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    TIGO
    Earnings call· Mar 2026(Q1 FY26)

    MILLICOM INTERNATIONAL CELLULAR SA Q1 FY26 earnings call TIGO

    May 12, 2026 Source

    Executive summary

    Millicom Q1 FY26 — Strong Operational Start with Coltel Integration Progress

    Millicom reported a solid start to the year, driven by strong organic service revenue growth and significant contributions from recent acquisitions, particularly Coltel in Colombia. The company is actively implementing its operational playbook across newly acquired assets in Colombia, Ecuador, and Uruguay, showing early signs of margin expansion and improved free cash flow. Management remains confident in its full-year financial targets, with a focus on disciplined execution and integration efforts.

    Highlights

    5

    • Postpaid net additions amounted to $5.6 million (including Coltel) and 250,000 organically, reflecting the health of the underlying business.

    • Organic service revenue growth was a robust 4.9% year-over-year, reinforcing expectations of top-line acceleration throughout 2026.

    • Adjusted EBITDA totaled EUR 857 million, representing a margin of 43.2%, a very solid outcome despite integration and restructuring charges.

    • Equity free cash flow improved by EUR 48 million year-over-year, reaching a strong $225 million for the quarter, a record for Q1.

    • The Chilean business generated positive equity free cash flow in the first 2 months of ownership, despite turnaround costs and significant investments.

    Concerns

    3

    • Panama service revenue was flat year-on-year at EUR 172 million, with growth slower than expected.

    • Nearly $70 million in restructuring charges were incurred during the quarter, mostly related to a voluntary lease plan in Colombia.

    • Leverage might creep up a little bit more in Q2 due to the remaining acquisition of Coltel equity and extraordinary dividends paid in April.

    Guidance & targets

    7
    CategoryTargetConfidence
    Equity free cash flow
    at least $900 million
    high materiality
    High
    Leverage
    around 2.5x
    high materiality
    High
    Chile Equity Free Cash Flow
    neutral
    medium materiality
    High
    Colombia Cost Savings
    more than $100 million
    medium materiality
    High
    Colombia 5G Coverage Expansion
    4x
    medium materiality
    High
    Colombia New Sites Deployment
    more than 1,000 new sites
    medium materiality
    High
    Paraguay Adjusted EBITDA Margin
    between 50% and 56%
    low materiality
    Medium

    Segment performance

    10
    SegmentRevenueYoYQoQMargin
    Mobile Business
    Mobile service revenue included EUR 120 million contribution from 2 months of Coltel operations. Organic growth accelerated over the previous quarter, driven by successful pre-to-post migration strategy.
    Customer growth: 4% organic YoYPostpaid customer growth: 25%Postpaid customers as % of mobile: 29%Postpaid sales from migration: almost 7 out of 10 (up >10 percentage points YoY)
    		$1.1 billion7% organic——
    Home Business
    Efforts to provide best network experience and higher speeds resonated with customers. The Coltel acquisition meaningfully increased the customer base, and fixed networks are highly complementary. Committed to returning this business to positive revenue growth.
    Organic customer base expansion: 4.6% YoYTotal customer base: 5.7 million (including 1.5 million from Coltel)Organic customer base: 4.2 millionBroadband-only customer growth: 5% YoYFixed mobile convergence penetration: almost 36%Churn for convergent customers: almost 50% lower than non-convergent
    		EUR 374 millionflat organic——
    B2B
    B2B continues to be an important growth driver, supported by strong demand for digital services. Customer loyalty remains high due to network quality, value plans, and improved customer service.
    Digital service revenue growth: almost 19% YoYCybersecurity and cloud solutions growth: more than 20% YoYEntrepreneur customer segment growth: more than 13% YoY
    		$306 million———
    Guatemala
    Continued strong results driven by pre-to-post conversion strategy and price increases, supporting ARPU improvement. Adjusted EBITDA increased 6% YoY.
    Postpaid customer growth: 20% YoYPostpaid customers: 1.5 millionNew postpaid sales from prepaid base: more than 85%
    		EUR 370 million5.5%—EUR 237 million Adjusted EBITDA (55.4% margin)
    Colombia
    Coltel contributed EUR 243 million to service revenue and EUR 33 million to Adjusted EBITDA. Adjusted EBITDA margin was 41% excluding Coltel, with 13.7% growth. The Coltel acquisition added 1.5 million customers to the fixed network, reaching a total of 3.2 million, and increased the prepaid base by 42%.
    Organic postpaid customer growth: almost 9% YoYMobile ARPU growth: 4.4% YoYOrganic home customer growth: 8.3% YoYTigo One home base: 1.7 million customersFixed mobile penetration: 37.1%
    		EUR 653 million8.4% organic—EUR 205 million Adjusted EBITDA (30% margin)
    Panama
    Growth was slower than expected, but management remains optimistic for improved top-line momentum.
    		EUR 172 millionflat—$91 million Adjusted EBITDA (50.7% margin)
    Paraguay
    Robust service revenue growth and record adjusted EBITDA margin, driven by operational efficiencies and FX tailwinds. MFS business is now recorded as an asset held for sale.
    		EUR 158 million4.9%—$92 million Adjusted EBITDA (56.3% margin)
    Ecuador
    First time reporting since acquisition in Q4 2025. Reverted last year's negative revenue trend. Adjusted EBITDA margin represents a 13% uplift compared to 2025 profitability. Improvement was offset by a $70 million spectrum payment.
    		EUR 110 millionabout 1%—EUR 56 million Adjusted EBITDA (48.3% margin)
    Other Markets
    Includes El Salvador, Nicaragua, Costa Rica, Bolivia, and Uruguay. Robust results driven by Nicaragua and Uruguay. Adjusted EBITDA increased 11.4% YoY, particularly due to Bolivia's cost focus and stable FX.
    		EUR 402 million4.8%—$202 million Adjusted EBITDA (47.7% margin)
    Chile
    Generated revenues and positive EFCF in the first 2 months of ownership. New leadership team appointed, significant organizational restructuring (30% headcount reduction), and $85 million debt reduction implemented. Optimistic to meet full-year EFCF neutral target.
    		approximately $200 million——positive equity free cash flow

