Millicom Q1 2017 Results, 26 April 2017

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

(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:  

(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

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 (http://www.millicom.com/investors/reporting-centre).

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 telecom and media company in Latin America and Africa.  Millicom sets the pace when it comes to providing innovative and customer-centric digital lifestyle services through its principal brand, Tigo.  As of December 2016, Millicom employed more than 16,000 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 USD 6.25 billion and EBITDA of USD 2.22 billion.

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