Millicom International Cellular (TIGO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $1.37 billion, down 7.6% year-over-year, mainly due to FX headwinds and non-recurrence of large B2B projects; strong customer growth and robust cash flow generation were reported.

• Net income more than doubled year-over-year to $219 million, with EPS up to $1.14, driven by one-time gains and improved profitability, especially in Colombia.

• Operating profit increased 30.8% to $423 million, supported by cost efficiencies and asset sales.

• Major transactions included a definitive agreement to acquire Telefónica's stake in Coltel and ongoing tower sales in Central America.

• Shareholder remuneration in Q1 2025 totaled $289 million (dividends and buybacks), impacting leverage.

Financial highlights

• Service revenue was $1.29 billion, down 6.6% year-over-year due to FX headwinds; organic service revenue was flat.

• Adjusted EBITDA rose 0.6% year-over-year to $636 million, with margin improving to 46.3%; organic growth was 6.9%.

• Equity-free cash flow (excluding disposals) reached $135 million, up $172 million year-over-year, driven by working capital improvements.

• Net debt increased to $5,275 million, with leverage at 2.47x, mainly due to resumed shareholder returns.

• Capex increased to $132 million, up 16.7% year-over-year.

Outlook and guidance

• 2025 targets reaffirmed: equity-free cash flow of around $750 million and year-end leverage below 2.5x, excluding M&A impacts.

• Board proposed an annual dividend of $3.00 per share, to be paid quarterly, with intent to sustain or grow the dividend.

• Interim dividend of $0.75 per share paid in April 2025.

• Service revenue growth expected to accelerate in the second half of 2025 as postpaid and home segments expand.