Q4 Highlights
Millicom International Cellular (STO:MIC):
Organic local currency revenues up 10.1 % YoY to $1,177 million
EBITDA up 7.9% to $536 million · EBITDA margin of 45.5%
Normalized earnings per common share of $1.72
Capex of $396 million, or 33.6% of revenues
Operating Free Cash Flow of $300 million (25.4% of revenues)
FY Highlights
Revenues up 12.7% to $ 4,530 million
Organic local currency revenue growth of 10.5%
EBITDA margin of 46.1%
Capex of $848m, including spectrum, in line with our guidance
Operating Free Cash Flow of $1,204 million (26.6% of revenues)
The Board of Directors to propose a $2.40/s ordinary dividend (2010:
$1.80/s). A new share buyback program of up to $300 million will be
executed in 2012.
Revised ordinary Dividend Policy: at least $2.00/s (previously
$1.20/s) and no less than 30% of normalized net profit (previously
25%).
2012 forward looking statements
In line with our achievements over the past two years, in 2012 we again
aim to strike the right balance between top line growth, profitability,
cash flow generation and Return on Invested Capital. We expect the
EBITDA margin to be in the mid-40s and operating free cash flow margin
to be around 20% of revenues in 2012. We expect capex in 2012 to
increase versus 2011 while remaining below 20% of revenues, as we invest
in IT and billing platforms and add further data capacity.
Financial summary for the quarters to December 31, 2011 and 2010
Q4 | Q4 |
| FY 2011 | FY 2010* |
| ||||||||||||||
2011 | 2010 | ||||||||||||||||||
$m | |||||||||||||||||||
Group Revenue | 1,177 | 1,069 | 10.10% | 4,530 | 4,018 | 10.50% | |||||||||||||
EBITDA (i) | 536 | 497 | 7.30% | 2,087 | 1,896 | 7.50% | |||||||||||||
EBITDA margin | 45.50% | 46.50% | 46.10% | 47.20% | |||||||||||||||
Normalized Net Profit (ii) | 176 | 170 | 738 | 607 | |||||||||||||||
Capex (iii) | 396 | 272 | 848 | 704 | |||||||||||||||
Operating FCF (iv) | 300 | 310 | 1,204 | 1,047 |
* Pro forma figures to reflect the full consolidation of Honduras
(i) EBITDA: operating profit before interest, taxes, depreciation and
amortization, is derived by deducting cost of sales, sales and marketing
costs and general and administrative expenses from revenues and adding
other operating income
(ii) Net profit adjusted for non recurring items such as the Deferred
Tax Asset in Colombia in 2011
(iii) Excluding sale and leaseback of towers transferred to tower
companies
(iv) Operating FCF is defined as EBITDA-Capex- Taxes +/- Working capital
movements and includes proceeds from tower monetization
Mikael Grahne, President and CEO of Millicom, commented:
“We are pleased with the performance achieved this quarter and
throughout the year 2011. We grew our top line by 10.1% in Q4 2011 and
we closed the year with an organic revenue growth of 10.5%, in line with
our expectations. Despite our continued investments in data and Mobile
Financial Services (MFS), we managed to achieve a healthy EBITDA margin
of 46.1% for the year 2011. In Q4, a quarter in which we typically
invest more in commercial activity, margins still exceeded 45.5%.
2012 will be a year of investment in services, products, infrastructure
and people as we see numerous growth opportunities in our markets. As we
invest to bring further innovative and affordable services to our
customers, we aim to continue delivering above sector average growth in
revenues, cash flow generation and returns.”
Conference call details
A conference call to discuss the results will be held at 14.00 Stockholm
/ 13.00 London/ 08.00 New York, on Wednesday, February 8, 2012. The
dial-in numbers are: +46 (0)8 5853 6965, +44 (0)20 7136 2051, or +1 646
254 3366 and the pass code is 9428516#.
A live audio stream of the conference call can also be accessed at www.millicom.com.
Please dial in / log on 5 minutes prior to the start of the conference
call to allow time for registration.
Slides to accompany the conference call will be available at www.millicom.com
30 minutes prior to the start of the call.
A recording of the conference call will be available for 7 days after
the conference call, commencing approximately 30 minutes after the live
call has finished, on: +44 (0)20 7111 1244 / +46 (0)8 5051 3897 or +1
347 366 9565, access code: 9428516#.
Millicom International Cellular S.A. is a global telecommunications
group with mobile telephony operations in 13 countries in Latin America
and Africa. It also operates various combinations of fixed telephony,
cable and broadband businesses in five countries in Central America. The
Group’s mobile operations have a combined population under license of
approximately 265 million people.
This press release may contain certain “forward-looking statements” with
respect to Millicom’s expectations and plans, strategy, management’s
objectives, future performance, costs, revenues, 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.
Please refer to the documents that Millicom has filed with the U.S.
Securities and Exchange Commission under the U.S. Securities Exchange
Act of 1934, as amended, including Millicom’s most recent annual report
on Form 20-F, for a discussion of certain of these factors.
All forward-looking statements in this press release are based on
information available to Millicom on the date herof. 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.
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