Millicom Q1 Profit Down 38%, Affirms FY Outlook; To Sell Towers In Paraguay

(RTTNews) - Millicom International Cellular S.A. (MICC, MIICF.PK) reported that its first-quarter net profit was $24 million, down 37.8 percent from $38 million a year ago. Earnings per share were $0.24, compared to $0.38 per share last year.

However, adjusted net profit was $24 million or $0.24 per share, compared to profit of $23 million or $0.23 per share in the same period last year.

EBITDA rose 2.8 percent to $555 million from $539 million in the year-ago period.

First-quarter revenue rose 0.4 percent to $1.51 billion from $1.50 billion a year ago. Organic revenue declined 2.2 percent.

Looking ahead to fiscal 2017, Millicom International said it remains on target to deliver on its goals for the year. The company continues to project organic service revenue growth in the low single-digit range.

The company also continues to expect fiscal 2017 EBITDA organic growth in the mid-to-high single digit range and operating cash flow growth of around 10 percent.

On 26 April, 2017, Milicom announced an agreement to sell approximately 1,400 wireless communications towers to a subsidiary of American Tower Corporation or ATC in Paraguay. As a result of this transaction, Tigo Paraguay will receive approximately Gs700 billion, equivalent to $125 million, in cash.