Core Insights - Millicom has successfully acquired Telefónica's telecommunications operations in Ecuador for USD 380 million, enhancing its presence in South America [1][2] - This acquisition is part of Millicom's strategy to deepen its footprint in high-potential markets, following its recent acquisition in Uruguay [2][3] - The CEO of Millicom emphasized the company's long-term confidence in Latin America and its commitment to digital connectivity and sustainable growth [3] Company Overview - Millicom operates in eleven countries and is recognized as a leading telecommunications group in Latin America, focusing on digital inclusion and innovation [3] - The company provides a variety of digital services, including mobile financial services, local entertainment, pay TV, and business solutions, serving over 46 million customers [8] Ecuador Market Profile - Ecuador has a population of approximately 18.1 million, with a youthful demographic and a significant urban population, creating a connected consumer base [7] - The economy is dollarized with solid macroeconomic fundamentals, projected GDP growth of 1.7% in 2025 and 2.0% in 2026, and low inflation around 1.3% [7] - The telecommunications market in Ecuador is competitive, with steady demand for mobile and broadband services, showing growth rates of approximately +1.4% in mobile and +3.6% in fixed broadband [7]

Core Points - Millicom (NASDAQ: TIGO) is set to announce its third quarter 2025 results on November 6, 2025, through a press release [1] - A video conference for the global financial community will be held on the same day at 08:00 (New York) / 13:00 (London) [1] - Registration for the video conference is required, and participants can join in listen-only mode or ask questions via email [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 [4] - The company offers a variety of digital services, including mobile financial services (TIGO Money), local entertainment (TIGO Sports), pay TV (TIGO ONEtv), and business solutions such as cloud and security [4] - As of June 30, 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]

Core Insights - Millicom has completed the acquisition of 100% of Telefónica Móviles del Uruguay S.A. for an enterprise value of USD 440 million, marking its entry into the Uruguayan market and strengthening its presence in South America [1][2] Company Strategy - The acquisition is a significant step in Millicom's growth strategy, aimed at establishing a presence in Uruguay, a country recognized for its stability and digital transformation vision [2] - Millicom plans to invest in infrastructure, foster innovation, and create new opportunities to drive long-term digital growth in Uruguay [2] Financial Impact - The transaction is expected to generate synergies across networks, operations, and commercial services, diversifying Millicom's sources of value creation in a market with solid macroeconomic fundamentals [2] - Integration of the acquired company is projected to positively contribute to free cash flow for shareholders starting in 2026 [2] Market Position - By adding Uruguay to its footprint, Millicom enhances its coverage across South America, solidifying its position as one of the region's principal telecom operators [3] - The move aligns with Millicom's mission to accelerate digital inclusion and contribute to sustainable development across Latin America [3] Company Overview - Millicom is a leading provider of fixed and mobile telecommunications services in Latin America, offering a range of digital services and products [4] - As of June 30, 2025, Millicom employed approximately 14,000 people and served over 46 million customers, with a fiber-cable footprint covering over 14 million homes [4]

