NEW YORK, LONDON, STOCKHOLM, Sweden, BERTRANGE, Luxembourg, April 20, 2004 (PRIMEZONE) -- Millicom International Cellular SA (Nasdaq:MICC) (Stockholmsborsen:MIC), the global telecommunications investor, today announces results for the quarter ended March 31, 2004.
Marc Beuls, MIC's President and Chief Executive Officer stated:
"We have changed our financial reporting to reflect the five operational clusters in the group which are South East Asia, South Asia, Africa, Central America and South America. Countries within a cluster have historically shown similar developments and breaking down the numbers in this way provides greater transparency and enables our shareholders, bondholders and analysts to gain a better understanding of the trends we see in certain parts of the company."
"MIC has had a buoyant start in 2004, building on the growth seen last quarter, by producing increases in revenues and EBITDA of 54% and 55% respectively over the first quarter of 2003. Our African operations in particular continued to show very impressive growth with revenues up 76% and EBITDA up 92% year on year, fuelled by annual total subscriber growth of 81%. Asia continued to perform well and we are encouraged by definite signs of recovery in South America. Our priority for 2004 is to accelerate the growth of our existing operations, whilst seeking opportunities in adjacent markets. Our current licence renewals are progressing well. We signed a Memorandum of Understanding in Vietnam and, in Pakistan, our licence extension has been confirmed and negotiations continue with the Ministry of Telecoms regarding final terms."
Financial Results for the Three Months Ended March 31, 2004*
Total revenues for the three months ended March 31, 2004 were $213.9 million, an increase of 54% from the first quarter of 2003, reflecting the increasing trend of growth in MIC's operations. MIC recorded revenue growth in Africa of 76% to $31.7m in the first quarter of 2004 compared with the same period in 2003, with Ghana producing growth of 153%. Revenues for Asia for the first quarter of 2004 increased by 34% from the same period last year, to $86.4 million, with $55.7 million for South East Asia and $30.6 million for South Asia.
First quarter revenues for Latin America increased by 76% from the first quarter of 2003, mainly because of the reconsolidation of El Salvador, or by 13% if El Salvador is excluded. The Central American market continued to perform strongly with Guatemala and Honduras producing increases in revenues of 20% and 19% respectively from the first quarter of 2003. In South America, Bolivia and Paraguay produced revenue increases of 6% and 4% respectively, their highest year-on-year quarterly increases for several years, pointing to an upturn in the region.
EBITDA for the three months ended March 31, 2004 was $106.8 million, an increase of 55% from the quarter ended March 31, 2003. EBITDA for Africa increased by a 92% to $13.3 million in the first quarter of 2004 from $7.0 million in the first quarter of 2003, with the most impressive growth occurring in Ghana and Senegal. EBITDA for Asia was $50.0 million for the first quarter, an increase of 37% from the same period in 2003, with increases of 45% and 34% for South Asia and South East Asia respectively. Latin America recorded growth in EBITDA of 74% from the first quarter of 2003 to $43.5 million, following the reconsolidation of El Salvador, with a particularly strong increase of 37% produced by Guatemala. Excluding El Salvador, EBITDA grew by 17%. The quarterly EBITDA margin for Asia was 58%, (59% for South East Asia and 55% for South Asia), for Latin America it was 46% (49% for Central America and 39% for South America) and for Africa it was 42%.
The profit per common share on a non-dilutive basis for the first quarter of 2004 was $0.22. Excluding the gain on exchange and disposal of investments, the valuation movements on securities, the fair value result on financial instruments and the exchange gain on the 5% Mandatory Exchangeable Notes, the profit per share was $0.21. The corresponding loss per share for the first quarter of 2003 was ($0.20), derived from the profit per share of $0.40 after deduction of $0.60 relating to a non-recurring gain on exchange and disposal of investments and valuation movements on securities.
