Livia De Luca

Livia De Luca asked about the sustainability of Millicom's consistently rising margins, particularly for the Colombian operations, and what to expect in 2026 given the deal process. She also questioned if Q4 margin levels for Ecuador and Uruguay are a good proxy for 2026 and inquired about Millicom's M&A appetite for new countries like Brazil, Mexico, Venezuela, and Argentina, as well as capital allocation plans.

Answer

CEO Marcelo Benitez attributed margin expansion to ongoing efficiency programs and accelerating top-line growth, which provides operating leverage. He stated that Colombia's strong performance, driven by mobile and Home base growth and efficiencies, positions it to join the 'Club Fifty.' For Ecuador and Uruguay, he confirmed Phase I efficiencies are complete, with margins improving from ~30% to over 40%, and expects further gains. CFO Bart Vanhaeren outlined the M&A strategy, prioritizing turning around acquired businesses and in-market consolidation, while excluding larger markets like Mexico and Brazil, and focusing on potential adjacencies like Peru and Venezuela.