Tag Archives: Tigo

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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UNE and Tigo to launch its LTE network in September 2011

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UNE EPM president, Horacio Vélez, said that the plan to launch LTE is still on schedule and for next September they will launch the service commercially. The main aim of the company in Medellin is to reach a 15% market share in Bogota.

Based on this infrastructure, UNE seeks to position itself as the third fixed-mobile player in the country. The official even mentioned that the state company and a subsidiary of Millicom could become UNE Tigo or only UNE.

Concerning the Vive Digital plan, launched last October, Velez said in an interview to “La República” that “the numbers can be made, but it is important to increase the coverage of networks to bring connectivity to areas such as SMEs and lower strata”.

Source: La República – Colombia

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Millicom Sees Profits Increase by 14%

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Millicom International, which operates under the Tigo brand, has reported a 14% rise in second quarter revenues of US$929 million, while its customer base rose by 19%, bringing total customers to 36.7 million. The company recorded a net profit of US$134.29 million versus US$114.27 million a year ago.

Mikael Grahne, President and CEO of Millicom, commented: “Our customer market share continues to increase. Growth has accelerated in South America, with all three of our markets performing strongly. In Central America, although remittances have shown some early signs of recovery, we continue to face headwinds from a weak economic environment and the impact of new taxes and interconnect cuts introduced in previous quarters. We believe that this region can return to growth, driven by our focus on innovation and the major opportunity that 3G presents, given the latent demand for internet access.”

“ARPU in local currency declined further, but at a slower rate despite increasing taxes and regulation. In South America, local currency ARPU was up 2%, as a result of strong execution on 3G and value-added services (“VAS”). VAS revenues across the Group were up 29% in local currency, with non-SMS services being the main driver.”

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