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Millicom International Cellular: Results for the Period Ended December 31, 2008

^{Published on 2009-02-11 04:30:18, Last Modified on 2009-02-11 04:31:58 - Market Wire}
 

STOCKHOLM, Sweden--([ BUSINESS WIRE ])--Millicom (STO:MIC) (NASDAQ:MICC):

Q4 key figures

• 38% increase in subscribers** for Q4 08 versus Q4 07, bringing total subscribers to 32.0 million*
• 18% increase in revenues for Q4 08 to $907 million* (Q4 07: $766 million*)
• 31% increase in EBITDA for Q4 08 to $406 million* (Q4 07: $309 million*)
• Net profit† for Q4 08 of $66 million (Q4 07: $113 million)
• Basic earnings per common share for Q4 08 of $0.61 (Q4 07: $1.11)

†After a net charge of $55 million as a result of two one-off events (see p.3)
**Excludes Amnet
* Excludes discontinued operations (Sierra Leone)

FY 2008 key figures

30% increase in revenues for FY 08 to $3,412 million* (FY 07: $2,624 million*) 31% increase in EBITDA for FY 08 to $1,468 million* (FY 07: $1,119 million*) Net profit† for FY 08 of $517 million (FY 07: $697 million) Basic earnings per common share for FY 08 of $4.80 (FY 07: $6.90) Net cash provided by operating activities increased by 34%

†After a net charge of $55 million as a result of two one-off events (see p.3) * Excludes discontinued operations (Sierra Leone)

Marc Beuls, CEO of Millicom, commented: "Millicom performed well in Q4 with an increase in the EBITDA margin to 45%, our targeted EBITDA margin. For the year to December we produced sector leading revenue growth of 30% and our profitability improved over the year, with a 219 basis points increase in the second half and a margin for the full year of 43% which was close to our target for the Group. Our net profit excluding one-off items in 2007 and 2008, namely Paktel, Colombian deferred taxes and Sierra Leone increased by 36%.

"These results were achieved despite the headwind of a strongly appreciating dollar in a number of countries during the second half of year which was a reflection of an uncertain economic climate. The impact on our businesses of the strong dollar against local currencies is set to continue into 2009. We have already taken action, in terms of lower capex and opex, to ensure that we are well positioned to meet the potential challenges engendered by the macro economic environment and the stronger margin reported in Q4 is a reflection of those changes.

"In Latin America we have selectively reduced promotions as we have increased our focus on revenue generating customers. Today operators recognize that subscriber growth is cumulatively slower due to the higher penetration rates in Latin America which means that these markets will now grow at a more moderate pace. However, we do expect to see an acceleration of subscriber growth for Tigo in Colombia as, over time, we expect to benefit from a more favorable regulatory environment. Amnet, our recently acquired fixed broadband business, is performing in line with our expectations and the integration process will be completed in Q1 as we introduce best practice to exploit potential synergies.

"In Africa and Asia we continue to see the opportunity to maintain growth while improving margins especially in Africa where most of our businesses are now achieving the critical mass and scale which are necessary to improve profitability quarter on quarter. We also continue to focus on Distribution Management Systems as a way of reducing operating costs by achieving greater efficiency from more streamlined distribution networks.

"In 2009 we are moving into a new phase for the company as we expect to become free cash flow positive for the full year and to see free cash flow growing in subsequent years. This is the result of the improving operating margin and a declining capex to sales ratio going forward."

Note: For tabular financial information and the full text of the statement, please refer to the Millicom website: [ www.millicom.com ]

Conference call details

A conference call to discuss the results will be held at 14.00 London / 15.00 Stockholm / 09.00 New York, on Wednesday, February 11, 2009. The dial-in numbers are: +44 (0)20 7806 1953, +46 (0)8 5352 6408 or +1 718 354 1385 and the pass code is 6518214#. Please go to our website at [ www.millicom.com ] for a copy of the slides to be discussed during the call. 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. 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 7806 1970 / +46 (0)8 5876 9441 or +1 718 354 1112, access code: 6518214#.

Millicom International Cellular S.A. is a global telecommunications group with mobile telephony operations in 16 countries in Asia, Latin America and Africa. It also operates cable and broadband businesses in five countries in Central America. The Group's mobile operations have a combined population under license of approximately 291 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 hereof. All written or oral forward-looking statements attributable to Millicom International Cellular S.A., any 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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