    Operational metrics

    26
    Postpaid net additions
    $5.6 million
    Q1 FY26

    Total postpaid net additions, including the impact of the Coltel acquisition, and organic additions.

    Home net additions
    $1.5 million
    Q1 FY26

    Total home net additions, including the impact of the Coltel acquisition, and organic additions.

    Organic service revenue growth
    4.9%YoY
    Q1 FY26

    Represents a solid continuation of momentum and reinforces expectations for top-line acceleration.

    Total service revenue
    EUR 1.9 billion45% YoY increase (reported)
    Q1 FY26

    Benefiting from the consolidation of 2 months of Coltel operations and acquisitions in Ecuador and Uruguay.

    Adjusted EBITDA
    EUR 857 million35.5% YoY increase (reported)
    Q1 FY26

    Solid outcome, particularly as it reflects the impact of integration and restructuring charges related to the Coltel acquisition.

    Coltel prepaid base increase
    42%
    Q1 FY26

    The Coltel acquisition increased the prepaid base, creating a meaningful opportunity for pre-to-post migration strategy.

    Restructuring charges
    $70 million
    Q1 FY26

    Most of the charges related to a voluntary lease plan in Colombia.

    Cash CapEx
    $221 millionup EUR 107 million YoY
    Q1 FY26

    Mainly due to a one-time impact related to last year's Lattice sale in Nicaragua and increased CapEx execution in Colombia and Bolivia.

    Nicaragua Lattice sale one-time impact on CapEx
    EUR 42 million
    Q1 FY26

    Accounted as negative CapEx in the prior year, impacting the YoY comparison for Q1 FY26 cash CapEx.

    Spectrum payments
    $99 millionup $63 million YoY
    Q1 FY26

    The increase was mainly related to spectrum payments in Ecuador for 700MHz and 3.5GHz bands.

    Working capital change
    negative $27 millionimproved $49 million YoY
    Q1 FY26

    Q1 is typically a drag on cash flow due to timing of payments, fees, licenses, and employee bonuses.

    Taxes paid
    $53 millionreduced $13 million YoY
    Q1 FY26

    Prior year taxes were elevated by one-off incremental taxes on gains from infrastructure sales.

    Finance charges
    $126 millionup $19 million YoY
    Q1 FY26

    Mainly due to incremental charges related to acquisition financing.

    Lease payments
    $140 millionup $58 million YoY
    Q1 FY26

    Consistent with last year's tower sale and inorganic growth.

