Millicom International Cellular S.A. reported third‑quarter 2025 results that surpassed analyst expectations across the board. Total revenue rose to $1.42 billion, a 1.4 % increase over the $1.40 billion consensus estimate, while earnings per share reached $1.17, an 80 % beat on the $0.78 consensus. Adjusted EBITDA hit a company record of $695 million, translating into a margin of 48.9 %, the highest in Millicom’s history.
The EPS surprise was driven by disciplined cost management and operational leverage. Millicom maintained a strong cost base while expanding its high‑margin digital services portfolio, which offset the modest decline in traditional mobile service revenue. The company’s ability to keep operating expenses in line with revenue growth allowed it to convert the full‑year earnings beat into a substantial per‑share gain, a result that analysts noted as a testament to the company’s cost discipline and pricing power.
Revenue growth was largely powered by a 3.5 % year‑over‑year increase in mobile subscriber additions and an average revenue per user (ARPU) lift in key markets. Digital services—cloud, cybersecurity, and SD‑WAN—contributed a significant share of the top‑line, reflecting the company’s strategic shift toward higher‑margin offerings. The combination of subscriber growth and service‑mix shift helped offset the slight year‑over‑year decline in total service revenue, which was driven by a modest contraction in legacy prepaid segments.
Millicom completed the acquisition of Telefónica’s operations in Uruguay and Ecuador, adding $440 million and $380 million in enterprise value, respectively. The deals expanded the company’s footprint to 11 countries and increased its subscriber base by 1.2 million. In addition, the company closed a $975 million tower transaction with SBA Communications, strengthening its infrastructure portfolio and improving capital efficiency. These transactions are expected to enhance scale, reduce leverage, and provide a platform for future growth.
Guidance for 2025 remains unchanged: Millicom targets $750 million in equity‑free cash flow and a leverage ratio below 2.5×. The company reiterated confidence in its operating model, citing continued demand for digital services and the momentum from recent acquisitions. Management emphasized that the company’s cost discipline and strategic investments position it well to sustain profitability and deliver shareholder value throughout the year.
Millicom’s market reaction reflected the strength of the results. The company’s stock advanced 2.09 % in pre‑market trading, driven by the EPS and revenue beats, record adjusted EBITDA, and the successful completion of strategic acquisitions. Analysts highlighted the company’s ability to generate high margins and maintain a robust cash‑flow outlook, while noting potential headwinds such as foreign‑exchange volatility and legal settlement risks that could impact future guidance. Overall, the market viewed the earnings as a positive sign of operational resilience and strategic execution.
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