Millicom Sees Profits Increase by 14%
Millicom International, which operates under the Tigo brand, has reported a 14% rise in second quarter revenues of US$929 million, while its customer base rose by 19%, bringing total customers to 36.7 million. The company recorded a net profit of US$134.29 million versus US$114.27 million a year ago.
Mikael Grahne, President and CEO of Millicom, commented: “Our customer market share continues to increase. Growth has accelerated in South America, with all three of our markets performing strongly. In Central America, although remittances have shown some early signs of recovery, we continue to face headwinds from a weak economic environment and the impact of new taxes and interconnect cuts introduced in previous quarters. We believe that this region can return to growth, driven by our focus on innovation and the major opportunity that 3G presents, given the latent demand for internet access.”
“ARPU in local currency declined further, but at a slower rate despite increasing taxes and regulation. In South America, local currency ARPU was up 2%, as a result of strong execution on 3G and value-added services (“VAS”). VAS revenues across the Group were up 29% in local currency, with non-SMS services being the main driver.”
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