    Endures repatriation
    $34 millionimproved $11 million YoY
    Q1 FY26

    Repatriation of funds from subsidiaries.

    Net debt increase from Coltel opening balance sheet
    $1.5 billion
    Q1 FY26

    Impact on net debt and leverage from the initial consolidation of Coltel.

    Net debt increase from other acquisitions
    $773 million
    Q1 FY26

    Included purchase of EPM's equity stake in Tigo, Telefonica's stake in Cantel, and joint acquisition of Telefonica Chile.

    Dividends paid
    $125 million
    Q1 FY26

    Regular dividends paid to shareholders during the quarter.

    Net debt impact from derivatives, FX and other
    $67 million
    Q1 FY26

    Mostly related to the appreciation of local currency denominated debt.

    Net debt
    $7.6 billion
    Q1 FY26

    Total net debt for the quarter.

    Total leverage
    2.76x
    Q1 FY26

    In line with expectations communicated on the last earnings call.

    Coltel service revenue contribution
    $243 million
    Q1 FY26

    Contribution from 2 months of Coltel operations to total service revenue.

    Coltel adjusted EBITDA contribution
    $33 million
    Q1 FY26

    Contribution from 2 months of Coltel operations to adjusted EBITDA.

    Ecuador spectrum payment
    $70 million
    Q1 FY26

    Payment for spectrum bands that supports long-term network quality and capacity.

    Chile headcount reduction
    approximately 30%
    Q1 FY26

    Part of a significant organizational restructuring in Chile.

    Chile debt reduction
    $85 million
    Q1 FY26

    Initial steps taken to improve the capital structure in Chile.

    Industry KPIs

    8
    MetricValueDetails
    Postpaid arpa vs ARPU4.4%%
    Free cash flow FCF guidance$225 millionUSD
    Service revenue growth rate4.9%%
    Fiber jv cost synergy programsmore than $100 millionUSD
    Postpaid net account additions$5.6 millionunits
    Share buyback capital returned$125 millionUSD
    Postpaid phone vs account churnalmost 50% lower%
    Spectrum position network benchmarks$70 millionUSD

    Deals & partnerships

    4
    ColtelAcquisition of majority ownership and remaining stake in Coltel (Colombia)

    Acquired majority ownership at the beginning of Q1 FY26, fully consolidating performance. Finalized acquisition of remaining stake from La Nacion two weeks prior to the call. This unifies operations to create resilience and scale.

    NJJJoint acquisition of Telefonica Chile operations

    Acquired Telefonica operations in Chile jointly with NJJ on February 10. Millicom is applying its playbook, including headcount reduction and debt reduction.

    EPMPurchase of EPM's 50% ownership stake in Tigo Ole

    Completed the purchase of EPM's stake in Tigo Ole, strengthening position in Colombia.

    TelefonicaAcquisition of Telefonica's stake in Cantel

    Completed the acquisition of Telefonica's stake in Cantel, strengthening position in Colombia.

    Risks & headwinds

    5
    Integration and restructuring charges from Coltel acquisitionFY26

    Nearly $70 million incurred in Q1 FY26, with approximately $100 million remaining for the year.

    Mitigation: Expected to be offset by identified savings, leading to Coltel being a net contributor to EFCF for the full year.

    Slower-than-expected service revenue growth in PanamaQ1 FY26

    Service revenue flat year-on-year at EUR 172 million.

    Mitigation: Management remains optimistic that top-line momentum will improve.

    Potential increase in leverage in Q2Q2 FY26

    Leverage might creep up due to remaining Coltel acquisition (La Nacion stake) and extraordinary dividends paid in April.

    Mitigation: Management remains confident in deleveraging to around 2.5x by year-end FY26.

    Volatile Bolivian pesosOngoing

    Volatile currency

    Mitigation: Continued cost focus in Bolivia supported margin expansion.

    Margin effects from Ecuador rebrandingLater in FY26

    Some margin effects during the time for one-off marketing expenses.

    Mitigation: Management is encouraged by initial results and continues to fine-tune operations for sustainable margin expansion.

    What to watch in Q2 FY26

    5

    Coltel integration progress and EFCF contribution

    Q2 FY26 earnings call
    CurrentExpected to be a net contributor to EFCF for FY26, offsetting integration costs.
    TargetConfirmation of positive EFCF contribution and progress on $100M cost savings.

