Millicom Posts Q2 Profit, Revenue Down; Cuts Service Revenue Growth View

(RTTNews) - Millicom International Cellular S.A. (MICCF, MIICF), a telecommunications and media company, reported Thursday that its second-quarter net profit was $44 million, compared to last year's net loss of $99 million.

Adjusted net profit was $4 million, compared to $9 million a year ago. Adjusted earnings per share were $0.04, compared to $0.09 last year.

Revenue declined 6 percent to $1.57 billion from prior year's $1.67 billion. Organic revenue growth was 0.5%.

Service revenue dropped 4.1 percent from last year to $1.469 billion on currency, while organic growth was 2.1 percent.

Adjusted EBITDA, a key earnings metric, declined 1.6 percent to $560 million, while adjusted EBITDA margin increased by 1.4 percentage points to 35.6%.

Looking ahead, for fiscal 2016, the company now expects organic service revenue to grow low to mid-single digit, compared to previous estimate to grow mid-single digit.

Further, the company continues to expects adjusted EBITDA to grow at mid to high single digit.