Millicom grows Q2 revenues 5.4% on acquisitions, operating profit lower

News General Latin America and the Caribbean 19 JUL 2019
Millicom grows Q2 revenues 5.4% on acquisitions, operating profit lower

Millicom reported second-quarter revenues up 5.4 percent to USD 1.054 billion, helped by its acquisitions of Cable Onda as well as Telefonica Nicaragua. Operating profit fell 34.5 percent to USD 110 million on one-off charges and higher amortization expense, and net profit rose to USD 46 million from a loss of USD 1 million a year ago, due mostly to revaluation gains. 

In its main market Latin America, the company grew revenues 5.6 percent to USD 1.46 billion, including its joint ventures. Organic service revenue reached 2.0 percent growth, with mobile slowing slightly to 0.7 percent and cable up 3.6 percent. EBITDA rose 13.8 percent to USD 584 million, and excluding the impact of IFRS 16, the EBITDA margin improved 0.3 percentage points year-on-year. 

The operator added another 94,000 HFC customers in the quarter for a total of 3.294 million at the end of June. Home ARPU was down slightly year-on-year and from the previous quarter to USD 29.3. The HFC network was extended to 10.958 million homes passed, an increase of 236,000 from March. 

In the mobile market, Tigo gained 3.271 million customers in Q2, due mainly to the Nicaragua takeover. 4G customers rose by almost 1.2 million to 11.947 million. Mobile ARPU was down to USD 7.4 from USD 7.5 in the previous quarter and USD 8.0 a year ago. 

Millicom said the LatAm results were slightly below its expectations, but it knew the second half would be better, especially due to a large government contract in H1 2018. The company maintained its outlook for 3-5 percent organic service revenue growth this year, after 2.8 percent growth in the first half, and EBITDA up 4-6 percent on an organic basis, versus a 3.0 percent increase in H1. 

Capex is estimated at just over USD 1 billion for the year, after USD 392 million in H1, and operating cash flow up in the mid to high single-digits, following 6.9 percent growth in the first six months. 

Added 94,000 HFC customer relationships to reach 3.3 million • Added 540,000 4G smartphone data customers to reach 11.9 million, 32% of our mobile customer ba

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