Millicom reports 2Q results; acquires Central American cableco Amnet

23 Jul 2008

Millicom International Cellular (MIC) has reported that in the second quarter ended 30 June 2008 it saw a 33% increase in net profit to USD132 million. Revenues for the quarter rose 37% year-on-year to USD843 million, while EBITDA climbed 34% to USD352 million. At the end of June MIC claimed 28.5 million subscribers across its operations, up 58% on the same period of 2007 (excluding discontinued operations).

Marc Beuls, CEO of Millicom, commented; ‘The quarter two results give us confidence in our triple ‘A’ business model as it has enabled us to continue to build our market share and profitability across our markets. We invested USD378 million in CAPEX during the quarter and a total of USD643 million in the first half year and, on the basis of the opportunity we see in our markets today, we are raising our year-end 2008 guidance for CAPEX to up to USD1.5 billion. With this investment we believe we can continue to grow penetration in both Africa and Asia and to enhance our offering in Latin America with the launch of broadband services in the second half of the year.’

In a separate announcement MIC says that it has agreed to acquire 100% of Amnet Telecommunications Holding (Amnet) for USD510 million. Completion of the acquisition, which is subject to customary approvals, is expected within three months. Amnet is a provider of broadband and cable television services in Costa Rica, Honduras and El Salvador, provides fixed telephony in El Salvador and Honduras, and provides corporate data services in the three countries as well as in Guatemala and Nicaragua. Across its various markets and product offerings, it has in excess of 350,000 corporate and residential customers. In the year ended December 2007, it reported revenue of USD143 million and EBITDA of USD56 million.