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The Millicom Group | 12 Months Ended
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Dec. 31, 2018
Interests In Other Entities [Abstract] |
The Millicom Group | The Millicom Group The Group comprises a number of holding companies, operating subsidiaries and joint ventures with various combinations of mobile, fixed-line telephony, cable and wireless Pay TV, Internet and Mobile Financial Services (MFS) businesses. The Group also holds investments in a tower holding company investing in Africa and in online businesses in Latam and Africa. Subsidiaries Subsidiaries are all entities which Millicom controls. Millicom controls an entity when it is exposed to, or has rights to variable returns from its investment in the entity, and has the ability to affect those returns through its power over the subsidiary. Millicom has power over an entity when it has existing rights that give it the current ability to direct the relevant activities, i.e. the activities that significantly affect the entity’s returns. Generally, control accompanies a shareholding of more than half of the voting rights although certain other factors (including contractual arrangements with other shareholders, voting and potential voting rights) are considered when assessing whether Millicom controls an entity. For example, although Millicom holds less than 50% of the shares in its Colombian businesses, it holds more than 50% of shares with voting rights. The contrary may also be true (e.g. Guatemala and Honduras). In respect of the joint ventures in Guatemala and Honduras, shareholders’ agreements require unanimous consents for decisions over the relevant activities of these entities (see also note A.2.2). Therefore, the Group has joint control over these entities and accounts for them under the equity method. Our main subsidiaries are as follows:
Entity | Country | Activity | December 31, 2018 % holding | December 31, 2017 % holding | December 31, 2016 % holding
Latin America |  |  |  |  |
Telemovil El Salvador S.A. de C.V. | El Salvador | Mobile, MFS, Cable, DTH, PayTV | 100 | 100 | 100
Navega.com SA, Sucursal El Salvador | El Salvador | Cable, DTH | 100 | 100 | 100
Cable Costa Rica S.A. | Costa Rica | Cable, DTH | 100 | 100 | 100
Telefonica Celular de Bolivia S.A. | Bolivia | Mobile, DTH, MFS, Cable, PayTV | 100 | 100 | 100
Telefonica Celular del Paraguay S.A. | Paraguay | Mobile, MFS, Cable, PayTV | 100 | 100 | 100
Cable Onda S.A (i). | Panama | Cable, PayTV, Internet, DTH, Fixed-line | 80 | — | —
Colombia Móvil S.A. E.S.P.(ii) | Colombia | Mobile | 50-1 share | 50-1 share | 50-1 share
UNE EPM Telecomunicaciones S.A.(ii) | Colombia | Fixed-line, Internet, PayTV, Mobile | 50-1 share | 50-1 share | 50-1 share
Edatel S.A. E.S.P.(ii) | Colombia | Fixed-line, Internet, PayTV, Cable | 50-1 share | 50-1 share | 50-1 share
Africa |  |  |  |  |
Millicom Ghana Company Limited(iii) | Ghana | Mobile, MFS | — | — | 100
Sentel GSM S.A.(iv) | Senegal | Mobile, MFS | — | 100 | 100
MIC Tanzania Public Limited Company | Tanzania | Mobile, MFS | 100 | 100 | 100
Millicom Tchad S.A. | Chad | Mobile, MFS | 100 | 100 | 100
Millicom Rwanda Limited(iv) | Rwanda | Mobile, MFS | — | 100 | 100
Zanzibar Telecom Limited | Tanzania | Mobile, MFS | 85 | 85 | 85
Unallocated |  |  |  |  |
Millicom International Operations S.A. | Luxembourg | Holding Company | 100 | 100 | 100
Millicom International Operations B.V. | Netherlands | Holding Company | 100 | 100 | 100
Millicom LIH S.A. | Luxembourg | Holding Company | 100 | 100 | 100
MIC Latin America B.V. | Netherlands | Holding Company | 100 | 100 | 100
Millicom Africa B.V. | Netherlands | Holding Company | 100 | 100 | 100
Millicom Holding B.V. | Netherlands | Holding Company | 100 | 100 | 100
Millicom Spain S.L. | Spain | Holding Company | 100 | 100 | 100
(i) | Acquisition completed on December 13, 2018. Cable Onda S.A. is fully consolidated as Millicom has the majority of voting shares to direct the relevant activities. See note A.1.2..
(ii) | Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities.
