Millicom Needs To Improve Margins To Unlock Value
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Jul. 21, 7:30 AM
Fri, May 27, 11:00 AM
- Orange (ORAN -1.3%) is said to be talking informally with Millicom International Cellular (OTCPK:MIICF +3.5%) in order to buy still more African operations.
- Orange -- which has been pouring money into African expansion -- is interested in Senegal, Ghana and Chad, Bloomberg says, as well as East Africa after it sold out of its Kenyan operation.
- Millicom had previously agreed to sell its assets in Democratic Republic of Congo to Orange for $160M. It's looking to get out of West and Central Africa and focus on its eastern holdings. “The market clearly wants an exit from Africa for Millicom,” analyst Stefan Gauffin says.
Tue, Apr. 26, 6:23 AM
Wed, Feb. 10, 7:47 AM
- Millicom International Cellular S.A. (OTCPK:MIICF): Q4 EPS of -$0.33
- Revenue of $1.68B (-9.7% Y/Y)
Nov. 25, 2015, 6:32 PM
- VimpelCom (VIP +6.8%) is looking at stable debt even with ongoing dollar risks, Fitch says, giving the Russia-focused telecom a BB+ Issuer Default Rating with stable outlook.
- While VimpelCom's debt is moderate and declining, 71% is in U.S. currency, which may increase costs for Amsterdam-based VimpelCom as the U.S. raises rates.
- VimpelCom's interests in Italy's Wind are "highly leveraged but ring-fenced," the firm says.
- Fitch expects VimpelCom to stay a strong mobile player in Russia despite competition from Mobile TeleSystems (NYSE:MBT), Millicom (OTCPK:MIICF) and Megafon (OTC:MFOYY): "Although its market share has been on a steady decline over the three years to 2014, a catch-up in capex should allow it to compete on a more level playing field with its larger peers."
- Shares finished strong today after a report the company may be near a settlement with U.S. authorities related to an Uzbekistan corruption probe.
- Previously: VimpelCom up 2.4% on report it's near $775M U.S. settlement (Nov. 25 2015)
Oct. 26, 2015, 4:26 PM
- Millicom International Cellular (OTCPK:MIICF +1%) has wrapped up an acquisition of Zantel, making it the No. 2 mobile operator in Tanzania.
- Terms were undisclosed, though in June Millicom had said it would pay a token $1 and assume the company's $74M in debt. The government of Zanzibar is keeping a 15% stake in Zantel.
- Zantel is Zanzibar's biggest mobile operator and had a 4.8% share of the Tanzania market, which has 34.1M subscribers. Adding it brings Millicom's Tigo unit to 34.2% of the market, ahead of Airtel's 30.1% and just behind Vodacom's (OTC:VODAF) 35.2%.
Oct. 8, 2015, 8:02 PM
- Boom times for African mobile companies may be coming to an end with growth about to slow down sharply, says industry group GSMA. And that could encourage consolidation.
- Subscriber growth of 13% from the past five years will become 6% in the next five, as Africa faces its own "rural challenge" despite relatively low penetration.
- Low spending power in rural areas means expansion is even more difficult than in the U.S., though not even half the continent's population will have subscribed to a mobile service by 2020, the study says.
- That could drive consolidation so players can achieve economies of scale required to take on that expense. Already dealing: Vodacom (OTC:VODAF) bought Neotel to force competition with Telkom (OTCPK:TLKGY +3.9%); Millicom (OTCPK:MIICF -0.7%) bought Tanzania's Zantel from the UAE's Etisalat. Other key players: Orange (ORAN +0.6%), making a major expansion in the region; MTN Group (OTCPK:MTNOY +1.2%), the continent's biggest wireless operator.
- Previously: Orange shuffles Africa/Middle East leadership (Oct. 01 2015)
Jul. 8, 2015, 11:58 PM
- Europe is leading the world in telecoms moving to "quad-play" bundling -- adding wireless to fixed-line telephones, broadband and pay TV -- which should mean a big opportunity for firms to drive margin improvement and build some competitive moats, says Morningstar's Allan Nichols.
- Both in-country consolidations and convergence mergers are helping build moats, he says -- the latter because it tends to lower churn as people subscribe to more services. And with lower churn, companies can lower subscriber acquisition cost.
- His favorites in the space: Telefonica (NYSE:TEF), already a leader in triple-play and convergence in Spain and Brazil; Orange (NYSE:ORAN), leading a fiber buildout in France; and Millicom International Cellular (OTCPK:MIICF), with a high organic growth rate but low EV/EBITDA.
- About 16% of Virgin Media customers were taking four services when it was acquired by Liberty Global (NASDAQ:LBTYA) in summer 2013, which Nichols thinks was a key factor. Liberty is now offering wireless services as an MVNO in several markets, and has agreed to buy Royal KPN's (OTCPK:KKPNY) wireless business Base.
- From the wireless direction, Vodafone (NASDAQ:VOD) is also acquiring assets to offer other services, particularly after it bought Cable & Wireless Worldwide in the UK, and later Kabel Deutschland in Germany.
- Europe would benefit from more cross-border mergers, Nichols says, but they're unlikely due to political constraints, and German cable consolidation is likely to run into regulatory opposition as well.
Oct. 21, 2013, 1:29 PM
- Millicom (MIICF +10.5%) shares jump after the company reports Q3 revenue grew 7.6% Y/Y to $1.29B as the telco added 1M new data users.
- Q3 EBITDA was $459M (margin of 38.6%), FCF $81M, and EPS $1.00.
- CEO Hans-Holger Albrecht: "This quarter’s strong growth highlights the continuing opportunity in Africa and Latin America. Combined with the shift to data, progress in mobile financial services and the launch of new media services almost weekly, we are on track to deliver the transformation of the company into a digital lifestyle provider."
- PR, presentation slides, results
Oct. 16, 2013, 2:08 PM
- Emerging market telco Millicom (MIICF.PK -0.2%) completes the issuance of $800M in 6.625% dollar-denominated bonds. Appetite for the offering was healthy, reaching $2.4B.
- The company intends to use the proceeds to finance the merger of its Colombian ops with Empresas Publicas de Medellin's fixed line business, part of a strategy to double annual revenues in the next 5 years.
Feb. 9, 2011, 9:00 AM
May 13, 2009, 1:20 PMNasdaq leaders: APOL +2%. DTV +1%. Laggards: LINTA -11%. STLD -11%. FLEX -10%. WYNN -9%. LAMR -9%. EXPE -8%. LVLT -8%. SHLD -7%. NVDA -7%. UAUA -7%. DISH -7%. LBTYA -6%. LOGI -6%. AMAT -6%. VMED -5%. AMLN -5%. PCAR -5%. GRMN -5%. JOYG -5%. FAST -5%. WFMI -5%. MICC -5%. EBAY -5%. FWLT -5%. | May 13, 2009, 1:20 PM
Apr. 21, 2009, 7:49 AMMillicom International Cellular (MICC): Q1 EPS of $1.29 misses by $0.01. Revenue of $846M (+5.9%) vs. $901M. (PR) | Apr. 21, 2009, 7:49 AM
Apr. 21, 2009, 12:05 AM
Feb. 11, 2009, 7:58 AMMillicom International Cellular (MICC): Q4 EPS of $0.61 misses by $0.91. Revenue of $907M (+18.4%) vs. $977M. (PR) | Feb. 11, 2009, 7:58 AM
Feb. 11, 2009, 12:05 AM
Millicom offers digital lifestyle products and services to emerging markets.
Industry: Telecom Services - Foreign
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