Millicom Q4 profit down, provides outlook for 2013

Millicom International Cellular SA, a telecom operator, has reported that net profit attributable to owners of the company for the fourth quarter ended December 31, 2012 was $87 million, or $0.85 per diluted share, compared to $180 million, or $1.76 per diluted share, for the same quarter ended December 31, 2011. The company expects its online division to deliver revenues in excess of $100 million in 2013.

Revenue for the fourth quarter ended December 31, 2012 was $1.27 billion, compared to $1.18 billion for the same quarter ended December 31, 2011.

Net profit attributable to owners of the company for the year ended December 31, 2012 was $508 million, or $5.01 per diluted share, compared to $925 million, or $8.86 per diluted share, for the year ended December 31, 2011.

Revenue for the year ended December 31, 2012 was $4.81 billion, compared to $4.53 billion for the year ended December 31, 2011.

The company expects EBITDA losses to be in the range of $125 million to $200 million in 2013.

Hans-Holger Albrecht President and CEO said, "2012 has been a year of investment for Millicom. We stepped up our investment in infrastructure and in commercial activities, notably in branding and subsidies to ensure we deliver the best quality services to our customers. We also invested in our people through the staffing of our different business categories. These investments are even more important given that the maturing of the voice business is accelerating in the fourth quarter with material regulatory pressure. We are constantly innovating by identifying and scaling up new opportunities that have yet to be addressed by the industry. It is our relentless pace of innovation, initiated long ago by our founder, which enabled us to continue growing at an industry leading 8% rate in 2012. We generated close to 35% of our revenues from Value Added Services, well on track to reach our mid-term ambitions to diversify revenue and to reduce reliance on mobile voice services."