Millicom 2Q20 revenue down 8.0% to USD970m; group experiences ‘most challenging quarter in 30-year history’

31 Jul 2020

Millicom International Cellular (MIC), which offers mobile and cable broadband services in Latin America via the Tigo brand, has reported quarterly revenue of USD970 million for the three months ended 30 June 2020, down 8.0% year-on-year from USD1.05 billion. Operating profit, meanwhile, slumped 14.5% from USD109 million in Q2 2019 to USD93 million in the period under review. Finally, it recorded a net loss of USD115 million for the second quarter of 2020, compared to a net profit of USD45 million in the year-ago period.

In operational terms, the group reported that its Latin American mobile user base climbed 1.7% on an annualised basis, to reach 37.777 million at 30 June 2020. However, the group suffered net subscriber losses of 1.672 million in Q2, noting: ‘COVID-19 severely disrupted our distribution channels and impacted our ability to capture new customers.’ LatAm 4G customers stood at 14.290 million at end-June, while the number of HFC customer relationships climbed 5.8% year-on-year to 3.484 million.

Millicom CEO Mauricio Ramos commented: ‘The second quarter of 2020 was one of the most challenging in Millicom’s 30-year history, but we have responded quickly and decisively to the pandemic … The lockdowns had a major impact on our mobile business, especially in those markets with severe mobility restrictions, but we are now seeing some easing, and most of our key performance indicators and our revenue improved in June compared to April and May.’

Luxembourg, Millicom International Cellular (MIC)