Company Overview - Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America, offering a wide range of digital services and products under the TIGO® and Tigo Business® brands [4] - The company provides mobile financial services through TIGO Money, local entertainment via TIGO Sports, pay TV with TIGO ONEtv, and business-to-business solutions including cloud and security [4] - As of March 31, 2025, Millicom employed approximately 14,000 people and served over 46 million customers with a fiber-cable footprint covering more than 14 million homes [4] Upcoming Financial Results - Millicom is set to announce its second quarter 2025 results on August 7, 2025, through a press release [1] - A video conference for the global financial community will be held on the same day at 14:00 pm (Stockholm) / 13:00 (London) / 08:00 (Miami) [1] Event Participation - Registration for the interactive video conference is required, and participants will receive a confirmation email with joining details [2] - Participants wishing to ask questions during the live event must notify the Investor Relations team via email after the event starts [2] - The conference can also be joined in listen-only mode by dialing specific international numbers and entering the Webinar ID [3]

Company Overview - Milicom (NASDAQ: TIGO) operates under the Tigo brand, providing fiber broadband, pay-TV, and mobile-money platforms in several rapidly growing Latin American economies [1] - The demand for fiber broadband is increasing as more individuals work, study, stream, and game from home, indicating a shift in consumer behavior towards digital services [1] Industry Insights - The Latin American telecommunications sector is experiencing significant growth, particularly in fiber broadband and mobile-money services, driven by changing consumer habits and the need for reliable internet connectivity [1] - The expansion of mobile-money platforms reflects a broader trend towards digital financial services in emerging markets, enhancing financial inclusion and accessibility [1]

Core Insights - The article discusses the author's extensive experience in value investing and highlights the importance of analyzing and valuing listed companies in the ASEAN and US regions [1]. Group 1 - The author has two decades of investing experience and has served as a Board member of a Malaysia listed company for several decades [1]. - The blog focuses on value investing through case studies, providing insights into the investment landscape [1]. - The author has published a value investing book titled "Do you really want to master value investing?" available on Amazon [1]. Group 2 - The article emphasizes that past performance is not indicative of future results, highlighting the inherent uncertainties in investment [2]. - It clarifies that no specific investment recommendations are provided, and opinions expressed may not reflect the views of the platform as a whole [2]. - The authors of the analyses include both professional and individual investors, some of whom may not be licensed or certified [2].

Core Insights - Millicom has signed a definitive agreement to acquire Telefónica's telecommunications operations in Ecuador for USD 380 million, aligning with Telefónica's strategy to reshape its Latin American portfolio and providing Millicom with a strategic opportunity to enhance its presence in South America [2][4] - The acquisition is expected to significantly enhance Millicom's regional footprint and commercial reach, supporting innovation, digital inclusion, and long-term growth in Ecuador's telecommunications sector [3][8] - Ecuador's stable, dollarized economy, characterized by favorable macroeconomic fundamentals, presents a compelling platform for Millicom to drive digital transformation and long-term value creation [4][9] Company Overview - Millicom is a leading provider of fixed and mobile telecommunications services in Latin America, operating under the TIGO® and Tigo Business® brands, offering a wide range of digital services [8][10] - As of March 31, 2025, Millicom employed approximately 14,000 people and provided services to over 46 million customers, with a fiber-cable footprint covering more than 14 million homes [10] Industry Context - Ecuador's telecommunications sector is experiencing consistent growth, with mobile services increasing by 1.4% and fixed broadband services by 3.6% [9] - The country has a population of approximately 18.5 million, with a median age of 32.4 years and 66% of the population living in urban areas, indicating a growing market for digital services [9] - Recent economic reforms supported by the IMF and World Bank are enhancing transparency and governance, particularly in infrastructure, energy, and telecommunications, contributing to a resilient telecom sector [9]

