.

We expect at the end of the year to be significantly below the 2.5 times.

Just a bit of a cautionary statement there.

You know that cyclically Q1 is always a little bit weaker in our industry.

So including the first dividend, $170 million plus $150 million share buyback, $320 million goes out of the door with the last 12 months EBITDA that may be a little bit weaker just on the cyclicality and a very good Q1 last year with the B2B projects.

The leverage may go up a little bit again in Q1 before then it comes down again in Q2, Q3, Q4.

So we'll end the year significantly below the 2.5 times, but we might go up a little bit in Q1.

Perfect.

Thank you.

Thanks, Phani.

So our next question is going to come from Gustavo Farias at UBS.

Gustavo?

Everyone.

Thanks for the time in taking my question.

First, congrats on the results.

So two questions from my end.

The first one regarding the '25 guidance.

If you could comment on what are the main assumptions embedded on the guidance?

You comment on some downside risks from macro FX from the countries you operate, especially Bolivia, Colombia, and Paraguay.

So if you could comment on not only the downside risks, but also on potential upside?

And how much of that are you embedding on the guidance?

And my second question, if you could comment on how has been the competition in Colombia, especially after we saw Quam's acquisition.

How are you thinking around that theme?

Any color would be really appreciated.

Thank you.

I'll take the first one, you take the second.

Yes.

Yes.

So assumptions of the guidance.

So one, I think the $750 million on itself, it's a 3% year-on-year increase and 7% above consensus.

So all things considered at the beginning of the year, I think it's a solid outlook or guidance, as you will.

And as well, if you look at it, this is a 16% equity free cash flow to equity yield at yesterday's price.

So there we feel very comfortable that that's a decent number.

If you look at it, you might indeed indicate that considering where we are already this year and considering the amount of one-offs, it could be a bit on the low end.

But then again, as we said, we have some legal costs and then FX costs that might come in into 2025.

So as those materialize, we wanted to embed that into our guidance.

If you look at the underlying assumptions, we would expect that revenues to continue to perform well on the PxQ underlying business, but then the top line in US dollar will decline more likely than not because of the accounting of Bolivia, right?

So that's just an immediate hit to the P&L.

EBITDA on the other side is likely to go up.

As I mentioned, the CapEx stable, which then doing the math coming to our equity free cash flow, which is this 3% up year-on-year.

Yes.

So, Gustavo, on Colombia, Colombia remains a very competitive market.

Quam is still operating and competing.

They are also in the process of being recapitalized.

There is also an aggressive, I would say, the market is being very aggressive in fixed broadband.

So we are having some pressures there.

But despite this, we are growing very nicely in mobile.

In the year, we grew 8%, mainly driven by postpaid.

And in home, we are recovering the negative trend, and that will -- and that recovery will end during the half or on the half of this year.

So that is in Colombia.

Congrats on the results once again.

Thank you, Gustavo.

Thank you, Gustavo.

So next, we received a question via e-mail.

And perhaps this is for you, Bart.

It's regarding our M&A projects in Colombia and Costa Rica, if we can provide a bit of an update on the regulatory process there and the approvals?

Yes.

So we announced a few months ago the agreement with Telefonica on term sheets about the acquisition.

Subsequently, we did two things.

We did a filing for the merger in Colombia.

That is progressing well.

There are some questions that come from the regulator that we are addressing.

But so far, moving ahead as planned.

On the long-form negotiations, the discussions with Telefonica are ongoing and going well.

We hope to land this in the coming weeks.

And I don't think we will announce this particularly as it doesn't change the progress of the project.

We -- at this moment, still expect to have a closing later in this year at the second half of the year.

On Costa Rica, nothing really to announce.

It follows the regulatory path.

We believe at the year-end, around year-end to have regulatory approvals.

But this can come a little bit earlier or a little bit later.

We're not really in control of that process.

Okay.

Thanks, Bart.

So that was the last of our questions.

So maybe, Marcelo, I turn it back to you for any closing remarks.

Thank you, Michel.

Well, we are very pleased with the results.

It's been a transformational year for us.

We're very happy.

But as I said in the call, that was last year.

Now we're working to replicate the same this year.

So rest assured that we are very focused on that.

So thanks, everybody, for joining the call, and thanks, Michel.

Thank you.

Thanks so much.