SEC Form 6-K filed by Millicom International Cellular S.A.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2025.

Commission File Number: 001-38763

MILLICOM INTERNATIONAL CELLULAR S.A.

(Exact Name of Registrant as Specified in Its Charter)

8400 NW 36^th Street, Suite 530

Doral, FL 33166

United States

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒              Form 40-F ☐

MILLICOM INTERNATIONAL CELLULAR S.A.

INDEX TO FURNISHED MATERIAL

Item
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Item 1

Millicom International Cellular S.A.

For the three-month period ended March 31, 2025

May 8, 2025

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Unaudited interim condensed consolidated statement of income for the three-month period ended March 31, 2025

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Unaudited interim condensed consolidated statement of comprehensive income for the three-month period ended March 31, 2025

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Unaudited interim condensed consolidated statement of financial position as at March 31, 2025

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Unaudited interim condensed consolidated statement of financial position as at March 31, 2025 (continued)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Unaudited interim condensed consolidated statement of cash flows for the three-month period ended March 31, 2025

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Unaudited interim condensed consolidated statements of changes in equity for the three-month period ended March 31, 2025

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Notes to the unaudited interim condensed consolidated financial statements

1. GENERAL INFORMATION

Millicom International Cellular S.A. (the “Company” or “MIC SA”), a Luxembourg Société Anonyme, and its subsidiaries, joint ventures and associates (the “Group” or “Millicom”) is a provider of fixed and mobile services dedicated to emerging markets in Latin America. Millicom provides high speed broadband and innovation around The Digital Lifestyle® services through its principal brand, TIGO.

On May 7, 2025, the Board of Directors authorized these unaudited interim condensed consolidated financial statements for issuance.

2. SUMMARY OF ACCOUNTING POLICIES

These interim condensed consolidated financial statements of the Group are unaudited. They are presented in US dollars ($) and have been prepared in accordance with International Accounting Standard (“IAS”) 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board ("IASB") and as adopted by the European Union ("EU"). In the opinion of management, these unaudited interim condensed consolidated financial statements reflect all adjustments that are necessary for a proper presentation of the results for interim periods. Millicom’s operations are not affected by significant seasonal or cyclical patterns.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the period ended December 31, 2024, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the IASB and in conformity with IFRS as adopted by the EU. These financial statements are prepared in accordance with consolidation and accounting policies consistent with the December 31, 2024 consolidated financial statements.

We have made rounding adjustments to reach some of the figures included in these unaudited interim condensed consolidated financial statements. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them and percentage calculations using these adjusted figures may not result in the same percentage values as are shown in these unaudited interim condensed consolidated financial statements.

Foreign currency

In accordance with the Amendments to IAS 21, 'The Effects of Changes in Foreign Exchange Rates', effective as of January 1, 2025, the Group evaluated the exchangeability of the Bolivia Boliviano (BOB). Based on this evaluation, the Group determined that the BOB was not exchangeable and, accordingly, applied alternative estimated exchange rates, in compliance with the requirements of the amended standard. See further details below.

As of the date of the initial application of the amendment referred above, the estimated exchange rate was 11.32 BOB per U.S. dollar. In turn, the official reference exchange rate was 6.91 BOB per US dollar as at January 1, 2024.

On January 1, 2025, the group adopted the Amendments to IAS 21, 'The Effects of Changes in Foreign Exchange Rates' resulting in a negative impact of $70 million on remeasurement of monetary and non-monetary items and a negative translation into presentation currency (USD) effect of $118 million, totaling $188 million negative effect included in a single line item, titled "Adjustment on adoption of Amendment to IAS 21", in the Group's consolidated statements of changes in equity for the three-month period ended March 31, 2025.

The following standards and amendments are effective for annual periods starting on January 1, 2026 (Amendments to IFRS 9, IFRS 7 and Annual Improvements) or January 1, 2027 (IFRS 18) and their potential impact on the Group consolidated financial statements is currently being assessed by management:

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

2. SUMMARY OF ACCOUNTING POLICIES (Continued)

3. ACQUISITION AND DISPOSAL OF SUBSIDIARIES, JOINT VENTURES, ASSOCIATES AND OTHER NON-CONTROLLING INTERESTS

Acquisitions or disposals for the three-month period ended March 31, 2025

Colombia - Definitive purchase agreement with Telefonica

Pursuant to the announcement on July 31, 2024, Millicom and Telefonica, on March 12, 2025, have entered into a definitive agreement for the acquisition by Millicom of Telefonica’s controlling 67.5% equity stake in Coltel, subject to closing conditions including regulatory approvals. Millicom has also agreed to offer to purchase the remaining 32.5% of Coltel equity owned by La Nación and other investors at the same purchase price per share offered to Telefonica. In line with the prior announcement, the purchase price of $400 million is subject to customary adjustments for net debt evolution, working capital and changes in foreign exchange rates, and as of September 30, 2024, would be $362 million.

