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UPDATE 1-Millicom says to double revenue in 5 years
March 6, 2013 / 11:11 AM / in 5 years

UPDATE 1-Millicom says to double revenue in 5 years

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STOCKHOLM, March 6 (Reuters) - Emerging markets telecoms group Millicom International Cellular SA aims to double revenue to $9 billion over five years, focusing on data, online and mobile commerce and broadband cable and television.

Like other telecoms operators, the company is facing a slowdown in the voice telephony market and wants to boost revenues from other services. This week it raised its stake in two e-commerce companies in Africa and Latin America.

“We will now build on the core mobile offering to propel Millicom into an era where it becomes a digital lifestyle brand offering a diverse range of services to meet rapidly-changing customer needs in emerging markets,” president and chief executive Hans-Holger Albrecht said in a statement.

The company, controlled by Swedish investment group Kinnevik and present in countries such as Colombia, Paraguay, Chad, Senegal and Tanzania, had revenues of $4.8 billion in 2012.

It said it would add up to 18 million new mobile data subscribers by 2017, meaning revenues in the mobile area were expected to grow in the mid-single digits.

It also expected $600 million to $1 billion in revenues could be added from mobile financial services by 2017 and saw $1.8-$2.6 billion further from broadband cable and television.

At the same time, it said it would limit operating expenditures to 15 percent of revenues by 2016 and save $100 million in expenditures.

Millicom shares were up 1.6 percent at 496 crowns by 1046 GMT, while the broad Stockholm index was up just 0.03 percent. (Reporting by Patrick Lannin and Niklas Pollard; Editing by Helen Massy-Beresford)

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