Broad-based growth continued in Q3

Rhea-AI Summary

Millicom reported a robust performance in Q3 2021, with all business lines in Latin America contributing to growth. Notable highlights include the addition of 359,000 mobile customers in Colombia and strong service revenue expansion, particularly an 18% growth in El Salvador. The company resumed shareholder remuneration through share buybacks and aims for an operational cash flow target of at least $1.4 billion for the year. Investments are ongoing in mobile network expansions across several countries and in Tigo Money, alongside progress on their ESG initiatives.

Positive

• Added 359,000 mobile customers in Colombia, including 249,000 postpaid.
• Mobile service revenue grew by 6.5% year-on-year and 4.1% sequentially.
• El Salvador experienced an 18% growth in service revenue.
• Resumed shareholder remuneration via share buyback, repurchasing nearly 1% of shares outstanding.
• On track for operational cash flow target of at least $1.4 billion for 2021.
• Continued investments in infrastructure and Tigo Money business.

Negative

• None.

Broad-based growth continued in Q3

Luxembourg, October 28, 2021 – Millicom is pleased to announce its third-quarter 2021 results. Please find below links to the Q3 2021 Earnings Release, and IAS 34 Interim Condensed Consolidated Financial Statements.

Millicom Chief Executive Officer Mauricio Ramos commented:

"We had another excellent quarter in Q3, with every business line and every country in Latam contributing to our solid performance. In Colombia, we continued to leverage our mobile network superiority to grow our customer base, adding 359,000 mobile customers, including 249,000 in postpaid. Our robust commercial performance is producing strong momentum for mobile service revenue, which grew 6.5% year-on-year and 4.1% sequentially. El Salvador led the way with service revenue growth of 18.0%, a direct result of recent investments to acquire spectrum and expand our network in that country. 

During Q3, we resumed shareholder remuneration, repurchasing nearly 1% of our shares outstanding, and we continued to reduce our financial leverage. We remain on track to deliver on our OCF target of at least $1.4 billion for 2021, as we continue to execute on our 2021 investment plan, which includes our Colombia mobile network expansion, as well as the modernization of our mobile networks in El Salvador, Honduras, Paraguay and Bolivia. Additionally, during the quarter we continued to invest in our Tigo Money business and in our infrastructure, and we have projects underway to carve out these valuable assets from our core business to provide optionality to optimize their capital structure and unlock value in the future.

Now more than ever, we measure our success not only by looking at our financial results and at our balance sheet, but also by measuring our contribution to the lives of our employees and of the people in the communities we serve, while also reducing our impact on the environment. During the quarter, we made significant progress on many facets of our ESG agenda, and we plan to announce Paris-aligned emissions reduction targets in the near future. We recognize and embrace our role as an agent of positive change in our region, and the work we do every day to connect more people to our digital highways is a source of tremendous pride for me personally, and for each of our 21,000 employees. We remain very focused on nurturing and strengthening the Sangre Tigo culture that motivates our teams and drives our performance."

• Q3 2021 Earnings Release
• IAS 34 Interim Condensed Consolidated Financial Statements 

Video conference details

A video conference to discuss these results will take place on October 28, 2021 at 14:00 (Stockholm) / 13:00 (London) / 08:00 (Miami).

Registration for the interactive event is required and is available at the following link.

After registering, you will receive a confirmation email containing details about joining the video conference. Participants who wish to ask a question during the live event must notify the Investor Relations team via email to investors@millicom.com after the start of the event.

Alternatively, participants can join in a listen-only mode, by dialing any of the following numbers and using Webinar ID: 824 3416 1714. Please dial a number based on your location:

US: +1 929 205 6099                                          Sweden: +46 850 539 728

UK: +44 330 088 5830                                        Luxembourg: +352 342 080 9265

Additional international numbers are available at the following link.

A replay of the event will be available on the Millicom investors website.

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For further information, please contact

Press: Vivian Kobeh, Director Corporate Communications +1 786-628-5300 press@millicom.com   Yocasta Valdez, Group Manager Digital Media & Communications +1-305-929-5417 press@millicom.com

Investors: Michel Morin, VP Investor Relations +1 786-628-5270                                                                                                           investors@millicom.com   Sarah Inmon, Director Investor Relations +1-786-628-5303                                                                                                  investors@millicom.com

About Millicom
Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile services dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing high-speed broadband and innovation around The Digital Lifestyle® services through its principal brand, TIGO. As of December 31, 2020, Millicom operating subsidiaries and joint ventures employed more than 21,000 people and provided mobile services to approximately 55 million customers, with a cable footprint of more than 12 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg. For more information, visit: millicom.com. Connect with Millicom on Twitter, Instagram, Facebook and LinkedIn.

Regulatory Statement
This information was prior to this release inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on October 28, 2021.

 

Attachments

• Q3 21 IAS 34 Interim Condensed Consolidated Financial Statements 2021
• Press release_Millicom_Broad-based growth continued in Q3_102821
• Millicom - Earnings Release - Q3 2021

FAQ

What were Millicom's Q3 2021 financial results?

Millicom reported broad-based growth, adding 359,000 mobile customers in Colombia and achieving a 6.5% year-on-year increase in mobile service revenue.

How much did Millicom's service revenue grow in El Salvador?

In El Salvador, Millicom's service revenue grew by 18% during Q3 2021.

What is Millicom's operational cash flow target for 2021?

Millicom aims to achieve an operational cash flow target of at least $1.4 billion for 2021.

What shareholder actions did Millicom take in Q3 2021?

Millicom resumed shareholder remuneration by repurchasing nearly 1% of its shares outstanding.

What investments did Millicom make in Q3 2021?

Millicom continued to invest in mobile network expansions in Colombia and other countries, as well as in its Tigo Money business.