Colombian business drives Millicom's momentum across LATAM

DetailsJuan Fernandez Gonzalez | 23 July 2015

Accounting for over $1.4 billion out of the $1.7 billion total quarterly revenues, Latin America is the most significant business region for Millicom, which has seen particular growth during Q2 in cable, specifically within the Colombian market.

LATAM revenues were at $1.46 billion, up 21.7% compared to Q2 2014, with an EBITDA of $564 million (up 16.1%) due to strong performance from Colombia, Guatemala and Bolivia.

"The Latin America businesses moves from strength to strength; we saw strong performances from Colombia, Guatemala and Bolivia which drove another quarter of headline revenue growth," said Mauricio Ramos, Millicom's recently appointed CEO. "Further progress has been made in Paraguay with a return to revenue and EBITDA growth although this was adversely affected by currency movements."

Together with mobile financial services (MFS), cable was the sector in which Millicom saw largest growth. Cable and digital media revenue grew by 24.6%, with total revenue generating units (RGUs) increasing by 61,000 from Q1 2015 to 5.24 million.

After UNE's integration with Tigo in Colombia, the Caribbean country has become one of the most important territories for Millicom, as revenue grew by 87% to $533 million (including $275 million from UNE).

In Bolivia, Q2 revenue grew by 9% to $128 million, with cable revenue up 80%, while in Paraguay revenue grew by 2% to $170 million with growth from cable and MFS offsetting pressure on the mobile business.

"We now have a road map to focus on two phases of opportunity in our fast growth emerging markets: building customer focused mobile products and services that can be monetised; and expanding our cable footprint to capture the emerging opportunity," said Ramos.