Millicom swung back to profit in Q2, while its revenue also increased, as the company’s performance was boosted by its acquisitions of Cable Onda and Telefonica’s operation in Nicaragua.
Revenue for the period hit $1.1 billion, an increase of 5.4 per cent year-on-year which was aided by both acquisitions, while reporting net income of $46 million, which was mostly due to revaluation gains. In the same period of 2018, the company reported a $1 million loss.
Operating profit fell 34.5 per cent to $110 million in the recent period due to one-off charges and higher amortisation expense.
Millicom’s main market, Latin America, was the biggest revenue driver, increasing 5.6 per cent to reach $1.5 billion.
In a statement, CEO Mauricio Ramos (pictured) said the company made significant progress on a number of strategically important fronts during Q2, including a long-term strategy to exit Africa and focus solely on Latin America .
“Although the current macroeconomic environment in Nicaragua presents challenges, we are excited about the long-term growth opportunity we see in the country,” said Ramos.
Fuelled by the Nicaragua takeover, its Tigo mobile unit added 3.2 million customers. The company also added 540,000 4G smartphone data customers during the period, reaching 11.9 million in total. Mobile ARPU, however, declined slightly to $7.4 billion from $8 billion in Q218.Subscribe to our daily newsletter Back