Question · Q4 2025
Livia Manzotta inquired about the sustainability of Millicom's consistently rising margins, particularly for the Colombian operation and expectations for Ecuador and Uruguay. She also asked about Millicom's M&A appetite for new countries like Brazil, Mexico, Venezuela, and Argentina, and their capital allocation strategy.
Answer
CEO Marcelo Benitez attributed margin expansion to ongoing efficiency programs and accelerating top-line growth, leading to better operating leverage. For Colombia, he noted 10% year-over-year growth in mobile and home, driving scale and efficiency, and expressed confidence in Colombia joining the 'Club Fifty' (50%+ EBITDA margin). For Ecuador and Uruguay, he stated they are already operating as 'business as usual,' having moved from ~30% to >40% margins through 'phase one' efficiencies, with 'phase two' and top-line growth expected later. CFO Bart Vanhaeren emphasized focusing on turning around current acquisitions (Uruguay, Ecuador, Chile). He outlined M&A strategy: in-market consolidation (Panama, Nicaragua, Colombia done; others remaining), adjacent markets (Peru, Venezuela, explicitly excluding Mexico, Brazil, and Argentina), and minorities (Honduras, Chile JV for longer term).
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