Millicom's Q3 revenue jumps 61%, beats expectations

Overview

• Luxembourg-based telecom provider's Q3 revenue rose 60.8% yr/yr, beating analyst expectations

• Adjusted EBITDA grew 57.7% yr/yr, while net profit fell 49.9%

Outlook

• Millicom maintains 2026 equity free cash flow guidance of around $1.1 bln

• Company remains on track for year-end leverage target of below 2.5x

• Millicom says priorities remain network investment, efficiency, and cash flow generation

Result Drivers

• EFFICIENCY INITIATIVES - Co said improved operational efficiency contributed to profitability and cash flow growth

• PREPAID-TO-POSTPAID MIGRATION - Co said migration strategy improved customer retention and ARPU

• PRICING STRATEGY - Co said 'more-for-more' pricing led to higher revenue per user

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Millicom International Cellular S.A. is $93.50, about 21.3% above its November 4 closing price of $77.09

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)