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The Millicom Group (Tables)
12 Months Ended
Dec. 31, 2021
Interests In Other Entities [Abstract]  
Disclosure of main subsidiaries Our main subsidiaries are as follows:
EntityCountryActivityDecember 31, 2021 % holdingDecember 31, 2020 % holdingDecember 31, 2019 % holding
Latin AmericaIn %In %In %
Telemovil El Salvador S.A. de C.V.El SalvadorMobile, MFS, Cable, DTH100100100
Millicom Cable Costa Rica S.A.Costa RicaCable, DTH100100100
Telefonica Celular de Bolivia S.A.BoliviaMobile, DTH, MFS, Cable100100100
Telefonica Celular del Paraguay S.A.ParaguayMobile, MFS, Cable, Pay-TV100100100
Cable Onda S.A (i).PanamaCable, Pay-TV, Internet, DTH, Fixed-line808080
 Grupo de Comunicaciones Digitales, S.A. (formerly Telefonica Moviles Panama, S.A.)(ii)PanamaMobile808080
Telefonia Celular de Nicaragua S.A. (ii)NicaraguaMobile100100100
Colombia Móvil S.A. E.S.P. (iii)ColombiaMobile
50-1 share
50-1 share
50-1 share
UNE EPM Telecomunicaciones S.A.(iii)ColombiaFixed-line, Internet, Pay-TV, Mobile
50-1 share
50-1 share
50-1 share
Edatel S.A. E.S.P. (iii)ColombiaFixed-line, Internet, Pay-TV, Cable
50-1 share
50-1 share
50-1 share
Comunicaciones Celulares S.A. (iv) (v)GuatemalaMobile, MFS1005555
Navega.com S.A. (iv) (v)GuatemalaCable, DTH1005555
Africa
MIC Tanzania Public Limited CompanyTanzaniaMobile, MFS98.598.598.5
Zanzibar Telecom LimitedTanzaniaMobile, MFS98.598.598.5
Unallocated
Millicom International Operations S.A.LuxembourgHolding Company100100100
Millicom International Operations B.V.NetherlandsHolding Company100100100
Millicom LIH S.A.LuxembourgHolding Company100100100
MIC Latin America B.V.NetherlandsHolding Company100100100
Millicom Africa B.V.NetherlandsHolding Company100100100
Millicom Holding B.V.NetherlandsHolding Company100100100
Millicom International Services LLCUSAServices Company100100100
Millicom Services UK LtdUKServices Company100100100
Millicom Spain S.L.SpainHolding Company100100100
(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)    Companies acquired during 2019. See note A.1.2..
(iii)    Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities.
(iv) Acquisition completed on November 12, 2021(see Note A.1.2.). Millicom now owns 100% equity interest in Tigo Guatemala compared to 55% before the transaction. While Millicom owned more than 50% of the shares in these entities and had the right to nominate a majority of the directors of each of these entities, key decisions over the relevant activities were taken by a super majority vote. This effectively gave either shareholder the ability to veto any decision and therefore neither shareholder had sole control over the entity. Therefore, the operations of these joint ventures were accounted for under the equity method. See note A.2.1..
(v)    Tigo Guatemala is made up of the 2 entities in the table above, but also by the following less material entities: Comunicaciones Corporativas S.A. (“COMCORP”), Servicios Innovadores de Comunicación y Entretenimiento S.A. (“SICESA”), Distribuidora de Comunicaciones de Occidente S.A. (“COOCSA”), Distribuidora de Comunicaciones de Oriente S.A. (“COORSA”), Distribuidora Internacional de Comunicaciones S.A. (“INTERNACOM”), Servicios Especializados en Telecomunicaciones S.A. (“SESTEL”), Distribuidora Central de Comunicaciones, S.A. (“COCENSA”) and Cloud 2 Nube S.A. ("C2N").
Statement of Financial Position – non-controlling interests
December 31,
20212020
(US$ millions)
Colombia83133
Panama7481
Others1
Total157215
Profit (loss) attributable to non-controlling interests
202120202019
(US$ millions)
Colombia(40)(23)11
Panama(7)(18)(6)
Others(1)
Total(48)(41)5

The summarized financial information for material non-controlling interests in our operations in Colombia and Panama is provided below. This information is based on amounts before inter-company eliminations.
