Millicom profits rocket

25 Jul 2006

Luxembourg-based mobile group Millicom International Cellular (MIC) has reported a major hike in second quarter net profit, up to USD33.85 million from USD4.88 million a year earlier. Sales in the three months to the end of June rose 39% to USD362.6 million, on the back of strong subscriber growth in Central America, South America and Africa. MIC ended June with 10.9 million subscribers, up 51% year-on-year. EBITDA was up 28% to USD156.6 million, and pre-tax profit reached USD56.7 million, compared with USD19.6 million a year earlier. ‘The primary drivers of this growth have been the 78% increase in revenues in Central America, 54% increase in South America and 52% increase in Africa,’ Chief Executive Marc Beuls said in a statement. The company sold its loss-making Pakcom operation in Pakistan during the quarter, a disposal which would ‘improve EBITDA and net income by eliminating roughly USD30 million of annual interest and amortisation expense on the Pakcom licence obligations,’ according to Beuls. Earlier this month China Mobile’s USD5.3 billion takeover bid for MIC fell through after the pair failed to agree terms.

Luxembourg, Millicom International Cellular (MIC)