TIGO Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

Service Revenues: $1.55 billion, up 15.9% year-over-year; organic growth of 5.2% excluding new operations in Ecuador and Uruguay.
Adjusted EBITDA: $778 million for the year, with a margin of 47.1%. Adjusted EBITDA growth was 25.9% year-over-year.
Equity Free Cash Flow (eFCF): $278 million in Q4, totaling $916 million for the year ($864 million excluding tower sales).
Net Debt: $4.6 billion at year-end, with leverage increasing to 2.31x, comfortably below the target of 2.5x.

2. Strategic Updates and Business Highlights

Market Expansion: Successfully integrated operations in Ecuador and Uruguay, expanding Tigo's footprint to 12 countries, including a recent acquisition in Chile.
Customer Growth: Added over 200,000 postpaid customers in Q4, totaling 1.8 million when including new markets. Home customer base grew by 40,000.
Mobile Business Performance: Mobile service revenue reached $954 million, with a 5.7% growth year-over-year excluding perimeter effects.
B2B Growth: Digital service revenues increased by 40.7% year-over-year, driven by government projects and strong digital portfolio performance.

3. Forward Guidance and Outlook

2026 Projections: Expecting eFCF of at least $900 million, with a focus on integrating new acquisitions and stabilizing operations in Colombia, Ecuador, and Uruguay.
Leverage Expectations: Anticipate a temporary increase in leverage due to acquisitions, but expect to bring it back to around 2.5x by year-end 2026.

4. Bad News, Challenges, or Points of Concern

Integration Risks: Ongoing integration of Ecuador, Uruguay, and Coltel in Colombia poses execution risks and potential short-term financial strain.
Market Volatility: Operating in Latin America presents inherent risks, including currency fluctuations and macroeconomic instability.
Cost Pressures: Anticipated restructuring costs in 2026, particularly related to Coltel, could impact short-term profitability.

5. Notable Q&A Insights

Chile Acquisition: CEO Marcelo Benitez expressed confidence in stabilizing the Chilean operation, despite current losses, and highlighted the potential for long-term growth.
Equity Free Cash Flow: CFO Bart Vanhaeren indicated that while eFCF guidance includes contributions from new operations, risks remain due to ongoing integrations and market conditions.
M&A Strategy: Management emphasized a focus on in-market consolidation and turning around recently acquired businesses, with limited appetite for entering new, larger markets like Brazil or Mexico.
ARPU Growth: The increase in ARPU was attributed to both currency appreciation and successful migration from prepaid to postpaid plans, with a strong emphasis on customer satisfaction and network investment.

Overall, TIGO demonstrated strong operational performance and financial results in Q4 2025, while navigating the complexities of recent acquisitions and market conditions. The company remains optimistic about future growth but acknowledges the challenges ahead.

TIGO — Millicom International Cellular S.A.