Colombia
202120202019
(US$ millions)
Revenue1,4141,3461,532
Total operating expenses(509)(470)(543)
Operating profit100129164
Net (loss) for the year(80)(46)23
50% non-controlling interest in net (loss)(40)(23)11
Total assets (excluding goodwill)2,3362,5892,256
Total liabilities2,1582,3031,891
Net assets178286365
50% non-controlling interest in net assets89143183
Consolidation adjustments(6)(10)(13)
Total non-controlling interest83133170
Dividends and advances paid to non-controlling interest(5)(4)(12)
Net cash from operating activities272370363
Net cash from (used in) investing activities(295)(311)(260)
Net cash from (used in) financing activities30(47)(67)
Exchange impact on cash and cash equivalents, net(10)(15)0
Net increase (decrease) in cash and cash equivalents(2)(3)36
Panama
20212020 2019 (i)
(US$ millions)
Revenue633585475
Total operating expenses(207)(197)(148)
Operating profit7(60)(15)
Net (loss) for the year(37)(89)(31)
20% non-controlling interest in net (loss)(7)(18)(6)
Total assets (excluding Millicom's goodwill in Cable Onda)1,7171,7341,905
Total liabilities1,3471,3271,411
Net assets371407494
20% non-controlling interest in net assets748199
Total non-controlling interest748199
Net cash from operating activities179193167
Net cash from (used in) investing activities(118)(100)(693)
Net cash from (used in) financing activities(43)(69)580
Net increase in cash and cash equivalents172454
(i)    In 2019, Cable Onda acquired Telefónica Panama for $587 million (note A.1.2.), financed by issuing a $600 million Senior Notes due 2030 (note C.3.1.) The 2019 figures include the full year results and cash flows of Cable Onda, as well as 4 months of Telefónica Panama which was consolidated from September 1, 2019.
Disclosure of business combination
Millicom is currently determining the fair value of Tigo Guatemala identifiable assets and liabilities, however, this purchase accounting is still provisional at December 31, 2021, particularly in respect of the evaluation of the tangible, intangible assets, right of use assets and lease liabilities. For the purpose of the valuation of the intangible assets (excluding goodwill), the provisional numbers are based on the current carrying values of intangibles as identified at the date of the deconsolidation of Tigo Guatemala and the commencement of the accounting for the investment under the equity method. Out of these intangibles (excluding goodwill), the brand is currently recorded at $848 million and is expected to have an indefinite useful live (see note E.1).
At acquisition date - November 12, 2021Provisional fair values (100%) ($ millions)
Intangible assets (excluding goodwill)1,294
Property, plant and equipment547
Right of use assets189
Other non-current assets5
Current assets (excluding cash)245
Trade receivables42
Cash and cash equivalents199
Total assets acquired2,521
Lease liabilities205
Other debt and financing417
Other liabilities280
Total liabilities assumed901
Fair value of assets acquired and liabilities assumed, net - A1,620
Purchase consideration (45%) - B2,195
Implied fair value (100% of business) - C4,877
Carrying value of our investment in joint venture at acquisition date - D2,013
Goodwill arising on change of control - B+D-A=E2,588
Revaluation of previously held interests - C-B-D=F (i)670
Total provisional goodwill - E+F=G3,258
(i)    The acquisition has been determined as a business combination achieved in stages, requiring Millicom to remeasure its 55% previously held equity investment in Tigo Guatemala at its acquisition date fair value ($2,683 million); the resulting gain has been recognized in the statement of income under the line "Revaluation of previously held interests" and is included in the goodwill calculation (see above).
