Core Insights - Millicom reported strong operational and financial performance in Q3 2025, with significant growth in adjusted EBITDA and net profit [5][6] - The company achieved a record adjusted EBITDA of $695 million, reflecting a margin of 48.9%, and a notable increase in operating profit [4][6] - Millicom's revenue growth was driven by mobile subscriber additions and ARPU expansion, with a year-over-year increase of 3.5% in service revenue [6][8] Financial Highlights - Q3 2025 revenue was $1.42 billion, a slight decrease of 0.7% compared to Q3 2024, but organic growth was 3.0% [4] - Operating profit for Q3 2025 reached $390 million, up 30.1% from the previous year [4] - Net profit attributable to company owners was $195 million, a significant increase from $51 million in Q3 2024 [4] - Adjusted EBITDA for Q3 2025 was $695 million, an 18.7% increase year-over-year [4] - Equity free cash flow for the quarter was $243 million, reflecting a year-to-date increase of $98 million compared to the same period last year [4][6] Strategic Initiatives - The company is focused on executing its strategic plan, which includes advancing inorganic growth initiatives and improving operational efficiency [6] - Millicom aims to achieve an equity free cash flow target of around $750 million for 2025, with a year-end leverage below 2.5x [9] - The company declared an additional interim dividend of $2.5 per share in August, totaling approximately $420 million [8]

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Financial Data and Key Metrics Changes - The company reported a strong quarter with an industry-leading AFFO per share and a modest increase in the full-year outlook for new leasing activity and escalations [5][10] - The adjusted timing of the Millicom acquisition negatively impacted the current site leasing revenue outlook by $4 million and tower cash flow by $3 million [13][16] - The total debt at the end of the quarter was $12.8 billion, with a net debt of $12.3 billion, resulting in a leverage ratio of 6.2 times net debt to adjusted EBITDA [21][22] Business Line Data and Key Metrics Changes - The services business saw an 81% increase in revenue in Q3 compared to the prior year, primarily driven by construction-related projects focused on network expansion [5][10] - Domestic organic leasing revenue growth was 5.3% on a gross basis and 1.6% on a net basis, with churn at 3.7% [13][16] - International organic leasing revenue growth was 8.5% on a gross basis, calculated on a constant currency basis [15] Market Data and Key Metrics Changes - The company has a total of over 46,000 tower sites worldwide, representing a 40% increase since 2020 [8] - The backlog of leasing activity remains healthy and steady compared to the previous quarter [5] - The company acquired 447 sites for approximately $143 million during Q3, primarily related to the Millicom acquisition [15] Company Strategy and Development Direction - The company is focusing on being a leading tower company in each market and aligning more directly with leading wireless operators [8] - A new long-term agreement with Verizon supports the company's strategy for network modernization and operational efficiencies [9] - The company is changing its financial policy to reduce the target leverage range to six to seven turns of net debt to adjusted EBITDA, aiming for investment-grade debt [17][20] Management's Comments on Operating Environment and Future Outlook - The macro environment for mobile broadband growth is supportive, with increasing 5G use cases and mobile data traffic driving network investment [11][12] - Management expressed confidence in the future growth potential, particularly with the new agreement with Verizon and ongoing demand for services [5][10] - The company anticipates a significant reduction in international churn over the next couple of years as market consolidations stabilize [71] Other Important Information - The company has $1.3 billion remaining on its share repurchase authorization and has spent $325 million to repurchase 1.6 million shares so far in 2025 [10][21] - A quarterly dividend of $1.11 per share was declared, representing a 13% increase over the previous year's dividend [22][23] - Marc DeRussy, Vice President of Finance, announced his retirement at the end of the year, with Louis Friend set to take over [12][23] Q&A Session Summary Question: Impact of Verizon MLA on new leasing revenue - The Verizon agreement includes components for colocations and amendments, with a minimum commitment for growth over the next 10 years [27][28] Question: Current status of DISH payments - DISH is current on their rents, and the company expects them to honor their agreements [28][29] Question: Structure of the Verizon deal compared to AT&T - The Verizon deal is more linear and tied directly to activity, unlike the AT&T deal [30][31] Question: T-Mobile agreement status - The company has a good relationship with T-Mobile and expects to negotiate a new agreement as the current one expires [98] Question: Sustainability of the services business trend - The services business is expected to continue growing, with potential for broader relationships, particularly with Verizon [100][102] Question: Regulatory delays in acquisitions - Regulatory delays were primarily related to the Millicom acquisition, with challenges in markets where the company has significant market share [81][84]