Lati International S.A and other assets to SBA

On October 28, 2024, we agreed to sell Lati International, S.A. and other assets encompassing a portfolio of more than 7,000 towers in Central America to SBA Communications Corp. Closing is subject to necessary regulatory approvals and other closing conditions (which the Group is still waiting in order to complete the disposal) and is expected to occur in mid-2025. We have also entered into other agreements including a 15-year leaseback for the sites, and a new build-to-suit agreement under which SBA will build up to 2,500 additional sites for Millicom in the same markets. As of March 31, 2025, the "Lati International transaction" is still not meeting the IFRS 5: "Non-current Assets Held for Sale and Discontinued Operations" criteria.

As part of the other assets portfolio sale under the 'sale of Lati International S.A and other assets to SBA' agreement dated on October 28, 2024, as detailed above, Tigo Nicaragua transferred 321 towers to SBA for a total gross consideration of approximately $49 million. The tower transfer qualifies as a sale under IFRS 15. Under IFRS 16, Tigo Nicaragua recognized only the gain on the portion of rights transferred, for approximately $17 million, under ‘Other operating income (expenses), net’, since it continues to use a percentage of the towers economic benefit via the leaseback. A remaining of 72 towers are still expected to be sold; however, as of March 31, 2025, they do not meet the criteria under IFRS 5: "Non-current Assets Held for Sale and Discontinued Operations" as they were not, as of that date, in the necessary physical and legal condition to be transferred.

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

4. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Assets held for sale - Summary

Assets held for sale - Towers sales in Colombia

On January 24, 2024, Colombia Movil S.A. ESP (“Tigo Colombia”) signed an agreement to sell and lease back, under a long-term lease agreement, 1,132 telecommunication towers to Towernex Colombia S.A.S. (“Towernex”), a KKR company. The total sale consideration amounts to $77 million, out of which $26 million will be received in subsequent years. Under IFRS 16, this transaction is considered a sale and leaseback.

The transfer of the towers to Towernex consists of three batches, out of which two batches were completed in 2024 and the third batch for 123 towers should be completed in the first half of the financial year 2025.

Assets held for sale / Disposal Group- Mobile Network sharing agreement in Colombia

On February 26, 2024, Tigo Colombia and Telecomunicaciones S.A. ESP BIC (“ColTel”) signed an agreement to share their mobile networks. The transaction closed on December 20, 2024, with the approval from the Ministry of Information Technology and Communications to transfer in favor of the Temporary Union the permit for the access, use and exploitation of 20 MHz of radioelectric spectrum for the operation of land mobile radiocommunication services in the national territory granted to Colombia Móvil in the Resolution #332 dated February 20, 2020. Simultaneously, both operators contributed their RAN assets to UNIRED, the vehicle established to operate and maintain the unified mobile access network.

This collaboration involves two new joint arrangements. (both qualifying as joint operations, as defined in IFRS 11):

During the first quarter of 2025,Tigo Colombia derecognised right-of-use assets and liabilities amounting to $71 million and $104 million, respectively, in connection with lease agreements previously classified as assets held for sale in fourth quarter of 2024. These lease agreements were transferred to UNIRED, the entity that had already assumed the role of lessee under the respective contracts. The net impact of the derecognition resulted in a gain of $33 million, which was recognized in the consolidated statement of profit or loss under ‘Other operating income (expenses), net.’ Additionally, the Tigo Colombia terminated certain lease agreements with deferred gains of $15 million as of December 31, 2024. These gains were accelerated and recognized in full in Q1 2025 within the same line item.

In accordance with IFRS 5, certain assets and related liabilities are kept as of March 31, 2025 as "held for sale". These primarily represent spectrum licenses assets and liabilities still pending to be transferred by Tigo Colombia to the UT, with total balances of $569 million and $625 million, respectively, as of March 31, 2025. The transfers are expected to be completed by August 2025.

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

5. SEGMENT INFORMATION

As further detailed in note 1, Millicom operates in a single region (Latin America), and more specifically in the following countries: Guatemala, Colombia, Panama, Honduras, Bolivia, Paraguay, El Salvador, Nicaragua and Costa Rica..

