Millicom (Tigo) Q2 2025 Earnings Release

Rhea-AI Summary

Millicom (NASDAQ:TIGO) reported strong Q2 2025 results with revenue of $1.37 billion and record Adjusted EBITDA of $641 million. The company achieved a significant net profit of $676 million, largely driven by approximately $590 million from infrastructure transactions.

Key highlights include $218 million in equity free cash flow and leverage reduction to 2.18x, supported by $542 million in infrastructure transaction proceeds. The company announced strategic expansion through the acquisition of Telefónica's operations in Uruguay and Ecuador, and approved a special interim dividend of $2.50 per share.

Millicom maintains its 2025 targets of $750 million in equity free cash flow and year-end leverage below 2.5x, reflecting efficiency savings and lower restructuring costs, while accounting for weaker projected forex rates.

Positive

• Record Adjusted EBITDA margin of 46.7%, with nearly half of operations above 50%
• Strong net profit of $676 million, including $590 million from infrastructure transactions
• Strategic expansion through acquisition of Telefónica's operations in Uruguay and Ecuador
• Special interim dividend of $2.50 per share announced
• Organic service revenue growth of 2.4% year-over-year
• Operating profit increased by 3.4% to $357 million

Negative

• Revenue declined 5.9% year-over-year to $1.37 billion
• Equity free cash flow decreased 18.8% to $218 million compared to Q2 2024
• Operating Cash Flow (OCF) declined 2.6% to $487 million
• Capex increased 15.1% to $155 million

Millicom (Tigo) Q2 2025 Earnings Release

Luxembourg, August 7, 2025 – Millicom is pleased to announce its second quarter 2025 results. Please find below links to the Q2 2025 Earnings Release and IAS 34 Interim Condensed Consolidated Financial Statements.

Q2 2025 Highlights*

• Revenue $1.37 billion

• Operating profit $357 million, and record Adjusted EBITDA $641 million

• Net profit $676 million, including approximately $590 million net profit from infrastructure transactions

• Equity free cash flow $218 million

• Leverage of 2.18x, benefiting from one-time cash proceeds of $542 million from infrastructure transactions

Financial highlights ($ millions)	Q2 2025	Q2 2024	Change %	Organic % Change	H1 2025	H1 2024	Change %	Organic % Change
Revenue	1,372	1,458	(5.9)%	1.9%	2,746	2,945	(6.8)%	0.2%
Operating Profit	357	345	3.4%		780	669	16.7%
Net Profit	676	78	NM		869	170	NM
Non-IFRS measures (*)
Service Revenue	1,282	1,362	(5.9)%	2.4%	2,567	2,738	(6.3)%	1.2%
Adjusted EBITDA	641	634	1.1%	9.3%	1,277	1,266	0.9%	8.1%
Capex	155	134	15.1%		286	247	15.8%
Operating Cash Flow (OCF)	487	500	(2.6)%		990	1,018	(2.8)%
Equity free cash flow (EFCF)	218	268	(18.8)%		395	269	46.7%

          *See page 10 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures.

Millicom Chief Executive Officer Marcelo Benitez commented:

"The second quarter was marked by strong and deliberate execution of our strategy. We signed an agreement to acquire Telefónica’s operations in Uruguay and Ecuador, and we completed the partial closing of our infrastructure transaction with SBA, which unlocked over $500 million in proceeds and supported our recently  announced interim dividend of $2.50 per share. To mark these strategic milestones, we proudly rang the Nasdaq opening bell - a symbolic moment that reflects our strengthened presence in Latin America and our long-term commitment to creating value for shareholders. At the same time, our core business continued to perform. We delivered record adjusted EBITDA margin of 46.7%, with almost half of our operations above 50%. Our equity free cash flow was strong at $218 million - well aligned with our full-year-target of around $750 million."  

2025 Financial Targets

Millicom continues to target 2025 EFCF of around $750 million and year-end leverage below 2.5x. These targets reflect full year run-rate savings expected from efficiency measures implemented during 2024 and lower expected restructuring costs in 2025, partially offset by the impact of weaker projected foreign exchange rates and potential legal settlements. The targets exclude the impact of inorganic initiatives, such as proceeds related to the sale of Lati International and other assets. 

Subsequent Events

On August 6, 2025, Millicom's Board approved a special interim dividend of $2.50 per share. The interim dividend will be distributed in two equal installments of $1.25 per share on October 15, 2025 and April 15, 2026, together with the regular dividend of $0.75 per share on those dates.

• Q2 2025 Earnings Release 
• IAS 34 Interim Condensed Consolidated Financial Statements

Millicom is planning to host a video conference for the global financial community on August 7, 2025, at 14:00 pm (Stockholm) / 13:00 (London) / 08:00 (Miami).

Registration for the interactive event is required at the following link. After registering, you will receive a confirmation email containing details about joining the video conference. Participants who wish to ask a question during the live event must notify the Investor Relations team via email to investors@millicom.com after the start of the event.

Participants may also join the conference in listen-only mode by dialing any of the following numbers and entering the Webinar ID: 881 2359 5258

US: +1 929 205 6099                                                           Sweden: +46 850 539 728
UK: +44 330 088 5830                                                        Luxembourg: +352 342 080 9265

Additional international numbers are available at the following link. Accompanying slides and a replay of the event will be available on the Millicom investors website.

For further information, please contact:

Press: Sofía Corral, Communications Director press@millicom.com

Investors:   investors@millicom.com

About Millicom

Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company provides a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, highspeed data, voice, and business-to-business solutions such as cloud and security. As of June 30, 2025, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.

 

Attachments

• Millicom - Earnings Release - Q2 2025.
• Millicom - IAS34 - Q2 2025fp.

FAQ

What were Millicom's (TIGO) key financial results for Q2 2025?

Millicom reported revenue of $1.37 billion, operating profit of $357 million, and record Adjusted EBITDA of $641 million. Net profit was $676 million, including approximately $590 million from infrastructure transactions.

What is Millicom's special dividend announcement for 2025?

Millicom announced a special interim dividend of $2.50 per share, to be distributed in two equal installments of $1.25 per share on October 15, 2025 and April 15, 2026, along with regular dividends of $0.75 per share.

What are Millicom's financial targets for 2025?

Millicom targets equity free cash flow of around $750 million and year-end leverage below 2.5x for 2025, excluding impact of inorganic initiatives.

What strategic acquisitions did Millicom announce in Q2 2025?

Millicom signed an agreement to acquire Telefónica's operations in Uruguay and Ecuador, expanding its presence in Latin America.

How did Millicom's Q2 2025 EBITDA margin perform?

Millicom achieved a record Adjusted EBITDA margin of 46.7%, with almost half of its operations achieving margins above 50%.