(iii) | Merged with Airtel Ghana in October 2017 and classified as discontinued operations for the year then ended (see note E.3.2.). Merged entity is accounted for as a joint venture as from merger date (see note A.2.2.).
(iv) | See note A.1.3.
Accounting for subsidiaries and non-controlling interests Subsidiaries are fully consolidated from the date on which control is transferred to Millicom. If facts and circumstances indicate that there are changes to one or more of the elements of control, a reassessment is performed to determine if control still exists. Subsidiaries are de-consolidated from the date that control ceases. Transactions with non-controlling interests are accounted for as transactions with equity owners of the Group. Gains or losses on disposals of non-controlling interests are recorded in equity. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is also recorded in equity. Acquisition of subsidiaries and increases in non-controlling interests in subsidiaries On October 7, 2018, the Company entered into an agreement to acquire a controlling 80% stake in Cable Onda, the largest cable and fixed telecommunications services provider in Panama. The transaction valued 100% of Cable Onda at an enterprise value of $1,460 million. The selling shareholders retained a 20% equity stake in the company. The transaction closed on December 13, 2018 after receipt of necessary approvals for a cash consideration of $956 million. In addition, Millicom assumed Cable Onda’s debt obligations. The Group funded the purchase price for this acquisition by incurring additional indebtedness, including $250 million under the Bridge Facility and $500 million aggregate principal amount of the 6.625% Notes (see note C.3.1) and with available resources. A final price adjustment, per the terms of the agreement, is expected to occur in Q1 2019. Millicom concluded that it controls Cable Onda since closing date and therefore fully consolidates it in its financial statements with a 20% non-controlling interest. The deal also includes certain liquidity rights such as call and put options. See note C.6.3. for further details on the accounting treatment of these options. The purchase consideration also includes certain amounts under escrow in respect of final price adjustment and potential indemnifications from the sellers (potential tax and litigations). For the purchase accounting, Millicom determined the fair value of Cable Onda identifiable assets and liabilities based on transaction and relative values. The non-controlling interest was measured based on the proportionate share of the fair value of the net assets of Cable Onda. The purchase accounting is still provisional at December 31, 2018, particularly in respect of the evaluation of certain tangible assets.
| Provisional Fair values (100%)
| (US$ millions)
Intangible assets (excluding goodwill), net (i) | 673 |
Property, plant and equipment, net | 348 |
Current assets (excluding cash) (ii) (iii) | 54 |
Cash and cash equivalents | 12 |
Total assets acquired | 1,088 |
Non-current liabilities (iv) | 422 |
Current liabilities (v) | 141 |
Total liabilities assumed | 563 |
Fair value of assets acquired and liabilities assumed, net | 525 |
Transaction costs assumed by Cable Onda (vi) | 30 |
Fair value of non-controlling interest in Cable Onda (20%) | 111 |
Millicom’s interest in the fair value of Cable Onda (80%) | 444 |
Acquisition price | 956 |
Provisional Goodwill | 512 |
(i) | Intangible assets not previously recognized (or partially recognized as a result of previous acquisitions) are trademarks for an amount of $280 million, with estimated useful lives of 3 years, a customer list for an amount of $370 million, with estimated useful life of 20 years and favorable content contracts for $19 million, with a useful life of 10 years.
(ii) | Current assets include indemnification assets for tax contingencies at fair value for an amount of $4 million - see below.
(iii) | The fair value of trade receivables acquired was $34 million.
(iv) | Non-current liabilities include the deferred tax liability of $158 million resulting from the above adjustments.
(v) | Current liabilities include the fair value of certain tax contingent liabilities of $5 million. These are partly covered by the indemnification assets described in (ii) above.
(vi) | Transaction costs of $30 million have been assumed and paid by Cable Onda before the acquisition or by Millicom on the closing date. Because of their relationship with the acquisition, these costs have been accounted for as post-acquisition costs in the Millicom Group statement of income. These, together with acquisition-related costs of $11 million, have been recorded under operating expenses in the statement of income of the year.
