Millicom (TIGO) Is Up 6.2% After Earnings Jump Despite Sales Drop and Higher Dividend

• Millicom International Cellular S.A. recently reported its second quarter 2025 results, posting net income of US$676 million and basic earnings per share of US$4.05, despite a year-over-year decrease in sales to US$1.37 billion.
• This substantial rise in profitability, coupled with the approval of an interim dividend of US$2.50 per share, points to enhanced operational efficiency and strong shareholder returns even as revenues decreased.
• We’ll explore how robust earnings growth, even alongside falling sales, might influence Millicom’s investment narrative going forward.

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Millicom International Cellular Investment Narrative Recap

To own shares in Millicom International Cellular, investors need to believe that ongoing operational improvements and capital returns can offset concerns about slowing top-line growth and competition in key Latin American markets. The recent surge in earnings and newly announced dividend support optimism for near-term shareholder value, but these results do not meaningfully change the immediate risk that future earnings gains could be pressured if revenue declines persist and ARPU initiatives slow.

The most relevant update is the board’s approval of a US$2.50 per share interim dividend, underscoring management’s current confidence in cash generation and capacity for shareholder returns, even while sales trended lower. This action highlights a positive near-term catalyst for returns but brings renewed focus to how ongoing capital expenditures and emerging competition may influence sustainability.

However, while dividends are flowing, investors should be aware that persistent revenue headwinds and intensifying price competition could...

Read the full narrative on Millicom International Cellular (it's free!)

Millicom International Cellular's outlook forecasts $5.9 billion in revenue and $628.3 million in earnings by 2028. This assumes a 1.7% annual revenue growth rate and a $326.7 million earnings decrease from the current $955.0 million.

Uncover how Millicom International Cellular's forecasts yield a $43.15 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Five individual fair value estimates from the Simply Wall St Community range widely from US$35 to almost US$86 per share. As you weigh these divergent opinions, remember that competitive pressures and slowing ARPU growth could affect future earnings and returns in ways analysts and retail investors may not fully anticipate.

Explore 5 other fair value estimates on Millicom International Cellular - why the stock might be worth 22% less than the current price!

Build Your Own Millicom International Cellular Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Millicom International Cellular research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Millicom International Cellular research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Millicom International Cellular's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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