Millicom International Cellular saw its revenue grow 8.4 percent year-on-year in Q3 to USD 1.199 billion (in local currency but excluding a one-off reclassification of USD 7 million and Online revenue of USD 2.5 million). EBITDA decreased slightly by 2.8 percent to USD 507 million, including the one-off reclassification and the losses from Online (USD 2.3 million in Q3). EBITDA margin was 42.3 percent, down versus 46.0 percent a year ago. Normalised net profit decreased to USD 165 million in Q3 from USD 210 million in Q3 2011 (net profit adjusted for items such as foreign exchange movements, movements in valuation of the Honduras put option, Colombian deferred tax asset, and revaluation of previously held interests). Capex was USD 183 million, or 15.3 percent of revenue, including USD 15 million for 3G spectrum in DRC, down from USD 217 million in the same quarter last year. Operating free cash flow was USD 252 million (21.0 percent of revenue), a decrease from USD 387 million in the year-earlier period.
In 2012, the company aims again to strike the right balance between top line growth, profitability, cash flow generation and return on invested capital. It expects the full year EBITDA margin to be around 43 percent and operating free cash flow margin of around 20 percent of revenue. In 2012, it expects capex, excluding spectrum acquisition, to increase but to remain below 20 percent of revenue, as the company adds further data capacity and invest in IT and billing platforms.