Core Insights - The Bonhoeffer Fund focused on selling slower-growth firms and acquiring durable, faster-growing companies in depressed sectors, aligning with long-term growth themes such as consolidation and financial compounders [7][11] - The fund achieved a net gain of 8.7% in Q2 2025, underperforming compared to the MSCI World ex-US and S&P 500, which returned 12.1% and 10.8% respectively [9][10] - The portfolio's projected earnings/free cash flow growth is approximately 16%, with a weighted average earnings/free cash flow yield of 12.5% [10][11] Investment Themes - **Distribution (49% of Portfolio)**: The fund holds high-velocity distributors in various markets, focusing on car dealerships and building product distributors, which have shown a quarterly performance of 6% [14] - **Real Estate/Construction/Finance (58% of Portfolio)**: Investments in construction firms are expected to benefit from government infrastructure programs and affordable housing financing, with banks showing sustainable ROEs and EPS growth rates above 15% [18][19] - **Public Leverage Buyouts (31% of Portfolio)**: The strategy involves growth through acquisitions, with firms like Builders First Source (BFS) utilizing local economies of scale to generate high returns [22][24] - **Compound Mispricings (15% of Portfolio)**: Investments in Korean preferred stocks and Asian real estate are characterized by governance improvements and liquidity, with Vistry facing challenges but still focusing on affordable housing [31][32] - **Telecom/Transaction Processing (3% of Portfolio)**: Companies like Millicom are positioned to benefit from reduced competition and favorable market conditions, with a focus on cost-cutting and dividend yields [33][35] - **Consumer Products (3% of Portfolio)**: Defensive consumer product firms are expected to perform well, with Academy Sports facing challenges but retaining potential for recovery [36][37] Financial Metrics - The Bonhoeffer Fund's portfolio has an average EV/EBITDA of 3.2 and a growth rate of 16% [9][10] - Arrow Electronics is projected to have a 27% EPS growth rate through 2029, with a future share price estimated at $39 [17] - Builders First Source (BFS) is expected to see a recovery in share price with a projected value of around $505 per share based on a 32% IRR [30]

Industry Overview - The Zacks Wireless Non-US industry is facing challenges such as high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions, and geopolitical conflicts, but healthy demand trends in the digital age are expected to benefit the industry long-term [1][4]. Key Players - KDDI Corporation, Vodafone Group, and Millicom International Cellular are positioned to benefit from the rising demand for scalable infrastructure due to the proliferation of IoT and accelerated 5G deployment [2]. Industry Description - The industry includes mobile telecommunications and broadband service providers that offer voice services, value-added services like IoT, content streaming, and mobile payment solutions, as well as IT solutions and cable/satellite pay television subscriptions [3]. Current Challenges - Profit margins are being affected by high raw material prices, prolonged geopolitical tensions, and proposed tariffs, leading to a demand-supply imbalance and increased operational costs [4]. - The rise of over-the-top service providers is intensifying price-sensitive competition, which may limit customer retention and impact financial results [4]. Network Developments - There is a significant demand for network convergence, requiring traditional carriers to invest heavily in advanced networking architecture to meet the growing demand for coverage and quality [5]. - Continuous network upgrades are necessary to maintain performance standards, as telecom services are considered necessities and show weak correlation to macroeconomic factors [5]. Evolving Business Models - Increased spending on infrastructure upgrades is compromising short-term margins, leading companies to diversify from legacy services to business and enterprise opportunities [6]. - Companies are investing in software-defined networks and new Cloud Core architecture to enhance their service offerings [6]. Industry Performance - The Zacks Wireless Non-US industry currently holds a Zacks Industry Rank of 166, indicating it is in the bottom 33% of over 250 Zacks industries, suggesting bearish near-term prospects [7][8]. - Over the past year, the industry has gained 20.2%, outperforming the S&P 500's 16.1% but lagging behind the broader Zacks Computer and Technology sector's 21.9% [9]. Valuation Metrics - The industry has a trailing 12-month Price/Book ratio of 1.22X, significantly lower than the S&P 500's 8.37X and the sector's 9.92X [11]. Notable Companies - **KDDI Corporation**: Focuses on 5G communications and aims for growth in finance, energy, and healthcare, with a stock gain of 12.6% over the past year [14]. - **Vodafone Group**: Engages in telecommunications across Europe and has a long-term earnings growth expectation of 20.1%, with a stock gain of 20.4% [15]. - **Millicom International Cellular**: Provides a range of digital services in Latin America and has seen a stock gain of 74.7% in the past year [19].

