Millicom (TIGO) Q2 2026 earnings summary

Executive summary

• Achieved record service revenue of $2.18 billion in Q2 2026, up 59.4% year-over-year, driven by acquisitions in Colombia, Ecuador, and Uruguay, and strong organic growth of 5.4%.

• Adjusted EBITDA reached a record $1.01 billion, up 58% year-over-year, with margin at 46.3%, surpassing the $1 billion milestone for the first time.

• Equity free cash flow hit a record $327 million, up over 50% year-over-year, with recent acquisitions already accretive within the first year.

• Net profit attributable to owners was $109 million, or $0.65 per share, down from $676 million in Q2 2025 due to one-time gains in the prior year.

• Board approved an additional interim dividend of $1.50 per share, payable in two installments in 2027.

Financial highlights

• Service revenue grew 60.1% year-over-year to $2.04 billion; organic service revenue up 5.4%.

• Adjusted EBITDA margin was 46.3%, nearly flat year-over-year.

• CapEx rose 51.2% to $234 million, mainly due to Colombia consolidation.

• Net debt increased to $8.1 billion, but leverage declined to 2.73x from 2.76x.

• Mobile ARPU increased 18.9% year-over-year to $7.1; Home ARPU up 11.9% to $26.9.

Outlook and guidance

• Full-year 2026 equity free cash flow guidance raised from at least $900 million to around $1.1 billion.

• Year-end leverage target lowered from around 2.5x to below 2.5x.

• Dividend policy remains at distributing approximately two-thirds of equity free cash flow.

• CapEx expected to be around 12% of revenue for the full year, with acceleration in Colombia for 5G rollout.

• Guidance includes restructuring costs from all acquired businesses.