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Millicom International Cellular: Results for the Period Ended December 31, 2012
By: Business Wire
Feb. 12, 2013 02:24 AM
Q4 2012 Highlights
Excluding regulatory impacts and reclassifications, the growth would have been 7.6%
FY 2012 Highlights
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
(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.
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
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