As further explained in the 2024 Group's Consolidated Financial Statements, the 'Chief Operating Decision Maker ("CODM") assesses performance and allocates resources, based on individual countries, which are its operating segments. The Honduras joint venture is reviewed by the CODM in a similar manner as for the Group’s controlled operations and is therefore also shown as a separate operating segment at 100%. However, these amounts are subsequently eliminated in order to reconcile with the Group consolidated numbers, as shown in the reconciliations below.

Management evaluates performance and makes decisions about allocating resources to the Group's operating segments based on financial measures, such as revenue, including service revenue, and Adjusted EBITDA. Capital expenditures are also a significant aspect for management and in the telecommunication industry as a whole. Management believes that service revenue and Adjusted EBITDA are essential financial indicators for the CODM and investors. These measures are particularly valuable for evaluating performance over time. Management utilizes service revenue and Adjusted EBITDA when making operational decisions, allocating resources, and conducting internal comparisons against historical performance and competitor benchmarks. Additionally, these metrics provide deeper insights into the Group's operating performance. Millicom's Compensation and Talent Committee also employs service revenue and Adjusted EBITDA when assessing employees' performance and compensation, including that of the Group's executives. A reconciliation of service revenue to revenue and Adjusted EBITDA to profit before taxes is provided below.

Revenue, Service revenue, Adjusted EBITDA, capital expenditures and other segment information for the three-month periods ended March 31, 2025, and 2024 are shown on the below:

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

5. SEGMENT INFORMATION (Continued)

Reconciliation of Adjusted EBITDA for reportable segments to the Group's profit before taxes from continuing operations:

(i) The unallocated expenses are primarily related to centrally managed costs

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

6. OTHER NON-OPERATING (EXPENSES) INCOME, NET

The Group’s other non-operating (expenses) income, net comprised the following:

7. EARNINGS PER COMMON SHARE

Earnings per common share (EPS) attributable to owners of the Company are comprised as follows:

(i) For the purpose of calculating the diluted earnings (loss) per common share, the weighted average outstanding shares used for the basic earnings (loss) per common share were increased only by the portion of the shares which have a dilutive effect on the earnings (loss) per common share.

8. JOINT ARRANGEMENTS

Tigo Honduras

Joint ventures are businesses over which Millicom exercises joint control as decisions over the relevant activities of each, such as the ability to upstream cash from the joint ventures, require unanimous consent of shareholders. Millicom determines the existence of joint control by reference to joint venture agreements, articles of association, structures and voting protocols of the board of directors of those ventures. Our investments in joint ventures is comprised solely of Honduras.

At March 31, 2025, the equity accounted net assets of our joint venture in Honduras totaled $385 million (December 31, 2024: $373 million). These net assets do not necessarily represent statutory reserves available for distribution as these include consolidation adjustments (such as goodwill and identified assets and assumed liabilities recognized as part of the purchase accounting). Out of these net assets, $3 million (December 31, 2024: $3 million) represent statutory reserves that are unavailable to be distributed to the Group. During the three-month period ended March 31, 2025, Millicom's joint venture in Honduras repatriated cash of $23 million under different forms (March 31, 2024: 15 million).

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

8. JOINT ARRANGEMENTS (Continued)

At March 31, 2025, Millicom had $158 million payable to Honduras joint venture which were mainly comprised of advances and cash pool balances (December 31, 2024: $133 million). In addition, as of March 31, 2025, Millicom had a total receivable from Honduras joint venture of $12 million, (December 31, 2024: $12 million) mainly corresponding to other operating receivables.

The table below summarizes the movements for the period in respect of the Honduras joint venture's carrying value:

(i) Share of profit is recognized under ‘Share of profit in Honduras joint ventures’ in the statement of income for the period ended March 31, 2025.

UNIRED and UT

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Those parties are called joint operators.

Contribution to the Joint Operations

The following table summarizes the contributions made by Tigo Colombia (from Assets Held for Sale and Liabilities associated with Assets held for Sale) during the three-month period ended.

9. PROPERTY, PLANT AND EQUIPMENT

During the period ended March 31, 2025, Millicom added property, plant and equipment for $113 million (March 31, 2024: $89 million) and received $65 million from disposal of property, plant and equipment, including $49 million from the tower sale and leaseback transaction between Tigo Nicaragua and SBA as detailed in note 3 (March 31, 2024: $39 million).

