Millicom International Cellular S.A. "Best Quarter Ever for Net Subscriber Additions"

LEUDELANGE, Sweden, July 19, 2017 /PRNewswire/ --

    --  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%

     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%

     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

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The following files are available for download:              Millicom Q2 2017 Results
                                                                  Release  Millicom Q2 2017 Results
                                                                  Presentation Financial and Operational Data
                                                                  Q2 2017

SOURCE Millicom International Cellular

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