Millicom International Cellular stock took a sharp hit, dropping about 7% today, even as the quarter delivered headline numbers many telecom investors usually want to see. Service revenue reached about US$2.0b and adjusted earnings before interest, tax, depreciation and amortisation climbed to a record US$1.0b, with a strong equity free cash flow print of US$327m.

For a company often framed as a balance between growth and balance sheet risk, that selloff sets up a clear tension. The market marked the price down. The reported cash generation and record profitability present a more complicated story that this article will unpack.

Love Millicom International Cellular’s record profitability and solid equity free cash flow but worried about…