Millicom reports 4Q results

10 Feb 2011

Millicom International Cellular (MIC) has reported a drop in profit for the fourth quarter ended 31 December 2010, reflecting the absence of gains from discontinued operations included in results for the year-ago period. The Luxembourg-based telco said net profit declined to USD157.2 million from USD454.2 million in the same period of 2009, when the results included a gain of USD289 million from the disposal of non-core businesses in Cambodia, Sri Lanka and Sierra Leone. Revenues for the quarter grew 10% to USD1.07 billion, while operating profit rose to USD281.4 million from USD243.8 million. For the full year MIC’s profit surged to USD1.65 billion, while revenues grew 16% to USD3.92 billion. Capital expenditure for 2010 totalled USD731 million; for the current year the company expects CAPEX to exceed USD800 million. The company added that it expects to dispose of its operation in Laos in 2011.

In terms of subscribers, MIC reported a 14% increase to take its global total to 38.6 million. Average revenue per user (ARPU) declined 5% in local currency terms, representing an improvement from a fall of 10% in 2009. In Latin America, customers using 3G enabled devices increased 15% while 3G customers in Central America grew 18% quarter-on-quarter. For Amnet, the group’s cable and fixed broadband business in Central America, revenue grew 11%. Cable operations as a whole grew by 7%. Mikael Grahne, President and CEO, said ‘We have produced double-digit top line growth in all four quarters of 2010 with an evolving distribution of growth by region.

Luxembourg, Millicom International Cellular (MIC)