Millicom 3Q19 revenues up 10.8% on back of Panama, Nicaragua takeovers

24 Oct 2019

Millicom International Cellular (MIC) – which offers mobile and cable broadband in Latin America under the Tigo brand – has reported quarterly revenues of USD1.097 billion for the three months ended 30 September 2019, up 10.8% year-on-year. The group noted that the improved top-line was driven by its takeovers in Panama and Nicaragua, where it completed the acquisitions of Movistar’s cellular businesses this year. Operating profit, meanwhile, slumped 15.0% to USD178 million in Q3 2019, while Millicom recorded a net loss of USD130 million in the third quarter, compared to a net profit of USD68 million in 3Q18.

In operational terms, MIC reported that its Latin America mobile user base jumped 17.3% on an annualised basis, to 38.588 million at 30 September 2019. LatAm 4G customers surged 51.2%, to 13.535 million, while the number of HFC cable RGUs jumped 34.2%, to 6.773 million.

MIC CEO Mauricio Ramos said: ‘The third quarter of 2019 marked several important milestones for Millicom. First, we strengthened our position as the leading telecommunications operator in Panama by closing our acquisition of the largest mobile operator in the country. We are now focused on extracting the synergies we have targeted. Second, we added a record 99,000 customer relationships to our HFC network, lifting penetration rates, which is key to accelerating our cash flow growth over time. Some of our markets have experienced a slowdown in economic activity, which has adversely affected our pre-paid mobile in particular, while competition in pre-paid mobile has intensified in some countries.’

Luxembourg, Millicom International Cellular (MIC)