Tag Archives: Millicom

Millicom Q4 revenues up by 27%

Telecoms,

TigoMillicom – which operates in Latin America as Tigo – reported forth-quarter revenue up 27% year-on-year to USD 1.86 billion, helped by ts takeover of Une in Colombia. On an organic basis excluding currency effects and Une, revenues rose 10.8% in Q4 and were up 9.4% in the full year, in line with the company’s outlook for a high single-digit growth rate. Millicom recorded quarterly EBITDA of USD 588 million, up 10.4% year-on-year, while the margin fell to 31.6 percent from 34.1 a year ago. Excluding Une, the margin was down 2.7% points over the year to 33.3%, slightly below Millicom’s outlook for a figure in the mid 30s. Capital expenditure, excluding spectrum and licences, was in line with the outlook at 18.9 % of revenue for the full year and 24.1% in Q4.

Despite an economic slowdown in emerging markets and currency fluctuations in Q4, Millicom said it benefited from its diversified operations. It added 2.3 million new mobile customers in the three months, sold over 1.6 million smartphones, gained 1.5 million new mobile money customers and passed 5 million revenue-generating units at its cable business in Latin America.

Millicom Net Revenues Decline in Q4

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Tigo

Millicom International Cellular, Inc. – which operates in Latin America under the brand Tigo – reported a drop in fourth-quarter net revenues to USD 155 million from USD 188 million a year earlier. The profit margin is as a result of acquisitions in the region and investments in the data network. Still total revenues increased to USD 1.27 billion from USD 1.18 billion a year ago, helped by the acquisition of Cablevision in Paraguay. Revenues were up 6.4 percent year-on-year excluding currency effects and the Cablevision acquisition.

Millicom expects a smaller drop in the margin this year, and the figure should remain over 40 percent, while capex should peak at around 20 percent of sales. The company said it’s increasing its focus on costs and capex avoidance to adjust to the slowing growth in voice revenues.

The focus for 2013 will be on growing revenues from mobile data , m-payment services, cable-TV and the online activities with Rocket Internet.

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Millicom Invests in Internet Services Company

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Millicom International Cellular, which operates under the Tigo brand name, has signed a partnership agreement with Rocket Internet to jointly develop franchises in the online sector in Latin America and Africa.

Over a four year period, Millicom has the option to gradually acquire controlling stakes in two subsidiaries of Rocket Internet, which currently control 8 operating businesses with combined estimated revenues of circa EUR35 million in 2012. The two subsidiaries develop and offer services through franchises in online payments and e-commerce.

As Millicom has a clearly defined path to control, these businesses will be fully consolidated from closing and reported as a sixth category called Online.

Both holding companies are required to launch a number of new businesses in Latin America and Africa over the next 3 years. Accumulated start-up losses over the first three years of operation are expected to be below EUR250 million. Over time, Millicom expects to extend similar services to its existing markets, generating both additional revenues and costs synergies.

Upon closing, Millicom will acquire a 20% stake in both subsidiary companies, through two reserved capital increases. Millicom has been granted options to increase its stakes up to 50% without management rights over 24 months and a final option to acquire the remaining 50% of these two holdings with full management rights by no later than September 2016 at fair market value. The total consideration to be paid to acquire the first 50% will be EUR340 million in three instalments (EUR85 million upon closing expected in Q4 2012).

Mikael Grahne, Millicom’s President and CEO, commented: “We are pleased to partner with Rocket Internet to develop an online and e-commerce franchise in Latin America and Africa, where these promising sectors are nascent. Rocket Internet has a proven track record of rapidly developing successful operations in the online and e-commerce sectors. Millicom has a strong know-how of operating in the fast moving consumer goods industry in Latin America and Africa.”

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Millicom to Offer Mobile Money Transfer Services in Latin America

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Western Union has signed an agreement with Millicom to introduce cross-border mobile money transfers in Latin America though Millicom’s Tigo branded mobile networks.

The first cross-border money transfer service under this agreement will be launched soon in Paraguay under the Giros Tigo brand (Tigo Cash). The service will be rolled out over time in other markets in Latin America.

Specific services under this agreement will vary by country, but over time, Tigo customers in most of Millicom’s Latin American markets will be able to receive money from Western Union customers directly into their mobile accounts. They will also be able to cash out transactions at any Tigo location offering the Giros Tigo facility.

