6-K 1 oct2405_6k.htm

 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For October 24, 2005

Commission File Number: 000-22828

MILLICOM INTERNATIONAL
CELLULAR S.A.
75 Route de Longwy
Box 23, L-8080 Bertrange
          Grand-Duchy of Luxembourg          
(Address of principal executive offices)

     Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   X     Form 40-F      

     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___

     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___

     Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

         Yes           No   X  

     If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________



MILLICOM INTERNATIONAL CELLULAR S.A.

INDEX TO EXHIBITS

Items

1. Press release dated October 24, 2005.




SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

   MILLICOM INTERNATIONAL CELLULAR S.A.
                                 (Registrant)
     
Date: October 24, 2005 By: /s/ Bruno Nieuwland
 
  Name: Bruno Nieuwland
  Title: Chief Financial Controller
   
   
  By: /s/ Marc Beuls
 
  Name: Marc Beuls
  Title: President and Chief Executive Officer
     
     
     



Item 1


MILLICOM INTERNATIONAL CELLULAR S.A.

FOR IMMEDIATE RELEASE
October 24, 2005

MILLICOM INTERNATIONAL CELLULAR S.A. ANNOUNCES RESULTS
FOR THE PERIOD ENDED SEPTEMBER 30, 2005

  • 11% increase in Revenues for Q3 05 to $261.2m (Q3 04: $235.9m).
  • EBITDA for Q3 05 of $110.8m (Q3 04: $117.6m).
  • Profit for Q3 05 of $0.5m (Q3 04: profit of $12.2m) (iv)
  • Basic Earnings per common share for Q3 05 of $0.01 (Q3 04 Earnings per share: $0.14) (iv)

  • 19% increase in Revenues for the nine months to Sept 2005 to $791.5m (2004: $665.8m)
  • 8% increase in EBITDA for the nine months to Sept 2005 to $359.5m (2004: $332.1m)
  • Loss for the nine months to Sept 2005 of $5.9m (2004: profit of $41.1m) (iv)
  • Basic Loss per common share of $0.06 for the nine months to Sept 2005 (2004: Earnings per share of $0.51) (iv)

New York, Stockholm and Luxembourg – October 24, 2005 – Millicom International Cellular S.A. (Nasdaq Stock Market: MICC, Stockholmsbörsen and Luxembourg Stock Exchange: MIC), the global telecommunications company, today announces results for the quarter and nine months ended September 30, 2005.

Financial summary for the quarters ended September 30, 2005 and 2004

    Sept 30
2005		     Sept 30
2004(iv) 		    Change  
Worldwide subscribers             
- proportional cellular (ii)    6,409,231     4,737,721     35 %
- total cellular (i)    7,912,539     6,853,233     15 %
US$ ‘000             
Revenues    261,231     235,872     11 % 
                   
Operating profit before interest, taxes, depreciation    110,826     117,594     -6 % 
and amortization - EBITDA(iii)             
                 
EBITDA margin    42.4 %    49.9 %     
                 
Profit for the period(iv)    533     12,188      
Basic earnings per common share (US$)(iv)    0.01     0.14      
                 
Diluted earnings per common share (US$)(iv)    0.01     0.14      
                 
Weighted average number of shares (thousands)    98,884     89,230      
Weighted average number of shares and potential             
dilutive shares (thousands)    99,721     89,821      

(i) Subscriber figures represent the worldwide total number of subscribers of cellular systems in which Millicom has an ownership interest.
(ii) Proportional subscribers are calculated as the sum of Millicom’s percentage ownership of subscribers in each operation.
(iii) EBITDA: operating profit before interest, taxation, depreciation and amortization, is derived by deducting cost of sales, sales and marketing costs, general and administrative expenses from revenues and other operating income
(iv) Comparative information restated as a result of the adoption of IFRS 2, “Share-based Payment”
 




Marc Beuls, Millicom’s President and Chief Executive Officer stated:

“Millicom’s underlying business grew more strongly in the third quarter than in the second quarter with an 8% increase in pro forma revenues. The pro forma numbers exclude Vietnam, where our BCC ended in May and include Millicom’s joint venture in Honduras with a percentage ownership of 66.67% to reflect the increase in ownership from 50% in May 2005. Pro forma EBITDA was up by 6% from the second quarter of 2005. The main driver in revenue growth was a 13% increase in revenues in Central America, 10% in South America and the 5% growth in revenues in Africa, which continue to be our star performers.”

