Millicom(US:TIGO)2025-11-06 21:30Financial Performance - Revenue for the nine months ended September 30, 2025, was $4,166 million, a decrease of 4.8% compared to $4,376 million in the same period of 2024[5] - Operating profit increased to $1,170 million for the nine months ended September 30, 2025, compared to $968 million in the same period of 2024, representing a growth of 20.9%[5] - Net profit for the period reached $1,096 million, significantly up from $217 million in the prior year, marking a year-over-year increase of 404.6%[6] - Earnings per share (basic) for the nine months ended September 30, 2025, was $6.35, compared to $1.29 in the same period of 2024, reflecting a growth of 392.3%[5] - Total revenue for the three months ended September 30, 2025, was $1,580 million, a slight decrease from $1,588 million in the same period of 2024[50] - The net profit attributable to equity holders for the nine months ended September 30, 2025, was $1,064 million, significantly up from $221 million in the same period of 2024[56] - Basic earnings per share for the three months ended September 30, 2025, was $1.17, compared to $0.30 for the same period in 2024[56] - Q3 2025 revenue was $1.42 billion, a decrease of 0.7% year-over-year, while organic growth was 3.0%[96] - Operating profit increased by 30.1% to $390 million, and Adjusted EBITDA reached a record $695 million, up 18.7%[96] - Net profit attributable to company owners was $195 million, including approximately $138 million from infrastructure transactions[97] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $15,590 million, an increase from $13,737 million as of December 31, 2024, representing a growth of 13.5%[9] - Non-current liabilities rose to $8,916 million as of September 30, 2025, from $7,050 million as of December 31, 2024, reflecting an increase of 26.5%[9] - The total debt and financing increased to $6,260 million as of September 30, 2025, up from $5,815 million at the end of 2024[77] - The Group's total liabilities reached $784 million as of September 30, 2025, significantly higher than $205 million at the end of 2024[63] Cash Flow and Dividends - The company generated net cash provided by operating activities of $1,257 million for the nine months ended September 30, 2025, compared to $1,149 million in the same period of 2024, a growth of 9.4%[11] - An interim dividend of $1.00 per share was approved, amounting to approximately $172 million, paid on January 10, 2025[53] - The company plans to resume regular cash dividends, proposing a total dividend of $3.00 per share payable in four equal installments starting July 15, 2025[54] - Equity free cash flow for Q3 2025 was $243 million, reflecting an increase of $98 million year-to-date compared to the same period last year[99] - Millicom targets 2025 equity free cash flow of around $750 million and year-end leverage below 2.5x[100] Acquisitions and Investments - The company has entered into a definitive agreement to acquire Telefonica's controlling 67.5% equity stake in Coltel for a purchase price of $400 million, subject to adjustments[23] - Millicom committed to present an offer in EPM's Law 226 sale process, with a total consideration of approximately $520 million for Tigo-UNE[24] - The acquisition of Telefónica Móviles del Uruguay S.A. was announced for an enterprise value of $440 million[27] - The acquisition of Telefónica's telecommunications operations in Ecuador is valued at $380 million, pending regulatory approvals[28] - Millicom completed the acquisition of 100% of Telefonica Moviles del Uruguay S.A. for an enterprise value of $440 million[89] - Millicom completed the acquisition of 100% of Telefónica's telecommunications operations in Ecuador for an enterprise value of $380 million[90] Shareholder Actions - Millicom repurchased 4,216,397 shares for a total amount of $119 million during the nine-month period ended September 30, 2025[14] - The company reported retained profits of $2,835 million as of September 30, 2025, with $630 million not distributable to equity holders[13] Operational Highlights - The company completed the sale of Lati Operations, contributing $742 million to profit before taxes for the nine months ended September 30, 2025[5] - Millicom operates in nine countries across Latin America, focusing on enhancing service revenue and Adjusted EBITDA as key performance indicators[42] - The joint venture in Honduras repatriated cash of $69 million during the nine-month period ended September 30, 2025[58] - The equity accounted net assets of the joint venture in Honduras totaled $337 million as of September 30, 2025, down from $373 million at the end of 2024[58] - The company had $148 million payable to the Honduras joint venture as of September 30, 2025, primarily consisting of advances and cash pool balances[59] - Millicom's share of the results for the Honduras joint venture for the period was $40 million, with a closing balance of $527 million as of September 30, 2025[60] Capital Expenditures - Capital expenditures for the nine-month period ended September 30, 2025, totaled $496 million, an increase from $447 million in the same period of 2024[48] - Capital expenditures for the three months ended September 30, 2025, totaled $179 million, compared to $188 million in the same period of 2024[50] - During the nine-month period ended September 30, 2025, Millicom added property, plant, and equipment for $407 million, compared to $355 million in the same period of 2024[64] Regulatory and Legal Matters - The merger petition between Tigo Costa Rica and Liberty Latin America was rejected by the telecommunications regulator, and Millicom is appealing this decision[34] - An adjustment of $188 million was recorded due to the adoption of amendments to IAS 21, impacting the financial statements for the nine-month period[22] Other Financial Metrics - Adjusted EBITDA for the nine-month period ended September 30, 2025, was $2,275 million, compared to $2,271 million for the same period in 2024[45] - Adjusted EBITDA for the reportable segments for the nine months ended September 30, 2025, was $2,275 million, compared to $2,238 million for the same period in 2024[51] - The Group's interest and other financial expenses totaled $508 million for the nine months ended September 30, 2025, compared to $550 million in the same period of 2024[79] - The Group's share of tax risks exposure is estimated at $307 million, with provisions of $59 million recorded[83] Asset Management - Cash and cash equivalents increased to $1,663 million as of September 30, 2025, compared to $699 million at the beginning of the year, indicating a rise of 138.9%[12] - As of September 30, 2025, total assets held for sale decreased to $31 million from $627 million as of December 31, 2024, primarily due to the sale of mobile network sharing agreements and towers[35] - New Right-of-Use assets and Lease Liabilities recognized by Millicom's subsidiaries amount to approximately $740 million following the transactions with SBA and Atis[33] - Tigo Colombia derecognized right-of-use assets and liabilities of $76 million and $104 million, respectively, resulting in a gain of $28 million recognized in the consolidated statement of profit or loss[39] - Spectrum license assets and liabilities derecognized by Tigo Colombia amounted to $574 million and $680 million, respectively, with a net impact of $50 million recognized as a reduction of spectrum intangible assets[40]