Conference Call Details
A conference call to discuss the results will be held at 16:00 Luxembourg time/10:00 New York time, on Tuesday, April 20, 2004. The dial-in numbers are: +44 1452 542 300 or +1 866 220 1452 and participants should quote Millicom International Cellular. 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 1452 550 000 or +1 866 247 4222, access code: 1220441#.
About Millicom International Cellular S.A.
Millicom International Cellular S.A. is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has a total of 16 cellular operations and licenses in 15 countries. The Group's cellular operations have a combined population under license of approximately 387 million people.
Visit our web site at: (http://www.millicom.com).
Safe Harbor
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. members or persons 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.
Appendices
Financial and Operating Summary*
- Subscriber growth:
- An annual increase in worldwide total cellular subscribers of 39%
to 5,897,371 at March 31, 2004.
- 28% underlying annual growth in total cellular subscribers
excluding El Salvador.
- An annual increase in proportional cellular subscribers of 39% to
4,128,030 at March 31, 2004.
- 24% underlying annual growth in proportional subscribers excluding
El Salvador.
- In the first quarter of 2004 MIC added 206,829 net new total
cellular subscribers.
- Proportional prepaid subscribers increased to 3,641,976 from
2,641,734 at March 31, 2003.
- Financial highlights:
- Revenues for the first quarter of 2004 were $213.9 million, an
increase of 54% from the first quarter of 2003. Excluding El Salvador
the increase was 30%.
- EBITDA increased by 55% in the first quarter of 2004 to $106.8
million, from $69.0 million for the first quarter of 2003. Excluding
El Salvador, the increase was 34%.
- From the first quarter of 2004, MIC is providing greater disclosure
in its financial reporting by reflecting the five operational clusters
in the group; South East Asia, South Asia, Africa, Central America and
South America.
- Total cellular minutes increased by 57% for the three months ended
March 31, 2004 from the same quarter in 2003 and increased by 41%
excluding El Salvador, with prepaid minutes increasing by 70% in the
same period and by 59% excluding El Salvador.
- On February 4, 2004 MIC's subsidiary in Vietnam, Comvik International
Vietnam signed a Memorandum of Understanding with its partner VMS, a
subsidiary of the Vietnam Posts and Telecommunications, to confirm their
intention to extend the co-operation for the long term.
- On February 5, 2004 MIC acquired 26% of Millicom Tanzania Ltd from
the Government of Tanzania, bringing its ownership to 84%. MIC now
controls Millicom Tanzania Ltd.
- An Extraordinary General Meeting of Shareholders held on February
16, 2004, approved a stock split of the issued shares of MIC by which
each share with a par value of $6 was split into four new shares with a
par value of US$ 1.50. The stock split became effective after close of
business on February 20, 2004.
- On February 17, 2004 MIC signed a management agreement with Rafsanjan
Industrial Complex ('RIC') in Iran to manage a nationwide GSM network
to be owned by RIC under a build, operate and transfer contract between
RIC and Telecommunications Company of Iran. The contract allows RIC to
build and operate the network for 2 million prepaid subscribers for a
period of 11 years. MIC will be paid a share of the revenues generated
by the network and has been awarded an option to acquire 47% of the
company that will operate it.
- On March 19, 2004 MIC formally requested the Trustee to call the
entire outstanding amount of 2% Senior Convertible PIK Notes (the "2%
PIK Notes") for redemption in cash on April 26, 2004 in accordance with
the terms of the Indenture covering these Notes. During the quarter
ended March 31, 2004, 40% of the 2% PIK Notes outstanding at year end
were converted.
- MIC's listing on the Stockholmsborsen (Swedish Stock Exchange) became
effective on March 30, 2004.
Results of Operations
Subscriber Growth*
In the first quarter of 2004 MIC's worldwide operations in Asia, Latin America and Africa added 206,829 net new total cellular subscribers. On a proportional basis, MIC added 102,453 subscribers, bringing the total at March 31, 2004 to 4.1 million.
