Millicom books 5.7% dip in Q2 turnover

21 Jul 2016

Millicom International Cellular (MIC), which offers mobile and cable broadband services throughout Africa and Latin America under the Tigo and Tigo Star brands, has booked a 5.7% year-on-year decline in total revenue for the three-month period ended 30 June 2016. Revenue for the quarter was USD1.572 billion, down from USD1.666 billion a year earlier, whilst EBITDA dropped from USD560.88 million to USD541.61 million over the same period, although EBITDA margin grew to 34.5% from 32.9%. MIC attributed the fall to ‘sluggish macro-economic conditions,’ noting that difficult conditions in several markets were exacerbating the decline in legacy voice and SMS services. Despite the decline in turnover, the operator reversed a net loss of USD99.25 million in Q2 2015 to net profit of USD43.67 million on the back of increases in non-operating income and income from associates.

In terms of subscribers, MIC counted a total of 57.79 million mobile users at 30 June 2016, up from 57.49 million in Q1 2016, but down from 59.33 million in the year-ago period. In the cable broadband market, meanwhile, MIC reported a total of 5.47 million revenue generating units (RGUs), compared to 5.42 million in the previous quarter and 5.24 million in Q2 2015.

Luxembourg, Millicom International Cellular (MIC)