Millicom International Cellular SA (MICC) has declared fourth quarter fiscal 2009 financial results. Quarterly total revenue of $923.7 billion was an improvement of 9.8% year-over-year as well as 7.9% sequentially. Fourth quarter revenue of $923.7 million was also better than the Zacks Consensus Estimate of $876 million. This was primarily due to impressive contribution from African and Latin American regions.
On a GAAP basis, net income in the fourth quarter 2009 was $454.2 million or $4.18 per share compared to a net income of $66.2 million or 61 cents per share in the prior-year quarter and a net income of $142.7 million or $1.31 per share in the previous quarter. However, fourth quarter adjusted (excluding special items) EPS was $1.34, significantly above the Zacks Consensus Estimate of $1.26. This was due to higher contribution from the high-margin value-added services products.
Quarterly gross margin was 78.7%, remains same year-over-year. EBITDA during the fourth quarter was $430.7 million compared to $381.9 million in the prior-year quarter and $392 million in the previous quarter. This reflects the aggressive cost cutting measures taken by management during the past one year.
Quarterly EBITDA margin was 46.6% compared to 45.4% in the year-ago quarter and 45.8% in the previous quarter. This was well above management’s long-run target of 45%. Millicom guided EBITDA margin to remain above 45% during 2010, a respectable level for telecommunications carriers.
At the end of fiscal 2009, Millicom had 33.92 million wireless subscribers, up 22% year-over-year. During the reported quarter, the company added 2.1 million net new mobile customers. This reflects massive swing in customer intake in Senegal.
Millicom generated $472 million cash from operation during the fourth quarter compared to $372 million in the prior-year quarter and $249 million in the previous quarter. Quarterly free cash flow (cash flow from operation less capital expenditure) was $220 million compared to a negative ($109 million) in the year-ago quarter and $108 million in the previous quarter.
At the end of fiscal 2009, Millicom had approximately $1,511.2 million of cash & marketable securities on its balance sheet compared to $674.2 million at the end of fiscal 2008. Total debt was approximately $2346.9 million at the end of the same quarter compared to around $2,158 million at the end of fiscal 2008.
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