UPDATE 2-Millicom's Q4 subscriber gains offset weak profits

(Adds analyst comments, updates share price)

By Jerker Hellstrom and Niklas Pollard

STOCKHOLM, Feb 13 (Reuters) - Mobile operator Millicom International's (MICC.O) (MICsdb.ST) unexpectedly large rise in new subscribers offset disappointment over lower-than-expected fourth-quarter core earnings on Wednesday.

A record net intake of new subscribers during the seasonally strong quarter took its subscriber base to 23.4 million at the end of last year from 20 million at the end of the third quarter and against analyst expectations of a rise to 22.3 million.

"The result was lower than expected, but the inflow of new customers in the fourth quarter was incredibly strong, and that must be allowed to cost money," said one analyst.

Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding discontinued operations, were $307 million, up from $229 million a year earlier but below a mean forecast for $328 million in a Reuters survey.

"The weak result could be explained to a large extent by the strong subscriber growth. Overall, this is marginally worse than expected," Redeye analyst Urban Ekelund said.

The firm said its revenues in the quarter rose to $786 million from a year-ago $544 million, topping the $753 million average in the survey of nine analysts.

"The strong growth recorded in the fourth quarter of 2007 demonstrates the gathering momentum within the businesses," the firm said in the results statement.

And the group said it planned a dividend for 2007 and was considering further payouts.

Millicom said it planned to pay $2.40 per share in a special dividend for the 2007 fiscal year, reflecting the firm's sale of its stake in Pakistani Paktel Ltd. to China Mobile Communications Corp. for $284 million early last year.

It also said it might begin paying an ordinary dividend.

"The board will consider establishing a recurring dividend in future on the basis of the expected free cash flows," the firm said in a statement.

Millicom shares nosed up 0.7 percent to 688 crowns by 1356 GMT, having fallen as much as 6 percent on the news.

CHAD, COLOMBIA

Millicom, which runs mobile telecom services in emerging markets across the world, said its units in Central America posted a 71 percent increase in subscribers for the full year.