Millicom International Cellular (NASDAQ:TIGO) executives highlighted what they described as strong operational execution and accelerating top-line trends to close 2025, alongside a series of acquisitions that expanded the company’s footprint and reshaped its near-term integration agenda.
Operational momentum and portfolio expansion
CEO Marcelo Benitez said Millicom ended 2025 with “strong operational and financial performance and a clear top-line acceleration,” noting the successful integration of Ecuador and Uruguay, which expanded the company to 11 countries during the year. He added that Millicom and partner NJJ later expanded into Chile, which he described as the company’s “twelfth market.”
Customer growth and segment performance
Millicom’s “Pre-to-Post” strategy remained a central theme. Benitez said the company added more than 200,000 postpaid customers in the quarter, or 1.8 million when including Ecuador and Uruguay. He characterized the change as a “structural upgrade” of the postpaid base.
In mobile, Benitez said service revenue totaled $954 million, including $112 million from Ecuador and Uruguay. Excluding perimeter effects, he said mobile service revenue grew 5.7% year-over-year, which he attributed to three priorities: targeted network investment, continued prepaid-to-postpaid migration, and prepaid base management. Postpaid customers reached 9.1 million, up 12.6% year-over-year excluding the perimeter expansion, while only 22% of Millicom’s 49 million customers are postpaid, which management cited as runway for further growth. Prepaid revenue grew 3%, supported by what Benitez called a “more for more” commercial approach aimed at raising ARPU while maintaining scale.
In Home, the company added 40,000 net new customers in the quarter and grew the base 5.1% year-over-year, while Home service revenues declined 0.3% year-over-year. Benitez said fixed-mobile convergence is lowering churn versus non-FMC customers, and he stated management is confident the Home segment can return to revenue growth in 2026.
In B2B, Benitez said digital service revenues increased 40.7% year-over-year to $79 million in the quarter, excluding perimeter expansion. He attributed the jump to one-time government projects in Colombia and Panama as well as “strong underlying momentum” in the digital portfolio. He also cited 7% B2B mobile service revenue growth and improving performance in the SME segment, which reached 5% growth after beginning the year in the low single digits.
Country highlights and profitability trends
Management pointed to several country-level bright spots. In Guatemala, Benitez said postpaid grew 20% year-over-year, mobile service revenue increased 5.9%, and operating cash flow grew more than 17% in the quarter, with full-year operating cash flow reaching a record $791 million.
Colombia was also described as a “clear success story,” with Benitez noting 10% year-over-year growth in both the postpaid mobile base and Home customer base, service revenue growth of 6.9%, and a record quarterly adjusted EBITDA margin of 44%. Millicom also confirmed it acquired EPM’s 50% stake in Tigo Une, bringing its Colombia ownership to 100%.
In Panama, Benitez said postpaid customers expanded 14.6% year-over-year and mobile service revenue grew 4.5% to $84 million in the quarter. CFO Bart Vanhaeren added that Panama returned to 4.9% year-over-year growth, aided by the growing postpaid base and one-off government projects.
Vanhaeren said group adjusted EBITDA for the quarter increased 25.9% year-over-year to $778 million, representing a 47.1% margin. He said Ecuador and Uruguay added about $45 million to adjusted EBITDA, while excluding them, adjusted EBITDA grew 18% to $732 million. He cited operational performance in Colombia, Guatemala, and Paraguay; a focus on margin enhancement; and positive FX impacts as key contributors.
At the country level, Vanhaeren said:
- Guatemala adjusted EBITDA reached $241 million for the quarter, up 11.3% year-over-year in local currency.
- Colombia adjusted EBITDA reached a record $174 million, up 24.6% year-over-year. He cautioned the margin is expected to come down in Q1 due to a “material increase in minimum wages.”
- Panama adjusted EBITDA rose 4.5% year-over-year to $94 million.
- Paraguay adjusted EBITDA increased 11.8% in local currency to $83 million, with a 52.1% margin.
- Bolivia delivered a 53% margin, which management said made it the sixth member of the company’s “Club Fifty” (countries with EBITDA margins above 50%).
Vanhaeren said early, unaudited January results showed Ecuador and Uruguay already achieving “mid-40s” adjusted EBITDA margin levels.
Cash flow, leverage, and 2026 outlook
Vanhaeren reported Equity Free Cash Flow of $278 million in Q4, up $42 million year-over-year, and full-year Equity Free Cash Flow of $916 million, or $864 million excluding infrastructure sales proceeds. He said performance exceeded guidance and market expectations despite FX headwinds earlier in the year and a $118 million DOJ settlement and other cleanups referenced in prior disclosures.
Millicom ended the quarter with net debt of $4.6 billion and leverage of 2.31x, which Vanhaeren said remained below the company’s target of under 2.5x even after adding Ecuador and Uruguay (which he said increased leverage by about 0.35x). He also noted pro forma leverage would have been 2.17x including last twelve months adjusted EBITDA from Uruguay and Ecuador.
For 2026, Vanhaeren guided to Equity Free Cash Flow of at least $900 million. He said leverage is expected to rise in the first half of 2026 due to Colombia-related acquisitions—citing approximately $570 million for EPM’s 50% stake (higher than anticipated due to FX), about $220 million tied to the acquisition of Telefónica shares in Coltel, and an expected additional ~$220 million for La Nación’s stake—before declining again to around 2.5x by year-end and returning to the company’s 2.0x–2.5x range in 2027.
Chile and Colombia consolidation plans
On strategy, Benitez and Vanhaeren described a mix of in-market consolidation and adjacent-market expansion, while emphasizing balance-sheet discipline. Benitez said Chile is an “investment-grade” country with macro and currency stability, and described the market as fragmented. He said the acquired business is number one in Home subscribers and number two in mobile, and that Millicom has already appointed new leadership and begun downsizing. Benitez said the Chile operation is currently losing money daily, but management believes it can reach Equity Free Cash Flow neutrality in 2026.
Management also reviewed the Coltel transaction in Colombia. Benitez said Millicom acquired a two-thirds stake from Telefónica to gain operational control, while noting the remaining 33% stake is subject to a formal privatization process with a potential closing timeline of April 2026. Vanhaeren said Coltel is currently on a negative run-rate Equity Free Cash Flow and that restructuring costs in 2026 are expected to be “more towards a triple digit number” to restore the business to Millicom’s targeted run rate.
In the Q&A, Vanhaeren reiterated that Mexico and Brazil are not target markets, describing them as “too big” and “too complicated,” while identifying Peru and Venezuela as the main sizable adjacent markets that could be of interest should assets become available. He added that Millicom’s near-term focus is turning around recently acquired businesses, including Chile.
About Millicom International Cellular (NASDAQ:TIGO)
Millicom International Cellular SA, trading under the TIGO brand, is a Luxembourg‐headquartered telecommunications and media company that provides a range of mobile, cable broadband, digital television and enterprise services. Through its integrated infrastructure, the company delivers voice and data connectivity, high‐speed internet access and pay‐television packages to millions of customers, supported by ongoing investments in network coverage and capacity.
Established in 1990 by Swedish investor Jan Stenbeck, Millicom has grown into a multi‐regional operator focused primarily on Central and South America.
