Millicom International Cellular Sa Stock Earnings Reports

Millicom (Tigo) reported a strong start to 2026 driven by both organic growth and recent acquisitions (Coltel in Colombia and Telefonica operations in Chile, Ecuador and Uruguay). Key operational highlights include 5.6 million postpaid net additions (250k organic), 1.5 million home net adds (46k organic), accelerating mobile service revenue (organic mobile service revenue +7% YoY) and continued improvement in home and B2B businesses. Adjusted EBITDA was EUR 857 million (43.2% margin) despite ~EUR 70m of restructuring charges; organic adjusted EBITDA grew ~9.6%. Equity free cash flow (EFCF) set a Q1 record at EUR 225 million. Management emphasized applying its “Millicom playbook” to integrate acquired assets, targeting >$100m of first-year cost savings in Colombia, network expansion (4x 5G coverage in Colombia in 2026 and ~1,000 new sites over 18–24 months), and higher fixed-mobile convergence (c.36% of customers). Early integration results in Chile and Colombia are encouraging: Chile generated positive EFCF in the first two months of ownership and Colombia’s combined business is showing ~8% organic top-line growth and ARPU improvements. Net debt rose after acquisitions (net debt €7.6bn, leverage 2.76x) but management reiterates full-year targets: EFCF of at least $900m and leverage around 2.5x by year-end, with a possible update at Q2 once integrations progress. Capital allocation remains focused on deleveraging to the ~2.5x target, with flexibility for shareholder returns (dividend policy and optional buybacks) once leverage permits. Management remains open to disciplined M&A but prioritizes execution and integration of recent deals.