“The Latin American market has seen a strong acceleration in subscriber growth since the launch of GSM and the Tigo brand in 2004, and this has continued to gather momentum as Millicom continues to take market share in Central America. In Africa, Ghana and Senegal were particularly strong markets and Tanzania is beginning to improve its performance. Millicom has started operating in two new markets, launching operations in Chad in October and purchasing the Oasis business in Congo. Together these two countries add some 70 million new people under license, replacing the potential new subscribers lost with the end of our BCC in Vietnam.”

“Millicom is currently negotiating the sale of its share in Pakcom, its second operation in Pakistan. It is interesting to note that Millicom’s growth would have been even higher without Pakcom. Millicom has decided to concentrate its investment in Pakistan into its Paktel business and in total, since 2002, Millicom has committed $250 million of investment, excluding the license fee. Paktel is growing strongly and by the end of the quarter the business had 945,000 subscribers.”

FINANCIAL AND OPERATING SUMMARY

N.B.: Pro forma numbers for current and previous quarters exclude Millicom’s operation in Vietnam, where the BCC ended on May 18, 2005 and include Millicom’s joint venture in Honduras with a percentage ownership of 66.67%, to reflect the increase in ownership from 50% to 66.67% in May 2005.

  • Strong subscriber growth with total cellular subscribers at 7.9 million, an increase of 15% compared to last year, or 50% on a pro forma basis

  • 707,000 net new subscribers added in Q3 2005

  • Revenue of $261.2 million in Q3 2005 only slightly lower than record Q1 2005 revenue of which Vietnam comprised 18%

  • Revenue for Q3 2005 up 11% vs Q3 2004, or 31% on a pro forma basis

  • EBITDA of $110.8 million in Q3 2005

  • Pro forma EBITDA for Q3 2005 of $112.1m, up 22% from Q3 2004

  • Operating cash flow for the nine months to September 2005 of $260 million, funding significantly higher investments of $265 million versus $83 million last year

  • Net debt excluding the 5% mandatory exchangeable notes of $281.9 million with a Net Debt to EBITDA ratio below 1:1 enabling significant future investment

  • Cash and cash equivalents of $605 million at end of Q3 2005

  • Capex of $91.7m for the third quarter and $184.8m for the nine months ended September 30, 2005.

  • Total cellular minutes increased by 19% for the three months ended September 30, 2005 from the same quarter in 2004 and prepaid minutes increased by 34% in the same period. Total pro forma minutes increased by 50% and pro forma prepaid minutes by 59%.

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  • At September 30, 2005, managed active subscribers in Iran amounted to 406,716.

  • On September 19, 2005 Millicom acquired Oasis, the GSM operation in the Democratic Republic of the Congo from Orascom Telecom Holding SAE for US$35 million, bringing Millicom’s population under coverage in Africa to 146 million across seven countries.

  • On October 17, 2005 Millicom launched state-of-the-art GSM services including GPRS, EDGE, MMS and E-pin in Chad under the brand name Tigo. Millicom was awarded a 10 year license to operate a GSM 900 wireless telephony network in Chad in November 2004.

  • Millicom is currently negotiating the sale of its share in Pakcom and a charge of $6 million was taken in the third quarter. Millicom has decided to focus on one business in Pakistan as this will bring substantial savings in license costs, with Millicom having to pay only $291 million for Paktel. It will also enable Management to concentrate investment in one business. Millicom has plans to invest substantial amounts; currently it has committed to spend over $250 million in Paktel not including the license cost. At the end of the third quarter of 2005 Paktel had almost 945,000 subscribers with an ARPU of $5.

REVIEW OF OPERATIONS

SUBSCRIBER GROWTH

In the third quarter of 2005 Millicom’s worldwide operations in Asia, Latin America and Africa added 706,890 net new total cellular subscribers. Proportional subscriber additions in the third quarter were 573,071.