The goodwill, which is not expected to be tax deductible, is attributable to Cable Onda’s strong market position and profitability, as well as to the fair value of the assembled work force. From December 13, 2018 to December 31, 2018, Cable Onda contributed $17 million of revenue and a net loss of $7 million to the Group. If Cable Onda had been acquired on 1 January 2018 incremental revenue for the 2018 year would have been $403 million and incremental net loss for that period of $59 million, including amortization of assets not previously recognized of $85 million (net of tax). During the year ended December 31, 2018, the Group also completed minor additional acquisitions for $9 million. During the year ended December 31, 2017, Tigo Paraguay completed the acquisition of TV Cable Parana for a total consideration of approximately $18 million, net of cash acquired. The purchase accounting was finalized in March 2017. The purchase price has been mainly allocated to a customer list ($14 million) and to other tangible and intangible fixed assets ($3 million). As a result, the final goodwill amounted to $1 million. Disposal of subsidiaries and decreases in non-controlling interests of subsidiaries Rwanda On December 19, 2017, Millicom announced that it has signed an agreement for the sale of its Rwanda operations to subsidiaries of Bharti Airtel Limited. The sale was subsequently completed on January 31, 2018. In accordance with Group practices, Rwanda operations’ assets and liabilities were classified as held for sale on January 23, 2018. Rwanda’s operations also represented a separate geographical area and did qualify for discontinued operations presentation. As a result, the Group statements of income for the years ended December 31, 2016 and 2017 have been restated accordingly to show the results on a single line in the statements of income (‘Profit (loss) for the year from discontinued operations, net of tax’). On January 31, 2018, the Group's operations in Rwanda were deconsolidated and no material loss on disposal was recognized (its carrying value was aligned to its fair value less costs of disposal as of December 31, 2017). However, a loss of $32 million was recognized in 2018 corresponding to the recycling of foreign currency exchange losses accumulated in equity since the creation of the Company. This loss was recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. The final sale consideration is still subject to adjustment under the terms of the sale and purchase agreement with Airtel. Management does not expect any material deviation from the initial consideration. (see note E.3.) Senegal On July 28, 2017, Millicom announced that it had agreed to sell its Senegal business to a consortium consisting of NJJ, Sofima (managed by the Axian Group) and Teylium Group, subject to customary closing conditions and regulatory approvals. In accordance with Group practices, Senegal operations’ assets and liabilities were classified as held for sale on February 2, 2017. Senegal’s operations also represented a separate geographical area and did qualify for discontinued operations. On April 19, 2018, the President of Senegal issued an approval decree in respect of the proposed sale by Millicom of its Tigo operation in Senegal to a consortium consisting of NJJ, Sofima (a telecom investment vehicle managed by the Axian Group) and Teylium Group. The sale was completed on April 27, 2018. (see note E.3.) Ghana merger On March 3, 2017, Millicom and Bharti Airtel Limited (Airtel) announced that they had entered into an agreement for Tigo Ghana Limited and Airtel Ghana Limited to combine their operations in Ghana. In accordance with Group practices, Ghana operations’ assets and liabilities were classified as held for sale on September 30, 2017. Ghana’s operations also represented a separate geographical area and did qualify for discontinued operations. As a result, the Group statement of income for the year ended December 31, 2016 was restated accordingly to show the results on a single line in the statements of income (‘Profit (loss) for the year from discontinued operations, net of tax’). The transaction was completed on October 12, 2017 (see note E.3.). DRC On February 8, 2016, Millicom announced that it had signed an agreement for the sale of its businesses in the Democratic Republic of Congo (DRC) to Orange S.A. (see note E.3.). In accordance with Group practices, DRC operations’ assets and liabilities were classified as held for sale on February 8, 2016. DRC’s operations also represented a separate geographical area and did qualify for discontinued operations. The sale was completed on April 20, 2016. Other disposals For the years ended December 31, 2018, 2017 and 2016, Millicom did not dispose of any other significant investments. Summarized financial information relating to significant subsidiaries with non-controlling interests At December 31, 2018 and 2017, Millicom’s subsidiaries with material non-controlling interests were the Group’s operations in Colombia and Panama (2018 only). Balance sheet – non-controlling interests
