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The Millicom Group (Tables) | 12 Months Ended
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Dec. 31, 2018
Interests In Other Entities [Abstract] |
Disclosure of main subsidiaries | 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.
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 |
Disclosure of business combination | 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 $11 million, have been recorded under operating expenses in the statement of income of the year.
Disclosure of interests in joint ventures | Our main joint ventures are as follows:
Entity |  | Country |  | Activity |  | December 31, 2018 % holding |  | December 31, 2017 % holding
Comunicaciones Celulares S.A(i). |  | Guatemala |  | Mobile, MFS |  | 55 |  | 55
Navega.com S.A.(i) |  | Guatemala |  | Cable, DTH |  | 55 |  | 55
Telefonica Celular S.A(i). |  | Honduras |  | Mobile, MFS |  | 66.7 |  | 66.7
Navega S.A. de CV(i) |  | Honduras |  | Cable |  | 66.7 |  | 66.7
Bharti Airtel Ghana Holdings B.V. |  | Netherlands |  | Mobile, MFS |  | 50 |  | 50
(i) | Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities must be taken by a supermajority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity method.
The carrying values of Millicom’s investments in joint ventures were as follows: Carrying value of investments in joint ventures at December 31
| % |  | 2018 |  | 2017
|  |  | (US$ 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.
Disclosure of summarised financial information of joint venture | 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 | )
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.
Disclosure of interests in associates | 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 |
Disclosure of summarised financial information of associates | 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 | )

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