Millicom International Cellular SA

We believe that TIGO is a good business operating in an oligopoly of an essential service (broadband and cell phone). Results have exceeded expectations, with significant cost savings driven by new management and multiple acquisitions in key markets. Free cash flow is projected to exceed $900 million in 2026, and we anticipate it will comfortably exceed this projection. Continued improvement in Colombian operations should drive material improvement in total free cash flow, potentially increasing it by over 70% above the company's 2026 FCF. TIGO's diverse operations provide comfort against regional shocks, and we expect its leverage to drop below 2.0x by 2028.

Millicom, which operates entirely in Latin America, continued to improve margins in its core operations while enhancing profitability of newly acquired businesses in Uruguay and Ecuador. The company also further consolidated its Colombian operations, which we believe should help it strengthen free cash-flow generation going forward.

Millicom, the Latin American telecom operator, contributed positively to our long book with a return of +0.7%. We believe that Millicom is well-positioned in the emerging markets, benefiting from the growing demand for telecommunications services. The company’s strong operational performance amidst challenging market conditions highlights its resilience and potential for future growth. Our continued investment reflects our confidence in Millicom's ability to capitalize on these opportunities.

Millicom International Cellular added 0.5% as the stock continues to be repriced following Xavier Niel’s stark rebasing of the cost structure. This indicates a positive shift in the company's valuation and operational efficiency, suggesting that the market is beginning to recognize the potential for improved performance and profitability. The rebasing of the cost structure is a significant factor that could enhance the company's competitive position in the telecommunications sector.

We acquired a position in Millicom after Xavier Niel began to effect change, replacing senior management and implementing significant cost reductions across both operating and capital expenditures. This has dramatically improved cash generation. Although consensus expects revenue in 2025 to be marginally lower than in 2023, operating income is expected to rise 60%, margins by almost 10 points, and free cash flow from 0% to approximately 15% of revenue. This demonstrates the potential when a high-agency owner applies rigorous capital discipline and insists on operational efficiency.

Millicom (TIGO) has shown strong performance in early 2025, highlighted by a special dividend of $2.50 per share following the sale of its infrastructure assets. The company is also pursuing significant acquisitions in Colombia that are expected to be accretive to free cash flow, potentially creating a near duopoly in a market of over 50 million people. TIGO's continued execution on smaller deals in Uruguay and Ecuador further supports its growth trajectory. Despite recent share price increases, we believe there is still considerable upside.

Millicom, a Latin American telecommunications operator, has shown exceptional operational delivery, leading to an inflection in equity free cash flow growth. The new management team, supported by its largest shareholder, Iliad Group, has focused on this growth since 2023. Millicom exceeded its 2024 equity free cash flow guidance, delivering $728 million, and is expected to grow further to the $750 million range for 2025. The restart of its dividend policy and ongoing share buyback program enhance the investment's appeal, providing a yield above 10% and limiting downside risk. Additionally, the completion of its Swedish shares delisting and progress on the $1 billion acquisition of Telefonica's operations are expected to attract greater institutional interest and facilitate value generation.

Millicom, a Latin American telecommunications operator, has shown exceptional operational delivery, leading to an inflection in equity free cash flow growth. The new management team, supported by its largest shareholder, Iliad Group, has focused on this growth since 2023. Millicom exceeded its 2024 equity free cash flow guidance, delivering $728 million, and is expected to grow further to the $750 million range for 2025. The restart of its dividend policy and a $150 million share buyback program enhance the investment's attractiveness, especially with a yield above 10%. Additionally, the completion of its Swedish shares delisting and progress on the $1 billion acquisition of Telefonica's operations are expected to attract greater institutional interest and close the price-to-value gap.

Millicom, a Latin American telecommunications operator, has shown strong performance, exceeding its raised 2024 equity FCF guidance of approximately $650 million and projecting further growth to the $750 million range for 2025. The company has implemented an improved dividend yielding over 10% and has made significant progress in its US listing and an accretive deal in Colombia. With the stock trading at a single-digit multiple of growing earnings, we believe there is more upside potential.

Millicom International Cellular saw its shares rise after management reported positive results regarding its cost-cutting program, which has resulted in margin improvement and positioned the company to shift its focus back towards growth in 2025. This strategic pivot indicates a strong potential for future performance as the company enhances its operational efficiency and prepares for expansion.