| December 31,
| 2018 |  | 2017
| (US$ millions)
Colombia | 161 |  |  | 197 |
Panama | 103 |  |  | — |
Others | (16 | ) |  | (11 | )
Total | 249 |  |  | 185 |
Profit (loss) attributable to non-controlling interests
| 2018 |  | 2017 |  | 2016
| (US$ millions)
Colombia | (5 | ) |  | (13 | ) |  | (55 | )
Panama | (8 | ) |  | — |  |  | — |
Others | (3 | ) |  | (4 | ) |  | (3 | )
Total | (16 | ) |  | (17 | ) |  | (58 | )
The summarized financial information for material non-controlling interests in our operations in Colombia is provided below. This information is based on amounts before inter-company eliminations. Detailed information on Cable Onda has been voluntarily omitted here as all details are already disclosed in note A.1.2. Colombia
| 2018 |  | 2017 |  | 2016
| (US$ millions)
Revenue | 1,661 |  |  | 1,739 |  |  | 1,717 |
Total operating expenses | (667 | ) |  | (647 | ) |  | (660 | )
Operating profit | 147 |  |  | 106 |  |  | 40 |
Net (loss) for the year | (10 | ) |  | (25 | ) |  | (110 | )
50% non-controlling interest in net (loss) | (5 | ) |  | (13 | ) |  | (55 | )
Total assets (excluding goodwill) | 1,966 |  |  | 2,193 |  |  | 2,221 |
Total liabilities | 1,620 |  |  | 1,771 |  |  | 1,776 |
Net assets | 346 |  |  | 422 |  |  | 445 |
50% non-controlling interest in net assets | 173 |  |  | 211 |  |  | 223 |
Consolidation adjustments | (12 | ) |  | (14 | ) |  | (16 | )
Total non-controlling interest | 161 |  |  | 197 |  |  | 207 |
Dividends and advances paid to non-controlling interest | (2 | ) |  | — |  |  | (67 | )
Net cash from operating activities | 348 |  |  | 331 |  |  | 366 |
Net cash from (used in) investing activities | (270 | ) |  | (209 | ) |  | (340 | )
Net cash from (used in) financing activities | (75 | ) |  | (46 | ) |  | (24 | )
Exchange impact on cash and cash equivalents, net | (18 | ) |  | 3 |  |  | 1 |
Net increase in cash and cash equivalents | (15 | ) |  | 80 |  |  | 3 |
Joint ventures Joint ventures are businesses over which Millicom exercises joint control as decisions over the relevant activities of each require unanimous consent of shareholders. Millicom determines the existence of joint control by reference to joint venture agreements, articles of association, structures and voting protocols of the board of directors of those ventures. At December 31, 2018, the equity accounted net assets of our joint ventures in Guatemala, Honduras and Ghana totaled $3,405 million (December 31, 2017: $3,457 million for Guatemala and Honduras only). These net assets do not necessarily represent statutory reserves available for distribution as these include consolidation adjustments (such as goodwill and identified assets and assumed liabilities recognized as part of the purchase accounting). Out of these reserves, $133 million (December 31, 2017: $123 million) represent statutory reserves that are unavailable to be distributed to owners of the Company. During the year ended December 31, 2018, Millicom’s joint ventures paid $243 million (December 31, 2017: $203 million) as dividends or dividend advances to the Company. Our main joint ventures are as follows:
Entity |  | Country |  | Activity |  | December 31, 2018 % holding |  | December 31, 2017 % holding
Comunicaciones Celulares S.A(i). |  | Guatemala |  | Mobile, MFS |  | 55 |  | 55
Navega.com S.A.(i) |  | Guatemala |  | Cable, DTH |  | 55 |  | 55
Telefonica Celular S.A(i). |  | Honduras |  | Mobile, MFS |  | 66.7 |  | 66.7
Navega S.A. de CV(i) |  | Honduras |  | Cable |  | 66.7 |  | 66.7
Bharti Airtel Ghana Holdings B.V. |  | Netherlands |  | Mobile, MFS |  | 50 |  | 50
(i) | Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities must be taken by a supermajority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity method.
The carrying values of Millicom’s investments in joint ventures were as follows: Carrying value of investments in joint ventures at December 31
| % |  | 2018 |  | 2017
|  |  | (US$ millions)
Honduras operations(i) | 66.7 |  | 730 |  |  | 726 |
Guatemala operations(i) | 55 |  | 2,104 |  |  | 2,145 |
AirtelTigo Ghana operations | 50 |  | 32 |  |  | 96 |
Total |  |  | 2,867 |  |  | 2,966 |
(i) | Includes all the companies under the Honduras and Guatemala groups.
