Millicom International Cellular (MIC), which operates under the Tigo brand, announced (check out full report) a 10.1% year-over-year increase in revenue to $1.177 billion for the final quarter of 2011, while revenue for the full year increased 10.5% to $4.53 billion compared to the same period of 2010.
In a statement, Millicom President and CEO Mikael Grahne noted that the company was 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.”
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The group’s earnings before interest, taxes, depreciation and amortization for the quarter increased by 7.3% to $536 million and 7.5% for the full year to $2.087 billion, in a year-over-year comparison. However, EBITDA margins fell to 45.5% for Q4 2011, from 46.5% in the same period the previous year. EBITDA margins for the full year also slipped, falling from 47.2% in 2010, to 46.1% in 2011.
“Despite our continued investments in data and mobile financial services, we managed to achieve a healthy EBITDA margin of 46.1% for the year 2011,” Grahne said. “In Q4, a quarter in which we typically invest more in commercial activity, margins still exceeded 45.5%.”
The company’s capital expenditures surged 45.6% year-over-year to $396 million for the quarter, while net profits for the three-month period increased slightly from $170 million in 2010 to $176 million in 2011. Net profits for the full year increased by 21.6% to $738 million from $607 million in 2010.
Regarding 2012, Grahne said he expects it to be an year of investment in services, products, infrastructure and people as he sees numerous growth opportunities in markets where the company operates. “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.”
For 2012, MIC expects EBITDA margins to be in the mid-40% range and operating free cash flow margin to be around 20% of revenues. The company also noted it expects capex in 2012 to increase versus 2011, while remaining below 20% of revenues, with plans to invest in IT and billing platforms and add further data capacity.
Among 2012 goals, MIC intends to participate in the Colombian auction for 4G spectrum with a view to rolling out a LTE network in the country.
Regarding its regional operations, MIC’s Central American operations increased wireless subscribers to 14.6 million, led by Guatemala which added 258,000 customers in the three months. However, average revenue per user for the region fell by 2% year-over-year.
Across its South American operations, MIC added 1.1 million customers in 2011, serving 11.2 million subscribers at the end of the year. ARPU also increased 5% across the region to $13.40.
In Africa, MIC increased its customer base by 16% year-over-year to 17.3 million mobile customers.
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