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Millicom Slips To Loss In Q2; Backs Mid-term Goals For Organic Growth

Millicom International Cellular SA (TIGO) reported Thursday that its second-quarter net loss attributable to owners was $115 million, compared to prior year's profit of $45 million. Loss per share was $1.14, compared to profit of $0.44 last year.

The Luxembourg-based telecommunications and media company's operating profit fell 14.5 percent from last year to $93 million, due mostly to the very severe nature of the lockdowns which had an immediate impact on its prepaid mobile business.

Revenue dropped 8 percent to $970 million from $1.05 billion last year. The negative impact of the COVID-19 pandemic, as well as a 31 percent drop in equipment sales hurt the results.

The overall operational and financial performance deteriorated in April and May before seeing some improvement in June.

Going ahead, the company maintained medium term goals to deliver mid-single-digit organic service revenue growth, and mid-to-high single-digit organic EBITDA growth.

The company also reiterated commitment to generate cost savings of at least $100 million and capex reductions of $200-300 million in 2020.

In the pre-market activity on the Nasdaq, Millicom shares were gaining around 7.4 percent to trade at $30.63.

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