Business Context and Reporting Period
Company: Millicom International Cellular S.A. (Tigo)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Six months ended June 30, 2026 (H1 2026) and Quarter ended June 30, 2026 (Q2 2026)
Filing Date: August 6, 2026
Millicom is a leading provider of fixed and mobile telecommunications services in Latin America. The reporting period is significantly impacted by major acquisitions, including the full consolidation of Coltel (Colombia) in February 2026, and the full-period contribution from acquisitions in Ecuador and Uruguay completed in late 2025. These transactions render year-over-year comparisons non-comparable on a reported basis.
Key Financial Metrics
| Metric (in millions USD) | H1 2026 | H1 2025 | Q2 2026 | Q2 2025 |
|---|---|---|---|---|
| Revenue | $4,164 | $2,735 | $2,179 | $1,367 |
| Operating Profit | $877 | $775 | $462 | $354 |
| Net Profit (Attributable to Owners) | $218 | $869 | $109 | $676 |
| Adjusted EBITDA | $1,866 | $1,271 | $1,009 | $638 |
| Equity Free Cash Flow (EFCF) | $552 | $353 | $327 | $218 |
| Capital Expenditures (Capex) | $426 | $286 | $234 | $155 |
| Gross Debt | $8,742 | $6,886 | $8,742 | $5,912 |
| Net Debt | $8,075 | $4,655 | $8,075 | $4,655 |
| Leverage Ratio (Net Debt/Adj. EBITDA) | 2.73x | 2.18x | 2.73x | 2.18x |
Note: H1 2025 Net Profit included a one-time gain of $604 million from the sale of Lati Operations, which is not present in H1 2026.
Material Changes vs. Prior Period
- Revenue Growth: Reported revenue increased 52.3% year-over-year in H1 2026, driven primarily by the inclusion of Coltel, Ecuador, and Uruguay. Organic service revenue growth was 5.2%.
- Profitability: While Operating Profit increased 13.2% to $877 million, Net Profit attributable to owners decreased 74.9% to $218 million. This decline is largely due to the absence of the $604 million gain from the Lati Operations sale in the prior year, higher financial expenses due to acquisition debt, and restructuring costs.
- Cost Structure: Operating expenses rose 53.2% and Depreciation/Amortization increased 73.4% and 44.1% respectively, reflecting the expanded asset base and integration costs (including $91 million in severances in Colombia).
- Cash Flow: Equity Free Cash Flow (EFCF) increased 56.4% to $552 million in H1 2026, reaching a quarterly record of $327 million in Q2 2026.
- Debt: Gross debt increased to $8.7 billion due to financing for acquisitions and foreign exchange impacts, though leverage decreased slightly to 2.73x from 2.76x in Q1 2026.
Guidance, Outlook, and Risks
Guidance and Outlook
- EFCF Guidance: Raised full-year 2026 EFCF guidance from "at least $900 million" to "around $1.1 billion."
- Leverage Target: Lowered year-end leverage target from "around 2.5x" to "below 2.5x."
- Dividends: The Board approved an additional interim dividend of $1.50 per share, payable in two installments in January and April 2027. This supplements the previously approved $3.00 per share annual dividend.
Management Commentary
Management highlighted that the strategy of disciplined organic growth and selective consolidation is working. Acquired operations in Ecuador and Uruguay are performing in line with the Millicom average, while integration in Colombia and Chile is progressing with early improvements in profitability.
Risks and Contingencies
- Legal Proceedings: Ongoing employment-related litigation in Guatemala involving former executives, with judgments totaling approximately $100 million. The Group disputes liability and continues appeals.
- Macroeconomic Volatility: Bolivia transitioned from a fixed to a flexible exchange rate regime in Q2 2026, introducing elevated FX volatility. Significant currency appreciation in Colombia, Paraguay, and Bolivia impacted reported results.
- Impairment: A $32 million goodwill impairment was recorded for the Costa Rica cash-generating unit due to underperformance.
- Regulatory: Risks related to spectrum availability, tariff regulations, and tax matters across multiple jurisdictions.
Investor Verification Checklist
- Acquisition Integration: Verify the progress of Coltel, Ecuador, and Uruguay integration and the realization of projected synergies.
- Guatemala Litigation: Monitor the status of the $100 million employment-related claims and the adequacy of the $4 million provision.
- Bolivia FX Risk: Assess the impact of the new flexible exchange rate regime on future cash flows and debt servicing in Bolivia.
- Cost Reduction Execution: Confirm the effectiveness of restructuring plans, particularly the $91 million in severance costs incurred in Colombia.
- Debt Maturity Profile: Review the debt maturity schedule, noting that 61% of gross debt is denominated in local currency and the average maturity is 3.5 years.