MILLICOM INTERNATIONAL CELLULAR SA
For the period ended May 8, 2025. Filed May 8, 2025.
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May 8, 2025 · Filed May 8, 2025
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5. SEGMENT INFORMATION
As further detailed in note 1, Millicom operates in a single region (Latin America), and more specifically in the following countries: Guatemala, Colombia, Panama, Honduras, Bolivia, Paraguay, El Salvador, Nicaragua and Costa Rica..
As further explained in the 2024 Group's Consolidated Financial Statements, the 'Chief Operating Decision Maker ("CODM") assesses performance and allocates resources, based on individual countries, which are its operating segments. The Honduras joint venture is reviewed by the CODM in a similar manner as for the Group’s controlled operations and is therefore also shown as a separate operating segment at 100%. However, these amounts are subsequently eliminated in order to reconcile with the Group consolidated numbers, as shown in the reconciliations below.
Management evaluates performance and makes decisions about allocating resources to the Group's operating segments based on financial measures, such as revenue, including service revenue, and Adjusted EBITDA. Capital expenditures are also a significant aspect for management and in the telecommunication industry as a whole. Management believes that service revenue and Adjusted EBITDA are essential financial indicators for the CODM and investors. These measures are particularly valuable for evaluating performance over time. Management utilizes service revenue and Adjusted EBITDA when making operational decisions, allocating resources, and conducting internal comparisons against historical performance and competitor benchmarks. Additionally, these metrics provide deeper insights into the Group's operating performance. Millicom's Compensation and Talent Committee also employs service revenue and Adjusted EBITDA when assessing employees' performance and compensation, including that of the Group's executives. A reconciliation of service revenue to revenue and Adjusted EBITDA to profit before taxes is provided below.
Revenue, Service revenue, Adjusted EBITDA, capital expenditures and other segment information for the three-month periods ended March 31, 2025, and 2024 are shown on the below:
| Three months ended March 31, 2025 (in millions of U.S. dollars) | Guatemala | Colombia | Panama | Bolivia | Honduras | Paraguay | Other segments (v) | Total segments | Inter- segment and other eliminations(iv) | Total Group |
|---|---|---|---|---|---|---|---|---|---|---|
| Service revenue (i) | 349 | 334 | 172 | 93 | 148 | 131 | 213 | 1,438 | (153) | 1,285 |
| Telephone and equipment revenue | 56 | 7 | 8 | 1 | 8 | 4 | 13 | 97 | (8) | 89 |
| Revenue | 405 | 341 | 180 | 93 | 155 | 135 | 226 | 1,535 | (161) | 1,374 |
| Inter-segment revenue | 2 | — | — | 1 | 1 | 1 | 2 | 8 | n/a | n/a |
| Revenue from external customers | 403 | 340 | 180 | 92 | 154 | 134 | 224 | 1,527 | n/a | n/a |
| Adjusted EBITDA (ii) | 222 | 133 | 92 | 43 | 77 | 69 | 101 | 738 | (102) | 636 |
| Capital expenditures (iii) | 33 | 40 | 16 | 10 | 8 | 10 | 26 | 142 | (10) | 132 |
| (i) | Service revenue is revenue related to the provision of ongoing services such as monthly subscription fees for mobile and broadband, airtime and data usage fees, interconnection fees, roaming fees, mobile finance service commissions and fees from other telecommunications services such as data services, short message services, installation fees and other value-added services excluding telephone and equipment sales. |
| (ii) | Adjusted EBITDA is operating profit excluding impairment losses, depreciation and amortization, share of profit in Honduras joint venture and gains/losses on the disposal of fixed assets. |
| (iii) | Capital expenditures correspond to additions of property, plant and equipment, as well as operating intangible assets, excluding spectrum and licenses. The Group capital expenditure additions for the three-month period ended March 31, 2025 and 2024 can be reconciled with notes 9 and 10 for amounts of $113 million and $19 million respectively (2024: $89 million and $24 million, respectively). |
| (iv) | Includes intercompany eliminations, unallocated items and Honduras as a joint venture. |
| (v) | Includes our operations in El Salvador, Nicaragua and Costa Rica. |
Unaudited Interim Condensed Consolidated Financial Statementsfor the three-month period March 31, 2025
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