Millicom Continues to Take Share in Most Markets During the Fourth Quarter

Millicom continues to attract both wireless and fixed-line customers at a solid clip, though competition has maintained downward pressure on wireless pricing, particularly in Colombia. Average revenue per wireless customer was flat with the prior two quarters at $6.40 per month, more than 10% lower than prepandemic levels. Management provided little detail on its plans or outlook for 2022 as it has an analyst day on Monday, Feb. 14. The firm is also working toward a $750 million rights offering to fund a portion of the Guatemalan minority buyout, which closed last November. We expect to reduce our $64 fair value estimate about 10% to account for dilution resulting from issuing equity at the current share price, though we would expect shareholders to have the option to participate and maintain the value of their investment. We believe the shares remain undervalued.