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    Why Millicom International Cellular (TIGO) Is Up 7.0% After Surging Q2 Net Income and New Dividend Announcement

    Simply Wall St·08/08/2025 15:27:51
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    • Millicom International Cellular S.A. recently reported second quarter 2025 earnings with net income rising sharply to US$676 million despite a decline in sales compared to the previous year.
    • The company also announced an interim dividend of US$2.50 per share, distributed in two installments for shareholders in October 2025 and April 2026.
    • We'll now explore how Millicom's substantial improvement in quarterly profitability may influence its investment thesis and future outlook.

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    Millicom International Cellular Investment Narrative Recap

    To be a Millicom International Cellular shareholder, you need to believe in the company’s ability to drive sustained cash flow growth through ongoing operational improvements and effective capital allocation in Latin America. The recent surge in net income for Q2 2025, despite a decline in sales, highlights efficiency gains, but the most important short-term catalyst, execution of price increases in competitive markets, remains unaltered, while currency and market risks persist without material change from this news.

    The announced interim dividend of US$2.50 per share, paid in two installments, stands out for its relevance to Millicom’s commitment to shareholder returns. In the context of the company’s improved profitability, this dividend reflects confidence in cash flow strength, though investors should still watch for any impacts from external market pressures on future distributions.

    However, investors should be aware that despite rising net income, the risk from currency volatility, especially regarding the Colombian peso, may yet prove critical for...

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

    Millicom International Cellular's narrative projects $5.9 billion in revenue and $609.3 million in earnings by 2028. This requires 1.0% yearly revenue growth and a $252.3 million earnings increase from $357.0 million today.

    Uncover how Millicom International Cellular's forecasts yield a $41.05 fair value, a 4% downside to its current price.

    Exploring Other Perspectives

    TIGO Community Fair Values as at Aug 2025
    TIGO Community Fair Values as at Aug 2025

    Five different community estimates on Millicom’s fair value span from US$35.00 to US$83.72 per share, highlighting a wide spectrum of views on the company’s outlook. While expectations for continued cash flow growth remain pivotal, competitive pressures in key markets may impact those forecasts so it pays to consider several points of view.

    Explore 5 other fair value estimates on Millicom International Cellular - why the stock might be worth as much as 95% more than the current price!

    Build Your Own Millicom International Cellular Narrative

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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.