Research, Charts & Company Announcements
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.
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.
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January
The Cybersecurity Rebellion: “No, I’m Spartacus!”
07 Jun 16
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.
Small Cap 2017 - The only certainty is uncertainty
18 Jan 17
AIM will turn twenty-two this June and it is fair to say it has had its fair share of ups and downs, with 2016 being a case in point. We ask what will the rest of 2017 hold in store? Arguably the US dollar, Brexit, bonds, and banks will be the four big themes for the new year.