First quarter revenue up 8% as Millicom builds for the future

-       Revenue up 8.3% like-for-like to $1,246m

-       Record mobile data customers up by 788,000 in the quarter

-       Financial services transfers exceed $500m in March

-       EBITDA of $494m and margin within guidance

There was encouraging progress in new product areas identified for their potential when Millicom unveiled its five-year strategy for doubling growth last month, including:

-       The fastest-ever growth in new mobile data customers with 788,000 new customers using mobile data services in the quarter, an 18% increase versus the strong level of net additions achieved in the fourth quarter of 2012.

-       Recurring mobile data revenue grew by 30% year-on-year in local currency in Latin America and close to 35% for the company overall and

-       The transfer of over $500 million in March through our mobile money services network. In our most advanced market, the volume transferred was equivalent to around 15% of the local GDP in the month.

Commenting on the performance, Hans-Holger Albrecht, President and CEO of Millicom said:

“Last month, we outlined our mid-term strategy and ambition to double revenues by the end of 2017 whilst maintaining strong profitability and enhancing cash flow generation.

Our business is performing in line with our expectations with an 8.3% like-for-like increase in revenue in the first quarter. This growth represents a slight acceleration versus the previous quarter, despite the quieter Easter period falling in Q1 this year.

In MFS, we reached an important milestone as in our most advanced market of Tanzania, we shipped through our network the equivalent of around 15% of the country’s GDP in the month of March. Synergies abound: now in Ghana, food can be purchased from one of our online businesses and paid for with Tigo Cash. Such developments illustrate the opportunities ahead.

I am also delighted that during the quarter we strengthened our Corporate Responsibility activity. This is integral to our work and a vital expression of our values.”

2013 forward looking statements

We expect 2013 Group EBITDA margin to be above 40% (excluding Online) and to decline at a lower rate than over the past twelve months. The capex to revenue ratio will peak at around 20%, excluding spectrum acquisition.

In 2013 we expect the Online division to generate revenue in excess of $100 million and EBITDA losses to be in the range of $125-200 million. Losses will be on the higher side of the range if we see an opportunity to accelerate growth and ramp up launch of new businesses.

$m Q1
2013
Q1
2012
YOY % change (local currency) YTD 2013 YTD 2012 YOY % change (local currency)
Revenue 1,246 1,168 4.9% 1,246 1,168 4.9%
EBITDA (i) 494 517 (7.2%) 494 517 (7.2%)
EBITDA margin 39.7% 44.2% (4.5ppt) 39.7% 44.2% (4.5ppt)
Normalized Net Profit (ii) 143 175 143 175
Capex (iii) 193 172 193 172

(i) EBITDA: operating profit before interest, tax, depreciation and amortization; derived by deducting cost of sales, sales and marketing costs and general and administrative expenses from revenue and adding other operating income

(ii) Net profit adjusted for items such as foreign exchange movements, movements in valuation of the Honduras put option, Colombian deferred tax asset, and revaluation of previously held interests.

(iii) Excluding towers sold to, and leased back from tower companies, spectrum and assets acquired with Cablevision Paraguay.

Conference call details

A presentation and conference call to discuss results of the quarter will take place at 14.00 Stockholm / 13.00 London / 08.00 New York, on Wednesday, April 17, 2013. Dial-in numbers: +46 (0)8 5052 0189, +44 (0) 208 515 2313, or +1 480 293 1741. Access code: 461 20 46.

A live audio stream of the conference call 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 are available at www.millicom.com .

For further information, please visit www.millicom.com or contact:

President and CEO  
Hans-Holger Albrecht
Tel: +46 856 200 012

Press
Julian Eccles, VP, Corporate Communications
Tel: + 44 7720 409 374 / press@millicom.com

Investor Relations
Justine Dimovic, Director, Head of Investor Relations
Tel: +352 691 750 479 / investors@millicom.com

Millicom is a leading telecom operator dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing innovative and customer-centric digital lifestyle services to the world’s emerging markets, giving access to the world, primarily through mobile devices. The Millicom Group employs more than 10,000 people and provides mobile services, access to the internet, content and financial services to over 47 million customers. Founded in 1990, Millicom International Cellular SA is headquartered in Luxembourg and listed on NASDAQ OMX Stockholm under the symbol MIC. In 2012, Millicom generated revenue of USD 4.81 billion and EBITDA of USD 2.07 billion.

This press release may contain certain “forward-looking statements” with respect to Millicom’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other trend information.  It is important to note that Millicom’s actual results in the future could differ materially from those anticipated in forward-looking statements depending on various important factors.

All forward-looking statements in this press release are based on information available to Millicom on the date hereof.  All written or oral forward-looking statements attributable to Millicom International Cellular S.A., and Millicom International Cellular S.A. employees or representatives acting on Millicom’s behalf are expressly qualified in their entirety by the factors referred to above.  Millicom does not intend to update these forward-looking statements.


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About Us

Millicom International Cellular S.A. is a global telecommunications group with mobile telephony operations in 14 countries in Latin America, Africa and Asia. It also operates cable and broadband businesses in five countries in Central America. The Group’s mobile operations have a combined population under license of approximately 267 million people.