The table below summarizes the movements for the year in respect of the Group’s joint ventures carrying values:
| Guatemala(i) |  | Honduras (i) |  | Ghana(ii)
| (US$ millions)
Opening balance at January 1, 2017 | 2,179 |  |  | 766 |  |  | — |
Change in scope | — |  |  | — |  |  | 102 |
Results for the year 2017 | 126 |  |  | 15 |  |  | (6 | )
Dividends declared during the year | (168 | ) |  | (46 | ) |  | — |
Currency exchange differences | 7 |  |  | (9 | ) |  | — |
Closing balance at December 31, 2017 | 2,145 |  |  | 726 |  |  | 96 |
Adjustment on adoption of IFRS 15 and IFRS 9 (net of tax) | 18 |  |  | 5 |  |  | — |
Capital increase | — |  |  | 3 |  |  | — |
Results for the year 2018 | 131 |  |  | 23 |  |  | (68 | )
Dividends declared during the year | (177 | ) |  | — |  |  | — |
Currency exchange differences | (14 | ) |  | (26 | ) |  | 3 |
Closing balance at December 31, 2018 | 2,104 |  |  | 730 |  |  | 32 |
(i) | Share of profit (loss) is recognized under ‘Share of profit in the joint ventures in Guatemala and Honduras’ in the statement of income.
(ii) | Share of profit (loss) is recognized under ‘Income (loss) from other joint ventures and associates, net’ in the statement of income.
At December 31, 2018 and 2017 the Group had not incurred obligations, nor made payments on behalf of the Guatemala, Honduras or Ghana operations. Accounting for joint ventures Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost (calculated at fair value if it was a subsidiary of the Group before becoming a joint venture). The Group’s investments in joint ventures include goodwill (net of any accumulated impairment loss) on acquisition. The Group’s share of post-acquisition profits or losses of joint ventures is recognized in the consolidated statement of income and its share of post-acquisition movements in reserves is recognized in reserves. Cumulative post-acquisition movements are adjusted against the carrying amount of the investments. When the Group’s share of losses in a joint venture equals or exceeds its interest in the joint venture, including any other unsecured receivables, the Group does not recognize further losses, unless the Group has incurred obligations or made payments on behalf of the joint ventures. Gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group. Dilution gains and losses arising in investments in joint ventures are recognized in the statement of income. After application of the equity method, including recognizing the joint ventures’ losses, the Group applies IAS 39 to determine whether it is necessary to recognize any additional impairment loss with respect to its net investment in the joint venture. Material joint ventures – Guatemala, Honduras and Ghana operations Summarized financial information for the years ended December 31, 2018, 2017 and 2016 of the Guatemala and Honduras operations is as follows. This information is based on amounts before inter-company eliminations. Guatemala
| 2018 |  | 2017 |  | 2016
| (US$ millions)
Revenue | 1,373 |  |  | 1,328 |  |  | 1,284 |
Depreciation and amortization | (283 | ) |  | (295 | ) |  | (281 | )
Operating profit(i) | 387 |  |  | 352 |  |  | 330 |
Financial income (expenses), net | (56 | ) |  | (60 | ) |  | (73 | )
Profit before taxes | 309 |  |  | 305 |  |  | 261 |
Charge for taxes, net | (69 | ) |  | (74 | ) |  | (67 | )
Profit for the year | 240 |  |  | 230 |  |  | 194 |
Net profit for the year attributable to Millicom | 131 |  |  | 126 |  |  | 106 |
Dividends and advances paid to Millicom | 211 |  |  | 162 |  |  | 77 |
Total non-current assets (excluding goodwill) | 2,280 |  |  | 2,406 |  |  | 2,297 |
Total non-current liabilities | 981 |  |  | 1,052 |  |  | 1,039 |
Total current assets | 718 |  |  | 756 |  |  | 909 |
Total current liabilities | 221 |  |  | 220 |  |  | 211 |
Cash and cash equivalents | 217 |  |  | 303 |  |  | 289 |
Debt and financing – non-current | 927 |  |  | 995 |  |  | 987 |
Net cash from operating activities | 545 |  |  | 498 |  |  | 438 |
Net cash from (used in) investing activities | (173 | ) |  | (171 | ) |  | (174 | )
Net cash from (used in) financing activities | (455 | ) |  | (315 | ) |  | (127 | )
Exchange impact on cash and cash equivalents, net | (3 | ) |  | 2 |  |  | (3 | )
Net (decrease) increase in cash and cash equivalents | (86 | ) |  | 14 |  |  | 134 |
(i) In 2016, operating profit included a provision for impairment of $24 million related to amounts receivable from video surveillance contracts with the Civil National Police. In 2017, it also includes an additional impairment of $10 million (2016: $18 million) on the fixed assets related to the same contracts. Honduras
| 2018 |  | 2017 |  | 2016
| (US$ millions)
Revenue | 586 |  |  | 585 |  |  | 609 |
Depreciation and amortization | (133 | ) |  | (156 | ) |  | (160 | )
Operating profit | 91 |  |  | 70 |  |  | 54 |
Financial income (expenses), net | (29 | ) |  | (27 | ) |  | (27 | )
Profit before taxes | 52 |  |  | 41 |  |  | 13 |
Charge for taxes, net | (19 | ) |  | (18 | ) |  | — |
Profit for the year | 34 |  |  | 24 |  |  | 13 |
Net profit for the year attributable to Millicom | 23 |  |  | 15 |  |  | 9 |
Dividends and advances paid to Millicom | 32 |  |  | 40 |  |  | 66 |
