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Research Tree provides access to ongoing research coverage, media content and regulatory news on MILLICOM INTL CELLULAR S A. We currently have 3 research reports from 1 professional analysts.
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MILLICOM INTL CELLULAR S A
MILLICOM INTL CELLULAR S A
Growth slowdown in LatAm continues
21 Jul 16
Q2 revenue was $1.57bn and showed poor organic growth of 0.5% (with LatAm declining 0.7% and Africa increasing by 9.2%). Remember Q1 revenues were up by 2.1% yoy organically (with LatAm growing 0.7% and Africa by 11.9%). The impact of macro-economic headwinds on Millicom’s business was stronger than in the previous quarter and more noticeable in Colombia and Central America. In addition, the LatAm performance was affected by the further decline in handset sales in Colombia. Organic service revenue growth was below the outlook for 2016 (mid single-digit growth) at 2.1%, reflecting particularly continued pricing competition in the Colombian mobile market. Currency headwinds reduced, but the impact on revenue compared to the same period last year was still significant at 7%! The relative good news is that operating expenses decreased by 7.1% yoy, driven by lower corporate costs and the currency impact on the cost base, as well as the efficiency initiatives implemented in Africa. As a result, the EBITDA margin stood at 34.5% vs 33.6% a year ago. Guidance for 2016 has been revised slightly downward: revenues should grow by a low to mid single-digit (vs mid single-digit previously) but EBITDA should still grow slightly more at a mid to high single-digit.
It would be perfect if there were no worries about currencies
10 Feb 16
Q4 revenue was $1.68bn and showed organic growth of 4.4% (with LatAm growing 2.8% and Africa by 13.4%). The LatAm performance was particularly affected by the decline of handset sales in Colombia however organic service revenue grew by 5.9%. Currency headwinds continued to be strong, in particular from the Colombian peso and Paraguayan guarani, reducing revenue by 14.7% (or $274m). Note that we had already anticipated such a negative impact and that 2015 revenues stood at $6.73bn vs $6.71bn in our model. Q4 EBITDA at $492m was significantly reduced by one-off items ($60m) resulting from restructuring (in Africa) and integration charges (UNE in Colombia) and a provision on a contract in Guatemala. The Q4 adjusted EBITDA declined by 7.4% but the margin was indeed up from 32% to 32.9%. Quite a good performance, driven by the good integration of UNE in Colombia. The guidance for 2016: revenues should grow by a mid single-digit (+5% in our model) while the EBITDA should grow slightly more at a high single-digit (+6% in our model)... without accounting for the currency issues.
FX weighs on growth
21 Jul 15
Q2 revenues were up by 17.8% yoy due to UNE's integration and organic growth stood at 9% yoy, a good number, in line with our expectations and quite similar to the last quarter. Note adverse currency movements logically impacted sharply this growth: reported organic growth is indeed… a negative 1.3%. EBITDA is up by 17.2% with the margin at 32.9% (including UNE!), a figure in line with our expectations and reflecting the stabilisation of the margin at a good level (it was at 33.1% in Q1). Millicom's guidance for 2015 has been rebased to reflect the impact of the 7% devaluation in the currency basket: revenue is now expected between $6.8bn and $7.2bn ($6.9bn in our model) and EBITDA between $2.12bn and $2.26bn ($2.28bn in our model). Remember Millicom announced at the beginning of March that its Board had decided to appoint Mauricio Ramos as its new CEO. Mauricio Ramos is a Colombian nationale and was most recently President of Liberty Global's Latin American division.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
FY 2016 results confirm further strong delivery
21 Mar 17
Gamma’s FY 2016 revenues, Adjusted EBITDA and Adjusted EPS numbers were a touch ahead of our estimates. We make small upward adjustments to forecasts for all three years of our forecast horizon reflecting that performance. Gamma is capitalising on its position as a nimble player in an attractive marketplace. It made strong progress in 2016 as Voice over IP technology drove uptake of SIP Trunking and Hosted PBX services - both areas where Gamma has strong platforms. In addition, data services reflected Gamma’s investment in its network, channel partner numbers increased again and the indirect business accordingly showed strong revenue growth. The Direct Business also produced good growth and won some significant new contracts. The outlook statement is ’enthusiastic’ about the current year and comments that the Board ‘remains open to suitable M&A opportunities and areas for strategic capital investment’. Overall, an optimistic picture, in our view.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Panmure Morning Note 18-07-2016
18 Jul 16
We look for an in-line set of H1s from Spirent; this follows the Q1 beat. Look for good cash generation, good performance in the Networks division, ‘spotty’ at Wireless division, regionally growth in APAC offset by North America and EMEA customers who are “slow to release budgets”. Spirent should reaffirm the FY outlook – but will flag currency. Whilst the macro backdrop remains fragile, in truth Spirent is a story of getting its house in order and achieving better sales execution. We reiterate that our general investment view (Buy when others are frightened) has captured the zeitgeist and shares have performed well this year. That said there are some neat big picture drivers; 5G remains a prize being dangled as are the opportunities in IoT, high-speed data centre and driverless cars – indeed these should ensure that the shares pick up some Arm-related enthusiasm. Spirent enjoys an attractive valuation (2016E EV/Sales 1.1x, 7.0x EV/EBITDA) relative to sector peers (see table) despite sporting similar operating KPIs (see table). Our target price is 120p. Buy
Panmure Morning Note 13-06-2016
13 Jun 16
More news on 5G means a favourable read-across for the key 5G ‘name’ – Spirent. Today the Dutch Ministry of Economic Affairs has gathered 10 partner organisations together to run a 5G test in North Groningen – tests to be carried out at the end of the year. This is favourable for Spirent as it illustrates that 5G is getting closer and with it raises the possibilities of earlier revenue opportunities for Spirent. Short term is good for share sentiment. We retain our Buy.
Signs of recovery after a difficult 2016
08 Mar 17
As flagged by the recent trading update, group FY 2016 revenue slipped 7% YoY to $90.4m; 43% ($38.5m) of this came from Telecoms, which saw the majority of the decline in revenue as the legacy copper-based equipment sales continue to be wound down. The Bio-Medical division sales slipped just 2% YoY to $51.6m; a poor year from sterilization being compensated for by growth in diagnostics. While gross margins remained firm in both divisions (40% and 25% respectively), both slipped into operating loss; a hefty $2.2m from Telecoms (due to the loss of revenue from contracts) and $0.3m from Bio-Medical; however, the $2.5m operating loss was covered by an exceptional $3m profit on sale of a property. That sale helped cash; $1m received from operations was offset by $6m capex but cash from the sale of assets lifted BATM’s net cash from $21m to a welcome $23m at the year end.