Millicom Profits Halved As Revenues Rise Slightly
Published on: 24th Apr 2014
By: Ian Mansfield
Millicom the Luxembourg holding company that operates Tigo branded mobile networks has reported that its profits for the first quarter of this year more than halved despite a modest rise in revenues.
Revenues rose by 4 percent to USD1.4 billion -- although excluding currency changes that reflected an 8.5% rise in local currencies. However, profits fell to USD61 million from USD136 million a year ago.
EBITDA before corporate costs was USD537 million against analyst predictions of USD546 million.
The company added 1.6 million new customers, taking its total customer base to 51.6 million.
The mobile data business continued to display strong growth with over 700k additions, improving penetration of mobile data within the mobile customer base to 20.9%, up from 15.1% in March 2013.
"This quarter's results demonstrate that we are delivering on our growth strategy in all regions with revenue rising by over 8%. Our investment in this growth is having the expected impact on our margins." said the company's CEO, Hans-Holger Albrecht. "The turnaround in Africa continued with double-digit growth for the first time in eight quarters and South America maintained its strong performance, led by Colombia."