Welcome!

Mobile IoT Authors: Liz McMillan, Kevin Benedict, Yeshim Deniz, Toddy Mladenov, Elizabeth White

News Feed Item

Millicom International Cellular: Results for the Period Ended December 31, 2012

Q4 2012 Highlights

  • Revenue of $1,266 million. Local currency growth of 6.4% YoY, excluding Cablevision, including Online.

Excluding regulatory impacts and reclassifications, the growth would have been 7.6%

  • EBITDA reached $528 million and a margin of 41.7%. EBITDA was YoY flat excluding Online and Cablevision
  • Bonds issued in Q4 for $600 million, extending debt maturity to over 3.4 years
  • Over 4 million MFS customers, MFS launched in Chad

FY 2012 Highlights

  • Local currency revenue growth of 8.0% to $4,814 million (8.7% excluding regulatory impact and Cablevision Paraguay)
  • EBITDA of $2,065 million and EBITDA margin of 42.9% (43.2% excluding Online)
  • Capex of $922 million (19.1% of revenue), excluding spectrum, licenses and Cablevision assets
  • Operating Free Cash Flow of $1,127 million (23.4% of revenue) excluding spectrum, licenses and Cablevision assets
  • The Board will propose a dividend of $2.64 per share to the AGM to be convened on May 28, 2013

2013 forward looking statements

We expect 2013 Group EBITDA margin to be above 40% (excluding Online) and to decline less than over the past twelve months. In 2013, the capex to revenue ratio will peak at around 20%, excluding spectrum acquisition.

In 2013 we expect the Online division to deliver in excess of $100 million of revenues and EBITDA losses to be in the range of $125-200 million. Losses will be on the high side of the range if we see an opportunity to accelerate growth and ramp up launches.

Financial summary for the quarters ended December 31, 2012 and 2011

$m

  Q4   Q4  

YOY % change
(local currency)

  FY 2012   FY 2011  

YOY % change
(local currency)

2012 2011
Revenue 1,266 1,177 6.40% 4,814 4,530 8.00%
EBITDA (i) 528 536 -0.20% 2,065 2,087 1.40%
EBITDA margin 41.70% 45.50% (3.8pt) 42.90% 46.10% (3.2pt)
Normalized Net Profit (ii) 155 188 655 767
Capex (iii) 359 375 922 825
Operating FCF (iv) 375 300 1,127 1,218
 

(i) EBITDA: operating profit before interest, tax, depreciation and amortization; derived by deducting cost of sales, sales and marketing costs and general and administrative expenses from revenue and adding other operating income.

(ii) Net profit adjusted for items such as foreign exchange movements, movements in valuation of the Honduras put option, Colombian deferred tax asset, and revaluation of previously held interests.

(iii) Excluding towers sold to, and leased back from tower companies, spectrum and assets acquired with Cablevision Paraguay.

(iv) Operating Free Cash Flow: EBITDA – Capex (excluding spectrum) - Tax +/- working capital movements and includes proceeds from tower monetization.

Hans-Holger Albrecht, President and CEO of Millicom, commented:

"2012 has been a year of investment for Millicom. We stepped up our investment in infrastructure and in commercial activities, notably in branding and subsidies to ensure we deliver the best quality services to our customers. We also invested in our people through the staffing of our different business categories. These investments are even more important given that the maturing of the voice business is accelerating in the fourth quarter with material regulatory pressure. We are constantly innovating by identifying and scaling up new opportunities that have yet to be addressed by the industry. It is our relentless pace of innovation, initiated long ago by our founder, which enabled us to continue growing at an industry leading 8% rate in 2012. We generated close to 35% of our revenues from Value Added Services, well on track to reach our mid-term ambitions to diversify revenue and to reduce reliance on mobile voice services.

In line with our 2012 guidance, EBITDA margin declined by 2.9 percentage points in 2012 versus 2011 to 43.2% (excluding Online). As previously communicated, we increased investment in IT and 3G services while maintaining a capex to revenue ratio below 20%. At 23% of revenues, our cash flow generation was healthy and above previously communicated targets.

In 2013 the transition from voice to data and from analogue to digital TV will accelerate as we ensure Millicom remains a growth company. Our priorities will be to 1) secure high market share and further monetize mobile data , 2) grow our cable business by exploiting untapped potential, 3) expand our MFS business from its initial success, and 4) explore and further develop Online opportunities in our partnership with Rocket Internet. Creation of a leading integrated operator in Colombia with EPM (the leading utility company in the Northwest region of Colombia) would enable us to accelerate our development in cable, whilst offering material opportunities to cross-sell and up-sell innovative and best quality services to customers.

In 2013 we expect EBITDA margin to decline less than in 2012, and remain above 40%, and capex to revenue to peak at around 20% (both excluding Online). We have recently increased our focus on costs and capex avoidance to improve the productivity of our investments and adjust our costs structure to the slowing growth momentum on voice. Building on Millicom’s pioneering approach to Value Added Services; we will focus on becoming a Digital leader. We will share more on our strategic priorities and mid-term ambitions at our Capital Markets Day on March 6.

The Board has decided to propose to the annual general assembly the payment of a dividend of $2.64 per share. Our dividend policy is maintained and we have the ambition to progressive growth in ordinary dividends.

At Millicom, we demand more to ensure we delight our customers at every turn. We demand more to create a culture within Millicom which is truly energising. We demand more to create greater shareholder value. We demand more to strengthen our position as digital lifestyle leaders. Demanding more helps us reach for the stars while keeping us grounded. That makes us Millicom."

Conference call details

A presentation and conference call to discuss results of the quarter will take place at 14.00 Stockholm / 13.00 London / 08.00 New York, on Tuesday, February 12, 2013. Dial-in numbers: +46 (0)850 336 434, +44 (0)1452 555 566, or +1 631 510 7498. Access code: 92960289#.

A live audio stream of the conference call can also be accessed at www.millicom.com. Please dial in / log on 10 minutes prior to the start of the conference call to allow time for registration.

Slides to accompany the conference call are available at www.millicom.com.

About Millicom

Millicom is a leading telecom operator dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing digital lifestyle services to the world’s emerging markets, giving access to the world, primarily through mobile devices. Operating in 15 countries, Millicom offers innovative and customer-centric products. The Millicom Group employs more than 8,000 people and provides mobile services, access to the internet, content and financial services to over 45 million customers. Founded in 1990, Millicom International Cellular SA is headquartered in Luxembourg and listed on NASDAQ OMX Stockholm under the symbol MIC. In 2011, Millicom generated revenue of USD 4.53 billion and EBITDA of USD 2.09 billion.

This press release may contain certain “forward-looking statements” with respect to Millicom’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other trend information. It is important to note that Millicom’s actual results in the future could differ materially from those anticipated in forward-looking statements depending on various important factors.

All forward-looking statements in this press release are based on information available to Millicom on the date hereof. All written or oral forward-looking statements attributable to Millicom International Cellular S.A., and Millicom International Cellular S.A. employees or representatives acting on Millicom’s behalf are expressly qualified in their entirety by the factors referred to above. Millicom does not intend to update these forward-looking statements.

This information was brought to you by Cision http://www.cisionwire.com

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...