Millicom CEO Mauricio Ramos revealed work was underway to carve-out its infrastructure assets and mobile money operations from the core business as he detailed its Q3 performance.
The executive used Millicom’s earnings statement to praise its ongoing performance, while explaining the planned spin offs aimed to optimise the capital structures of each unit.
Millicom had “projects underway” to separate the two lucrative assets to “unlock value in the future”.
The move would see Millicom join peers across the globe in separating infrastructure assets from the business, with several others subsequently divesting their new units completely or taking outside investment.
Ramos bullishly noted Q3 had been an “excellent quarter” with all of its units registering a “solid performance”.
Millicom recorded net profit of $5 million compared with a loss of $51 million in the equivalent quarter of 2020.
The turnaround in fortunes was attributed to higher revenue and a “significant” cut in interest costs following debt repayments. Revenue was up 6.5 per cent to $1.1 billion.
Ramos added Millicom had pressed ahead with investments to expand its mobile operation in Colombia and network modernisation plans in El Salvador, Honduras, Paraguay and Bolivia.
Millicom also pumped cash into growing its Tigo Money business ahead of plans to carve out the unit.Subscribe to our daily newsletter Back