MIC books 15% growth in revenue

4 Feb 2015

Millicom International Cellular (MIC), which offers mobile and broadband services throughout Africa and Latin America under its Tigo and Tigo Star brands, has booked total revenue of USD6.386 billion for the year ended 31 December 2014, up 15.0% from USD5.553 billion in 2013, lifted in part by the consolidation of Colombia’s UNE in Q3 2014, which added turnover of USD498 million for the year, but also through organic growth, which accounted for expansion of USD512 million. Growth was partially offset by currency factors, which reduced revenue (excluding UNE) by USD200 million, whilst revenue from UNE ‘suffered from a significant depreciation of the Colombian Peso,’ accounting for turnover of USD498 million compared to the group’s guidance of USD550 million. EBITDA for the year grew by 4.7% to USD2.093 billion, but EBITDA margin dipped to 32.8% from 36.0% in 2013 on the back of greater operating expenses (+16.2%), investments in the group’s new Tigo Star brand and intensive promotion of smartphones. Net profit for the year, however, was lifted from USD229 million in 2013 to USD2.643 billion from net non-operating income of USD2.461 billion compared to a net non-operating loss of USD131 million. The non-operating income came largely from the group’s revaluation of its 55% stake in Comcel in Guatemala, which accounted for USD2.25 billion, as well as the change in value of its put and call options in Honduras and Guatemala (USD360 million).

In operational terms, the group registered a 12.4% year-on-year increase in mobile subscribers to 56.277 million, including 15.787 million in Central America (15.830 million in 2013), 15.140 million in its South America cluster (13.829 million) and 25.350 million in Africa (20.420 million).