International telecoms group Millicom International Cellular (MIC), which provides wireless and broadband services throughout Africa and Latin America under the Tigo brand, has announced plans to grow annual revenues to USD9 billion over the next five years – almost double its USD4.8 billion turnover for 2012. The group outlined its plan on five pillars; mobile, mobile financial services (MFS), broadband and cable TV, digital commerce and services and cost and CAPEX optimisation.
In the mobile sector, MIC will concentrate on increasing it 3G and 4G data revenues and will look to add up to 18 million new data subscribers up to 2017. Consumers, it says, will increasingly be offered bundled service, adding products such as music and video to packages. The boosted services are expected to add between USD900 and USD1.3 billion to the group’s top line over the next five years.
MIC notes that over 80% of the population in its markets have no access to conventional banking services and predicts MFS volumes to increase 40% annually until 2015. Millicom expects to grow MFS-related revenues by USD600 million-USD1 billion by leveraging the demand for banking services. Similarly, following the group’s increased investment in its online service and e-commerce partners Latin America Internet Holdings (LIH) and Africa Internet Holdings (AIH) – reported by CommsUpdate earlier this week – MIC will look to tap into growing local demand for digital commerce.
Its broadband and TV division is projected to see the greatest growth however, with MIC expecting to increase annual turnover by between USD1.8 billion and USD2.6 billion by the target date, through increasing its presence in the fixed line and TV segments and the integration of cable acquisitions in Central and South America. DTH and over-the-top (OTT) TV services have also been slated, but rollout will be on a market-by-market basis.
Finally, MIC intends to trim USD100 million in operating expenses though cost optimisation, though further details were not disclosed. The group intends to set a strict CAPEX limit of 15% of revenues, to be introduced by 2016.