Core Insights - Millicom (Tigo) has reached a strategic agreement with Empresas Públicas de Medellín (EPM) to facilitate its acquisition strategy in Colombia and advance the integration of Tigo-UNE and Colombia Telecomunicaciones (ColTel) [1][3] Group 1: Agreement Details - The agreement is a significant milestone for Millicom's strategy in Colombia, emphasizing the company's commitment to long-term investment in the country's digital ecosystem and infrastructure [3] - Millicom plans to present an offer in EPM's Law 226 sale process, with a minimum price set at COP$418,741 per share of Tigo-UNE, amounting to approximately USD $520 million [5] - EPM has secured an extension of its existing exit rights if the Law 226 sale process fails due to external factors, and has agreed to consent to the future merger between Tigo-UNE and ColTel under certain conditions [5] Group 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 [4] - The company offers a variety of digital services, including mobile financial services, local entertainment, pay TV, high-speed data, and business-to-business solutions [4] - As of June 30, 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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 2025. _____________________ Commission File Number: 001-38763 MILLICOM INTERNATIONAL CELLULAR S.A. (Exact Name of Registrant as Specified in Its Charter) 8400 NW 36 Street, Suite 530 Doral, FL 33166 United States (Address of principal executive of ice) Indicate by check mark whether the registrant f ...

Financial Data and Key Metrics Changes - The company is on track to deliver $750 million in equity free cash flow for the year [3] - Adjusted EBITDA reached a new high of 46.7%, up 3.2 points year over year [5] - Equity free cash flow for the quarter was $218 million, bringing the H1 total to $395 million, an increase of nearly $126 million compared to $269 million in H1 of last year [21][32] - Service revenue for the quarter totaled €1.28 billion, representing a year-over-year decline of 5.9% due to foreign exchange impacts [17] - Organic service revenue growth accelerated to 2.4% when excluding FX impact [17] Business Line Data and Key Metrics Changes - The mobile business grew by mid-single digits, accelerating from 3.1% in the previous quarter [7] - Postpaid customer base grew by 14%, reaching nearly 9 million customers [7] - Home business added 41,000 customers, a growth of nearly 6% year on year [8] - B2B service revenue grew nearly 4% organically, driven by a 16% CAGR in digital services over the past two years [11] Market Data and Key Metrics Changes - In Colombia, service revenue accelerated to nearly 5% year over year, up from 3.6% in the previous quarter [12] - Guatemala's service revenue grew by 1.9% year on year, with a postpaid customer base expanding by 20% [13] - Panama's service revenue was nearly flat year on year at €170 million [24] - Bolivia's service revenue in local currency increased by 7%, but was insufficient to cover devaluation [25] Company Strategy and Development Direction - The company executed three major acquisitions, including Telefonica's operations in Uruguay and Ecuador, and a partial closing of an infrastructure transaction [4] - Focus on migrating prepaid customers to postpaid to increase ARPU and reduce churn [46] - Emphasis on convergence, with 25% of new sales being convergent, which reduces churn and increases customer lifetime value [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery efforts, expecting positive growth in service revenue in 2025 [10] - The company is focused on cost optimization and operational efficiency, with a commitment to maintaining leverage below 2.5x [6][22] - Management highlighted the importance of digitalization and AI in improving operational processes and customer interactions [54] Other Important Information - The Board approved an interim dividend of $2.5 per share, reflecting a commitment to return value to shareholders [33] - The company is actively managing its foreign exchange exposure to sustain EBITDA margins and cash flow generation [22] Q&A Session Summary Question: Improvement in Guatemala and competitive environment - Management noted a significant improvement in Guatemala driven by prepaid to postpaid migrations and plans to build new sites [40] Question: Outlook for CapEx - CapEx is expected to be between $650 million to $700 million, representing 11% to 12% of revenues [42] Question: Drivers for accelerating service revenue growth - Increased demand for data, migration from prepaid to postpaid, and price increases are key drivers for revenue growth [46] Question: Cost control and restructuring costs - No significant restructuring costs are expected in H2, with ongoing cost control embedded in the company's operations [52] Question: Leverage target and refinancing plans - The leverage target remains below 2.5x, including dividends and M&A activities, with a focus on local currency debt [60][66] Question: Competitive landscape in Colombia - Management discussed aggressive pricing strategies from competitors but emphasized the importance of network quality and distribution [76] Question: Future acquisitions - The company is focused on completing announced acquisitions before considering new opportunities [85]

