TIGO · Millicom International Cellular S.A.

Millicom’s Q1 2026 results reflect a pivotal inflection point driven by aggressive inorganic growth across Latin America. Revenue surged 45.1% YoY to $1,985 million, but this growth is not organic: the filing explicitly states comparatives are not directly comparable due to the February 6, 2026 acquisition of Telefónica’s 67.5% stake in Coltel, and the October 2025 acquisitions of Tigo Ecuador and Tigo Uruguay, all now fully consolidated. The $109 million net profit attributable to owners represents a 43.4% decline YoY, largely explained by $65 million in severance costs tied to Coltel integration and the absence of $95 million in one-time gains recorded in Q1 2025 — notably from the Lati tower sale. Adjusted EBITDA grew 35.5% to $857 million, yet its margin contracted 3.1 percentage points to 43.2%, signaling near-term pressure from acquisition-related restructuring and integration expenses. Management confirms these are transitory, citing $119 million of the EBITDA increase as directly attributable to acquisitions. Equity Free Cash Flow of $225 million — up 66.5% YoY excluding last year’s $42 million infrastructure sale benefit — demonstrates underlying cash generation strength despite elevated capex ($193 million) and spectrum payments ($99 million). Leverage rose to 2.76x, reflecting $773 million in acquisition payments and $1,513 million in net debt added through Coltel consolidation. Critically, Millicom reaffirmed its 2026 guidance: $900 million minimum EFCF and year-end leverage of ~2.5x, both inclusive of restructuring costs. CEO Marcelo Benitez emphasized execution on strategic pillars — strengthening core markets (especially Colombia), improving customer value via prepaid-to-postpaid migration, expanding convergence, and disciplined cash flow management — positioning the company for margin stabilization and deleveraging in subsequent quarters.