Millicom offers Mobile Financial Services and in particular in-market money transfers in Paraguay, El Salvador, Guatemala, Honduras, Tanzania, Ghana and Rwanda and will extend its offering to more services and into more markets over time.

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Millicom (Tigo) Quarterly Revenues Jump 13 Percent

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Millicom International — the holding company that operates as Tigo across Latin America — has reported that its third quarter revenues rose by 13.1% to $1.15 billion

Excluding currency fluctuations, revenues would have risen by 9.1% compared to a year ago. EBITDA was also up, by 9.3% % to $529 million.

However net profit plunged to US$288 million compared to US$1.2 billion a year ago – although last year had been boosted by a one-off gain of $1.06 billion on the revaluation of the Honduran operation.

Mobile customers were up 13% versus Q3 10, bringing the total customer base to 42.2 million

Mikael Grahne, President and CEO of Millicom, commented: “Our operations in Latin America demonstrated continued momentum in top line growth and ARPU stabilization, driven primarily by local currency revenue growth in mobile data of 93%. Mobile data now contributes 11% of recurring revenue in the region and fixed data 4%.”

The company however warned that it no longer sees a correlation between growth in customer numbers and future revenue growth and, overall, expects customer intake to continue to be quite volatile due to a range of factors including the macro environment, seasonality, competitor promotions and marketing activities.

The company is now focusing on 3G data and VAS customers who, on average, produce a higher additional ARPU than 2G voice-only customers.

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Millicom Quarterly Revenues Pass $1 Billion for First Time

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Telecoms holding company, Millicom International has reported a 13% rise in its revenues to US$1,018 million, while EBITDA was up 16% to $484 million.

Mikael Grahne, President and CEO of Millicom, commented: “For the first time in Millicom’s history, we have exceeded $1 billion of revenues in a quarter. Our profitability remains strong with an EBITDA level of 47.5%.

“Within a maturing voice market, our strategy aims at developing value-added services (VAS) which we see as the next growth opportunity. In Latin America we have increasingly focused on innovation and on ARPU stabilization, favoring 3G penetration over the retention of low ARPU voice customers. In Africa we are focusing on both penetration and innovation. We are pleased with the execution of this strategy and our Q3 results confirm its effectiveness: we are getting closer to a stage of ARPU stabilization with a 4.1% decline year-on-year in Q3 (excluding the country mix impact), VAS now contribute 23.3% of recurring revenues, we have 1.5 million customers using 3G data services in Latin America, up 18% over Q2, and our local currency revenue growth reached 11.7%, the highest level since the beginning of 2009.

“We maintain our commitment to the base business as shown by the growth in voice revenues of 10% year-on-year in Q3, up from 7% in Q2 and 5% in Q1. Our strong focus on branding, smart pricing and distribution has been instrumental in this achievement, allowing us to resist commoditization.

All data includes the full consolidation of Honduras from July 1, 2010. Quarterly historical data has been restated for the full consolidation of Honduras

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América Móvil – Costa Rica Cellular Bids

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América Móvil (Claro) is the only company that has confirmed its effective participation in the spectrum bidding, out of five that have expressed their interest in taking part in the process.

Cable & Wireless and Millicom are studying how the process was developing, while Digicel and Telefonica would not comment on the matter. Last week, the Costa Rican treasury controller’s office requested that telecommunications regulator Sutel amend and make corrections by 21 October to the tender that will open Costa Rica’s mobile phone market to competition. The licensing of three new mobile operators aims to break the monopoly held by state-owned Instituto Costarricense de Electricidad (ICE). The controller’s office was reacting to complaints filed by Cable & Wireless, Claro Costa Rica and Centennial Towers.

The reception of the bids is scheduled by November 5.

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Cable & Wireless and Millicom told the newspaper that they were studying how the process was developing, while Digicel and Telefonica would not comment on the matter. Last week, the Costa Rican treasury controller’s office requested that telecommunications regulator Sutel amend and make corrections by 21 October to the tender that will open Costa Rica’s mobile phone market to competition. The licensing of three new mobile operators aims to break the monopoly held by state-owned Instituto Costarricense de Electricidad (ICE). The controller’s office was reacting to complaints filed by Cable & Wireless, Claro Costa Rica and Centennial Towers.