Total non-current assets (excluding goodwill) | 506 |  |  | 576 |  |  | 645 |
Total non-current liabilities | 386 |  |  | 407 |  |  | 454 |
Total current assets | 304 |  |  | 208 |  |  | 259 |
Total current liabilities | 226 |  |  | 282 |  |  | 237 |
Cash and cash equivalents | 25 |  |  | 16 |  |  | 13 |
Debt and financing – non-current | 298 |  |  | 308 |  |  | 339 |
Debt and financing – current | 85 |  |  | 80 |  |  | 63 |
Net cash from operating activities | 147 |  |  | 152 |  |  | 85 |
Net cash from (used in) investing activities | (87 | ) |  | (74 | ) |  | (17 | )
Net cash from (used in) financing activities | (50 | ) |  | (74 | ) |  | (69 | )
Net (decrease) increase in cash and cash equivalents | 9 |  |  | 3 |  |  | (1 | )
s mentioned in note A.1.3., in 2017 Millicom and Airtel signed a Combination Agreement, whereby both investors decided to combine their respective subsidiaries in Ghana, namely Tigo Ghana Limited and Airtel Ghana Limited under an existing company – Bharti Airtel Ghana Holdings B.V. (the ‘JV’ or ‘AirtelTigo Ghana’) both Millicom and Airtel each owning 50%. As part of the transaction, the government of Ghana retained an option to acquire a 25% stake in the newly combined entity for a period of two years. In the event the government exercises its option, Millicom’s stake may reduce to 37.5% or, in certain circumstances, be maintained at 50%. On October 12, 2017, both parties announced the completion of the transaction. As consideration received, each party owns 50% of the equity capital and voting rights of the JV, and Millicom holds a $40 million loan against Tigo Ghana (the “Millicom Note”), which shall rank in priority to all other obligations of the joint venture owed to its shareholders. The Millicom Note bears interest and is classified under ‘other non-current assets’ in the statement of financial position. Decisions about the relevant activities require the unanimous consent of the parties sharing control. Therefore, based on IFRS 11, this agreement results in Millicom and Airtel having joint control over the combined entity, which is a joint venture. Millicom therefore uses the equity method to account for its investment in the combined entity since October 12, 2017. On the same date, each investor agreed and committed to fund the operations of the JV in accordance with the approved business plan on an equal basis and on the same terms. In this regard, both parties have agreed to provide, on an equal basis, a committed credit facility in the total aggregate amount of $50 million, with Millicom providing a commitment of $25 million and Airtel providing the same. The credit facility remains undrawn as of December 31, 2018 and 2017 and would bear interest and would be subordinated to the Millicom Note. As a consequence, on October 12, 2017, Millicom deconsolidated its investments in Ghana operations and accounted for its investment in the combined entity under the equity method, initially at fair value of $102 million, resulting in a net gain on the deconsolidation of these operations amounting to $36 million, including recycling of foreign currency exchange losses accumulated in equity of $79 million. The net gain has been recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. As of December 31, 2017, the purchase accounting was still provisional and was completed in the first six months of 2018. Newly identified assets have been recognized by the joint venture resulting in an additional depreciation of $3 million for the period from the merger date to December 31, 2017. Comparative figures have not been restated for this depreciation charge given it was immaterial for the Group. As a result, this charge was recorded in the 2018 statement of income. Fair value has been determined using valuation techniques such as discounted cash flows and comparable transaction multiples. As of December 31, 2018 and 2017 Millicom determined the fair value of the option granted to the government to be immaterial. AirtelTigo Ghana
| 2018 |  | 2017 (i)
| (US$ millions) |  | (US$ millions)
Revenue | 187 |  |  | 58 |
Depreciation and amortization | (110 | ) |  | (11 | )
Operating loss | (100 | ) |  | (1 | )
Financial income (expenses), net | (42 | ) |  | (10 | )
Loss before taxes | (135 | ) |  | (12 | )
Charge for taxes, net | — |  |  | — |
Loss for the period | (135 | ) |  | (12 | )
Net loss for the period attributable to Millicom | (68 | ) |  | (6 | )
Dividends and advances paid to Millicom | — |  |  | — |
Total non-current assets (excluding goodwill) | 277 |  |  | 184 |
Total non-current liabilities | 277 |  |  | 214 |
Total current assets | 71 |  |  | 60 |
Total current liabilities | 134 |  |  | 106 |
Cash and cash equivalents | 19 |  |  | 15 |
Debt and financing – non-current | 276 |  |  | 145 |
Debt and financing – current | 17 |  |  | — |
Net cash from operating activities | (19 | ) |  | 13 |
Net cash from (used in) investing activities | (8 | ) |  | — |
Net cash from (used in) financing activities | 42 |  |  | (3 | )
Net increase in cash and cash equivalents | 15 |  |  | 10 |
(i) | From the date of merger (October 12, 2017) to December 31, 2017, for statement of income and cash flow metrics.