At September 30, 2005, Millicom’s total cellular subscriber base increased by 15% to 7,912,539 cellular subscribers from 6,853,233 as at September 30, 2004. The pro forma increase was 50%. Particularly significant percentage increases were recorded in Pakistan by Paktel (171%), Laos (109%), Ghana (96%) and Senegal (92%). Millicom’s proportional subscriber base increased to 6,409,231 as at September 30, 2005 from 4,737,721 as at September 30, 2004, an increase of 35%. On a pro forma basis, proportional subscribers increased by 53%.

Within the 6,409,231 proportional cellular subscribers reported at the end of the third quarter, 6,005,879 were prepaid subscribers. Prepaid subscribers currently represent 94% of both total and proportional cellular subscribers.

Cellular Operations*
                         
    Proportional (i)
Subs as at
Sept 30, 2005		   Proportional (i)
Subs as at
Sept 30, 2004		   Annualized
Increase		   Total
Subs as at
Sept 30, 2005		   Total
Subs as at
Sept 30, 2004		   Annualized
Increase
                         
South East Asia   468,718   359,902   30%   784,188   605,196   30%
South Asia   1,787,732   1,083,736   65%   1,966,724   1,300,977   51%
Central America   1,652,924   1,120,032   48%   2,314,053   1,537,904   50%
South America   1,128,536   823,360   37%   1,152,309   843,384   37%
Africa   1,371,321   790,990   73%   1,695,265   990,168   71%
Total Cellular Ops    6,409,231   4,178,020   53%   7,912,539   5,277,629   50%

* Pro forma subscriber numbers. Quarterly subscriber numbers including Vietnam for previous quarters are given on p.12 of this statement.
(i) Proportional subscribers are calculated as the sum of Millicom’s percentage ownership of subscribers in each operation.

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FINANCIAL RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005

Total revenues for the three months ended September 30, 2005 were $261.2 million, an increase of 11% from the third quarter of 2004. The pro forma increase in revenues was 31% over the same period. The Central American market continued to perform strongly, producing a 55% increase in revenues from $77.7 million for the third quarter of 2004 to $120.4 million for the third quarter of 2005, with Honduras producing growth of 93%. In South America, revenues increased by 21% to $36.6 million, with Bolivia and Paraguay producing revenue increases of 33% and 15% respectively compared to the third quarter of 2004.

Third quarter revenues for Africa were $50.4 million compared to $38.8 million in the third quarter of 2004, an increase of 30%. Revenues for South East Asia declined to $21.8 million over the same period, due to the end of the BCC in Vietnam in May 2005.

In South Asia, Millicom recorded revenue growth of 9% to $30.5 million, from $28.0 million in the third quarter of 2004. Paktel’s GSM operation has been performing well in a competitive market with the number of active GSM subscribers growing from 675,625 at the end of the second quarter of 2005 to 747,146 at the end of the third quarter, representing 79% of Paktel’s total subscriber base, with a monthly ARPU of approximately $5.

EBITDA for the three months ended September 30, 2005 was $110.8 million, a decrease of 6% from the quarter ended September 30, 2004, due to the end of our BCC in Vietnam in May 2005. On a pro forma basis, EBITDA increased by 22% from the third quarter of 2004, to $112.1 million, representing a 43% margin. Central America recorded growth in EBITDA of 52% from the third quarter of 2004 to $62.5 million and the equivalent increase for South America was 21%, giving EBITDA of $14.1 million. EBITDA for Africa increased by 31% to $21.9 million in the third quarter of 2005, from $16.7 million in the third quarter of 2004.

South Asia saw a decline in EBITDA in the third quarter of 2005 from the same period last year, to $6.1 million, due to increased sales and marketing costs relating to the GSM services in Pakistan. EBITDA for South East Asia was $6.6 million for the third quarter.

The EBITDA margin in the third quarter of 2005 was 42%. For South Asia it was 20% and for South East Asia it was 30%, respectively 44% and 59% in the third quarter of 2004. In the third quarter of 2005, Central America recorded an EBITDA margin of 52% and South America 39% compared to an EBITDA margin in the third quarter of 2004 of 53% and 39% respectively. The EBITDA margin for Africa was 44% for the third quarter of 2005 and 43% for the third quarter of 2004.