Financial Data and Key Metrics Changes - The company is on track to deliver $750 million in equity free cash flow for the year [3] - Adjusted EBITDA reached a new high of 46.7%, up 3.2 points year over year [5] - Equity free cash flow for the quarter was $218 million, bringing the H1 total to $395 million, an increase of nearly $126 million compared to $269 million in H1 of last year [19][29] - Service revenue for the quarter totaled €1.28 billion, representing a year-over-year decline of 5.9% due to foreign exchange impacts [16] - Organic service revenue growth accelerated to 2.4% when excluding FX impact [16] Business Line Data and Key Metrics Changes - The mobile business grew by mid-single digits, accelerating from 3.1% in the previous quarter [7] - Postpaid customer base grew by 14%, reaching nearly 9 million customers [7] - Home business added 41,000 customers, a growth of nearly 6% year on year [8] - B2B service revenue grew nearly 4% organically, driven by a 16% CAGR in digital services over the past two years [10] Market Data and Key Metrics Changes - In Colombia, service revenue accelerated to nearly 5% year over year, up from 3.6% in the previous quarter [10] - Guatemala's service revenue grew by 1.9% year on year, with a postpaid customer base expanding by 20% [12] - Panama's service revenue was nearly flat year on year at €170 million [22] - Bolivia's service revenue in local currency increased by 7%, but was insufficient to cover devaluation [23] Company Strategy and Development Direction - The company executed three major acquisitions, including Telefonica's Uruguay operations and a definitive agreement for Telefonica Ecuador [4] - Focus on migrating prepaid customers to postpaid to increase ARPU and reduce churn [41] - Emphasis on convergence, with 25% of new sales being convergent, which reduces churn and increases customer lifetime value [44] - Plans to maintain leverage below 2.5x while pursuing strategic M&A opportunities [30][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery efforts, expecting positive growth in service revenue in 2025 [9] - The competitive environment in Guatemala is challenging, but the company is focused on ARPU development [35] - The demand for data is increasing, driving the need for migration from prepaid to postpaid [40] - Management expects to maintain strong cash flow generation and EBITDA growth despite ongoing challenges [61] Other Important Information - The company declared a special interim dividend of $2.5 per share, reflecting confidence in capital discipline [4] - Adjusted EBITDA growth was solid at 9.3% on an organic basis in the quarter [18] - The company is actively exploring digitalization initiatives to improve operational efficiency [49] Q&A Session Summary Question: Improvement in Guatemala and competitive environment - Management noted a significant migration from prepaid to postpaid, with postpaid penetration still low at 12% [34] - The company is building new sites to capture new communities and expects sustainable growth [35] Question: CapEx outlook - Expected CapEx for the year is between $650 million to $700 million, representing 11% to 12% of revenues [37][38] Question: Drivers for accelerating service revenue growth - Increased demand for data and migration from prepaid to postpaid are key drivers [40] - Price increases and improved customer quality are also contributing to revenue growth [42] Question: Cost control and restructuring costs - No significant restructuring costs are expected in H2, with ongoing cost control embedded in operations [48] Question: Leverage target and refinancing plans - The leverage target remains below 2.5x, including dividends and M&A [56] - The company prioritizes raising local currency debt and repaying US dollar debt [60] Question: Competitive landscape in Colombia - Management noted aggressive pricing from competitors but emphasized the importance of network quality and distribution [70] - Regulatory processes for acquisitions are ongoing, with expected approvals in Q3 and Q4 [73]

Core Insights - Millicom International Cellular SA (TIGO) reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.54 per share, but showing an increase from $0.46 per share a year ago, resulting in an earnings surprise of -5.56% [1] - The company posted revenues of $1.37 billion for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.81% and a decrease from $1.46 billion year-over-year [2] - Millicom's stock has increased approximately 59.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.61 for the coming quarter and $2.68 for the current fiscal year, alongside revenues of $1.38 billion and $5.52 billion respectively [7] - The estimate revisions trend for Millicom was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Wireless Non-US industry, to which Millicom belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]