Millicom Reports Sharp Drop In Net Profit Despite Record Cash Flow And Strong Revenue Growth
In its second-quarter 2026 earnings report, Millicom International Cellular (NASDAQ:TIGO) reported a significant drop in net profit attributable to company owners by 83.9% year-over-year to $109 million despite strong revenue and cash flow growth. Revenue surged 59.4% to $2.18 billion while Adjusted EBITDA reached an all-time high of $1.01 billion, up 58%. The company also generated a record quarterly equity free cash flow of $327 million. Millicom's leverage ratio decreased to 2.73x despite recent acquisitions in Colombia, Ecuador, and Uruguay. Management announced additional dividends and raised its full-year equity free cash flow guidance from at least $900 million to around $1.1 billion. However, organic revenue growth was much more modest—just 4.3% for the quarter—and capital spending increased significantly. The divergence between strong EBITDA performance and declining net profit raises questions about sustainability and operational efficiency. While institutional ownership slightly declined in recent quarters, short interest remains low at 3.50%, indicating limited bearish sentiment.
Tickers: $TIGO
Topics: acquisitions cash flow dividend announcement earnings