10. INTANGIBLE ASSETS

During the year period ended March 31, 2025, Millicom added intangible assets for $28 million of which $9 million related to spectrum and licenses (as of March 19, 2025, Grupo de Comunicaciones Digitales, S.A. was awarded an additional 10 MHz spectrum in the 1900 MHz band for approximately $7 million), and $19 million to additions of other intangible assets (March 31, 2024: $91 million of which $67 million related to spectrum and licenses and $24 million to additions of other intangible assets). and did not received any proceeds from disposal of intangible assets (March 31, 2024: nil).

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

11. FINANCIAL OBLIGATIONS

A. Debt and financing

The most material movements in debt and financing for the period ended March 31, 2025 were as follows. When applicable, local currency amounts are translated in USD using the exchange rate at the time of occurrence.

Colombia

During the three-month period ended March 31, 2025, the Group operation in Colombia repaid approximately COP 85 billion (approximately $20 million) loan with Banco Colombia.

B. Analysis of debt and financing by maturity

The total amount of debt and financing is repayable as follows:

The table below describes the outstanding and maximum exposure under guarantees and the remaining terms of the guarantees as at March 31, 2025 and and December 31, 2024.

(i) If non-payment by the obligor, the guarantee ensures payment of outstanding amounts by the Group's guarantor.

The Group’s interest and other financial expenses comprised the following:

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

12. COMMITMENTS AND CONTINGENCIES

Litigation & claims

The Group is contingently liable with respect to lawsuits, legal, regulatory, commercial and other legal risks that arise in the normal course of business. As of March 31, 2025, the total amount of claims brought against MIC SA and its subsidiaries is $206 million (December 31, 2024: $209 million). The Group's share of the comparable exposure for its joint venture in Honduras is $8 million (December 31, 2024: $8 million).

As at March 31, 2025, $102 million has been provisioned by its subsidiaries for these risks in the unaudited interim condensed consolidated statement of financial position, including the Costa Rica case described in note G.3.1. to the audited consolidated financial statements for the period ended December 31, 2024 (December 31, 2024: $104 million). The Group's share of provisions made by the joint venture was $1 million (December 31, 2024: $1 million). While it is not possible to ascertain the ultimate legal and financial liability with respect to these claims and risks, the ultimate outcome is not anticipated to have a material effect on the Group’s financial position and results of operations.

Taxation

At March 31, 2025, the tax risks exposure of the Group's subsidiaries is estimated at $296 million, for which provisions of $46 million have been recorded in tax liabilities; representing management's assessment of the probable cash outflow of eventual claims and required payments related to those risks (December 31, 2024: $304 million of which provisions of $54 million were recorded). The Group's share of comparable tax exposure in its joint venture amounts to $137 million (December 31, 2024: $134 million) for which provisions of $8 million (December 31, 2024: $8 million), were made.

Capital commitments

At March 31, 2025, the Group had fixed commitments to purchase network equipment, other fixed assets and intangible assets of $277 million of which $268 million are due within one year (December 31, 2024: $285 million of which $215 million are due within one year). The Group’s share of commitments in the Honduras joint venture is $28 million of which $28 million are due within one year. (December 31, 2024: $19 million and $19 million respectively). Additionally, the Group's share of commitments in the UNIRED joint operation (see note 3) is $5 million. (December 31, 2024: $6 million)

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

13. FINANCIAL INSTRUMENTS

Other than the items disclosed below, the fair values of financial assets and financial liabilities approximate their carrying values as at March 31, 2025 and December 31, 2024:

(i)             Fair values are measured with reference to Level 1 (for listed bonds) or 2.

Derivative financial instruments

Currency and interest rate swap contracts

MIC SA entered into swap contracts in order to hedge the foreign currency risk in relation to the 2027 SEK 2.2 billion bond (approximately $252 million, respectively, using the exchange rate at the time of the issuance of each bond) issued in January 2022 with maturity date January 2027.

The Group's operation in Colombia also entered into two currency swap agreements to hedge foreign currency risks on certain long-term debts. These swaps are accounted for as cash flow hedges and related fair value changes are recorded through other comprehensive income. These swaps are accounted for as cash flow hedges as hedging relationships are highly effective.

In January 2023, MIC S.A. also entered into two currency swap agreements to hedge an intercompany receivable of COP 206 billion (approximately $41 million) owed by Tigo-UNE with maturity date January 2026.

The net fair value of the aforementioned swaps amounts to a liability of $39 million as of March 31, 2025 (December 31, 2024: a liability of $59 million).

