BERTRANGE, Luxembourg, Feb. 15, 2005 (PRIMEZONE) -- Millicom:
- Record quarterly total subscriber increase for Q4 04 of 859,968 (i)
- 27% increase in revenues for Q4 04 to $255.7m (Q4 03: $201.1m)*
- 33% increase in EBITDA for Q4 04 to $123.8m (Q4 03: $92.8m)*
- Profit for Q4 04 of $25.9m (Q4 03: loss of $10.2m)
- Earnings per common share for Q4 04 of $0.28 (Q4 03: loss of $0.16)
- 44% increase in revenues for the year to Dec 2004 to $919.3m
(2003: $638.6m)*
- 43% increase in EBITDA for the year to Dec 2004 to $455.3m
(2003: $317.8m)*
- Profit for the year to Dec 2004 of $68.2m (2003: $178.8m)
- Earnings per common share for the year to Dec 2004 of $0.82
(2003: $2.74)
Millicom International Cellular S.A. (Nasdaq:MICC) (Stockholmsborsen and Luxembourg Stock Exchange: MIC), the global telecommunications investor, today announces results for the quarter and year ended December 31, 2004.
Financial summary for the years ended December 31, 2004 and 2003*
Dec 31 Dec 31 Change
2004 2003
(unaudited)
Worldwide
subscribers
(unaudited) (i)
- proportional 5,332,259 4,025,577 32%
cellular (ii)
- total cellular 7,713,201 5,690,542 36%
US$ `000
Revenues 919,253 638,649 44%
Operating profit 455,263 317,816 43%
before interest,
taxes,
depreciation and
amortization, EBITDA(iii)
EBITDA margin 49.5% 49.8% -
Profit for the 68,241 178,823 -
year
Basic earnings 0.82 2.74 -
per common share
(US$)
Diluted earnings 0.77 2.26 -
per common share
(US$)
Weighted average 83,335 65,312 -
number of shares
(thousands)
Weighted average
number of shares 90,312 80,500 -
and potential
dilutive shares
(thousands)
(i) Subscriber figures represent the worldwide total number of subscribers of cellular systems in which Millicom has an ownership interest.
Subscriber figures exclude divested operations.
(ii) Proportional subscribers are calculated as the sum of Millicom'spercentage ownership of subscribers in each operation.
(iii) EBITDA; operating profit before interest, taxation, depreciationand amortization, is derived by deducting cost of sales, sales and marketing costs, and general and administrative expenses from revenues.
* Due to local issues in El Salvador, Millicom discontinued consolidating its operation in El Salvador on a proportional basis from May 2001 to September 15, 2003. Figures for 2003 exclude divested operations for financial results down to and including EBITDA and include El Salvador from September 15 to December 31, 2003 only.
Figures for 2004 include El Salvador and exclude divested operations forfinancial results, down to and including EBITDA.
Marc Beuls, Millicom's President and Chief Executive Officer stated: "Millicom had a strong year with increasing growth in subscribers quarter on quarter and total growth in revenues for the year of 44%. Today Millicom has reached a total of 8 million subscribers across its operations. This excellent momentum has been created by a combination of additional investment in GSM and price elasticity in our main markets. In 2004 Millicom rolled out GSM across Central and South America and we have rebranded our GSM offering under the Tigo brand. Tigo has enabled Millicom to attract higher spending customers, particularly in Central America, which is our largest region in terms of revenues. In November we launched a GSM network in Pakistan leading to rapid growth, so that by the year end we had more than one million customers in this market and Paktel has added in excess of 275,000 new GSM customers to date. The other key driver to growth in 2004 has been the price elasticity we experienced following tariff reductions for customers, particularly in Vietnam, which have driven minutes of use for our existing customers, as well as enabling us to penetrate these markets more rapidly as cellular services become more affordable.
"This strong growth was achieved whilst operating at an annual EBITDA margin of just below 50%. The margin in the fourth quarter of 48% wasimpacted by the launch of the GSM service by Paktel in Pakistan. It will take Paktel more than two years to reach the margins it was experiencing prior to the launch of GSM. This will erode Millicom's overall margin somewhat over that period of time.
"In December 2004 and January 2005 Millicom successfully raised and settled some $400 million, split evenly between equity and convertible debt, and the proceeds of this will be used primarily for funding our businesses in Vietnam and Pakistan. Negotiations for an extension of our co-operation with VMS in Vietnam are ongoing and a decision on the future of the co-operation is expected in the second quarter. In Pakistan, Millicom extended Paktel's license and is waiting to be offered formal terms by the regulator to extend Pakcom's license."
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