Luxembourg, July 19th, 2018 - Growth accelerated in Q2

Q2 2018 highlights (i)

  •  Latam service revenue growth accelerated to 5.5% from 3.9% in Q1
    • Now expect growth near the top end of our full year 2018 outlook range of 2-4%
    • Mobile recovery continues, with growth of 2.1%, up from 0.9% in Q1
    • Home revenue growth accelerated to 12.6% from 7.6% in Q1
  •  Colombia revenue growth accelerated to 5.8% from 2.2% in Q1
  •  Record H1 HFC homes connected – raising full year 2018 guidance to 400k from 300k net additions
  •  Latam EBITDA growth of 4.4%, up from 1.4% in Q1
  •  Robust cash flow growth with equity free cash flow up 32.6% in Q2 and 15.7% in H1
  •  Preparing for an additional listing on a U.S. Stock Exchange next year
Group ($m) Q2 2018 Q2 2017 % change H1 2018 H1 2017 % change
Revenue 1,541 1,470 4.8% 3,057 2,929 4.4%
Service Revenue 1,437 1,376 4.4% 2,859 2,751 3.9%
     Organic growth (1) 5.3% (1.4)% 4.5% (1.6%)
EBITDA 551 524 5.2% 1,105 1,066 3.7%
     Organic growth 4.6% (1.1%) 3.0% (0.9%)
EBITDA Margin 35.8% 35.7% 36.2% 36.4%
Capex (2) 217 230 (5.8%) 374 378 (1.1%)
OCF (EBITDA – Capex) 335 294 13.8% 731 687 6.4%

Notes: (1) Organic growth excludes impact from changes in FX rates, consolidation perimeter, and accounting (IFRS 15). See page 19 for full impact of IFRS 15 adoption on our Income Statement. (2) Excludes spectrum as well as finance lease capitalizations from tower sale-leaseback transactions.

(i) The financial information presented in this earnings release is based on Alternative Performance Measures determined by the way in which the Executive Management (Chief Operating Decision Maker) manage the performance and resource allocation of the Group. It includes Guatemala (55% owned) & Honduras (66.67% owned) as if fully consolidated. With the exception of balance sheet items, the comparative 2017 financial information in this earnings release has been adjusted for the classification of our operations in Senegal, Ghana and Rwanda as discontinued operations. Our operations in Ghana have been merged with Airtel on October 12th, 2017 and are accounted for as a joint venture since that date. Our operations in Rwanda and Senegal were disposed of on January 31st and April 27th, 2018, respectively. IFRS Revenue was $1,061 million in Q2 2018; see page 19 for reconciliation with IFRS numbers.

Millicom Chief Executive Officer Mauricio Ramos commented:

“The investments we have been making are now delivering faster and more predictable organic revenue growth. In Latam, mobile revenue growth improved to more than 2%, with Bolivia leading the way with more than 6%. Home accelerated to nearly 13%, thanks to a big improvement in Colombia, where total homes connected passed an inflection point earlier this year and are now growing at an accelerating rate.

Clearly, our strategy is working, and with growth back on track, we continue to sharpen our focus on costs, and operational efficiency improvements are driving cash flow growth in many areas. We still have work to do on this front, and we have already identified opportunities to further improve operating leverage.

Subsequent Events

On July 19th 2018, we announced that we exercised our option to redeem our SEK 2,000,000,000 Senior Unsecured Floating Rate Notes due 2019 at a price equal to 101.45% plus accrued and unpaid interest. The Redemption Date will be August 9th 2018, and the Record Date will be August 2nd 2018.

We are announcing today plans to register with the U.S. Securities and Exchange Commission and to list our common shares on a U.S. stock exchange, while also maintaining our current listing on Nasdaq Stockholm, where our shares currently trade in the form of Swedish Depository Receipts.

2018 Outlook

We are reiterating our 2018 outlook, and we now expect Latam service revenue growth near the top end of our full year 2018 outlook range of 2-4%. We also expect to add 400,000 HFC homes connected, up from 300,000 previously, including approximately 52,000 homes related to an acquisition.

2018 Outlook Previous Revised
Service revenue growth (organic YoY) 2-4% Near top end of 2-4% range
EBITDA growth (organic YoY) 3-6% 3-6%
Capex Approximately $1.0 billion Approximately $1.0 billion
HFC homes passed net additions 1.0 million 1.0 million
HFC homes connected net additions 300,000 400,000*
4G smartphone data user net additions 1.0 million 1.0 million
Africa Free cash flow positive Free cash flow positive

*Includes approximately 52,000 homes added as a result of an acquisition in Guatemala.


The implementation of IFRS 15 (“Contracts with customers”) had a negligible impact on our Q2 2018 financials, similar to the effect in Q1 2018. As shown in the reconciliation table on page 19, implementation of the new standard increased total revenue by $2 million and EBITDA by $3 million, and it reduced service revenue by $19 million (-1.3%) as compared to what our results would have been if we had continued to follow the IAS 18 standard in use until year-end 2017. In order to aid comparisons with the prior year, the organic growth figures discussed throughout this report exclude the impact of this accounting change implemented as of January 1st, 2018.

Conference call details

A presentation and conference call to discuss these results will take place on July 20th, 2018 at 2:00 PM (Stockholm) / 1:00 PM (London) / 8:00 AM (New York). Please dial in 5-10 minutes before the scheduled start time to register your attendance. Dial-in numbers for the call are as follows:

Sweden:                +46 (0)8 5033 6574                            UK:                         +44 (0)330 336 9105
US:                         +1 323 794 2423                                Luxembourg:        +352 2786 1336

The access code is: 1175831

A live audio stream, presentation slides, and replay information can be accessed at

Financial calendar

Quarterly results Earnings release Conference call
Q3 2018 Oct 23 Oct 24

For further information, please contact

Vivian Kobeh, Corporate Communications Director
+1 305 476 7352 / +1 305 302 2858

Michel Morin, VP Investor Relations
+352 277 59094

Mauricio Pinzon, Investor Relations Manager
Tel: +44 20 3249 2460

About Millicom

Millicom is a leading provider of cable and mobile services dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing high-speed broadband and innovation around The Digital Lifestyle services through its principal brand, Tigo. As of December 31st, 2017, Millicom employed approximately 19,000 people and provided mobile services to approximately 51 million customers, with a cable footprint of more than 9 million homes passed. Founded in 1992, Millicom International Cellular SA is headquartered in Luxembourg and listed on Nasdaq Stockholm under the symbol MIC_SDB. In 2017, Millicom reported revenues of $6.0 billion and EBITDA of $2.2 billion.

This information was, prior to this release, inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 22:05 CET on July 19th, 2018.


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.