- Organic local currency revenue growth of 9.4 % YoY to $1,181 million (8.9% underlying)
- EBITDA constant at $513 million, an increase of 3.6% YoY in local currency
- EBITDA margin of 43.4%
- Normalized earnings per common share of $1.74
- Capex of $264 million, or 22.4% of revenue, including $36 million for spectrum
- Operating Free Cash Flow of $140 million (11.8% of revenue)
- Organic local currency revenues growth of 8.9% to $ 2,349 million
- EBITDA of $1,030 million and EBITDA margin of 43.8%
- Capex of $436 million (18.6% of revenues), including $36 million for spectrum
- Operating Free Cash Flow of $450 million (19.1% of revenue)
- Dividend paid: $2.40/share
- $106 million spent repurchasing shares in H1 2012 from the announced $300 million plan
Financial summary for the quarters ended June 30, 2012 and 2011
|YoY% change (local currency)
|YoY% change (local currency)
Normalized Net Profit(ii)
|Operating FCF (iv)
(i) EBITDA: operating profit before interest, taxes, depreciation and amortization; 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 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
(iv) Operating FCF: EBITDA – Capex - Taxes +/- Working capital movements and includes proceeds from tower monetization
2012 forward looking statements (updated)
In 2012 we aim again to strike the right balance between top line growth, profitability, cash flow generation and return on invested capital. We expect the full year EBITDA margin to be around 43% and operating free cash flow margin of around 20% of revenue. In 2012, we expect capex, excluding spectrum acquisition, to increase but to remain below 20% of revenue, as we invest in IT and billing platforms and add further data capacity.
Mikael Grahne, President and CEO of Millicom commented:
“In a somewhat challenging environment, we continued to invest in improving our customer proposition. We are particularly pleased having started harvesting benefits of these investments in Q2 with mild acceleration of organic growth versus Q1. Underlying revenue grew 8.9% in Q2 2012 in local currency versus 8.4% in Q1. In the first half of the year, we accelerated investments in new growth categories, including staffing, network building and handset subsidies which resulted in a dilution of our EBITDA margin.
We have fine-tuned our 2012 EBITDA margin outlook as we have now increased visibility on the level of commercial investments we will undertake in the full year. Our previously communicated outlook for organic growth, cash generation and capex remain unchanged.
In Latin America, where we generate 80% of our revenue, the top line grew by 10.4% in local currency in the second quarter (9.9% underlying growth, accelerating from Q1). In Africa, top line growth in local currency increased by 5.7% in Q2.
In the first half of 2012 the Information category was again the strongest contributor to growth, contributing more than half of the revenue growth in local currency. At the end of June, 15.5% of our customers were using mobile data services in Latin America. For the first time ever we generated more revenue from Value Added Services than from Voice in one of our markets, Paraguay, our test-bed for innovation. We reiterate our previously stated ambition to generate more than 50% of revenue from Value Added Services by 2015 in Latin America, while continuing to grow our voice revenue.
Our future success depends on our ability to innovate and seize new growth opportunities, leveraging on the strengths we have built as a mobile operator.
In the coming quarters we will continue to invest to strengthen our innovation capabilities and to accelerate growth, through both our innovative categories and potentially external opportunities should they arise.
On Monday July 16 we shared our excitement about the agreement to acquire Cablevisión Paraguay. 20 years after we started operating in the country we are confirming our commitment to bringing the best quality products and services to the Paraguayan people at home, and on the move. We expect to finance the acquisition by slightly increasing our leverage.
In the absence of additional external growth opportunities, we reiterate our commitment to return excess cash to shareholders.
With our increased focus on innovation and sustainable investment, I am confident that we have the right action plan to deliver ongoing profitable growth.”
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 Wednesday, July 18, 2012. Dial-in numbers: +46 (0)8 5052 0189, +44 (0)20 8515 2319, or +1 480 629 9866. Access code: 4551083#.
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.