Millicom Boosts Colombia Footprint with Key Acquisitions, Eyes Chile Turnaround
Event summary
- Millicom reported Q1 2026 revenue of $2 billion, up 4.2% organically and 45.1% as reported, driven by recent acquisitions in Colombia, Ecuador, and Uruguay.
- Operating profit declined slightly by 1.2% year-on-year to $416 million, while adjusted EBITDA rose 35.5% to $857 million, including $119 million from acquisitions.
- Net profit attributable to owners dropped 43.4% to $109 million, reflecting integration and restructuring costs from recent deals.
- Equity free cash flow increased 66.5% year-on-year to $225 million, excluding last year's infrastructure sale.
- Millicom completed the acquisition of the remaining 32.5% stake in Coltel from La Nación de Colombia post-quarter-end.
The big picture
Millicom's aggressive expansion in Colombia through strategic acquisitions underscores its focus on consolidating key Latin American markets. The company's efforts to apply its operational playbook to Telefónica Chile highlight a broader trend of telecom operators seeking scale and efficiency in fragmented regions. However, the financial burden of these moves—evidenced by declining net profit and elevated leverage—poses a critical test of execution against ambitious cash flow targets.
What we're watching
- Integration Challenges
- How Millicom will manage the operational and financial integration of recent acquisitions in Colombia, Ecuador, and Uruguay, particularly the restructuring costs impacting near-term profitability.
- Chile Turnaround
- Whether NJJ-led efforts to stabilize ARPU, reduce leverage, and resize Telefónica Chile's organization will yield sustainable improvements in financial performance.
- Cash Flow Discipline
- The pace at which Millicom can achieve its 2026 target of $900 million in equity free cash flow while maintaining leverage around 2.5x.
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