Thursday, February 14, 2013

Telecommunications - Regional - South America drives Millicom Q4 growth as Central America, Africa remain flat

Luxembourg-based mobile operator Millicom's (Nasdaq: MICC) Q4 revenue growth was driven by a strong performance in South America, while Central America and Africa remained almost flat compared to the prior-year period, according to a results release.

The company saw total revenues increase 6.4% year-on-year to US$1.27bn in the quarter, with South American revenues jumping 16.8% to US$526mn.

Central American revenues grew by a pallid 0.6% year-over-year to US$481mn, and African revenues remained flat at US$249mn, the company said in the release.

Meanwhile, the firm's net income fell 17.6% year-on-year to US$155mn in Q4 as costs and expenses increased.

Full-year 2012 revenues grew 8% to US$4.81bn, while net income for the year fell 14.6% to US$655mn.

Millicom has struggeled to maintain Arpu in all of its markets, seeing declines of 6% in Central America and Africa, and 3% in South America.

Arpu stabilization and growth in Latin America remains a key focus, the operator said, adding that the situation in Central America is "challenging" due to pricing pressure on voice in El Salvador and Guatemala.

However, the company remains focused on selling more data services in Central America following its successful strategy of expanding data use in South America, the firm added.

South America saw mobile customers expand 14% in 2012 to 12.7mn at the end of the year, and the region also saw 2.55mn data users in that time, helping the company maintain growth.

However, revenue growth was negatively impacted by interconnection rate cuts in Paraguay and Bolivia, the operator said.

Meanwhile, Central America and Africa also saw strong increases in data users in the year, and increases in mobile customers, however revenues in Central America increased only slightly as Arpu fell in the region.

The company's main priorities for 2013 include securing high market share and continuing to monetize mobile data, as well as growing its cable business, according to the release.

Source: http://feedproxy.google.com/~r/BusinessNewsAmericas-TopStoriesEN/~3/efBONYNnHy0/south-america-drives-millicom-q4-growth-as-central-america-africa-remain-flat

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