Interest rate and currency swaps are measured with reference to Level 2 of the fair value hierarchy.

There are no other derivative financial instruments with a material fair value at March 31, 2025.

14. SUBSEQUENT EVENTS

Lati Paraguay

On April 26, the company signed a binding agreement to sell Lati Paraguay to Atis Group, and it entered into new 15-years' leases for approximately 280 tower sites.

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Appendix

On August 28, 2023, Millicom designated Tigo-UNE, Colombia Móvil S.A. E.S.P., Edatel S.A. E.S.P., Orbitel Servicios Internacionales S.A.S., Cinco Telecom Corp., Inversiones Telco S.A.S. and Emtelco S.A.S. (collectively, the “Colombia Unrestricted Subsidiaries”), which are the entities constituting its Colombian operations as “Unrestricted Subsidiaries” under the 4.500% Notes, the 6.625% Notes, the 5.125% Notes, the 6.250% Notes, the SEK Bond, COP Bond and several of its financing agreements.

The following supplemental consolidating financial information presents selected statement of income and statement of financial position information of Millicom and its Restricted Subsidiaries (as defined under its outstanding credit instruments) separately from such information for Millicom’s Unrestricted Subsidiaries.

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Appendix (Continued)

Unaudited Interim Condensed Consolidated Financial Statements for the three-month period March 31, 2025

 

Appendix (Continued)

Item 2

Earnings Release Q1 2025

Luxembourg, May 8, 2025

Millicom (Tigo) Q1 2025 Earnings Release

Q1 2025 Highlights*

*See page 9 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures. ** EFCF excluding disposals.

Millicom Chief Executive Officer Marcelo Benitez commented:

"2025 is off to an excellent start, as we sustained strong commercial activity levels from H2 2024, with both mobile postpaid and home net additions near record levels. In addition, the restructuring program completed in 2024 produced incremental cost savings, which more than offset the impact of weaker foreign exchange rates in three of our largest country markets. Excluding disposals, EFCF of $135 million in Q1 2025 represents an increase of $172 million compared Q1 2024, which puts the company well on track to achieve its full year targets.”

2025 Financial Targets

Millicom continues to target 2025 EFCF of around $750 million and year-end leverage below 2.5x. These targets reflect full year run-rate savings expected from efficiency measures implemented during 2024 and lower expected restructuring costs in 2025, partially offset by the impact of weaker projected foreign exchange rates and the risk of adverse legal rulings. The targets exclude the impact of strategic initiatives, such as proceeds related to the planned sale of Lati International and other assets.  

Subsequent Events

On April 15, the Company paid an interim dividend of $0.75 per share, and the Board has proposed an annual dividend of $3.00 per share to be paid in four quarterly installments, subject to approval at the Company’s annual general meeting of shareholders expected to be held on May 21, 2025.

On April 26, the company signed a binding agreement to sell Lati Paraguay to Atis Group, and it entered into a new 15-year lease for approximately 280 tower sites.

Earnings Release Q1 2025

 

Group Quarterly Financial Review - Q1 2025

Year-on-year revenue growth performance in Q1 2024 was bolstered by large B2B projects that did not repeat in Q1 2025. As a result, revenue declined 7.6% year-over-year in Q1 2025, which was also impacted by weaker foreign exchange rates in Bolivia, Colombia and Paraguay. For Bolivia, the average foreign exchange rate during the quarter was 11.59, representing a depreciation of 40.4% year-on-year, as we adopted the amendments to IAS 21.

Equipment, programming and other direct costs declined 17.4%, and Operating expenses declined 10.7% year-on-year, both reflecting savings from our efficiency program and weaker foreign exchange rates.

Depreciation and amortization declined 11.0% and 10.9%, respectively, due primarily to a temporary effect related to creation of the shared mobile network in Colombia and, to a lesser extent, to longer useful lives for fiber assets. Share of profit in our Honduras joint venture was stable at $13 million, while Other operating income increased to $72 million due to one-time gains on the sale of assets in Colombia and Nicaragua. As a result, operating profit increased 30.8%, year-on-year to $423 million.

Net financial expenses declined by $3 million year-on-year to $161 million, due to lower indebtedness as a result of debt repurchases. Other non-operating income of $28 million reflects foreign exchange gains in Bolivia. Net tax expense of $71 million was unchanged year-on-year. Non-controlling interests share of profits was $26 million in Q1 2025, and this compares to a $10 million share of losses in Q1 2024, reflecting a swing to positive net profit in Q1 2025 from net losses in Q1 2024 in our Colombian operation.