    Why it matters

    Coltel is a significant acquisition, and its successful integration and financial contribution are key to overall company performance and deleveraging targets.

    We are now cautiously optimistic💬 that Cortel will be a net contributor, fully offsetting integration costs and acquisition financing charges.

    Q&A highlights

    5

    Are the strong margins seen in Coltel (after adjusting for non-recurring expenses) and Paraguay sustainable in the near term?

    Management is optimistic about Coltel's margins, expecting the combined company's top-line growth of 8% to be sustainable and integration savings to offset costs, leading to positive full-year margins similar to Tigo Colombia's 2025 levels. For Paraguay, while Q1's 56.3% margin included one-offs, the full-year margin is expected to be between 50% and 56%, still an uplift from last year.

    “In Paraguay, we it is very -- we are very competitive here, Marcelo. So we are very happy that Guatemala is receiving some competition from another country. Yes. It is extraordinary what the Paraguayan team is doing in terms of keeping the cost under control despite the fact that we are growing the top line. Having said that, this also has to do with some one-offs. So we do expect more or less an uplift compared to last year in terms of margins in Paraguay, but it's not going to be at 56%. It might be more or less between 50% and 56%.”

    asked by Marcelo Santos · answered by Marcelo Benitez

    2 min read6 chapters

    Detailed Narrative

    01

    Operational Highlights and Inorganic Growth Impact

    Millicom reported a solid operational start to 2026, with postpaid net additions reaching $5.6 million and home net additions at $1.5 million, significantly boosted by the Coltel acquisition. Organically, postpaid net additions were 250,000 and home net additions were 46,000, demonstrating underlying business health. Organic service revenue grew 4.9% year-over-year, contributing to a total service revenue of EUR 1.9 billion. Adjusted EBITDA reached EUR 857 million, with a 43.2% margin, reflecting strong operating leverage despite integration costs.

    02

    Colombia Integration and Turnaround Strategy

    The company finalized the acquisition of the remaining stake in Coltel, unifying operations to create resilience and scale. The integration plan for Colombia is based on three pillars: resetting the cost base (targeting over $100 million in year 1 savings), network improvement (4x 5G coverage expansion and 1,000 new sites in 24 months), and commercial uplift (simplifying offers, accelerating pre-to-post migration, and increasing cross-sell). Early results are encouraging, with the combined company growing top-line at 8% and expected to be a net contributor to EFCF for the full year.

    03

    Ecuador and Uruguay Playbook Success

    Millicom successfully applied its operational playbook in Ecuador and Uruguay, leading to meaningful adjusted EBITDA expansion and material uplift in equity free cash flow. Both countries are now operating at or above Millicom's average adjusted EBITDA margin. The playbook focuses on rigorous cost management, challenging inertia, simplifying operating structures, and optimizing supplier frameworks. Ecuador's improvement was notable despite a $70 million spectrum payment.

    04

    Chile Turnaround Progress

    Following the joint acquisition of Telefonica Chile with NJJ, Millicom quickly implemented its playbook. This included a significant 30% headcount reduction, an $85 million debt reduction (lowering leverage by 0.4x), and a mobile network enhancement plan. The business generated positive equity free cash flow in its first two months of ownership, and management is optimistic it will meet its full-year target of being EFCF neutral.

    05

    Capital Structure and Deleveraging Path

    Net debt for the quarter was $7.6 billion, with total leverage at 2.76x, in line with expectations. The Coltel opening balance sheet added $1.5 billion of net debt and 0.6x leverage, while other acquisitions added $773 million and 0.3x leverage. Management remains confident in achieving a leverage ratio of around 2.5x by year-end 2026, supported by strong equity free cash flow and potential currency impact🌐s. The dividend policy remains at $3 per share until the 2.5x leverage target is met.

    06

    Segment Performance Overview

    Mobile service revenue grew 7% organically, driven by pre-to-post migration efforts, with postpaid customers increasing 25%. Home service revenues were flat organically, but the customer base expanded 4.6% organically, with fixed mobile convergence reaching 36%. B2B digital service revenue increased almost 19%, fueled by cybersecurity and cloud solutions. Guatemala continued to deliver strong results with 5.5% service revenue growth and a 55.4% adjusted EBITDA margin, while Panama's service revenue was flat.

    AI-generated summary of the company’s earnings call. Not investment advice.