LUXEMBOURG (dpa-AFX) - Shares of Millicom International Cellular SA (MIICF.PK) declined around 6 percent in the morning trade in Stockholm after the telecom company reported a sharp decline in fourth-quarter profit. Looking ahead for fiscal 2013, the company said that it expects EBITDA margin to remain above 40 percent, but to decline less than in 2012's 43.2 percent.
In its recently concluded fourth quarter, net profit attributable to the company's owners fell to $87 million, or $0.85 per share, from the prior year's $180 million, or $1.76 per share. Normalized net profit, which excluded certain items, declined to $155 million from $188 million last year.
Quarterly revenue was $1.27 billion, 7.5 percent higher than last year's $1.18 billion. In local currency, revenue growth was 6.4 percent, excluding Cablevision contribution.
Earnings before interest, tax, depreciation and amortization edged down 0.2 percent in local currency to $528 million, and EBITDA margin dropped 3.8 percentage points to 41.7 percent. Mobile ARPU in local currency declined 4.7 percent.
Further, the company said its Board will propose a dividend of $2.64 per share to the AGM to be convened on May 28.
Going ahead, Millicom expects that the capex to revenue ratio will peak at around 20 percent, excluding spectrum acquisition.
The company also projects that Online division would deliver in excess of $100 million of revenues and EBITDA losses to be in the range of $125-200 million. Losses will be on the high side of the range if the company sees an opportunity to accelerate growth and ramp up launches, it said.
In Stockholm, Millicom shares are currently trading at 551 Swedish kronor, down 31 kronor or 5.33 percent.
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