FINANCIAL RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005.

Total revenues for the nine months ended September 30, 2005 were $791.5 million, an increase of 19% from the same period of 2004. Revenues for Central America were $310.6 million, an increase of 43%, and for South America, revenues were $101.2 million, up 24%. Revenues for Africa were $146.3 million, increasing by 39%. In South East Asia revenues were $137.6 million and for South Asia, revenues were $91.8 million.

EBITDA was $359.5 million for the nine months to September 2005, an increase of 8% over the same period of 2004. Most notably Africa recorded a 51% increase to $66.7 million for the nine months ended September 30, 2005. EBITDA for Central America for the nine month period increased by 42% from the same period 2004 to $157.9 million and increased by 27% for South America to $40.3 million.

EBITDA for South East Asia and South Asia were respectively $77.7 million and $17.5 million for the nine months ended September 30, 2005.

The Group EBITDA margin for the nine months to September 30, 2005 was 45%, for Central America it was 51%, for South America 40%, for South East Asia 56%, for South Asia 19% and for Africa 46%.

Total cellular minutes increased by 32% for the nine months ended September 30, 2005 compared with the same period in 2004.

COMMENTS ON FINANCIAL STATEMENTS

For the third quarter of 2005, the increase in the market price of the Tele2 shares resulted in a valuation movement of $21.4 million. This gain was mainly offset by the conversion to the US dollar of the 5%

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mandatory exchangeable Notes in Tele2 shares (‘the 5% Notes’) resulting in an exchange loss of $2.7 million and the valuation of the embedded derivative on the 5% Notes resulting in a fair value loss of $19.0 million.

As Millicom is currently negotiating the sale of Pakcom, all assets and liabilities line items relating to Pakcom are grouped respectively under the caption assets held for sale and liabilities directly associated with assets held for sale.

PRO FORMA STATEMENTS OF PROFIT AND LOSS

The following table presents Millicom’s pro forma consolidated statements of profit and loss on an ongoing basis, excluding Millicom’s operation in Vietnam for which the Business Cooperation Contract ended on May 18, 2005 and including Millicom’s joint venture in Honduras with a percentage ownership of 66.67%, in order to reflect the increase in ownership from 50% to 66.67% in May 2005.

Pro forma consolidated statements of profit and loss
for the three months ended September 30, 2005, June 30, 2005 and September 30, 2004
    Quarter ended
Sept 30, 2005		     Quarter ended
June 30, 2005		   Quarter ended
Sept 30, 2004 (i) 		    Change
from Q205 		  Change
from Q304
                           
    (Unaudited)     (Unaudited)     (Unaudited)          
    US$ ’000     US$ ’000     US$ ’000          
                           
Revenues    261,231     241,413     199,599     8%   31%
Operating expenses                 
Cost of sales (excluding depreciation and                 
amortization)    (76,609 )    (69,126 )    (58,039 )     
   Sales and marketing    (38,433 )    (36,222 )    (27,375 )     
   General and administrative expenses    (35,767 )    (30,775 )    (22,377 )     
   Other operating income    1,655     -     -      
EBITDA    112,077     105,290     91,808     6%   22%
 Corporate and license acquisition costs    (5,958 )    (5,908 )    (6,536 )     
 Cost of stock options granted to directors and                 
   employees    (864 )    (893 )    (614 )     
 Write-down of assets, net    (7,178 )    (4,958 )    (2,100 )     
 Depreciation and amortization    (51,070 )    (44,375 )    (30,074 )     
Operating profit    47,007     49,156     52,484      
 Gain on exchange and disposal of investments    419     1,303     7      
 Valuation movement on investment in securities    21,446     (43,291 )    (59,144 )     
 Fair value result on financial instruments    (18,044 )    8,352     61,055      
 Interest expense    (37,702 )    (35,224 )    (25,683 )     
 Interest income    4,858     4,551     1,635      
 Exchange gain (loss), net    (4,141 )    30,711     (12,166 )     
 Profit / (loss) from associated companies    53     336     (101 )     
Profit before taxes    13,896     15,894     18,087      
 Taxes    (17,607 )    (14,558 )    (15,170 )     
 Net Profit / (Loss) after taxes    (3,711 )    1,336     2,917      
 Minority interest    4,737     1,214     (1,490 )     
 Net Profit for the quarter    1,026     2,550     1,427      

