Brief: Millicom Q2 Operating Profit At $93 Mln

Millicom International Cellular SA

30/07/2020 11:25

July 30 (Reuters) - Millicom International Cellular SA
 TIGOsdb.ST :
    * REG-SUSTAINING CONNECTIVITY TO OUR COMMUNITIES
    * Q2 REVENUE USD  970 MILLION VERSUS USD 1,054 MILLION YEAR
AGO
    * LOCKDOWNS HAD A MAJOR IMPACT ON OUR MOBILE BUSINESS,
ESPECIALLY
IN THOSE MARKETS WITH SEVERE MOBILITY RESTRICTIONS, BUT WE ARE
NOW SEEING SOME EASING, AND MOST OF OUR KEY PERFORMANCE
INDICATORS AND OUR REVENUE IMPROVED IN JUNE AS COMPARED TO APRIL
AND MAY
    * WE CONTINUE TO INVEST IN OUR STATE-OF-THE-ART BROADBAND
NETWORKS
    * WE REMAIN LASER-FOCUSED ON INTEGRATING OUR RECENT
ACQUISITIONS,
AND WE ARE ON TRACK TO EXCEED OUR INITIAL COST-SAVINGS
EXPECTATIONS.
    * WE ARE INVESTING IN DIGITAL CHANNELS AND TOOLS THAT WE
NEED TO
DELIGHT OUR CUSTOMERS AND REDUCE COSTS
    * Q2 OPERATING PROFIT USD 93 MILLION VERSUS USD 109 MILLION
YEAR
AGO
    * Q2 NET LOSS USD 115 MILLION VERSUS PROFIT USD 45 MILLION
YEAR
AGO
    * MOST OF OUR KEY PERFORMANCE INDICATORS AND OUR REVENUE
IMPROVED
IN JUNE AS COMPARED TO APRIL AND MAY
    * WE ARE LEAVING UNCHANGED OUR MEDIUM TERM GOALS TO DELIVER
MID-SINGLE-DIGIT ORGANIC SERVICE REVENUE GROWTH, MID-TO-HIGH
SINGLE-DIGIT ORGANIC EBITDA GROWTH, AND AROUND 10% OCF (EBITDA
LESS CAPEX) ORGANIC GROWTH FOR THE LATAM SEGMENT
    * ONGOING INVESTMENTS IN STRATEGIC MOBILE NETWORK UPGRADES
ARE
BEGINNING TO PAY OFF
    * INTEGRATION OF OUR RECENT MOBILE ACQUISITIONS IN NICARAGUA
AND
PANAMA IS ON TRACK - SYNERGY EXPECTATIONS INCREASED BY 10%.
    * IN Q2 2020, GROUP REVENUE DECREASED 8.0% ($85 MILLION)
YEAR-ON-YEAR TO $970 MILLION DUE TO NEGATIVE IMPACT OF COVID-19
PANDEMIC, TRANSLATION IMPACT OF WEAKER CURRENCIES IN COLOMBIA
AND PARAGUAY, AS WELL AS A 31% DROP IN EQUIPMENT SALES,
PARTIALLY OFFSET BY INCREASED REVENUE FROM ACQUISITIONS
COMPLETED IN 2019 IN PANAMA AND NICARAGUA
    * OPERATING EXPENSES IN Q2 2019 INCLUDED A $21 MILLION FINE
IN
TANZANIA AND $16 MILLION OF ONEOFF COSTS RELATED TO THE
ACQUISITIONS

Source text for Eikon:  ID:nGNE7ZH8ct 
Further company coverage:  TIGOsdb.ST 

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