Core Points - Millicom International Cellular S.A. has announced the partial closing of its infrastructure deal with SBA Communications, generating approximately $600 million in proceeds from the sale of LATI International S.A. [1] - The total transaction is valued at approximately $975 million, with the remaining amount expected to close in Q3 2025 [1] - Following the Q2 results, Millicom's Board intends to approve a special interim cash dividend of $2.50 per share, representing around 45% of the net proceeds from the transaction [2] - The special dividend will be distributed in two equal installments of $1.25 per share, scheduled for October 15, 2025, and April 15, 2026 [2] - This special dividend is in addition to Millicom's previously announced annual dividend of $3.00 per share, reflecting the company's commitment to shareholder remuneration [3] - The transaction underscores Millicom's strategy to monetize infrastructure assets, enhance financial flexibility, and generate sustainable shareholder returns while maintaining a leverage target range of 2.0-2.5x [3] Company Overview - Millicom is a leading provider of fixed and mobile telecommunications services in Latin America, operating under the TIGO® and Tigo Business® brands [5] - The company offers a variety of digital services, including mobile financial services, local entertainment, pay TV, high-speed data, voice, and business-to-business solutions [5] - As of March 31, 2025, Millicom employed approximately 14,000 people and served over 46 million customers, with a fiber-cable footprint covering more than 14 million homes [5]

Core Viewpoint - Millicom International Cellular SA (TIGO) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Millicom International Cellular is projected at $3.10 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 109.5% [9]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 9%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through EPS estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Millicom International Cellular to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Market Influence - Changes in earnings estimates are strongly correlated with stock price movements, largely due to the actions of institutional investors who adjust their valuations based on these estimates [5][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy, which can drive the stock price higher [5].

Core Viewpoint - Millicom International Cellular S.A. has announced the acquisition of Telefónica Móviles del Uruguay S.A. for an enterprise value of USD 440 million, which is part of its strategy to strengthen its position in South America [2][5]. Strategic Rationale - The acquisition is expected to be EFCF accretive as early as 2026, driven by operational efficiencies and integration with Millicom's existing regional operations [3][8]. - The deal diversifies Millicom's cash flow sources and is supported by Uruguay's stable macroeconomic environment and investment-grade credit rating of BBB+ [4][10]. - Marcelo Benitez, CEO of Millicom, emphasized the company's commitment to investing in mobile infrastructure and improving service quality in Uruguay [5]. Market Outlook - Uruguay has the highest GDP per capita in Latin America at USD 22,400 (2024), with a stable currency and favorable regulatory environment for foreign investment [10]. - The telecommunications market in Uruguay is competitive, with three mobile network operators and a growing mobile market, which has been expanding at approximately 4% annually since 2022 [10]. Operational Synergies - The acquisition of Telefónica Uruguay, the second-largest mobile operator in the country, is expected to create significant synergies across network, operations, and commercial integration with Millicom's existing operations in Paraguay and Bolivia [9][10]. - The transaction is anticipated to enhance Millicom's digital ecosystem, enabling improved service bundling and innovation [9].

Core Viewpoint - Millicom International Cellular S.A. has approved the cancellation of 3,096,305 treasury shares, reducing its issued share capital to USD 253,500,000 represented by 169,000,000 shares [1][2]. Company Overview - Millicom is a leading provider of fixed and mobile telecommunications services in Latin America, operating under the TIGO® and Tigo Business® brands [3]. - The company offers a variety of digital services, including mobile financial services (TIGO Money), local entertainment (TIGO Sports), pay TV (TIGO ONEtv), high-speed data, voice services, and business-to-business solutions such as cloud and security [3]. - As of March 31, 2025, Millicom employed approximately 14,000 people and served over 46 million customers, with a fiber-cable footprint covering more than 14 million homes [3]. - Founded in 1990, Millicom is headquartered in Luxembourg, with principal executive offices located in Doral, Florida [3].

Core Points - Millicom International Cellular S.A. held its Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) on May 21, 2025, where all proposed resolutions were adopted by shareholders [2][5] Group 1: AGM Resolutions - The number of directors was set at eight, with re-elections for María Teresa Arnal, Bruce Churchill, Blanca Treviño de Vega, Jules Niel, Pierre-Emmanuel Durand, Maxime Lombardini, and Justine Dimovic, and Pierre Alain Allemand was elected as a new director [3] - Maxime Lombardini was elected as Chair of the Board of Directors [3] - The annual accounts and consolidated accounts for the year ended December 31, 2024, were approved [4] - A dividend distribution of USD 3 per share will be paid in four equal installments on or around July 15, 2025, October 15, 2025, January 15, 2026, and April 15, 2026 [4] - KPMG was re-elected as the external auditor of Millicom [5] Group 2: EGM Resolutions - The Share Repurchase Plan was approved [5] - Amendments to the articles of association were passed, including the authorization to cancel repurchased shares and the removal of certain governance requirements [7] - Shareholders will be allowed to participate in general meetings through electronic means and video conference [7] Group 3: Company Overview - Millicom is a leading provider of telecommunications services in Latin America, offering a range of digital services including mobile financial services, pay TV, and business solutions [9] - As of March 31, 2025, Millicom employed approximately 14,000 people and served over 46 million customers with a fiber-cable footprint covering over 14 million homes [9]

