Millicom Q1 2017 Results, 26 April 2017

News provided by

Millicom International Cellular

26 Apr, 2017, 06:22 GMT

LUXEMBOURG, April 26, 2017 /PRNewswire/ --

Millicom International Cellular S.A. 

Q1 Highlights (i)

  • Continued delivery towards our strategic goals
    o    Record 370,000 new HFC homes passed – 8.4 million total homes passed
    o    4G subscriber base grew by almost 400,000 to 3.8 million
    o    Mobile data and cable in Latam generated 53.4% of total group service revenue
  • Latam service revenue evolution improved significantly
    o    B2C mobile data revenue grew by 20.0% (ii)o    Home cable revenue grew by 7.3% (ii)
    o    Improving trend continued in Colombia
  • Weaker quarter in Africa held back Group service revenue growth (ii)
  • Enhanced operational and capital efficiency with Tower deal in Paraguay
  • Agreement signed with Airtel to combine operations in Ghana

Summary of key financial indicators

$m (excluding Senegal) 

Q1 2017

Q1 2016

% change

Revenue

1,505

1,499

0.4%

    Organic growth (ii)

(2.2%)

1.8%

-

Service revenue

1,421

1,408

0.9%

    Organic growth (ii)

(1.5%)

3.7%

-

EBITDA (iii)

555

539

2.8%

    Organic growth (ii)

0.0%

6.2%

-

EBITDA margin

36.8%

36.0%

-

Capex (ex spectrum)

155

193

(19.6%)

OCF (EBITDA – Capex )

399

346

15.4%

Net debt

4,201

4,419

(4.9%)

(i) The financial information presented in this earnings release is with Guatemala (55% owned) & Honduras (66.7% owned) as if fully consolidated. IFRS Revenue was $1,043 million in Q1 2017; see page 21 for reconciliation with IFRS numbers. With the exception of balance sheet items, the comparative 2016 financial information in this earnings release has been adjusted for the classification of our operations in Senegal as discontinued operations (in accordance with IFRS 5).

(ii) Organic growth represents year-on-year growth in local currency at constant perimeter, and includes regulatory changes. See page 20 for reconciliation with reported measures. See page 19 for definition of Alternative Performance Measures.

(iii) We are no longer using Adjusted EBITDA as a key financial indicator as we no longer deem it relevant.

Millicom Chief Executive Mauricio Ramos commented:

"Across Latam we are off to a good start in 2017, maintaining the rapid build-out of our HFC network and continuing to grow our 4G customer base. Our strategic focus on high-speed data, both mobile and fixed, is starting to pay off, driving improved service revenue growth for the region in the quarter.

Mobile data and cable in Latam now generate more than 53% of the group's service revenue, and this underpins our confidence that growth should continue to improve throughout 2017 and over the medium term. Although challenges remain, I am encouraged with our results in Colombia, where service revenue growth and margins improved.

At the Group level, we added 80 basis points year-on-year to our EBITDA margin, as we continue to pursue operating efficiencies. We remain on target to deliver on our goals for 2017.

Subsequent Events

On 26 April, 2017, we announced an agreement to sell approximately 1,400 wireless communications towers to a subsidiary of American Tower Corporation ("ATC") in Paraguay. As a result of this transaction, Tigo Paraguay will receive approximately Gs700 billion, equivalent to US$125 million, in cash.

2017 Outlook                                                                                                                               

Based on constant currency, at a constant perimeter with Guatemala and Honduras fully consolidated, and on our current assessment of the macroeconomic outlook, we currently expect for 2017:  

Outlook

Service revenue (a)

Low single-digit % organic growth

EBITDA

Mid-to-high single-digit % organic growth

Capital expenditure

In line with 2016

Operating Cash Flow (b)

Growth around 10%

(a) Service revenue is Group revenue excluding telephone and equipment sales

(b) Operating Cash Flow is underlying EBITDA less capex (excluding spectrum and license costs)

Conference call details

A presentation and conference call to discuss these results will take place at 14.00 Stockholm / 14.00 Luxembourg / 13.00 London / 08.00 New York, on Wednesday 26 April.   Dial-in numbers:

Sweden             + 46 (0) 8-5065-3942
UK                     + 44 (0) 330-336-9411
US                     + 1 719-325-2385
Luxembourg      + 352-2787-0187

Access code:    6804594

A live audio stream of the analyst presentation can also be accessed at www.millicom.com.  Please dial in / log on 10 minutes prior to the start of the conference call to allow time for registration. Slides to accompany the conference call will be available at www.millicom.com.

Financial calendar

Millicom will publish Results for 2017 Second Quarter on Wednesday 20 July 2017. 

Contacts

Investor Relations

Michel Morin
+352-277-59094

Mauricio Pinzon
+44 (0) 20-3249-2460
investors@millicom.com 

Press Enquiries

Vivian Kobeh,
Corporate Communications Director
Tel: +352-277-59084 / +1-305-476-7352
Mobile +1-305-3022858
press@millicom.com

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