(i) Comparative information restated as a result of the adoption of IFRS 2, “Share-based Payment” and IAS 1, revised, “Presentation of Financial Statements”

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Millicom International Cellular S.A. is a global telecommunications investor with cellular operations in South East Asia, South Asia, Central America, South America and Africa. It currently has a total of 17 cellular operations and licenses in 16 countries. The Group’s cellular operations have a combined population under license of approximately 392 million people.

This press release may contain certain “forward-looking statements” with respect to Millicom’s expectations and plans, strategy, management’s objectives, future performance, costs, revenues, earnings and other trend information. It is important to note that Millicom’s actual results in the future could differ materially from those anticipated in forward-looking statements depending on various important factors. Please refer to the documents that Millicom has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Millicom’s most recent annual report on Form 20-F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Millicom on the date hereof. All written or oral forward-looking statements attributable to Millicom International Cellular S.A., any Millicom International Cellular S.A. members or persons acting on Millicom’s behalf are expressly qualified in their entirety by the factors referred to above. Millicom does not intend to update these forward-looking statements.

CONTACTS:     
       
Marc Beuls  Telephone:  + 352 27 759 327 
President and Chief Executive Officer     
Millicom International Cellular S.A., Luxembourg     
       
Andrew Best  Telephone:  + 44 20 7321 5022 
Investor Relations     
Shared Value Ltd, London     
     
Visit our web site at www.millicom.com     

CONFERENCE CALL DETAILS

A conference call to discuss the results will be held at 15:00 CET / 09:00 ET, on Monday, October 24, 2005. The dial-in numbers are: +44(0)20 7784 1017 or +1 718 354 1158 and participants should quote Millicom International Cellular. A live audio stream of the conference call can also be accessed at www.millicom.com. Please dial in / log on 5 minutes prior to the start of the conference call to allow time for registration. A recording of the conference call will be available for 7 days after the conference call, commencing approximately 30 minutes after the live call has finished, on: +44(0)20 7784 1024 or +1 718 354 1112, access code: 2628394#.

APPENDICES

  • Consolidated statements of profit and loss for the three months ended September 30, 2005 and 2004

  • Consolidated statements of profit and loss for the nine months ended September 30, 2005 and 2004

  • Consolidated balance sheets as at September 30, 2005 and December 31, 2004

  • Condensed consolidated statements of cash flows for the nine months ended September 30, 2005 and 2004

  • Condensed consolidated statements of changes in equity for the nine months ended September 30, 2005 and for the year ended December 31, 2004

  • Quarterly analysis by cluster

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Millicom International Cellular S.A.
Consolidated statements of profit and loss
for the three months ended September 30, 2005 and 2004
    Quarter ended
Sept 30, 2005 		    Quarter ended
Sept 30, 2004 (i) 		 
             
    (Unaudited)     (Unaudited)  
    US$ ’000     US$ ’000  
             
Revenues    261,231     235,872  
Operating expenses         
 Cost of sales (excluding depreciation and amortization)    (76,982 )    (65,216 ) 
 Sales and marketing    (38,589 )    (28,918 ) 
 General and administrative expenses    (36,489 )    (24,144 ) 
 Other operating income    1,655     -  
             
EBITDA    110,826     117,594  
 Corporate and license acquisition costs    (5,958 )    (6,536 ) 
 Cost of stock options granted to directors and employees    (864 )    (614 ) 
 Write-down of assets, net    (7,178 )    (119 ) 
 Depreciation and amortization    (50,970 )    (40,101 ) 
             
