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Investing.com - Millicom International Cellular S.A. (NASDAQ:TIGO) on Thursday reported third-quarter earnings that significantly exceeded analyst expectations, driven by record profitability and substantial gains from infrastructure transactions.
Shares rose 2.2% following the announcement.
The Latin American telecommunications provider reported adjusted earnings per share of $1.17 for the third quarter, surpassing analyst estimates of $0.65 by 52 cents. Revenue came in at $1.42 billion, slightly above the consensus estimate of $1.4 billion but down 0.7% from $1.43 billion in the same period last year.
On an organic basis, however, revenue grew 3.0% YoY, with service revenue increasing 3.5%.
Millicom achieved record adjusted EBITDA of $695 million, representing an 18.7% increase from the previous year and a margin of 48.9%. Net profit attributable to company owners reached $195 million, including approximately $138 million from the closure of infrastructure transactions.
The company reported equity free cash flow of $243 million for the quarter.
"The third quarter was another strong period for Millicom, both operationally and strategically," said CEO Marcelo Benitez. "This quarter, we achieved a record Adjusted EBITDA of $695 million dollars and an Adjusted EBITDA margin of 48.9 percent, marking a significant step forward in profitability."
The company’s leverage ratio improved to 2.09x, benefiting from one-time cash proceeds of $537 million from infrastructure transactions. Millicom declared an additional interim dividend of $2.5 per share in August, amounting to approximately $420 million.
Millicom reaffirmed its 2025 targets, including equity free cash flow of around $750 million and year-end leverage below 2.5x. These targets exclude the impact of inorganic initiatives such as proceeds from asset sales.
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