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Millicom's 2025 Financial Report: New Dividend Policy and Shareholder Returns

$TIGO
Form 6-K
Filed on: 2025-01-15
Source
Millicom's 2025 Financial Report: New Dividend Policy and Shareholder Returns

Key Information and Insights from the Financial Report (Form 6-K)

Company Overview:

  • Registrant Name: Millicom International Cellular S.A.
  • Headquarters: 148-150, Boulevard de la Pétrusse, L-2330 Luxembourg.
  • SEC File Number: 001-38763.
  • Report Date: January 14, 2025.

Shareholder Remuneration Policy:

  • New Policy Announcement: The Board has approved a new shareholder remuneration policy with the following key components:
  • Resumption of Regular Cash Dividends: The company will resume regular cash dividend payments.
  • Sustained or Increased Dividends: The Board aims to sustain or grow cash dividends annually.
  • Capital Structure Management: The company plans to maintain a prudent capital structure with a long-term leverage target of 2.0-2.5x.

Planned Dividend Payments:

  • Interim Dividend (Already Paid):
  • $1.00 per share paid on January 10, 2025.
  • Upcoming Interim Dividend:
  • An additional interim dividend of $0.75 per share is planned for April 2025.
  • Annual General Meeting Proposal:
  • A proposal will be made to approve a total dividend of $3.00 per share payable in four quarterly installments:
    • $0.75 in July 2025
    • $0.75 in October 2025
    • $0.75 in January 2026
    • $0.75 in April 2026

Strategic Intent:

  • The new policy aims to consistently return capital to shareholders while considering the capital-intensive nature of the telecommunications business in a volatile political and macroeconomic landscape.

Regulatory Compliance:

  • The information released is in compliance with the EU Market Abuse Regulation, ensuring transparency and timely disclosure of significant corporate actions and financial data.

Additional Context:

  • Market Context: Millicom operates in the Latin American telecommunications market, which is characterized by high capital requirements and regulatory scrutiny.
  • Operational Scale: As of September 30, 2024, Millicom provided services to over 46 million customers and employed approximately 15,000 people.

This financial report indicates a positive shift in Millicom's approach to shareholder returns, with a clear commitment to dividends and a structured capital management strategy. The forthcoming dividends and the strategic focus on sustaining cash flows reflect confidence in the company's operational performance amidst regional challenges.