Millicom International Cellular S.A. “Best quarter ever for net subscriber additions”

Q2 2017 Highlights (i)

  • Best quarter ever for net additions of 4G mobile and HFC customers
    • 1.2 million 4G mobile net additions to 5.0 million subscribers
    • 68,000 new HFC homes connected to 2.2 million
  • High-speed data network expansion continues at a brisk pace, consistent with our strategic goals
    • 328,000 new HFC homes passed – 1.2 million added in last twelve months
    • Raising our long-term ambition to 15 million homes passed.
  • Service revenue 0.2ppts higher than Q1 at -1.3%
    • Five out of six Latam countries showing better growth in Q2 than Q1 (ii)
  • Group EBITDA declined 1.3% organically as market conditions remain challenging in Africa region.
  • Solid cash flow generation continues, with H1 equity free cash flow (iii) up $82 million year-on-year
  • Further balance sheet optimisation with agreement to sell 1,200 towers in Colombia

Summary of key financial indicators

$m (excluding Senegal)  Q2 2017 Q2 2016 % change H1 2017 H1 2016 % change
Revenue 1,517   1,540   -1.5%  3,022   3,039   -0.6% 
    Organic growth (ii) -1.8%  0.3%  -2.0%  1.0% 
Service revenue 1,423   1,439   -1.1%  2,843   2,846   -0.1% 
    Organic growth (ii) -1.3%  1.7%  -1.4%  2.7% 
EBITDA 535   538   -0.5%  1,090   1,077   1.2% 
    Organic growth (ii) -1.3%  2.4%  -0.7%  4.3% 
EBITDA margin 35.3%  34.9%  36.1%  35.5% 
Capex (ex spectrum) 242   216   12.2%  396   411   -3.6% 
OCF (EBITDA – Capex ) 293   322   -9.0%  694   667   4.1% 

(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 $1,048 million in Q2 2017; see page 18 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) Equity Free Cash Flow is Operating Cash Flow less taxes paid, interest paid (net) and advances for dividends to non-controlling interests.

Millicom Chief Executive Mauricio Ramos commented:

“We are pleased with our Q2 results. Overall, our Latam operations saw continued signs of improvement; it was our strongest ever quarter in terms of customer net additions for both our mobile 4G and our fibre-cable network; we are getting better at deploying our HFC network faster and more cost-effectively; and we continue to see strong customer ARPU. As a result, we are raising our long-term ambition to reach 15 million homes passed over the long term, up from our previous target of 12 million previously.

Although we still face challenges in the Latam region, results to date are progressing mostly in line with our plans.  Revenue growth is improving in all Latam markets except Colombia, driven by robust growth in mobile data and in our Home segment. In Colombia, where we still have a lot of work to do, the strong customer growth during Q2 gives me confidence that the second half of the year will be better than the first.

We continue to rapidly expand our high-speed data networks to meet the growing needs of our customers, eager to adopt the Digital Lifestyle. At the same time, we strive to be a responsible corporate citizen and have a positive impact in the countries and communities where we operate. I am very proud that we were recently recognized as a Top 20 Great Places To Work in Latin America, and we received the prestigious Andesco Award for Corporate Social Responsibility in Colombia.

In Africa, our primary objective this year is to ensure that the region can fund itself going forward. We remain confident that we will achieve this goal in 2017 notwithstanding the challenging operating conditions that we have seen year-to-date.

At the Group level, we remain laser-focused on identifying and extracting operating efficiencies, and we produced 40 basis points of margin expansion year-on-year while delivering significant customer net additions during the quarter.”

2017 Outlook

Our 2017 full year outlook, based on constant currency and at a constant perimeter with Guatemala and Honduras fully consolidated, remains unchanged as summarized in the table below. We expect results near the low-end of this guidance, mostly to reflect weaker than expected results from our African operations.  We continue to anticipate achieving equity free cash flow breakeven for the Africa region. Meanwhile, our Latin America region is trending in line with our expectations.     

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 EBITDA less capex (excluding spectrum and license costs)

Subsequent Events

On July 4, 2017, our Paraguayan subsidiary signed a five-year loan agreement with the IPS (Instituto de Prevision Social) and the Inter-American Development Bank for a total amount of PYG 367,000 million (approximately US$66 million). The loan, denominated in local currency, will carry a 9.75% interest rate and start amortizing in Q4 2019.

On Friday July 14, 2017, the International Commission Against Impunity in Guatemala (CICIG), disclosed an ongoing investigation into alleged illegal campaign financing that includes a competitor of Comcel, our Guatemalan joint venture.  The CICIG further indicated that the investigation would include Comcel. Currently, we have no further information regarding the scope or status of the investigation.

On July 18, 2017, we announced that our subsidiary, Colombia Móvil (“Tigo”), signed an agreement to sell approximately 1,200 wireless communications towers to a subsidiary of American Tower Corporation in Colombia. As a result, Tigo will receive approximately COP 448 billion, equivalent to US$147 million, in cash.

Conference call details

A presentation and conference call to discuss these results will take place on 20 July 2017 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 5065 3942                              UK:                   +44 (0) 330 336 9411
US:                   +1 719-325-2226                                    Luxembourg:   +352 2787 0187

The access code is: 5088688

A live audio stream and slides of the analyst presentation can also be accessed at  

Financial calendar

24 October 2017 (after US market close) - Third Quarter 2017 Results
25 October 2017 - Third Quarter 2017 Results Conference Call



Michel Morin +352 277 59094
Mauricio Pinzon +44 (0) 20 3249 2460


 Vivian Kobeh +352 277 59084

Risks and uncertainty factors

Millicom operates in a dynamic industry characterized by rapid evolution in technology, consumer demand, and business opportunities. Combined with a focus on emerging markets in various geographic locations, the Group has a proactive approach to identifying, understanding, assessing, monitoring and acting on balancing risks and opportunities. For a description of risks and Millicom’s approach to risk management, please refer to the 2016 Annual Report (

In addition to the information in the 2016 Annual Report and the information provided in this release, please refer to Millicom’s press release, dated October 21, 2015, entitled “Millicom reports to authorities potential improper payments on behalf of its Guatemalan joint venture.” At this time, Millicom cannot predict the outcome or consequences of this matter.

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, including those included in this release. 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.

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 innovative digital lifestyle services through its principal brand, Tigo. As of December 2016, Millicom employed about 18,000 people and provided mobile services to more than 57 million customers, with a Cable footprint of more than 8.1 million homes passed. Founded in 1990, Millicom International Cellular SA is headquartered in Luxembourg and listed on NASDAQ OMX Stockholm under the symbol MIC. In 2016, Millicom generated revenue of $6.25 billion and EBITDA of $2.17 billion.


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.