Millicom Celebrates 30 Years of Innovation with Tigo!

Luxembourg-based Millicom International, a leading provider of cable and mobile services dedicated to emerging markets in Latin America and Africa. operates under the Tigo brand. They commenced operations in 1990 as a pioneer in the global telecommunications industry, introducing mobile connectivity to several emerging markets across the world. Today, TIGO has solidified its place as an industry-leading convergent operator with a strong presence in 10 markets, primarily in Latin America, which represents approximately 95% of Millicom’s business, providing mobile services to approximately 52 million customers, with a cable footprint of more than 11 million homes passed.  The company employs 23,000 full-time people and generates thousands of indirect jobs.

 

As the company continues to build digital highways, it aims to do so responsibly and to foster an environment where employees, customers, and communities can prosper and reach their full potential. TIGO seeks to revolutionize and democratize access to technology that helps communities overcome challenges such as poverty and limited access to education and healthcare. By successfully addressing these challenges head-on, everyone benefits.

Millicom’s biggest operation in the region is in Guatemala, which in 2020 Q4 delivered 24% of its regional revenues.  Colombia came next with 23% of the total, followed by Bolivia (11%), Honduras and Panama (10% each), Paraguay (9%) and El Salvador (7%). All subsidiaries except those in Guatemala and El Salvador saw revenues drop in Q4. 

Millicom ended the year with 42mn mobile users, 4.5mn home broadband customers and 18mn 4G data users. Despite the decreases, the pace of recovery is very positive and they think they are very well prepared going into 2021 with subscriber growth, resilient cash flow and reduced net debt. However they are cautiously optimistic about 2021, although the pandemic and economics still add unpredictability to the business scenario.

Millicom has been developing mobile networks for close to 30 years. During this time the digital landscape in their markets has changed beyond recognition.

Customer penetration rates and 4G coverage have potential for further growth, fuelled by increased availability of affordable smartphones. 

Their mobile data strategy is based on three pillars: 4G/LTE continues expansion, more and easy smartphone adoption and stimulating data usage. 

In April 2015, Ramos joined Millicom as CEO from Liberty Global PLC, which brands include Virgin Media, UPC, Ziggo, Unitymedia, Kabel BW, Telente, VTR and Liberty Puerto Rico. With operations in 14 countries and 53 million homes passed, Liberty Global PLC is the largest international cable company. Ramos, as president of the company’s Latin American division from 2006 to 2015, is credited with developing its mobile and broadband businesses in the region, delivering operational improvement and positive financial results. Here he is, commemorating the 30th anniversary of the company.

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• Operator Watch Blog: Mobile Landscape in Nicaragua
• Operator Watch Blog: Tanzania has a Wide Choice of Operators
• Operator Watch Blog: Ghana gets 4G, 4G+, Open RAN but no 5G 

Millicom targets Leadership Position in Central America with acquisition of Telefónica Subsidiaries

Millicom announced last week that it has closed the acquisition of Telefonía Celular de Nicaragua, S.A., the number one mobile operator in the country, adding to its existing cable operation of TIGO Nicaragua. This is the first transaction to close since Millicom announced in February an agreement to acquire three subsidiaries of Telefónica in Central America in Panama, Costa Rica and Nicaragua.

Telefonía Celular de Nicaragua, S.A. adds approximately 4 million mobile customers to TIGO with a 4G network accessible to 51% of the population in Nicaragua. The transaction accelerates the execution of Millicom’s fixed-mobile convergence strategy, it helps consolidate the company’s leadership position in Central America, and it diversifies and balances the geographic footprint of the company in its mission to build digital highways that connect more users and develop communities throughout the region.

For people who are not aware, Central America consists of 7 countries, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. Of these, Millicom is present in 5 of them with their brand Tigo.

This transaction in Panama, Costa Rica and Nicaragua will allow Millicom to accelerate its Fixed Mobile Convergence (FMC) strategy.

In Panama, after the acquisition:

• #1 mobile operator in a four-player market with 1.6 million customers
• 4G network covers 74% of population
• Revenue and Adjusted EBITDA CAGRs of approximately 4% and 7%, respectively, in 2015-2018, in US dollar terms
• 2018 revenue of $223 million and Adjusted EBITDA of $90 million, resulting in a margin near 41%
• Dollarized economy and investment grade country increasing Millicom’s US dollar revenue sources

In Costa Rica, after the acquisition:

• #2 mobile operator in a three-player market with 2.4 million customers
• 4G network covers 85% of population
• Revenue CAGR of approximately 13% in 2015-2018, in US dollar terms, drove much faster EBITDA growth over the period
• 2018 revenue of $253 million and EBITDA of $60 million, resulting in a margin near 24%

In Nicaragua, after the acquisition:

• #1 mobile operator in a two-player market with 4.7 million customers
• 4G network covers 51% of the population
• Revenue has declined at a 2.5% CAGR in US dollar terms in 2015-2018, due in part to a weaker currency and to slower overall economic activity
• 2018 revenue of $232 million, nearly 50% of which are denominated in US dollars, and Adjusted EBITDA of $92 million, resulting in a margin near 40%

Finally, with regards to Spectrum the three countries:

Reasonable amount of spectrum is available for existing 3G & 4G services. Our assumption is that these will increase with arrival of 5G in these countries.

Source.