Operating profit    45,856     70,224  
 Gain / (loss) on exchange and disposal of investments    419     (1,981 ) 
 Valuation movement on investment in securities    21,446     (59,144 ) 
 Fair value result on financial instruments    (18,044 )    61,055  
 Interest expense    (37,709 )    (25,916 ) 
 Interest income    5,728     1,965  
 Exchange loss, net    (4,237 )    (12,008 ) 
 Profit / (loss) from associated companies    53     (101 ) 
Profit before taxes    13,512     34,094  
 Taxes    (17,840 )    (17,256 ) 
Net Profit / (Loss) after taxes    (4,328 )    16,838  
 Minority interest    4,861     (4,650 ) 
Net Profit for the quarter    533     12,188  
Basic earnings per common share (US$)    0.01     0.14  
Weighted average number of shares         
outstanding in the quarter (in thousands)    98,884     89,230  
Profit for the quarter used to determine diluted earnings per         
common share    533     12,188  
Diluted earnings per common share (US$)    0.01     0.14  
Weighted average number of shares and potential         
dilutive shares outstanding in the quarter (in thousands)    99,721     89,821  

(i) Comparative information restated as a result of the adoption of IFRS 2, “Share-based Payment” and IAS 1, revised, “Presentation of Financial Statements”

7






Millicom International Cellular S.A.
Consolidated statements of profit and loss
for the nine months ended Sept 30, 2005 and 2004
    9 months ended
Sept 30, 2005 		    9 months ended
Sept 30, 2004 (i) 		 
             
    (Unaudited)     (Unaudited)  
    US$ ’000     US$ ’000  
             
Revenues    791,503     665,780  
Operating expenses         
 Cost of sales (excluding depreciation and amortization)    (220,089 )    (178,705 ) 
 Sales and marketing    (115,939 )    (85,414 ) 
 General and administrative expenses    (98,262 )    (69,572 ) 
 Other operating income    2,316     -  
EBITDA    359,529     332,089  
 Corporate and license acquisition costs    (18,456 )    (20,342 ) 
 Cost of stock options granted to directors and employees    (2,372 )    (1,237 ) 
 Write-down of assets, net    (35,234 )    (608 ) 
 Depreciation and amortization    (167,256 )    (119,197 ) 
Operating profit    136,211     190,705  
 Gain / (loss) on exchange and disposal of investments    1,944     (1,951 ) 
 Valuation movement on investment in securities    (77,357 )    (145,157 ) 
 Fair value result on financial instruments    16,533     132,402  
 Interest expense    (106,246 )    (77,326 ) 
 Interest income    16,467     5,227  
 Exchange gain, net    46,118     1,631  
 Profit from associated companies    451     503  
Profit before taxes    34,121     106,034  
 Taxes    (44,519 )    (50,761 ) 
Net Profit / (Loss) after taxes    (10,398 )    55,273  
 Minority interest    4,545     (14,192 ) 
Net Profit / (Loss) for the period    (5,853 )    41,081  
Basic earnings/ (loss) per common share (US$)    (0.06 )    0.51  
Weighted average number of shares         
outstanding in the period (in thousands)    98,758     80,461  
Profit/ (loss) for the period used to determine diluted earnings         
per common share    (5,853 )    42,298  
Diluted earnings per common share (US$)    (0.06 )    0.47  
Weighted average number of shares and potential         
dilutive shares outstanding in the period (in thousands)    98,758     89,548  

(i) Comparative information restated as a result of the adoption of IFRS 2, “Share-based Payment” and IAS 1, revised, “Presentation of Financial Statements”

8





    
Millicom International Cellular S.A.
Consolidated balance sheets
as at September 30, 2005 and December 31, 2004
    Sept 30,
2005		   Dec 31,
2004 (i)
    (Unaudited)    
         