Investments in associates Millicom’s investments in associates mainly represent its shareholding in Helios Towers Africa Ltd (HTA) and its investments in the African online business (AIH). Millicom has significant influence over these companies through its voting rights but not control or joint control. The Group’s main associates are as follows:
|  |  |  |  |  | December 31, 2018 |  | December 31, 2017
Entity |  | Country |  | Activity(ies) |  | % holding |  | % holding
Africa |  |  |  |  |  |  |  |
Helios Towers Africa Ltd (HTA) |  | Mauritius |  | Holding of Tower infrastructure company |  | 22.83 |  | 22.83
Africa Internet Holding GmbH (AIH) |  | Germany |  | Online marketplace, retail and services |  | 10.15 |  | 10.15
West Indian Ocean Cable Company Limited (WIOCC) |  | Republic of Mauritius |  | Telecommunication carriers’ carrier |  | 9.1 |  | 9.1
Latin America |  |  |  |  |  |  |  |
MKC Brilliant Holding GmbH (LIH) |  | Germany |  | Online marketplace, retail and services |  | 35.0 |  | 35.0
Unallocated |  |  |  |  |  |  |  |
Milvik AB |  | Sweden |  | Other |  | 12.3 |  | 12.3
At December 31, 2018 and 2017, the carrying value of Millicom’s main associates was as follows: Carrying value of investments in associates at December 31
| 2018 |  | 2017
| (US$ millions)
MKC Brilliant Holding GmbH (LIH) | — |  |  | — |
African Internet Holding GmbH (AIH) | 38 |  |  | 61 |
Helios Tower Africa Ltd (HTA) | 105 |  |  | 149 |
Milvik AB | 13 |  |  | 16 |
West Indian Ocean Cable Company Limited (WIOCC) | 14 |  |  | 14 |
Total | 169 |  |  | 241 |
The summarized financial information for the Group’s main material associates (i.e. HTA and AIH) is provided below. Summary of statement of financial position of associates at December 31,
| 2018 |  | 2017
| (US$ millions)
Total current assets | 473 |  |  | 409 |
Total non-current assets | 717 |  |  | 766 |
Total assets | 1,190 |  |  | 1,176 |
Total current liabilities | 343 |  |  | 268 |
Total non-current liabilities | 627 |  |  | 602 |
Total liabilities | 969 |  |  | 870 |
Total net assets | 221 |  |  | 306 |
Millicom’s carrying value of its investment in HTA and AIH | 142 |  |  | 211 |
Millicom’s carrying value of its investment in other associates | 27 |  |  | 30 |
Millicom’s carrying value of its investment in associates | 169 |  |  | 241 |
Profit (loss) from other joint ventures and associates
| 2018 |  | 2017 |  | 2016
| (US$ millions)
Revenue | 511 |  |  | 449 |  |  | 378 |
Operating expenses | (459 | ) |  | (321 | ) |  | (302 | )
Operating profit (loss) | (214 | ) |  | (148 | ) |  | (167 | )
Net loss for the year | (327 | ) |  | (220 | ) |  | (228 | )
Millicom’s share of results from HTA and AIH | (66 | ) |  | (34 | ) |  | (39 | )
Millicom’s share of results from other associates | (2 | ) |  | (45 | ) |  | (10 | )
Millicom’s share of results from other joint ventures (Ghana) | (68 | ) |  | (6 | ) |  | — |
Millicom’s share of results from other joint ventures and associates | (136 | ) |  | (85 | ) |  | (49 | )
Accounting for investments in associates The Group accounts for associates in the same way as it accounts for joint ventures. Acquisitions and disposals of interests in associates Africa Internet Holding GmbH (AIH) AIH indirectly owns a number of companies that provide online services and online marketplaces in certain countries in Africa mainly under the brand name of Jumia. Early January 2019, Millicom has been further diluted in the capital of AIH following the entry of a new investor. This triggered the recognition of a net dilution gain of $7 million in January 2019. In addition, on January 31, 2019, some changes in the company's governance became effective and Millicom relinquished its seat on the board of directors, which resulted in the loss of the Group's significant influence over AIH. As a result, as from January 31, 2019, Millicom will stop equity accounting for its investment in AIH and start measuring it at fair value. This change in accounting is expected to trigger the recognition of a gain at initial measurement. Other various