UNE-EPM (Tigo) Posts Net Loss for 1Q 2024
Medellin-based UNE-EPM – the internet/cell-phone/cable-TV joint venture with Spain-based Millicom (Tigo) – announced May 15 a first quarter (1Q) 2024 net loss of COP$95 billion (US$24.8 million).
That loss was however a 35% year-on-year reduction from the COP$148 billion (US$38.6 million) net loss in 1Q 2023, according to the company.
Gross revenues for 1Q 2024 also dipped year-on-year, to COP$1.34 trillion (US$349 million), from COP$1.36 trillion (US$355 million) in 1Q 2023.
The year-on-year decline in 1Q 2024 revenues was “mainly caused by the reduction in commercial and sales activity in the home business unit (television services, internet and fixed telephony) generated mainly by the slowdown of the market and the industry in general that has been impacted by macroeconomic variables such as inflation, exchange rates and market competition with lower offers and rates,” according to the company.
“However, this lower commercial activity in income was offset by a reduction in the company’s operating costs and expenses, which generated a positive result in EBITDA (earnings before interest, depreciation and amortization) and superior in this indicator compared to the same quarter of 2023.”
Among 1Q 2024 highlights, UNE-EPM noted a deal to sell up-to-1,132 of its cell-phone towers to Towernex Colombia S.A.S.
“The first closing of this transaction occurred on March 14, delivering 759 towers or a total value of COP$202 billion [US$52.7 million]. Likewise, liabilities linked to this transaction were recognized for $185 billion [US$48 million]. The remaining towers are expected to be delivered in August [2024],” the company added.
