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Millicom International Cellular SA, the Latin American telecommunications group controlled by French billionaire Xavier Niel, increased third-quarter revenue by 61% after taking over former Telefónica SA businesses in Colombia, Ecuador and Uruguay, but its net profit fell by half on one-time charges.
Revenue rose to $2.28 billion in the three months to Sept. 30 from about $1.42 billion a year earlier, the company said in its results on Nov. 5. Excluding acquisitions, revenue grew 4.8%. Adjusted earnings before interest, taxes, depreciation and amortization increased 57.7% to $1.09 billion.
Net profit attributable to shareholders fell 49.9% to $98 million, or 58 cents a share, from $195 million, or $1.17, in the same period last year. The company has booked $149 million of restructuring costs so far this year and took a $99 million litigation settlement in Guatemala and a $32 million goodwill impairment in Costa Rica.
"We delivered another strong quarter, driven by solid execution and the commitment of our teams across Latin America," Chief Executive Officer Marcelo Benitez said.
Bigger, with more debt
The jump in sales reflects a string of deals that have turned Millicom, which operates under the Tigo brand, into one of the largest telecom operators in Latin America. It bought Telefónica's units in Ecuador and Uruguay in October 2025 and completed the purchase of 67.5% of Colombia Telecomunicaciones, known as Coltel, in February. It later bought the remaining Tigo Colombia shares from Empresas Públicas de Medellín and the 32.5% of Coltel held by Colombia's government.
The deals have added debt. Millicom's net debt stood at $8 billion at the end of September, or 2.53 times adjusted EBITDA, down from 2.73 times at the end of June. The company is aiming to bring that ratio below 2.5 times by the end of the year.
Equity free cash flow, the measure Millicom uses for cash available to shareholders, was $316 million in the quarter and $867 million for the year so far. The company kept its full-year target of about $1.1 billion.
Shareholders are being paid an annual dividend of $3 a share in four quarterly installments of 75 cents, and the board has added an extra 75 cents a share to the payments due in January and April 2027.
Niel's bet on Latin America
Niel, the founder of French telecom group Iliad SA, has built a stake of about 40% in Millicom through his investment company Atlas Investissement. Atlas made an offer for the rest of Millicom in 2024 that it later dropped, and Niel has since used the company to expand in the region.
Niel's fortune is estimated at $16.7 billion by the Bloomberg Billionaires Index.
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