Millicom International Cellular S.A. Price & Performance (TIGO)

And hello, everyone. Thanks for joining us to review the company's performance in our fourth quarter. Please turn to Slide five for the highlights of the quarter. As you all know by now, 2024 was a transformational year for Millico. And as you can see on this slide, we ended the year with a very strong note. With equity free cash flow of $236,000,000 in the quarter. For the full year, equity free cash flow excluding tower sales was $728,000,000 a new record. This is the result of our efficiency program which drove our OCF margin up eight percentage points to almost 31%. Also a new record. I want to express my profound gratitude to the exceptional team members who made this transformation possible. As promised, we used the cash flow to reduce our debt, and we've 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 these key highlights starting with our mobile business on the next [indiscernible] 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 at 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 adds 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 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 capability 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 presales 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 six 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 the 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 $692,000,000 This is mostly the result of our efficiency program, which drove the full year 2024 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 are 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 our 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 this 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 $250,000,000 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 $728,000,000 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 $550,000,000 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 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 fight 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 parlor. The Government of Colombia, and we are pleased to see that they have now hired financial and legal advisers who will help them to launch and manage the process to sell their stake under the privatization Law two twenty six. And as we have already told you, we are also ready to acquire our partners 50% stake in our [indiscernible] If EPM decides to sell, we will offer up to the same valuation multiple agreed for both their 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 financials Thank you, Marcelo. Now let's look at our financial performance beginning on Slide 15. Service revenue was €1,340,000,000 in the quarter, which is 2.9% down from 1,380,000,000.00 year ago, Operationally, this is not what we see. Fact, [indiscernible] is growing quarter over quarter. But there are two elements to consider in analyzing this quarter, [indiscernible] Panama B2B project which we have consistently referred to, but 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 $25,000,000 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 $30,000,000 Now on a good note, that trend is curbed in Q1 as we see the cup appreciating now. So to conclude, we report 2.9% revenue decrease excluding FX and Panama projects we see operational year growth of about 1.3%. EBITDA was up 11% year on year to $618,000,000 This included SEK30 million of restructuring and other one off charges. We have now significantly completed our restructuring program spending a total of about $150,000,000 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 costs to be based on the EU Europe. Equity free cash flow, excluding net proceeds, with our disposals, was $236,000,000 up almost $200,000,000 compared to thirty nine million Q4 of last year. Equity free cash flow for the full year was $728,000,000 again excluding the 49 tower monetization which was well ahead of our most recent guidance of around $6.50 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 Guatemala, so we'll be very brief. One, Guatemala back to growth check. [indiscernible] As I mentioned, we have approximately €30,000,000 negative impact from FX without which revenues would have been flat. Panama as mentioned before, approximately 25,000,000 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, you 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 Poland. 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, Boliviano exchange rate is currently pegged at a rate of 6.91 to the U. S. Dollar. However, we are having to pay commissions of as much as 70% to buy dollars at debt exchange rates. Beginning in Q1 twenty twenty five, we expect to begin using an estimated spot rate for our financial reporting consistent with the latest amendment to accounting standard IAS [indiscernible] Which went into effect in January This is expected to negatively impact service revenue EBITDA and basically the entire P and L as reported in U. S. Dollars. A massive exercise to convert costs into local currency has been performed this year, in addition to a natural hedge for local currency debt. Both somewhat mitigating these negative effects on the organic business. We're expecting nonetheless low to mid double digit million dollars impacts on our group EFCF due to the upstream costs. Product wise service revenue was $136,000,000 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 a Salvador, Nicaragua and Costa Rica declined 3% in U. S. 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 non cash adjustment to B2B revenue from prior periods. Now please turn to the next slide look at EBITDA by country, Guatemala EBITDA was relatively stable increasing 0.7% in local currency to $215,000,000 reflecting service revenue growth and efficiencies which were partially offset by the impact of €8,000,000 in restructuring charges in the quarter. Colombia EBITDA declined 5.2% to 122,000,000 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 fifteen an internal competition for our countries to reach 50% EBITDA profitability.

Bolivia EBITDA increased 39.8% to 71,000,000,000 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 at the cautionary state. Paraguay EBITDA grew 37.6% to $66,000,000 in Q4 twenty twenty four. 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 U. S. Dollar terms as savings from our efficiency program offset the decline in revenue 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 $618,000,000 that is up $61,000,000 from last year. Cash CapEx was €162,000,000 and that's down €52,000,000 from last year. Spectral SEK $26,000,000 down almost $100,000,000 compared to last year, when we acquired some new spectrum in Guatemala and Colombia. The remainder of spectrum is always a little bit bumpy [indiscernible] Changes in working capital and other was positive EUR 30,000,000 and stable versus last year. Taxes paid were 65,000,000 which is up €10,000,000 from last year due to the increase in pretax income over the past year. Finance charges were 101,000,000 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 80,000,000 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 were denominated in local currency. Honduras repatriation was €23,000,000 in the quarter, and just shy of €90,000,000 for the full year 2024.

That's up about €3,000,000 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 $236,000,000 This is up almost $300,000,000 compared to Q4 twenty twenty three. To conclude on this slide, the equity free cash flow was used to reduce our debt which declined $230,000,000 during Q4.

