STOCKHOLM -(Dow Jones)- Luxembourg-based cellular operator Millicom International Cellular, Monday said second-quarter net profit increased to $33.85 million from $4.88 million in the same period a year earlier.
The company said sales during the quarter rose 39% to $362.6 million from $260.7 million a year ago, boosted by strong subscriber growth in Central America, South America and Africa. Millicom said it now has 10.9 million subscribers, up 51% compared with the second quarter 2005.
Millicom Chief Executive Marc Beuls said, "The primary drivers of this growth have been the 78% increase in revenues in Central America, 54% increase in South America and 52% increase in Africa."
The company said earnings before interest, taxes, depreciation and amortization for the quarter was $156.6 million, a 28% increase from $122.3 million in the year-ago period. Central America recorded growth in EBITDA of 84% from the second quarter of 2005, South America had a 62% rise, and EBITDA in Africa increased by 23%, Millicom said.
Pretax profit for the quarter reached $56.7 million compared with $19.6 million the year earlier and earnings per share in the quarter was $0.3 from $0.05 in second quarter 2005.
"Millicom is today reaping the benefit of past investment in its networks and distribution in Latin America and the successful roll out of the Tigo brand in these markets. We believe that our current investment program will enable us to replicate this successful model in other markets," Beuls said.
The company also said it sold its loss-making Pakcom operation in Pakistan during the quarter.
Beuls said, "This disposal will improve EBITDA and, more so, net income by eliminating roughly $30 million of annual interest and amortization expense on the Pakcom license obligations."
(END) Dow Jones Newswires"
Posted to the site on 24th July 2006
Posted to: www.cellular-news.com/story/18435.php