At March 31 2004, MIC's total cellular subscriber base increased by 39% to 5,897,371 cellular subscribers from 4,248,714 as at March 31, 2003. Particularly significant percentage increases were recorded in Ghana, Senegal, Sierra Leone, Vietnam and Pakistan. MIC's proportional subscriber base increased to 4,128,030 from 2,962,603 at March 31, 2003, also an increase of 39%.
MIC experienced negative subscriber growth in South America over the last twelve months as a result of the subscriber review in Paraguay earlier this year and a similar review last year in Bolivia.
Within the 4,128,030 proportional cellular subscribers reported at the end of the first quarter, 3,641,976 were pre-paid customers. Excluding El Salvador, proportional pre-paid subscribers increased by 26% from March 2003. Pre-paid subscribers currently represent respectively 87% and 88% of total and proportional cellular subscribers.
Cellular Operations (i)*
Proportion Proportio Annua Total Total Annua
al (ii) nal (ii) lized Subs at Subs at lized
Subs at Subs at Incre Mar 31, Mar 31, Incre
Mar 31, Mar 31, ase 2004 2003 Dec ase
2004 2003 31, 2002*
South East 779,517 508,987 53% 1,706,073 1,107,885 54%
Asia
South Asia 1,044,513 751,696 39% 1,246,692 906,037 38%
MIC Asia 1,824,030 1,260,683 45% 2,952,765 2,013,922 47%
Central 987,115 417,628 136% 1,443,815 786,346 84%
America
South 721,602 1,005,197 -28% 739,530 1,027,853 -28%
America
MIC Latin 1,708,717 1,422,825 20% 2,183,345 1,814,199 20%
America
MIC Africa 595,283 279,095 113% 761,261 420,593 81%
Total 4,128,030 2,962,603 39% 5,897,371 4,248,714 39%
Cellular
Ops
Financial summary for the quarters ended March 31, 2004 and 2003*
- 54% increase in revenues for Q1 04 to $213.9m (Q1 03: $138.7m)*
- Profit of $14.7m for Q1 04 (Q1 03: $26.2m)
- Profit per common share of $0.22 for Q1 04 (Q1 03: $0.40)
- 55% increase in EBITDA for Q1 04 to $106.8m (Q1 03: $69.0m)*
- 39% annual increase in proportional subs to 4.1m and in total subs to
5.9m*
March 31 March 31 Change
2004 2003
Worldwide subscribers (i)
- proportional cellular (ii) 4,128,030 2,962,603 39%
- total cellular 5,897,371 4,248,714 39%
US$ '000
Revenues 213,859 138,703 54%
Operating profit before depreciation and 106,790 68,961 55%
amortization, EBITDA(iii)
EBITDA margin 50% 50%
Profit for the period 14,730 26,226
Basic profit per common share (US$) 0.22 0.40
Diluted profit per common share (US$) 0.20 0.40
Weighted average number of shares 65,963 65,136
(thousands)
Weighted average number of shares and 79,930 65,136
dilutive potential shares (thousands)
(i) Subscriber figures represent the worldwide total number of
subscribers of cellular systems in which MIC has an ownership
interest. Subscriber figures do not include divested operations.
(ii) Proportional subscribers are calculated as the sum of MIC's
percentage ownership of subscribers in each operation.
(iii) EBITDA; operating profit before interest, taxation, depreciation
and amortization, is derived by deducting cost of sales, sales and
marketing costs, and general and administrative costs from revenues.
* Due to local issues in El Salvador, MIC discontinued consolidating El
Salvador on a proportional basis from May 2001 to September 2003.
Figures for 2003 in this press release therefore exclude divested
operations and El Salvador in respect to subscribers and for financial
results, down to and including EBITDA. Figures for 2004 include El
Salvador and exclude divested operations for subscribers and financial
results, down to and including EBITDA.
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