Revenue and Profitability - Revenue for Q1 2025 was $1,374 million, a decrease of 7.6% compared to $1,487 million in Q1 2024[7] - Operating profit increased to $423 million, up 30.6% from $324 million in the same period last year[7] - Net profit for the period was $219 million, significantly higher than $82 million in Q1 2024, representing a 167.1% increase[7] - Earnings per share (basic and diluted) rose to $1.14, compared to $0.54 and $0.53 in Q1 2024, respectively[7] - Total comprehensive income for the period was $212 million, up from $88 million in the previous year[9] - Service revenue for Q1 2025 reached $1,438 million, a 7.4% increase from $1,526 million in Q1 2024[44] - Adjusted EBITDA for Q1 2025 was $738 million, slightly down from $741 million in Q1 2024[48] - The Group's net profit for the period was $171 million, compared to $219 million in the same period last year[78] - Net profit attributable to owners of the company was $193 million, up 110.2% from $92 million in Q1 2024, including approximately $95 million in one-time gains[92] Cash Flow and Financial Position - Cash and cash equivalents decreased to $534 million from $699 million at the beginning of the year[14] - The company reported a cash flow from operating activities of $348 million, an increase from $240 million in Q1 2024[13] - Equity free cash flow (EFCF) was $135 million, a significant increase of $172 million compared to negative $37 million in Q1 2024[84][94] - The company targets 2025 EFCF of around $750 million and aims for year-end leverage below 2.5x[85] - Total assets as of March 31, 2025, were $13,662 million, slightly down from $13,737 million at the end of 2024[10] - Total liabilities increased to $10,309 million from $10,163 million at the end of 2024[11] - Total debt and financing as of March 31, 2025, was $5.772 billion, slightly down from $5.815 billion as of December 31, 2024[62] - Cash balance was $535 million, down $165 million from $699 million at the end of 2024[98] Shareholder Returns and Dividends - An interim dividend of $0.75 per share was approved, following a previous interim dividend of $1.00 per share paid on January 10, 2025[16] - The share repurchase program resulted in a cash outflow of $119 million during the quarter[14] - The company repurchased 4,216,397 shares for a total of $119 million during the three-month period ended March 31, 2025[16] - The company signed a binding agreement to sell Lati Paraguay to Atis Group and proposed an annual dividend of $3.00 per share[86] Capital Expenditures and Investments - Capital expenditures for Q1 2025 totaled $142 million, compared to $124 million in Q1 2024[46] - Millicom added property, plant, and equipment worth $113 million during the period, compared to $89 million in the same period last year[58] - Tigo Colombia's capital expenditures for the three-month period ended March 31, 2025, included $33 million in Guatemala and $40 million in Colombia[44] - Capital commitments as of March 31, 2025, amounted to $277 million, with $268 million due within one year[69] Market Performance and Customer Metrics - Customer net additions included 262,000 Postpaid Mobile and 62,000 Home FTTH/HFC[87] - The mobile business ended Q1 2025 with 41.6 million customers, reflecting a 2.3% year-on-year increase and net additions of 89,000 during the period[105] - Mobile ARPU declined by 5.2% year-on-year to $6.0, primarily due to weaker foreign exchange rates, despite positive ARPU growth in local currency terms in most countries[107] - Home ARPU also declined to $24.8 in Q1 2025 from $28.3 in Q1 2024, with home service revenue at $340 million[137] Strategic Initiatives and Acquisitions - Millicom entered into a definitive agreement to acquire Telefonica's 67.5% equity stake in Coltel for a purchase price of $400 million, subject to adjustments[29] - The company continues to focus on enhancing its service offerings and expanding its market presence through strategic initiatives and potential acquisitions[1] Financial Risks and Challenges - The adoption of amendments to IAS 21 resulted in a negative impact of $188 million on the financial statements for the three-month period ended March 31, 2025[25] - Tax risks exposure for the Group's subsidiaries was estimated at $296 million, with provisions of $46 million recorded[68] - The average foreign exchange rate for Bolivia showed a significant depreciation of 40.4% year-on-year, impacting revenue calculations[141]