    US$ ’000   US$ ’000
Assets         
Non-current assets         
 Intangible assets        
       Goodwill   70,955   37,702
       Licenses, net   266,520   277,705
       Other intangible assets, net   3,515   2,561
 Property, plant and equipment, net   560,096   575,649
 Financial assets        
       Investment in Tele2 AB shares   274,525   351,882
       Investment in other securities   3,100   10,540
       Investment in associates   4,381   2,220
       Embedded derivative on the 5% Mandatory Exchangeable Notes   60,795   45,255
       Pledged deposits   41,556   25,544
 Deferred taxation   6,090   5,883
Total non-current assets    1,291,533   1,334,941
Current assets         
 Financial assets        
   Investment in other securities   15,375   15,327
 Inventories   17,437   16,304
 Trade receivables, net   106,851   141,972
 Amounts due from joint ventures and joint venture partners   11,333   11,715
 Amounts due from other related parties   1,921   2,067
 Prepayments and accrued income   47,441   36,875
 Other current assets   66,369   62,377
 Pledged deposits   5,000   9,260
 Time deposits   2,198   610
 Cash and cash equivalents   604,841   413,381
Total current assets    878,766   709,888
Assets held for sale   264,983   - 
Total assets    2,435,282    2,044,829 

(i) Comparative information restated as a result of the adoption of IFRS 2, “Share-based Payment” and IAS 1, revised, “Presentation of Financial Statements”

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Millicom International Cellular S.A.
Consolidated balance sheets
as at September 30, 2005 and December 31, 2004
    Sept 30,
2005		     Dec 31,
2004 (i) 		 
    (Unaudited)        
             
    US$ ’000     US$ ’000  
Equity and liabilities         
Equity         
   Share capital and premium (represented by 99,545,268 shares as of September 30, 2005)    464,051     513,782  
   Treasury stock (represented by 654,852 shares as of September 30, 2005)    (8,833 )    (8,833 ) 
   4% Convertible Notes – equity component    39,109     -  
   Stock option compensation reserve    4,669     2,297  
   Legal reserve    13,577     13,577  
   Retained losses brought forward    (149,822 )    (277,053 ) 
   Net Profit / (Loss) for the period / year    (5,853 )    66,389  
   Currency translation reserve    (75,460 )    (71,116 ) 
   Minority interest    35,460     43,351  
Total equity    316,898     282,394  
Liabilities         
   Non-current liabilities         
       10% Senior Notes    537,348     536,629  
       4% Convertible Notes – Debt component    161,439     -  
       5% Mandatory Exchangeable Notes – Debt component    321,175     365,006  
       Other debt and financing    110,097     124,267  
       Other non-current liabilities    188,978     194,774  
       Deferred taxation    36,542     39,216  
Total non-current liabilities    1,355,579     1,259,892  
   Current liabilities         
       Other debt and financing    80,060     88,511  
       Trade payables    181,612     173,969  
       Amounts due to joint ventures    5,238     7,760  
       Amounts due to related parties    466     975  
       Accrued interest and other expenses    70,199     55,203  
       Other current liabilities    159,033     176,125  
Total current liabilities    496,608     502,543  
Liabilities directly associated with assets held for sale    266,197     -  
Total liabilities    2,118,384     1,762,435  
Total equity and liabilities    2,435,282     2,044,829  

(i) Comparative information restated as a result of the adoption of IFRS 2, “Share-based Payment” and IAS 1, revised, “Presentation of Financial Statements”

10






Millicom International Cellular S.A.
Condensed consolidated statements of cash flows
for the nine months ended September 30, 2005 and 2004
    Sept 30,
2005		     Sept 30,
2004 		 
    (Unaudited)     (Unaudited)  
             
    US$ ’000     US$ ’000  
             
Net cash provided by operating activities    260,487     202,037  
Cash flow used by investing activities    (264,680 )    (82,898 ) 
Cash flow provided / (used) by financing activities    196,358     (57,055 ) 
Cash effect of exchange rate changes    (705 )    (1,032 ) 
Net increase in cash and cash equivalents    191,460     61,052  
Cash and cash equivalents, beginning    413,381     148,829  
Cash and cash equivalents, ending    604,841     209,881  


Millicom International Cellular S.A.
Condensed consolidated statements of changes in equity
for the nine months ended September 30, 2005 and for the year ended December 31, 2004
    Sept 30,
2005		     Dec 31,
2004(i) 		 
    (Unaudited)     (Unaudited)  
             
