MILLICOM INTERNATIONAL CELLULAR S.A. RESULTS FOR THE 3 MONTH PERIOD ENDED SEPTEMBER 30, 2010
(Nasdaq Stock Market: MICC and Stockholmsbörsen: MIC)
Q3 Highlights
All data includes the full consolidation of Honduras from July 1, 2010. Quarterly historical data has been restated for the full consolidation of Honduras
Reported revenues up 13% to $1,018 million (Q3 09: $904 million)
Organic local currency revenues up 11.7% versus Q3 09
EBITDA up 16% to $484 million (Q3 09: $418 million)
EBITDA margin of 47.5% (+1.3 percentage points vs Q3 09)
Mobile customers up 18% versus Q3 09, bringing total customers to 37.4 million
Basic earnings per common share * of $1.34 (Q3 09: $1.31) (excluding revaluation of previously held interest)
Free cash flow of $203 million (Q3 09: $108 million)
* Includes discontinued operations but excludes the gain on the revaluation of our Honduran operation of $1,060 million (see “Comments on the financial statements” page 10).
Mikael Grahne, President and CEO of Millicom, commented:
“For the first time in Millicom’s history, we have exceeded $1 billion of revenues in a quarter. Our profitability remains strong with an EBITDA level of 47.5%.
“Within a maturing voice market, our strategy aims at developing value-added services (VAS) which we see as the next growth opportunity. In Latin America we have increasingly focused on innovation and on ARPU stabilization, favoring 3G penetration over the retention of low ARPU voice customers. In Africa we are focusing on both penetration and innovation. We are pleased with the execution of this strategy and our Q3 results confirm its effectiveness: we are getting closer to a stage of ARPU stabilization with a 4.1% decline year-on-year in Q3 (excluding the country mix impact), VAS now contribute 23.3% of recurring revenues, we have 1.5 million customers using 3G data services in Latin America, up 18% over Q2, and our local currency revenue growth reached 11.7%, the highest level since the beginning of 2009.
“We maintain our commitment to the base business as shown by the growth in voice revenues of 10% year-on-year in Q3, up from 7% in Q2 and 5% in Q1. Our strong focus on branding, smart pricing and distribution has been instrumental in this achievement, allowing us to resist commoditization.
“We will further pursue our efforts in innovation and value-addition in the coming quarters. The impressive success of our innovative airtime “micro-credit” initiative, “Tigo Lends You”, confirms the huge demand for such services. The product, launched progressively in almost all our markets in the first part of 2010, has been used almost 180 million times in 9 months and close to 36 million times in September alone. Our new money transfer service, “Tigo cash” is now marketed in both Paraguay and Tanzania and will be launched in other markets in both Africa and Latin America in Q4.
“Millicom also sees value creation through the active management of capital structure. We are pleased to confirm the early redemption of the corporate 2013 10% Notes on December 1, 2010. Our entire debt at the end of the year will be at operating level, improving tax efficiency and mitigating country risk. During the quarter, we also reached an agreement with our partners in Central America to align the shareholding of our mobile and cable operations so as to improve their integration and to facilitate synergies.
“We will continue to drive innovation, value-addition and shareholder value. Branding, distribution and the development of our culture and talents will be among our key areas of focus in the coming quarters.
CONTACTS
Francois-Xavier Roger
Telephone: +352 27 759 327
Chief Financial Officer
Emily Hunt
Telephone: +44 (0)7779 018 539
Investor Relations
Visit our web site at http://www.millicom.com
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.
This press release may contain certain “forward-looking statements” with respect to Millicom’s expectations and plans, strategy, management’s objectives, future performance, costs, revenues, 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. Please refer to the documents that Millicom has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Millicom’s most recent annual report on Form 20-F, for a discussion of certain of these 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., any 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.