Q1 2026 Millicom International Cellular SA Earnings Call Transcript
Key Points
- Millicom International Cellular SA (TIGO) reported a robust organic service revenue growth of 4.9% year-over-year, indicating strong operational performance.
- The company achieved a significant increase in postpaid net additions, amounting to 250,000, excluding inorganic growth, showcasing the strength of its customer value proposition.
- Adjusted EBITDA for the quarter totaled EUR 857 million, representing a margin of 43.2%, with a potential margin of 47.9% excluding integration and restructuring charges.
- Equity free cash flow improved by EUR 48 million year-over-year, reaching a strong $225 million for the quarter, marking a record first quarter for Millicom.
- The integration of recent acquisitions, such as Coltel in Colombia, is progressing well, with the company expecting positive contributions to equity free cash flow from these assets.
- The company incurred nearly $70 million in restructuring charges during the quarter, impacting adjusted EBITDA margins.
- Service revenue in Panama was flat year-on-year, indicating slower than expected growth in this market.
- The integration of Coltel and other acquisitions has increased net debt to $7.6 billion, with a total leverage of 2.76x.
- There are concerns about the sustainability of high margins in Paraguay, which may not remain at the current level of 56%.
- The company anticipates additional restructuring costs of around $100 million for the year, which could offset some of the expected savings.
Hello, everyone, and welcome to our First Quarter 2026 Results Call. This event is being recorded. Our speakers today will be our CEO, Marcelo Benitez and Bart Vanhaeren, CFO of the company. The slides for today's presentations are available on our website, along with the earnings release and our financial statements.
Now please turn to slide 2 for the safe harbor disclosure. We will be making forward-looking statements, which involve risks and uncertainties, which could have a material impact on our results.
On slide 3, we define the non-IFRS metrics that we will be referencing throughout this presentation. and you can find reconciliation tables in the back of our earnings release and on our website. With those disclaimers out of the way, let me now turn the call over to our CEO, Marcelo Benitez, Marcelo?
Thank you, Luca, and thank you, everyone, for joining our call today. We are off to a solid start in 2026, both operationally and from a financial perspective.
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