Financial Data and Key Metrics Changes - The company reported a strong quarter with an industry-leading AFFO per share and a modest increase in the full-year outlook for new leasing activity and escalations [5][10] - Adjusted for the timing of the Millicom acquisition, the third-quarter results were in line with expectations, with domestic organic leasing revenue growth of 5.3% on a gross basis and 1.6% on a net basis [13][21] - Total debt at the end of the quarter was $12.8 billion, with net debt at $12.3 billion, resulting in a leverage ratio of 6.2 times net debt to adjusted EBITDA [21] Business Line Data and Key Metrics Changes - The services business saw a significant revenue increase of 81% in Q3 compared to the prior year, primarily driven by construction-related projects focused on network expansion [5] - The company acquired 447 sites for approximately $143 million during Q3, mainly related to the Millicom acquisition, with an additional 2,000 sites closed post-quarter [15] Market Data and Key Metrics Changes - International organic leasing revenue growth for Q3 was 8.5% on a gross basis, although total international churn remained elevated due to ongoing carrier consolidation [15][21] - The company noted that 80% of consolidated cash site leasing revenue and 85% of adjusted EBITDA was denominated in U.S. dollars [15] Company Strategy and Development Direction - The company is focusing on being a leading tower company in each market and aligning more closely with leading wireless operators [8] - A new long-term agreement with Verizon supports the company's growth strategy and enhances operational efficiencies [9][10] - The company is changing its financial policy to reduce the target leverage range to six to seven turns of net debt to adjusted EBITDA, aiming for investment-grade debt issuance [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment for mobile broadband growth, driven by the proliferation of 5G use cases and increasing mobile data traffic [10][11] - The company anticipates ongoing network investment to meet the demands of new technologies, including 6G [11] - Management acknowledged the challenges posed by regulatory delays in acquisitions but remains confident in future growth opportunities [81] Other Important Information - The company has a remaining $1.3 billion under its stock repurchase authorization, having repurchased $325 million worth of shares in 2025 [10][21] - A quarterly dividend of $1.11 per share was declared, representing a 13% increase over the previous year [22][23] Q&A Session Summary Question: Impact of Verizon MLA on new leasing revenue - Management indicated that the Verizon agreement includes components for colocations and amendments, with a minimum commitment for growth over the next 10 years [27][28] Question: Current status of DISH payments - Management confirmed that DISH is current on their rents and expects them to honor their agreements [28][29] Question: Structure of Verizon deal compared to AT&T - The Verizon deal is described as more linear compared to the AT&T agreement, with growth tied directly to activity [30][31] Question: T-Mobile agreement status - Management expressed confidence in negotiating a new agreement with T-Mobile, given the strong existing relationship [98] Question: Sustainability of services business growth - Management noted that while this year is expected to be the second-best for services, sustainability will depend on the needs of the three main customers [100][101] Question: Regulatory delays in acquisitions - Management acknowledged that regulatory challenges have impacted the timing of acquisitions, particularly in markets where they hold significant market share [81][84]

Financial Data and Key Metrics Changes - The company reported a strong quarter with an increase in Adjusted Funds From Operations (AFFO) per share, leading the industry [4] - Revenue from the services business increased by 81% year-over-year in Q3, primarily driven by construction-related projects [4] - The company ended the quarter with total debt of $12.8 billion and net debt of $12.3 billion, maintaining a leverage ratio of 6.2 times net debt to adjusted EBITDA [19] Business Line Data and Key Metrics Changes - Domestic organic leasing revenue growth was 5.3% on a gross basis and 1.6% on a net basis, with churn at 3.7% [11] - International organic leasing revenue growth was 8.5% on a constant currency basis [12] - The company acquired 447 sites for approximately $143 million during Q3, primarily related to the Millicom acquisition [12] Market Data and Key Metrics Changes - The company noted that 80% of consolidated cash site leasing revenue and 85% of adjusted EBITDA were denominated in U.S. dollars [11] - Total international churn remained elevated due to ongoing carrier consolidation, particularly in Brazil [51] Company Strategy and Development Direction - The company is focusing on being a leading tower company in each market and aligning with leading wireless operators [6] - A new long-term agreement with Verizon was established to support network modernization, enhancing operational efficiencies for both companies [7] - The company is changing its financial policy to reduce the target leverage range to six to seven times net debt to adjusted EBITDA, aiming for investment-grade debt [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment for mobile broadband growth, driven by increasing 5G use cases and federal support for network capacity [9] - The company anticipates continued strong leasing demand and is increasing its full-year outlook for new leasing activity and escalations [4] - Management acknowledged challenges from regulatory delays but remains confident in future growth opportunities [64] Other Important Information - The company completed the acquisition of Central American assets from Millicom and sold its Canadian tower business earlier than expected [5] - A cash dividend of $1.11 per share was declared, representing a 13% increase over the previous year [20] Q&A Session Summary Question: Impact of Verizon MLA on new leasing revenue - Management indicated that the Verizon agreement includes components for colocations and amendments, locking in growth for the next 10 years [24] Question: Current status of DISH payments - Management confirmed that DISH is current on their rents and expects them to honor their agreements [25] Question: Structure of the Verizon deal compared to AT&T - The Verizon deal is more linear and tied directly to activity, differing from the AT&T agreement [34] Question: International churn outlook - Management expects a significant reduction in international churn over the next couple of years as consolidation stabilizes [51] Question: Future leasing opportunities and regulatory challenges - Management is optimistic about mid-single-digit growth in leasing opportunities, despite regulatory challenges in some markets [62]

