NEW YORK and BERTRANGE, Luxembourg, April 21, 2005 (PRIMEZONE) -- Millicom:- 26% increase in Revenues for Q1 05 to $268.9m (Q1 04: $213.1m) (1).
- 19% increase in EBITDA for Q1 05 to $126.5m (Q1 04: $106.6m)(1)
- (Loss) / Profit for Q1 05 of $(11.3)m (Q1 04: $14.6m)(iv)
- Basic (Loss) / Earnings per common share for Q1 05 of $(0.11) (Q1 04:$0.22) (iv)
- Quarterly total subscriber increase for Q1 05 of 828,394 (i)
Millicom International Cellular S.A. (Nasdaq Stock Market: MICC, Stockholmsborsen and Luxembourg Stock Exchange: MIC), the global telecommunications investor, today announces results for the quarter ended March 31, 2005.
Financial summary for the quarters ended March 31, 2005 and 2004*
March 31 March 31 Change
2005 2004
Worldwide
subscribers (i) 5,960,090 4,128,030 44%
- proportional 8,541,595 5,897,371 45%
cellular (ii)
- total cellular
US$ `000
Revenues 268,891 213,065 26%
Operating profit 126,473 106,566 19%
before interest,
taxes,
depreciation and
amortization,
EBITDA(iii)
EBITDA margin 47% 50% -
(Loss) / Profit (11,263) 14,570 -
for the period
Basic earnings (0.11) 0.22 -
per common share
(US$)
Diluted earnings (0.11) 0.20 -
per common share
(US$)
Weighted average 98,637 65,963 -
number of shares
(thousands)
Weighted average 98,637 79,930
number of shares -
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'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 expenses from revenues
(iv) Comparative information restated as a result of the adoption of
IFRS 2, ``Share-based Payment"
(1) *Figures for 2004 exclude divested operations for financial
results down to and including EBITDA
Marc Beuls, Millicom's President and Chief Executive Officer stated: "Millicom has started the year strongly with good subscriber growth reflecting both increased investment, particularly in new GSM networks in 2004, and growing demand in its key markets. Millicom has some 8.5 million subscribers and with penetration rates taking off in Asia and Africa, the prospects are excellent. Excluding Q3 03 when we reconsolidated the El Salvador numbers, Q1 05 set a new proportional subscriber intake record.
"Paktel is approaching 400,000 subscribers on its GSM network and is on track to meet its target of adding one million subscribers in the first year since the launch of GSM services. Pakcom agreed payment terms for its license similar to Paktel's on 18th April 2005 and this business will start to grow again with the conversion to CDMA infrastructure in Q4 05. The heavy investment in sales and marketing in Pakistan has affected South Asia and group margins in the last two quarters and it will take until 2007 before this region again attains average group margins."
"Africa remains the fastest growing market showing growth in total subscribers of 70% over the first quarter of 2004 and is today the third largest region in terms of revenues after Central America and South East Asia. There will continue to be opportunities to expand into new territories in Africa, the latest being Millicom's license in Chad whichis expected to be operational in 2005.
"In Vietnam the negotiations on the continuation of the cooperation have not yet led to an agreement between the parties. The negotiations on the creation of a Joint Stock Company, as agreed between the parties by signing the MOU last November, are continuing. The Government of Vietnam has agreed to equitize VMS, our partner under the current BCC. This is the first equitization of a major telecommunication company in Vietnam which explains why at present, no information is available as to the process of this equitization. For Millicom's subsidiary Comvik International Vietnam ``CIV" to form a joint venture with VMS changes in legislation will be needed in the future. It is unlikely that this process will have started by the end of the BCC on May 18th and without agreement between the parties at that date, Millicom will no longer be able to consolidate the Vietnam numbers. Millicom will communicate on progress during the second quarter.
"Millicom is today well funded, with cash reserves of over half a billion dollars and generating free cash. These resources will allow the company to expoit the multiple opportunities that are currently available in its markets."
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