Millicom International Cellular S.A.

Reported Q2 service revenue was $2 billion, up 60.1% reported and 5.4% organically year over year. Adjusted EBITDA reached $1 billion, up 58% reported and 9.1% organically, with a 46.3% margin; management also said the margin was only slightly below last year despite roughly $35 million of Q2 restructuring charges. Equity free cash flow was a record $327 million, up more than 50% year over year. Full-year 2026 guidance was raised to around $1.1 billion of equity free cash flow versus at least $900 million previously, and year-end leverage is now expected to be below 2.5x. Management also announced an additional interim dividend of $1.50 per share payable in two $0.75 installments in January and April of next year.

Marcelo Benitez framed the quarter as proof that Millicom can grow while integrating acquisitions and absorbing restructuring costs. He emphasized the company’s commercial playbook: more-for-more pricing in prepaid, pre-to-post migration, simpler operations, better efficiency, and stronger cash flow. He was upbeat on Colombia integration, said subscriber normalization effects are largely behind the company, and stressed that the business is now generating cash fast enough to make recent acquisitions accretive within the first year.

Bart Vanhaeren highlighted the step-up in reported and organic growth, noting service revenue up 60.1% reported and 5.4% organically, adjusted EBITDA up 58% reported and 9.1% organically, and eFCF up more than 50% to $327 million. He pointed out that Q2 cash flow benefited from favorable expense timing and working capital movements, so the company should be cautious extrapolating the quarter linearly. He also detailed leverage moving from 2.76x to 2.73x despite $335 million of dividends and $221 million of M&A-related payments, and said restructuring charges for the full year should be roughly $160 million to $170 million, with around half already paid.

Analysts focused on cash flow phasing, ARPU durability, integration costs, Colombia margin outlook, CapEx, and competitive threats from satellite players such as Starlink. Management said Q2 was an unusually strong cash quarter, with lower Q3 and stronger Q4 expected, and noted ARPU gains reflect the prepaid more-for-more strategy, postpaid migration, and better Home pricing rather than a one-off. On competition, Marcelo Benitez said satellite is mainly complementary in remote areas and not a threat in urban mobile or fiber markets; on Colombia, Bart said margin should not change dramatically full-year, while Marcelo confirmed the prior view that Colombia 2026 margin should be roughly in line with FY25.