Millicom's Effort to Reshape the Latin American Telecom Market Is Coming Into Focus

Millicom's current management team, which essentially took over in mid-2023, has led an impressive cost-cutting program that has sharply improved profitability and cash flow without affecting revenue. Given the attractive competitive dynamics in several countries, like Guatemala and Panama, we expect these improvements to persist. In addition, management is now applying its cost-cutting acumen to new markets, picking up assets in Latin America from Telefónica. These operations provide an opportunity to grow cash flow and, in the case of Colombia, dramatically improve competitive dynamics.