Our leverage therefore ended at 2.42 nicely within our stated targets. Now please turn to the next slide or 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 $357,000,000 lower CapEx for a similar amount and about €100,000,000 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, generated record equity free cash flow of €728,000,000 in 2024. This excludes €49,000,000 in Colombia tower monetizations and includes more than €150,000,000 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 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 Kirti Free Cash flow in 2025 if we can win those kits. With all this in mind, we're targeting 2025 equity free cash flow of around €750,000,000 and we expect to end the year with the 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 [indiscernible] 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 this [indiscernible] 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 150,000,000 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 and A session. So as a reminder, if you would like to ask a question, please send an email to Millicom dot 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, please.

Sorry, it took me a while to reconnect as a panelist. Thank you very much for the opportunity to ask ask questions. 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 could 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 these 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 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 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 percent 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, Marcello, and 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 it CapEx. As an example, we 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 $24,000,000 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 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 very nice growth in local currency, but it's going to be affected by the devaluation. Thanks, Marcelo. So next, we're going to go to Stephane Gofain at DNB.

Stephane, the line is yours.

Yes, hello. Can you hear me?

Can't see you, but we can hear you.

Yeah. Not sure why. Let's see if I can fix the camera. But that's okay. Go ahead. We remember you, Stefan. There we go. 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 2025 so that we don't have a back cash 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, CapEx booked has come down from €23,000,000 to $24,000,000 from $8.00 $9,000,000 to $677,000,000 For '25, we'll see that stabilizing around that number. We believe that's a that's a good wallet, let's say, of of to spend in our markets. In terms of cash CapEx, indeed, it went stronger down from $9.31 to $5.75. Think that the 23 number had really some payables of 22, so that the CapEx cash CapEx in 2023 was a bit artificially high. And the €575,000,000 is a little bit low if you ask me, and that is because there was a lot of Q4 delivered CapEx. So executed CapEx in Q4, which there will be paid in Q1. If you look, we didn't give guidance for €25,000,000 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 what you and so as our CapEx books, we'll start to stabilize our cash CapEx should stabilize around that 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 $80,000,000 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 in growth. 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 2021, comes into effect, we will adopt that for Bolivia. So that's the high inflation accounting, let's say, hyperinflation accounting. And that's from January we are still in discussions with the auditor on what the right number is, but I expect 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 U. S. Dollar because of the way we account for that. On equity free cash flow, I think we can indicate that for 2024 Bolivia did around $100,000,000 equity free cash flow. In that order of magnitude And so that's somewhat the risk to our equity free cash flow in '25. This being said, This year, we have as well, let's say $25,000,000 of commission costs.

Which will disappear because you book it already in your conversion costs. So the equity free cash flow impact is not 60% or 70% of your country equity free cash flow, but it's a little bit less because we already have cost 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 to ask a question, please send us an email to Millicom dot com. Our next question is going to come from Fannie at HSBC. Fannie, 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, the your expecting to react to the 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 2.5 x net leverage target is good or why did you prefer students over debt reduction at this point of time. We'll take the first one and you take the second. So to the first question, Fani, we believe that this is a very consumer driven market. What we do see is a demand, the demand for data is increasing. Every year and what we do is to is to monetize that increase. So the way we do it is increasing the allowances by end, at the same time, increasing the ticket. So it's a more for more equation. That 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 is going to be for sure in 2025, but also in the next following years.

Yes.

On the leverage and dividends, So we generate about $750,000,000 cash flow. So we decided or recommended to distribute two thirds of that to shareholders $500,000,000 which is $3 per share, which is in the 75 per quarter. And then keep onethree 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 leverage, it's we always said we would start or only consider starting shareholder this distribution once we reach the 2.5 or go below 2.5. 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, $170,000,000 plus 150,000,000 share buyback, dollars $320,000,000 goes out of the door.

With last twelve months EBITDA that may be a little bit weaker just on the cyclicality. And a very good Q1 last year with B2B projects. The leverage may go up a little bit again in Q1. Before then it comes down again Q2, Q3, Q4. So we'll end the year significantly below the 2.5%, but we might go up a little bit in Q1.

Perfect. Thank you. Thanks, Hany. So our next question is going to come from Gustavo Farrias at UBS. Everyone, thanks for the time and taking my questions. First, congrats on the results. So two questions from my end. The what are the main assumptions embedded on the guidance?

You comment on some downside risks for macro. [indiscernible] especially Bolivia, Colombia and Paraguay. So if you could comment on not only this 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 Wams acquisition how are you thinking around that team? Any color would be, really appreciated. Thank you.

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

Yes.

So assumptions of the guidance. So one, I think the $750,000,000 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 the this is a 16% equity free cash flow to equity yield at yesterday's price. So there, we're 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 meaning to 2025. So as those materialize, we wanted to embed that into our guidance. If you look at the underlying assumptions you know, would expect that revenues to continue to perform well on the P times Q underlying business. But then the top line in U. S. Dollar will decline more likely than not because of the accounting of Borivio. Right. So that's just an immediate hit to the P and 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.

So, Boutawa, Colombia, Colombia remains a very competitive market. Wom 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 in fixed broadband. So we are having some pressures there. But despite this, we are growing very nicely in mobile. In the year, we we grew 8%, mainly driven by postpaid. Adding home, we are recovering the negative trend.

And that will end and that recovery will end during the half or on the half of this year. So that is in Colombia.

Thanks for the answers and congrats on the results once again. Bye bye. Thank you, Gustavo.

Thank you, Gustavo. So next, we received a question via email and perhaps this is for you Bart, it's regarding our M and 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 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, you know, 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 like [indiscernible] later in this year at the second half of of the year. On Costa Rica, nothing really to announce. It follows a 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.

Thanks, Bart. So that was the last of our questions. 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 thanks everybody for joining the call and thanks, Michel. [indiscernible]