Milicom: Leaner, Stronger, But Still Uncertain

Summary

  • Millicom offers strong growth potential in Latin America via fibre broadband and mobile money, but faces structural and regulatory uncertainties.
  • Recent restructuring boosted cash flow and reduced leverage, yet long-term cost discipline and FX risks remain unresolved concerns.
  • Competitive advantages exist in last-mile fibre and bundling, but regulatory trends will likely erode margins over time.
  • Despite 2024's turnaround, the current valuation lacks a margin of safety, so I cannot justify a buy at these levels.

Proximus HDPE tube empty fiber pipes

Thierry Hebbelinck

Business Overview and Thesis

Milicom (NASDAQ:TIGO), through its Tigo brand, provides fiber broadband, pay-TV and mobile-money platforms across a number of fast-growing Latin-American economies. Fiber broadband is growing fast as more people work, study, stream and game from home. Mobile-money are essentially

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