Millicom (Tigo) Q2 2025 Earnings Release

Core Insights - Millicom reported a decline in revenue for Q2 2025, with total revenue of $1.372 billion, down 5.9% year-over-year, but showed organic growth of 1.9% [4] - The company achieved a significant increase in net profit, reaching $676 million compared to $78 million in Q2 2024, marking a notable improvement [4][6] - Millicom's adjusted EBITDA margin reached a record 46.7%, with nearly half of its operations exceeding a 50% margin [5] Financial Performance - Total revenue for H1 2025 was $2.746 billion, a decrease of 6.8% from H1 2024, with organic growth of 0.2% [4] - Operating profit for Q2 2025 was $357 million, up 3.4% from Q2 2024, while H1 operating profit increased by 16.7% to $780 million [4] - Adjusted EBITDA for Q2 2025 was $641 million, reflecting a 1.1% increase year-over-year, with H1 adjusted EBITDA at $1.277 billion, up 0.9% [4] Capital Expenditures and Cash Flow - Capital expenditures (Capex) for Q2 2025 were $155 million, a 15.1% increase from Q2 2024, with H1 Capex totaling $286 million, up 15.8% [4] - Operating cash flow for Q2 2025 was $487 million, down 2.6% from the previous year, while H1 operating cash flow was $990 million, a decrease of 2.8% [4] - Equity free cash flow (EFCF) for Q2 2025 was $218 million, down 18.8% year-over-year, but H1 EFCF increased by 46.7% to $395 million [4] Strategic Developments - The company signed an agreement to acquire Telefónica's operations in Uruguay and Ecuador, enhancing its market presence [5] - Millicom completed a partial closing of its infrastructure transaction with SBA, generating over $500 million in proceeds, which supported a special interim dividend of $2.50 per share [5][8] - The company aims for a 2025 EFCF target of around $750 million and plans to maintain year-end leverage below 2.5x [6] Subsequent Events - A special interim dividend of $2.50 per share was approved, to be distributed in two installments of $1.25 per share on October 15, 2025, and April 15, 2026 [8] - Millicom hosted a video conference for the global financial community to discuss the Q2 2025 results [8]