Luxembourg-based Millicom International Cellular Group (MIC) has posted results for the three month period ending 30 September 2011, recording revenues of USD1.151 billion, an increase of 13.1% from USD1.018 billion a year earlier. MIC’s EBITDA margin remained above the group’s target of 45% for FY2011 at 46.0%, increasing slightly from the previous quarter’s 45.8%, but a fall of 1.5 percentage points from Q3 2010. EBITDA for the period was USD529 million, showing a 4% increase year-on-year, whilst CAPEX was USD217 million, or 18.8% of the group’s revenues for the quarter. Net profit for the period was USD288 million, up from USD175 million the previous quarter.
MIC’s South American operations saw the largest increase in revenues, jumping 25% from USD356 million in Q3 2010 to USD444 million twelve months later. The company credits the continued success in the region to the uptake of data usage and value added services (VAS); 3G users in South America have almost doubled year-on-year from 470,000 in Q3 2010 to 848,000 in Q3 2011 and data services now constitute 12% of the group’s recurring revenues.
The African section of Millicom’s operations saw the largest growth in subscribers, however, with net additions of 620,000 for the period. Meanwhile, average revenue per user (ARPU) in local currency has continued to fall in Africa, showing a 10% decrease year-on-year. MIC intends to curb this trend by moving towards higher-value customers, mainly through the deployment of 3G networks.
The group has altered its CAPEX forecast for FY2011 down to USD820 million from USD850 million as a result of delays in equipment delivery. Going forward, MIC plans to continue investing in brands and services, and is targeting growth of between 8% and 11% in the next two years.