All figures presented exclude discontinued operations (Cambodia, Laos, Sri Lanka and Sierra Leone), except where otherwise stated. Historical figures have been restated to provide a comparable base, where necessary.
Q4 key figures
• Mobile customers up 22% versus Q4 08, bringing total customers to 33.9 million
• Organic constant currency revenues up 9% versus Q4 08
• Reported revenues up 10% to $924 million (Q4 08: $841 million)
• EBITDA up 13% to $431 million (Q4 08: $382 million)
• EBITDA margin of 46.6% (+1.2 percentage points versus Q4 08)
• Basic earnings per common share* of $4.18 (Q4 08: $0.61)
• Normalised earnings per common share** of $1.34 (Q4 08: $1.03)
• Free cash flow of $220 million (Q4 08: $109 million outflow)
• $309 million gain on disposal of Cambodia, Sri Lanka and Sierra Leone
FY 2009 key figures
• Organic constant currency revenues up 10% versus FY 08
• Reported revenues up 7% to $3,373 million (FY 08: $3,151 million)
• EBITDA up 13% to $1,545 million (FY 08: $1,366 million)
• Basic earnings per common share* of $7.84 (FY 08: $4.80)
• Normalised earnings per common share** of $4.69 (FY 08: $4.93)
• Free cash flow of $456 million (FY 08: $209 million outflow)
• Dividend per share of $1.40 proposed for 2009***
* Includes discontinued operations
** Excludes one-off events occurring in 2009 and 2008
*** Subject to final approval of the 2009 accounts
Mikael Grahne, CEO of Millicom, commented:
"Millicom has had a good fourth quarter, and our consistent performance throughout 2009 demonstrates the strength of our business model and our ability to react quickly to changing market conditions. We have combined market-leading revenue growth with improving margins, rigorous capital discipline and excellent cash generation. Our focus on value-added services and innovation has delivered a broader revenue base and improved customer loyalty.
“During the quarter we benefited from a strong seasonal impact, with Christmas and the holiday season helping to boost our customer additions to over 2 million. In December we started operations in Rwanda, our seventh African market. Growth in value-added services continued to be encouraging, and now represents over 21% of recurring revenue.
“Margins made further progress, reflecting increasing operational leverage as we reach scale in a number of African markets, and the impact of strong growth in high-margin value added services. We expect to maintain the Group EBITDA margin in the mid 40s % in 2010.
“Capex for the year was $737 million, or 22% of revenue. We expect Group capex for 2010 to be around $700 million. Last month we announced the creation of a tower company in Ghana that marked our first substantial commitment to outsourcing passive infrastructure. This agreement is consistent with our strategy of improving our capital and operating efficiency, and will enable us to focus on areas of genuine competitive differentiation such as marketing, distribution and customer service. We will actively pursue similar projects during 2010.
“Millicom has become increasingly cash generative and we ended the year with operating free cash flow of $658 million or 20% of revenues, a little ahead of our guidance. Our new dividend policy underlines our confidence that future cash flows will be sufficient both to finance our plans for growth and to remunerate shareholders. The Board will propose a dividend of $1.40 for 2009 to the AGM in May, subject to its approval of the final 2009 accounts.
“The divestment of two of our Asian businesses has further strengthened our financial position and we ended the year with net debt to EBITDA of 0.5x. This liquidity leaves us well positioned in the short term to pursue external growth opportunities, and our capital structure will continue to evolve with a view to enhancing shareholder returns.”
Note: For tabular financial information and the full text of the statement, please refer to the attached PDF or 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 10, 2010. The dial-in numbers are: +44 (0)20 7138 0825, +46 (0)8 5051 3786 or +1 212 444 0481 and the pass code is 4580296#. 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 7111 1244 / +46 (0)8 5051 3897 or +1 347 366 9565, access code: 4580296#.
Telephone: +352 27 759 327
Chief Financial Officer
Telephone: +352 691 750 098
Head of External Communications
Telephone: +44 (0)7779 018539
Visit our web site at http://www.millicom.com
Millicom International Cellular S.A. is a global telecommunications group with mobile telephony operations in 14 countries in Latin America, Africa and Asia. 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 267 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.