shareholder funding rounds were signed in 2016 whereby Millicom's interest was diluted. At that time, Millicom’s shareholding in AIH was reduced to 10%. This triggered the recognition of a net dilution gain of $43 million in the 2016 Group statement of income under 'Income (loss) from associates, net'. Millicom investment in African towers company, Helios Towers Africa Helios Towers Africa owns and operates telecommunications towers and passive infrastructure in four African markets. The company's principal business lies in building, acquiring and operating telecommunications towers that are capable of accommodating and powering the needs of multiple tenants. During 2016, Millicom’s shareholding was diluted from 28.2% to 22.8% as a result of previous committed cash calls and new investors’ funding. This resulted in Millicom recognizing a gain on dilution of $16 million. The gain was recorded in the 2016 Group statement of income under 'Income (loss) from other joint ventures and associates, net'. MKC Brilliant Holding GmbH (LIH) During 2016, Millicom’s 35% investment in LIH had been impaired by $40 million mainly as a result of the decrease in fair value of LIH’s investment in the Global Fashion Group. In April 2017, LIH completed the disposal of its shareholding in Easy Taxi to Cabify. As a result, and ultimately, LIH received cash and shares in Cabify. The transaction resulted in Millicom recognizing a loss of $11 million (Millicom’s share). Additionally, as a result of the annual impairment test conducted in 2017, Management fully impaired the remaining carrying value of its investment in LIH for $48 million. The impairment test performed in 2018 confirmed this conclusion. These losses were recorded under the caption 'Income (loss) from other joint ventures and associates, net' in the year ended December 31, 2017. Milvik AB (BIMA) On December 19, 2017, Millicom announced that it had sold a portion of its ownership stake in BIMA - a leading emerging market insurance player - (from 20.4% to 12.0% – on a fully diluted basis) to Kinnevik and a new investor, with the latter contributing $97 million in the micro-insurance business. As a result of the transaction, Millicom received $24 million in cash and recognized a gain on disposal of $21 million. In addition, and as a consequence of the subsequent capital increase made by the new investor, the Group recognized a gain on dilution of $11 million. Both gains have been recorded under the caption "Income (loss) from other joint ventures and associates, net", in the statement of income. Both transactions were carried out at the same fair value on an arm’s length basis. Discontinued operations Classification of discontinued operations Discontinued operations are those which have identifiable operations and cash flows (for both operating and management purposes) and represent a major line of business or geographic area which has been disposed of, or are held for sale. Revenue and expenses associated with discontinued operations are presented retrospectively in a separate line in the consolidated statement of income. Millicom determined that the loss of path to control of operations by the termination of a contractual arrangement (e.g. termination without exercise of an unconditional call option agreement giving path to control, as occurred with the Guatemala and Honduras operations) does not require presentation as a discontinued operation. Millicom’s discontinued operations In accordance with IFRS 5, the Group’s businesses in Senegal, Tigo Ghana and Tigo Rwanda have been classified as assets held for sale (respectively on February 2, 2017, September 28, 2017 and January 23, 2018) and their results were showed as discontinued operations for all years presented in these financial statements. The statement of income comparative figures presented in the notes to these consolidated financial statements have therefore been restated accordingly and when necessary. For further details, refer to note E.3.

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