Millicom revenue jumps on South American acquisitions and 5G pivot

Millicom International Cellular (NASDAQ:TIGO) reported a 45.1% surge in reported first-quarter revenue, reaching $1.99 billion, as the company moved aggressively to consolidate its footprint in South America.

The Luxembourg-based carrier, operating under the Tigo brand, benefited significantly from its recent acquisitions in Colombia, Ecuador, and Uruguay, which offset broader macroeconomic headwinds to deliver 4.2% organic growth.

The results highlight a period of intensive portfolio reshaping.

During the quarter, Millicom completed the consolidation of its Colombian operations by acquiring the remaining equity in Coltel (Colombia Telecomunicaciones) and EPM's stake in Tigo UNE.

This move, combined with the acquisition of Telefónica Chile, has rapidly scaled Millicom's presence in the Andean region.

To streamline its focus, the company also sold its Tigo Sports local content and production assets across Central America to FOX Latin America in April, shifting toward a distribution model for international sports.

Profitability metrics remained robust despite integration costs.

Adjusted EBITDA rose to $857 million, including a $119 million contribution from newly acquired businesses.

Net profit attributable to owners reached $109 million, while equity free cash flow—a key metric for the firm—jumped 66.5% to $225 million.

The cash flow performance was particularly notable as the first quarter is typically the company's seasonally weakest period.

Millicom also made significant strides in debt management and capital structure.

The company refinanced key debt facilities and redeemed $139.7 million of Paraguay-based notes.

Following the acquisition spree, leverage stood at 2.76x, though management reiterated a target to bring that figure down to approximately 2.5x by year-end.

Looking ahead, Millicom reaffirmed its ambitious 2026 financial targets, aiming for equity free cash flow of at least $900 million.

The company expects continued momentum from its prepaid-to-postpaid mobile migration and the expansion of its fiber-cable network, which now passes more than 14 million homes across Latin America.