Millicom returns to growth as Q1 subscriber additions surge

30 Apr 2021

Millicom International Cellular (MIC), which offers mobile and cable broadband services in Latin America via the Tigo brand, has reported quarterly revenue of USD1.1 billion for the three months ended 31 March 2021, up 0.1% year-on-year. Operating profit, meanwhile, slumped 13.9% from USD134 million in Q1 2020 to USD115 million in the period under review. Finally, Millicom recorded a net profit of USD42 million for first quarter, compared to a net loss of USD122 million in the year-ago period.

In operational terms, Millicom reported that its Latin American mobile user base climbed 8.5% on an annualised basis, to reach 42.805 million at 31 March 2021. LatAm 4G customers surged 26.6%, to 18.830 million by end-March, while the number of HFC revenue generating units (RGUs) jumped 11.6% to 7.971 million.

Millicom CEO Mauricio Ramos commented: ‘Our operational focus and strategic investments over the past year are paying off. After an incredibly strong Q1, we now have more customers, and we are generating more revenue, more EBITDA and more OCF than we did one year ago, before the start of the pandemic. We did not just recover; we are now above pre-COVID levels on most of our operational and financial KPIs. During the quarter, we added 166,000 customers in Home, by far our best quarterly result ever, and we added 1.1 million customers in Mobile, our strongest Q1 performance in a decade … Strategically, we announced that we have signed agreements to dispose of our remaining operations in Africa. The Tanzania sale was the culmination of a structured and competitive process with multiple bidders. We are very pleased with the outcome, and plan to use the proceeds to reduce our net debt.’

TeleGeography notes that Millicom signed a pair of deals to offload its remaining African businesses earlier this month. A consortium led by pan-African industrial conglomerate Axian agreed to acquire Tigo Tanzania and Zantel in Zanzibar for an undisclosed amount. In the other transaction, the government of Ghana agreed to acquire AirtelTigo – in which Millicom held a 50% stake – in a deal worth just USD1. As a result of the transaction the Ghanaian government assumed the responsibility for all of the unit’s debts and liabilities.

Luxembourg, Millicom International Cellular (MIC)