Millicom Earnings: Disappointing Results in Colombia and Guatemala, Patience Required

Millicom showed some signs of improvement during the third quarter. Recently appointed president and COO Maxime Lombardini also provided initial thoughts on the company, indicating that operating efficiency and debt reduction are top priorities. Lombardini formerly served as the CEO of Iliad, whose founder, Xavier Niel, is now Millicom’s largest shareholder. We expect his influence will lead to changes in Millicom’s operations, including potential divestitures or capital infusions. We are leaving our fair value estimate at $30. We believe the firm holds attractive operations in several countries, but the path ahead remains highly uncertain.