Millicom International Cellular NASDAQ: TIGO reported second-quarter 2026 service revenue of $2 billion, up 5.4% organically year over year and 60.1% on a reported basis, as its prepaid-to-postpaid migration strategy, pricing actions and recent acquisitions supported growth. Adjusted EBITDA reached a company record of $1 billion, while equity free cash flow rose more than 50% from a year earlier to a record $327 million.
Chief Executive Officer Marcelo Benítez said the results reflected continued execution on customer service, pricing, efficiency and cash-flow priorities while the company integrates recently acquired businesses. He said the company’s acquisitions were already equity-free-cash-flow accretive within their first year, including their associated financing costs.
Based on first-half results and visibility into the rest of the year, Millicom raised its 2026 equity free cash flow guidance to about $1.1 billion from a prior target of at least $900 million. The company also now expects year-end leverage to fall below 2.5 times, compared with leverage of 2.73 times at the end of the second quarter.
The board approved an additional interim dividend of $1.50 per share, payable in two installments of $0.75 per share in January and April 2027.
Mobile, Home and B2B Performance
Mobile service revenue increased 6.9% organically year over year to $1.2 billion. Benítez said the company’s “more for more” prepaid strategy is designed to offer customers more data and connectivity while supporting sustainable average revenue per user growth. Millicom also continued to migrate selected prepaid customers to postpaid plans, with about two-thirds of new postpaid sales coming from those migrations.
Excluding mergers and acquisitions, postpaid net additions increased by 167,000 sequentially. Millicom’s postpaid customer base has expanded more than 31% over the past year, Benítez said. Conversion rates had softened temporarily after the Coltel acquisition in Colombia as the company aligned commercial practices, but have since returned to historical levels, according to management.
Home service revenue rose 3% organically to $513 million. The company said disciplined pricing, higher-value broadband offers, fixed-mobile convergence and FIFA World Cup content supported the result. Benítez noted that subscriber reporting normalization in Colombia affected reported prepaid and home subscriber figures, but said this reflected an accounting and reporting alignment rather than underlying business deterioration.
Source: MarketBeat
