Millicom beats Q2 EPS estimates, revenue slightly below expectations

Published 07/08/2025, 11:36
 Millicom beats Q2 EPS estimates, revenue slightly below expectations

Investing.com -- Millicom International Cellular (NASDAQ:TIGO) on Thursday reported second quarter earnings that significantly exceeded analyst expectations, with EPS of $4.03, beating estimates by $3.49, while revenue came in slightly below forecasts at $1.37 billion versus the consensus estimate of $1.4 billion.

The telecommunications company’s quarterly performance was boosted by approximately $590 million in net profit from infrastructure transactions, contributing to a total net profit of $676 million for the quarter.

Revenue declined 5.9% compared to the same period last year, though it grew 1.9% on an organic basis.

The company’s stock dipped 0.7% following the announcement.

Millicom achieved record adjusted EBITDA of $641 million, representing a 1.1% increase from the previous year and a 9.3% organic growth.

The adjusted EBITDA margin reached a record 46.7%, with nearly half of the company’s operations exceeding 50% margin.

"The second quarter was marked by strong and deliberate execution of our strategy," said Millicom CEO Marcelo Benitez.

"We delivered record adjusted EBITDA margin of 46.7%, with almost half of our operations above 50%. Our equity free cash flow was strong at $218 million - well aligned with our full-year-target of around $750 million."

The company completed a partial closing of its infrastructure transaction with SBA (LON:SBA), which generated over $500 million in proceeds.

This transaction helped reduce leverage to 2.18x and supported the recently announced interim dividend of $2.50 per share.

Millicom maintained its 2025 financial targets, including equity free cash flow of approximately $750 million and year-end leverage below 2.5x.

These targets incorporate full-year run-rate savings from efficiency measures implemented during 2024 and lower expected restructuring costs in 2025.

On August 6, Millicom’s Board approved a special interim dividend of $2.50 per share, to be distributed in two equal installments of $1.25 per share on October 15, 2025, and April 15, 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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