Millicom revs rocket as it expands across LATAM

DetailsJuan Fernandez Gonzalez | 03 February 2015

In a year full of expansive moves throughout Latin America - launching direct-to-home (DTH), cable and mobile operations in several countries - Millicom saw a strong increase in revenues during 2014, driven in large part by the company's merger with UNE-EPM.

Presenting unaudited figures, Sweden's Millicom has declared $1,860 million in revenue, half of which comes from South American business in countries including Paraguay, Bolivia and Colombia - where the UNE merge has generated $316 million in revenue. In Central America, where Millicom has a consolidated position in the mobile and pay-TV markets, the telco reached $643 million in revenue.

The figures represent a 63.3% growth in the South American region during the last year and a 4% growth in Central America, driving general revenue figures to show 27.1% growth worldwide.

The Swedish company has been increasing its focus on Latin markets during 2014, targeting mobile customers with a wide portfolio of over-the-top (OTT) services through the Tigo brand, and strengthening cable and satellite TV operations across the region.

These positive figures have much to do with UNE-EPM, the Colombian telco which merged with Millicom in August 2014. The company's operations grew by 7% during 2014 and its subscriber base reached 1.8 million of connected homes with pay-TV and broadband services, out of a network delivering fibre access to over three million houses.

Cable operations in Paraguay (up 36%, a lot of which growth followed the launch of Tigo Sports) and Bolivia (56% growth), in addition to a more consolidated presence in Guatemala, Honduras and El Salvador, have also been highlighted by the telco.

"Our drive into cable continued to gain momentum in Q4, while the popularity of our satellite services (DTH), maintained its momentum and we expect more to come," said Tim Pennington, interim CEO at Millicom. "We now pass over 5.6 million households with our cable network and we have over 2.6 million households connected. Close to 40% of our cable customers are enjoying the digital lifestyle with digital TV."