As a result of the above items, net profit attributable to owners of the company was $193 million ($1.14 per share), compared to a net profit of $92 million ($0.54 per share) in Q1 2024. Net Profit for the period includes approximately $95 million of one-time gains related to the tower sale in Nicaragua and to asset transfers to the shared mobile network in Colombia, as well as foreign exchange gains in Bolivia. The weighted average number of shares outstanding during the quarter was 169.24 million, a decline of 1.2% year-on-year from share repurchases. As of March 31, 2025, there were 172.10 million shares issued and outstanding, including 5.22 million held in treasury.

Earnings Release Q1 2025

 

Cash Flow

* See page 9 for a description of non-IFRS measures.

Equity Free Cash Flow (EFCF) excluding disposals in Q1 2025 was $135 million, compared to negative $37 million Q1 2024. The $172 million increase in EFCF over the past year is explained primarily by the following items:

Positives:

Detractors:

Earnings Release Q1 2025

 

Debt

During Q1 2025, gross debt declined $44 million to $5,772 million as of March 31, 2025, compared to $5,815 million as of December 31, 2024, as we continued to use equity free cash flow to reduce debt. Exchange rate movements also contributed to the reduction in gross debt, in U.S. dollar terms, during Q1.

As of March 31, 2025, 40% of gross debt was in local currency¹, while 83% of our debt was at fixed rates² with an average maturity of 4.4 years. Approximately 58% of gross debt was held at our operating entities, while the remaining 42% was at the corporate level. The average interest rate on our debt was 6.2%. On our dollar-denominated debt³, the average interest rate was 5.5% with an average maturity of 4.7 years.

Cash was $535 million as of March 31, 2025, a decrease of $165 million compared to $699 million as of December 31, 2024, and 74% was held in U.S. dollars. As a result, net debt was $5,275 million as of March 31, 2025, an increase of $101 million year-to-date, as EFCF generation and the benefit from weaker foreign exchange rates were more than offset by shareholder remuneration comprised of approximately $170 million paid in dividends and $119 million used to complete the $150 million share repurchase program. As a result, Leverage increased slightly, ending the quarter at 2.47x, up from 2.42x as of December 31, 2024.

* Net Debt and Leverage are non-IFRS measures. See page 9 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures.

Operating performance

The information contained herein can also be accessed electronically in the Financial & Operating Data Excel file published at www.millicom.com/investors alongside this earnings release.

Business units

We discuss our performance under two principal business units:

1. Mobile, including mobile data, mobile voice, and mobile financial services (MFS) to consumer, business and government customers;

2. Fixed and other services, including broadband, Pay TV, content, and fixed voice services for residential (Home) customers, as well as voice, data and value-added services and solutions to business and government customers.

On occasion, we also discuss our performance by customer type, with B2B referring to our business and government customers, while B2C includes residential and personal consumer groups.

Market environment

The global macroeconomic environment became more volatile in Q1, and this impacted the Colombian peso and Paraguayan guarani average foreign exchange rates, which depreciated by approximately 8% during the quarter. In Bolivia, application of Amendment of IAS 21 as of January 1, 2025, has resulted in a foreign exchange rate of 11.59 on average during Q1, representing a devaluation of 40% year-on year, impacting results during the period.  The scarcity of U.S. dollars in the country has also been impacting inflation, which reached 14.6% in March 2025, up from 10.0% as of December 2024 and 2.1% as of December 2023. As a result, we continue to prioritize the implementation of price increases in that market.  Foreign exchange rates and movements are presented on page 12.

Key Performance Indicators

The mobile business ended Q1 with 41.6 million customers, up 2.3% year-on-year and reflecting net additions of 89,000 during the period. Postpaid continued to perform exceptionally well, with net additions of 262,000. Mobile ARPU declined 5.2% year-on-year due to weaker foreign exchange rates, as a majority of countries experienced positive ARPU growth in local currency terms.  

¹ Or swapped for local currency

² Or swapped for fixed rates

³ Including SEK denominated bonds that have been swapped into US dollars.

Earnings Release Q1 2025

 

At the end of Q1 2025, Millicom fixed networks passed 13.6 million homes, an increase of 13,000. HFC and FTTH customer relationships increased 62,000 in Q1, marking a fourth consecutive quarter of positive net additions. However, revenue generating units declined again in Q1 reflecting our commercial strategy to fill under-utilized nodes and to emphasize fixed-mobile convergence, in lieu of fixed telephony services.  