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 - 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]

Financial Performance - Group revenue decreased by 6.8% ($199 million) year-on-year to $2,746 million in H1 2025, primarily due to weaker currencies in Bolivia, Colombia, and Paraguay[11]. - Net profit attributable to the owners of the Company was $869 million or $5.17 per share for H1 2025, compared to a net profit of $170 million or $0.99 per share in H1 2024[22]. - Revenue for the six months ended June 30, 2025, was $2,746 million, a decrease of 6.7% compared to $2,945 million for the same period in 2024[43]. - Operating profit increased to $780 million for the six months ended June 30, 2025, compared to $669 million in the same period of 2024, reflecting a growth of 16.6%[43]. - Net profit for the period reached $891 million, significantly up from $160 million in the prior year, marking a year-over-year increase of 455.6%[44]. - Earnings per share for the six months ended June 30, 2025, were $5.17 (basic) and $5.15 (diluted), compared to $0.99 for both in the same period of 2024[43]. - The total revenue for the six months ended June 30, 2025, was $3,067 million, down from $3,262 million in the same period of 2024, representing a decrease of approximately 6%[82]. - Q2 2025 revenue was $1.372 billion, a decrease of 5.9% year-over-year, primarily due to weaker foreign exchange rates[135]. - The company reported a net cash provided by operating activities of $794 million for the six months ended June 30, 2025, compared to $716 million in the same period of 2024[47]. Operating Expenses and Costs - Operating expenses decreased by 11.3% ($106 million) year-on-year to $838 million, attributed to weaker currencies and the completion of the cost reduction project "Everest"[14]. - Equipment, programming, and other direct costs decreased by 14.1% ($104 million) year-on-year to $631 million, mainly due to weaker currencies and lower costs related to government projects in Panama[12]. - Financial income (expenses), net decreased by $14 million year-on-year to $329 million, mainly due to lower debt levels and bank charges in Bolivia[18]. - Tax expense increased to $173 million in H1 2025 from $148 million in H1 2024, driven by higher profitability and the sale of infrastructure[21]. Cash Flow and Dividends - A special interim cash dividend of $2.50 per share was approved, to be distributed in two equal installments of $1.25 per share on October 15, 2025, and April 15, 2026[30]. - Cash and cash equivalents increased to $1,283 million as of June 30, 2025, compared to $699 million at the end of December 2024[45]. - Cash and cash equivalents at the end of the period increased to $1,283 million as of June 30, 2025, compared to $792 million in 2024, representing a 62% increase[48]. - Net cash used in financing activities was $(415) million for the six-month period ended June 30, 2025, compared to $(354) million in 2024, indicating a 17% increase in cash outflow[48]. - The cash flow from financing activities included $295 million in dividends paid to owners of the company, marking a significant cash outflow[48]. Acquisitions and Sales - Millicom entered into a definitive agreement to acquire Telefonica's controlling 67.5% equity stake in Coltel for $400 million, subject to regulatory approvals[60]. - The company announced a definitive agreement to acquire 100% of Telefónica Móviles del Uruguay S.A. for an enterprise value of $440 million, pending regulatory approvals[62]. - Millicom signed a definitive agreement to acquire Telefónica's telecommunications operations in Ecuador for $380 million, also subject to regulatory approvals[63]. - The company completed the sale of Lati Paraguay to Atis Group on June 3, 2025, as part of its strategy to optimize its asset portfolio[67]. - Completed closings have generated approximately $546 million in net proceeds and a receivable of $144 million, with a gain on sale of $604 million recognized from transactions with SBA and Atis[68]. Assets and Liabilities - Total assets as of June 30, 2025, amounted to $15,000 million, an increase from $13,737 million at the end of December 2024[45]. - Total equity attributable to owners of the Company decreased to $3,537 million from $3,628 million at the end of December 2024[46]. - Non-current liabilities rose to $8,315 million as of June 30, 2025, compared to $7,050 million at the end of December 2024[46]. - The total debt and financing as of June 30, 2025, amounted to USD 5,912 million, an increase from USD 5,815 million as of December 31, 2024[112]. - Total liabilities amounted to $11.502 billion, with total equity at $3.498 billion as of the end of Q2 2025[140]. Market and Economic Conditions - The Colombian peso and Paraguayan guarani depreciated by around 6% year-on-year, impacting the company's financial results[24]. - The company continues to prioritize price increases in markets affected by currency depreciation and inflation, particularly in Bolivia where inflation reached 24.0%[157]. - Millicom is navigating risks related to global economic conditions, competitive pressures, and regulatory changes that may impact future performance[172]. Customer and Service Metrics - Mobile business ended Q2 2025 with 41.8 million customers, a 2.8% year-on-year increase, with postpaid subscribers growing by 14.4%[158][160]. - In Colombia, service revenue grew 4.9% year-on-year to $339 million, driven by mobile and B2B growth[164]. - Mobile ARPU decreased to $6.0 in Q2 2025 from $6.4 in Q2 2024, while Home ARPU fell to $24.0 from $28.1 in the same period[189][191].