Leonardo Ormos

Leonardo Ormos asked about the competitive environment and operational/balance sheet conditions of the newly acquired Chilean operations, and requested more color on the Equity Free Cash Flow (EFCF) guidance for 2026, specifically regarding impacts from integrations and the acquired operations in Uruguay and Ecuador.

Answer

CEO Marcelo Benitez highlighted Chile's strong macroeconomics and investment-grade status, noting Millicom's number one position in home subscribers and number two in mobile. He detailed the rapid execution of their playbook, including new leadership appointments and downsizing, aiming for EFCF neutrality in Chile this year. CFO Bart Vanhaeren clarified the 2026 EFCF guidance, starting from an organic $864 million (plus $180 million DOJ settlement), with low to mid double-digit contributions from Uruguay and Ecuador. He acknowledged risks from Coltel's negative EFCF run rate, restructuring costs, and acquisition debt, but also potential upsides from favorable currency, aiming for a balanced $900 million EFCF. He also set a medium-term ambition for acquired operations to converge to 15% EFCF to revenue.