* KPIs exclude our joint venture in Honduras, which is not consolidated in the Group figures.

Financial indicators

In Q1 2025, revenue declined 7.6% year-on-year to $1,374 million, while service revenue decreased 6.6% to $1,285 million. Excluding currency movements, organic service revenue was flat year-on-year, with growth in Mobile largely offset by a decline in Fixed and other services. The performance in Fixed reflects declines in Home and a in B2B, with the latter due to large projects in Panama in Q1 of 2024. Excluding the contribution from these large projects, organic service revenue growth would have been more than 2%, in line with recent trends.

Adjusted EBITDA was $636 million, up 0.6% year-on-year. Excluding the impact of foreign exchange, Adjusted EBITDA increased 6.9% organically year-on-year. Capex was $132 million in the quarter, up 16.7% year-on-year due to phasing. As a result, Operating Cash Flow (OCF) declined 2.9% year-on-year to $504 million in Q1 2025 from $519 million in Q1 2024.

* Service revenue, Adjusted EBITDA, Adjusted EBITDA margin, Capex, OCF and organic growth are non-IFRS measures. See page 9 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures.

Earnings Release Q1 2025

 

Country performance

Commentary in this section refers to performance measured in local currency terms, unless specified otherwise.

ESG highlights

In the first quarter, Millicom received its 2024 rating from CDP (formerly the Carbon Disclosure Project), maintaining a B score, alongside an unchanged AA rating from MSCI. These recognitions reflect our continued efforts to assess and manage our environmental impact, address climate-related risks, and leverage opportunities in the transition toward a low-carbon economy.

On April 8, 2025, we published the 2024 Annual Report including the Sustainability Report, structured with reference to the CSRD (Corporate Sustainability Reporting Directive) and the ESRS (European Sustainability Reporting Standards) and including disclosures following EU Taxonomy Regulation. We also published ESG-related standalone documents that complement our Sustainability Report such as our Global Reporting Index ("GRI"), our Sustainable Accounting Standards Board standards index ("SASB").

⁴ Comprised of El Salvador, Nicaragua and Costa Rica

Earnings Release Q1 2025

 

Video conference details

A video conference to discuss these results will take place on May 8 at 14:00 (Luxembourg/Stockholm) / 13:00 (London) / 08:00 (Miami). Registration for the live event is required and is available at the following link. After registering, participants will receive a confirmation email containing details about joining the video conference. Alternatively, participants can join in a listen-only mode, by dialing any of the following numbers and using webinar ID number 844-3411-0044. Please dial a number base on your location:

Additional international numbers are available at the following link.

Financial calendar

2024-2025

For further information, please contact

About Millicom

Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO^® and Tigo Business^® brands, the company provides a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of March 31, 2025, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.

Earnings Release Q1 2025

 

Forward-Looking Statements

Statements included herein that are not historical facts, including without limitation statements concerning future strategy, plans, objectives, expectations and intentions, projected financial results, liquidity, growth and prospects, are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Millicom’s results could be materially adversely affected. In particular, there is uncertainty about global economic activity and inflation, the demand for Millicom's products and services, and global supply chains. The risks and uncertainties include, but are not limited to, the following:

A further list and description of risks, uncertainties and other matters can be found in Millicom’s Registration Statement on Form 20-F, including those risks outlined in “Item 3. Key Information—D. Risk Factors,” and in Millicom’s subsequent U.S. Securities and Exchange Commission filings, all of which are available at www.sec.gov. All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Except to the extent otherwise required by applicable law, we do not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Earnings Release Q1 2025

 

Non-IFRS Measures

This press release contains financial measures not prepared in accordance with IFRS. These measures are referred to as “non-IFRS” measures and include: non-IFRS service revenue, non-IFRS EBITDA, and non-IFRS Capex, among others defined below. Annual growth rates for these non-IFRS measures are often expressed in organic constant currency terms to exclude the effect of changes in foreign exchange rates, the adoption of new accounting standards, and are proforma for material changes in perimeter due to acquisitions and divestitures. The non-IFRS financial measures are presented in this press release as Millicom’s management believes they provide investors with an additional information for the analysis of Millicom’s results of operations, particularly in evaluating performance from one period to another. Millicom’s management uses non-IFRS financial measures to make operating decisions, as they facilitate additional internal comparisons of Millicom’s performance to historical results and to competitors' results, and provides them to investors as a supplement to Millicom’s reported results to provide additional insight into Millicom’s operating performance. Millicom’s Compensation and Talent Committee uses certain non-IFRS measures when assessing the performance and compensation of employees, including Millicom’s executive directors.

