Millicom doubles third quarter net profit to USD24m

25 Oct 2016

Millicom International Cellular (MIC), which offers mobile and fixed line services under the Tigo and Tigo Star banners across Africa and Latin America, has booked a 2.8% year-on-year decline in its third quarter revenue to USD1.555 billion. The group attributed the decline to falling voice and SMS revenue in its Latin American markets, which more than offset expansion from mobile data and cable broadband in the same region and growing mobile service revenue in Africa. Operating profit for the three months ended 30 September 2016 was USD227 million, down from USD241 million a year earlier, but net profit doubled year-on-year to USD24 million. The reversal was due to MIC registering non-operating income of around USD9 million in the period under review from foreign exchange gains, in contrast to substantial losses recorded in the previous year related to foreign exchange.

The group reported a total of 32.118 million mobile customers in Latin America at end-September 2016 – an increase of 1.4% y-o-y – of which, 12.318 million were data users (up 8.8% y-o-y), including 2.587 million 4G subscribers. Blended mobile ARPU was USD8.3, down from USD9.1 in Q3 2015, though mobile data ARPU grew 13.1% y-o-y to USD8.7. In terms of its fixed line operations in the region, the number of homes passed by its HFC networks increased by 10.9%, and its revenue generating units (RGUs) expanded by 17.4% to 3.607 million. In Africa, meanwhile, the group counted a total of 25.547 million wireless customers, up 12.9% from 22.635 million in Q3 2015. Blended mobile ARPU in the region was flat at USD2.5.

Luxembourg, Millicom International Cellular (MIC)