    US$ ’000     US$ ’000  
             
Equity as at January 1    282,394     (58,609 ) 
Derecognition of negative goodwill on January 1    8,202     -  
(Loss) / Profit for the period / year    (5,853 )    66,389  
Stock options scheme    2,372     1,852  
Net proceeds of equity offering    -     203,616  
Shares issued via the exercise of stock options    2,909     2,867  
Equity component of 4% Convertible Bonds    39,109     -  
Conversion of 2% PIK Notes    -     51,417  
Movement in currency translation reserve    (4,344 )    (1,918 ) 
Minority interest    (7,891 )    16,780  
Equity    316,898     282,394  

(i) Comparative information restated as a result of the adoption of IFRS 2, “Share-based Payment” and IAS 1, revised, “Presentation of Financial Statements”

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Millicom International Cellular S.A.
Quarterly analysis by cluster
    05 Q3     05 Q2     05 Q1     04 Q4     04 Q3  
Total cellular subs                               
                               
South East Asia    784,188     737,548     2,724,656     2,499,307     2,180,800  
South Asia    1,966,724     1,923,088     1,677,299     1,458,846     1,300,977  
Central America    2,314,053     2,063,247     1,859,130     1,697,036     1,537,904  
South America    1,152,309     1,056,475     985,715     937,397     843,384  
Africa    1,695,265     1,425,291     1,294,795     1,120,615     990,168  
Total    7,912,539     7,205,649     8,541,595     7,713,201     6,853,233  
Vietnam    -     -     (2,020,995 )    (1,849,288 )    (1,575,604 ) 
16.67% of Honduras    -     -     -     -     -  
Pro forma Total*    7,912,539     7,205,649     6,520,600     5,863,913     5,277,629  
Prop cellular subs                     
                               
South East Asia    468,718     439,949     1,227,011     1,125,808     990,144  
South Asia    1,787,732     1,736,539     1,474,479     1,246,132     1,083,736  
Central America    1,652,924     1,484,783     1,251,121     1,149,299     1,049,491  
South America    1,128,536     1,034,673     964,775     916,465     823,360  
Africa    1,371,321     1,140,216     1,042,704     894,555     790,990  
Total    6,409,231     5,836,160     5,960,090     5,332,259     4,737,721  
Vietnam    -     -     (808,398 )    (739,715 )    (630,242 ) 
16.67% of Honduras    -     -     92,475     81,669     70,541  
Pro forma Total*    6,409,231     5,836,160     5,244,167     4,674,213     4,178,020  
Revenues (US$ ’000)                     
                               
South East Asia    21,832     45,492     70,296     64,632     59,624  
South Asia    30,490     31,611     29,704     24,889     28,006  
Central America    120,370     101,652     88,592     87,899     77,660  
South America    36,582     33,383     31,211     32,302     30,116  
Africa    50,390     47,986     47,954     44,355     38,759  
Other    1,567     1,257     1,134     1,609     1,707  
Total    261,231     261,381     268,891     255,686     235,872  
Vietnam    -     (24,457 )    (49,594 )    (44,711 )    (41,746 ) 
16.67% of Honduras    -     4,489     5,820     5,945     5,473  
Pro forma total*    261,231     241,413     225,117     216,920     199,599  
EBITDA (US$ ’000)                     
                               
South East Asia    6,622     27,500     43,544     40,298     35,429  
South Asia    6,113     6,397     4,955     4,908     12,421  
Central America    62,470     51,136     44,331     44,695     40,987  
South America    14,134     13,814     12,375     12,894     11,722  
Africa    21,943     23,568     21,210     21,760     16,748  
Other    (456 )    (185 )    58     (787 )    286  
Total    110,826     122,230     126,473     123,768     117,593  
Vietnam    1,251     (19,554 )    (34,863 )    (29,634 )    (28,995 ) 
16.67% of Honduras    -     2,614     3,186     3,321     3,210  
Pro forma total*    112,077     105,290     94,796     97,455     91,808  

* Pro forma numbers exclude Millicom’s operation in Vietnam, where the BCC ended on May 18, 2005 and include Millicom’s joint venture in Honduras with a percentage ownership of 66.67%, to reflect the increase in ownership from 50% to 66.67% in May 2005.

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