The non-IFRS financial measures used by Millicom may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies - refer to the section “Non-IFRS Financial Measure Descriptions” for additional information. In addition, these non-IFRS measures should not be considered in isolation as a substitute for, or as superior to, financial measures calculated in accordance with IFRS, and Millicom’s financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated.

Non-IFRS Financial Measure Descriptions

Service revenue is revenue related to the provision of ongoing services such as monthly subscription fees for mobile and broadband, airtime and data usage fees, interconnection fees, roaming fees, mobile finance service commissions and fees from other telecommunications services such as data services, short message services, installation fees and other value-added services excluding telephone and equipment sales.

Adjusted EBITDA is operating profit excluding impairment losses, depreciation and amortization, gains/losses on fixed asset disposals, and early termination of leases.

Adjusted EBITDA Margin represents Adjusted EBITDA in relation to revenue.

Organic growth represents year-on-year growth excluding the impact of changes in FX rates, perimeter, and accounting. Changes in perimeter are the result of acquisitions and divestitures. Results from divested assets are immediately removed from both periods, whereas the results from acquired assets are included in both periods at the beginning (January 1) of the first full calendar year of ownership.

Net debt is Debt and financial liabilities, including derivative instruments (assets and liabilities), less cash and pledged and time deposits.

Leverage is the ratio of net debt over LTM (Last twelve month) Adjusted EBITDA less depreciation of right-of-use assets and Interest expense on leases, proforma for acquisitions made during the last twelve months.

Capex is balance sheet capital expenditure excluding spectrum and license costs and lease capitalizations.

Cash Capex represents the cash spent in relation to capital expenditure, excluding spectrum and licenses costs.

Operating Cash Flow (OCF) is Adjusted EBITDA less Capex.

Operating Free Cash Flow (OFCF) is Adjusted EBITDA, less cash capex, less spectrum paid, working capital and other non-cash items, and taxes paid.

Equity Free Cash Flow (EFCF) is OFCF less finance charges paid (net), lease interest payments, lease principal repayments, and advances for dividends to non-controlling interests, plus cash repatriation from joint ventures and associates.

Average Revenue per User per Month (ARPU) for our Mobile customers is (x) the total mobile and mobile financial services revenue (excluding revenue earned from tower rentals, call center, data and mobile virtual network operator, visitor roaming, national third parties roaming and mobile telephone equipment sales revenue) for the period, divided by (y) the average number of mobile subscribers for the period, divided by (z) the number of months in the period. We define ARPU for our Home customers as (x) the total Home revenue (excluding equipment sales and TV advertising) for the period, divided by (y) the average number of customer relationships for the period, divided by (z) the number of months in the period. ARPU is not subject to a standard industry definition and our definition of ARPU may be different from other industry participants.

Please refer to our 2024 Annual Report for a list and description of non-IFRS measures.

Earnings Release Q1 2025

 

Non-IFRS Reconciliations

Reconciliation from Reported Growth to Organic Growth for the Group

*Organic growth calculated by re-basing all periods to the budget FX rates of the current year. This creates small differences captured in "Other".

Adjusted EBITDA reconciliation

Adjusted EBITDA margin

ARPU reconciliations

* Refers to production services, MVNO, DVNO, equipment rental revenue, call center revenue, national roaming, equipment sales, visitor roaming, tower rental, DVNE, and other non-customer driven revenue.

** Average QoQ for the quarterly view is the average of the last quarter.

Earnings Release Q1 2025

 

Beginning in Q1 2023 the calculation of Home ARPU now includes equipment rental.

* TV advertising, production services, equipment rental revenue, call center revenue, equipment sales and other non customer driven revenue.

** Represented by homes connected all technologies (HFC/FTTH + Other Technologies + DTH & Wimax RGUs).

*** Average QoQ for the quarterly view is the average of the last quarter.

OCF (Adjusted EBITDA- Capex) Reconciliation

Capex Reconciliation

Earnings Release Q1 2025

 

Equity Free Cash Flow Reconciliation

* Equity free cash flow does not include Cash Flow from Financing Activities, such as the issuance or repurchase of shares.

Foreign Exchange rates

* Refer to the note 2 of the IAS 34 for details on the adoption of Amendment to IAS21.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 8, 2025