Millicom International Cellular: Results for the Period Ended December 31, 2012

  Millicom International Cellular: Results for the Period Ended December 31,

Business Wire

LEUDELANGE, Sweden -- February 12, 2013

Q4 2012 Highlights

  *Revenue of $1,266 million. Local currency growth of 6.4% YoY, excluding
    Cablevision, including Online.

Excluding regulatory impacts and reclassifications, the growth would have been

  *EBITDA reached $528 million and a margin of 41.7%. EBITDA was YoY flat
    excluding Online and Cablevision
  *Bonds issued in Q4 for $600 million, extending debt maturity to over 3.4
  *Over 4 million MFS customers, MFS launched in Chad

FY 2012 Highlights

  *Local currency revenue growth of 8.0% to $4,814 million (8.7% excluding
    regulatory impact and Cablevision Paraguay)
  *EBITDA of $2,065 million and EBITDA margin of 42.9% (43.2% excluding
  *Capex of $922 million (19.1% of revenue), excluding spectrum, licenses and
    Cablevision assets
  *Operating Free Cash Flow of $1,127 million (23.4% of revenue) excluding
    spectrum, licenses and Cablevision assets
  *The Board will propose a dividend of $2.64 per share to the AGM to be
    convened on May 28, 2013

2013 forward looking statements

We expect 2013 Group EBITDA margin to be above 40% (excluding Online) and to
decline less than over the past twelve months. In 2013, the capex to revenue
ratio will peak at around 20%, excluding spectrum acquisition.

In 2013 we expect the Online division to deliver in excess of $100 million of
revenues and EBITDA losses to be in the range of $125-200 million. Losses will
be on the high side of the range if we see an opportunity to accelerate growth
and ramp up launches.

Financial summary for the quarters ended December 31, 2012 and 2011

                                   YOY %                           YOY %
$m              Q4      Q4      change     FY 2012  FY 2011  change
                                   (local                          (local
                                   currency)                       currency)
                 2012     2011
Revenue          1,266    1,177    6.40%       4,814     4,530     8.00%
EBITDA (i)       528      536      -0.20%      2,065     2,087     1.40%
EBITDA margin    41.70%   45.50%   (3.8pt)     42.90%    46.10%    (3.2pt)
Normalized Net   155      188                  655       767
Profit (ii)
Capex (iii)      359      375                  922       825
Operating FCF    375      300                  1,127     1,218

(i) EBITDA: operating profit before interest, tax, depreciation and
amortization; derived by deducting cost of sales, sales and marketing costs
and general and administrative expenses from revenue and adding other
operating income.

(ii) Net profit adjusted for items such as foreign exchange movements,
movements in valuation of the Honduras put option, Colombian deferred tax
asset, and revaluation of previously held interests.

(iii) Excluding towers sold to, and leased back from tower companies, spectrum
and assets acquired with Cablevision Paraguay.

(iv) Operating Free Cash Flow: EBITDA – Capex (excluding spectrum) - Tax +/-
working capital movements and includes proceeds from tower monetization.

Hans-Holger Albrecht, President and CEO of Millicom, commented:

"2012 has been a year of investment for Millicom. We stepped up our investment
in infrastructure and in commercial activities, notably in branding and
subsidies to ensure we deliver the best quality services to our customers. We
also invested in our people through the staffing of our different business
categories. These investments are even more important given that the maturing
of the voice business is accelerating in the fourth quarter with material
regulatory pressure. We are constantly innovating by identifying and scaling
up new opportunities that have yet to be addressed by the industry. It is our
relentless pace of innovation, initiated long ago by our founder, which
enabled us to continue growing at an industry leading 8% rate in 2012. We
generated close to 35% of our revenues from Value Added Services, well on
track to reach our mid-term ambitions to diversify revenue and to reduce
reliance on mobile voice services.

In line with our 2012 guidance, EBITDA margin declined by 2.9 percentage
points in 2012 versus 2011 to 43.2% (excluding Online). As previously
communicated, we increased investment in IT and 3G services while maintaining
a capex to revenue ratio below 20%. At 23% of revenues, our cash flow
generation was healthy and above previously communicated targets.

In 2013 the transition from voice to data and from analogue to digital TV will
accelerate as we ensure Millicom remains a growth company. Our priorities will
be to 1) secure high market share and further monetize mobile data , 2) grow
our cable business by exploiting untapped potential, 3) expand our MFS
business from its initial success, and 4) explore and further develop Online
opportunities in our partnership with Rocket Internet. Creation of a leading
integrated operator in Colombia with EPM (the leading utility company in the
Northwest region of Colombia) would enable us to accelerate our development in
cable, whilst offering material opportunities to cross-sell and up-sell
innovative and best quality services to customers.

In 2013 we expect EBITDA margin to decline less than in 2012, and remain above
40%, and capex to revenue to peak at around 20% (both excluding Online). We
have recently increased our focus on costs and capex avoidance to improve the
productivity of our investments and adjust our costs structure to the slowing
growth momentum on voice. Building on Millicom’s pioneering approach to Value
Added Services; we will focus on becoming a Digital leader. We will share more
on our strategic priorities and mid-term ambitions at our Capital Markets Day
on March 6.

The Board has decided to propose to the annual general assembly the payment of
a dividend of $2.64 per share. Our dividend policy is maintained and we have
the ambition to progressive growth in ordinary dividends.

At Millicom, we demand more to ensure we delight our customers at every turn.
We demand more to create a culture within Millicom which is truly energising.
We demand more to create greater shareholder value. We demand more to
strengthen our position as digital lifestyle leaders. Demanding more helps us
reach for the stars while keeping us grounded. That makes us Millicom."

Conference call details

A presentation and conference call to discuss results of the quarter will take
place at 14.00 Stockholm / 13.00 London / 08.00 New York, on Tuesday, February
12, 2013. Dial-in numbers: +46 (0)850 336 434, +44 (0)1452 555 566, or +1 631
510 7498. Access code: 92960289#.

A live audio stream of the conference call can also be accessed at Please dial in / log on 10 minutes prior to the start of the
conference call to allow time for registration.

Slides to accompany the conference call are available at

About Millicom

Millicom is a leading telecom operator dedicated to emerging markets in Latin
America and Africa. Millicom sets the pace when it comes to providing digital
lifestyle services to the world’s emerging markets, giving access to the
world, primarily through mobile devices. Operating in 15 countries, Millicom
offers innovative and customer-centric products. The Millicom Group employs
more than 8,000 people and provides mobile services, access to the internet,
content and financial services to over 45 million customers. Founded in 1990,
Millicom International Cellular SA is headquartered in Luxembourg and listed
on NASDAQ OMX Stockholm under the symbol MIC. In 2011, Millicom generated
revenue of USD 4.53 billion and EBITDA of USD 2.09 billion.

This press release may contain certain “forward-looking statements” with
respect to Millicom’s expectations and plans, strategy, management’s
objectives, future performance, costs, revenue, 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.

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., and Millicom
International Cellular S.A. employees or representatives 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.

This information was brought to you by Cision


Millicom International Cellular
President and Chief Executive Officer
Hans-Holger Albrecht
Tel: 46 8 562 000 12
Investor Inquiries:
Justine Dimovic
Tel: 352 27 759 479
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