Disclosure of valuation methods and key estimates
The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets:
Major class of assets
Valuation method
Key assumption 1
Key assumption 2
Key assumption 3
Spectrum
Market approach - Market comparable transactions
Discount rate : 14%
Terminal growth rate: 2.5%
Estimated duration: 14 years
Customer lists
Income approach - Multi-Period
Excess Earnings Method
Discount rate: 14-15%
Monthly Churn rate: From 1.2% for B2B to 2.9% for B2C
EBITDA margin: ~ 36% to 41%
Land and buildings
Market approach
Economic useful life (range): 10-30 years
Price per square meter: from $2 to $57
N/A
Core network
Cost approach
Economic useful life (range): 5-27 years
Remaining useful life (minimum) : 1.7 years
N/A
The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets:
Major class of assets
Valuation method
Key assumption 1
Key assumption 2
Key assumption 3
Customer lists
Income approach - Multi-Period
Excess Earnings Method
Discount rate: 9.8-10.8%
Monthly Churn rate: ~3.8% in average
EBITDA margin: ~ 41.5%
Property, plant and equipmentCost approach
Economic useful life (range): 3-27 years
Remaining useful life (minimum): 3-27 years
N/A
Disclosure of interests in joint ventures
Our main joint ventures are as follows:
Entity
Country
Activity
December 31, 2021 % holdingDecember 31, 2020 % holding
Telefonica Celular S.A. (i)HondurasMobile, MFS66.766.7
Navega S.A. de CV (i)HondurasCable66.766.7
Comunicaciones Celulares S.A. (ii)GuatemalaMobile, MFSna55
Navega.com S.A. (ii)GuatemalaCable, DTHna55
Bharti Airtel Ghana Holdings B.V. (iii)GhanaMobile, MFS5050
(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 super majority 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.
(ii)On November 12, 2021 Millicom signed and closed an agreement to acquire the remaining 45% equity interest in its joint venture business in Guatemala (collectively, "Tigo Guatemala"). As a result, Millicom owns 100% equity interest in Tigo Guatemala and fully consolidates it since that date. Until November 12, 2021, Millicom owned more than 50% of the shares in these entities and had the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities were taken by a super majority vote. This effectively gave either shareholder the ability to veto any decision and therefore neither shareholder had sole control over the entity. Therefore, the operations of these joint ventures were accounted for under the equity method prior to the acquisition.
(iii)On October 13, 2021, Millicom, along with its joint venture partner Bharti Airtel Limited, closed the disposal of AirtelTigo Ghana to the Government of Ghana (a subsidiary of Bharti Airtel Limited). Millicom still owns 50% of Bharti Airtel Ghana Holdings B.V.
The carrying values of Millicom’s investments in joint ventures were as follows:
Carrying value of investments in joint ventures at December 31
20212020
(US$ millions)
Honduras operations (i)596610
Guatemala operations (i)2,031
AirtelTigo Ghana operations
Total5962,642
(i)    Includes all the companies under the Honduras and Guatemala groups (for Guatemala, until acquisition date - See Note A.2.1.).
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, 20202,089 708  
Disposal of the Group's investment in Navega to Celtel (iii)— (83)— 
Results for the year144 27 — 
Dividends declared during the year(199)(55)— 
Currency exchange differences(3)13 — 
Closing balance at December 31, 20202,031 610  
Capital increase— — 38 
Results for the year183 27 (38)
Utilization of past recognized losses— — — 
Dividends declared during the year(201)(34)— 
Currency exchange differences— (7)— 
Change in consolidation scope(2,013)— — 
Closing balance at December 31, 2021 596  
(i)    Share of profit is recognized under ‘Share of profit joint ventures’ in the statement of income for the year ended December 31, 2021 for Honduras and for the period from January 1, 2021 until November 12, 2021 for Guatemala (see note A.1.2.)
(ii)    Share of profit (loss) is recognized under ‘Income (loss) from other joint ventures and associates, net’ in the statement of income.
(iii)     See note G.5.
(iv)    On October 13, 2021, Millicom, along with its joint venture partner Bharti Airtel Limited, closed the disposal of AirtelTigo Ghana to the Government of Ghana. As part of the closing conditions, each partner committed and paid $37.5 million for the reimbursement of certain local bank facilities which has been provided for during the first-nine months in the statement of income under the line "Profit (loss) from other joint ventures and associates, net
Disclosure of summarised financial information of joint venture Summarized financial information for the years ended December 31, 2021, 2020 and 2019 of the Guatemala (until acquisition), Honduras and Ghana (until disposal) operations is as follows. This information is based on amounts before inter-company eliminations.
Honduras
202120202019
(US$ millions)
Revenue589 552 594 
Depreciation and amortization(124)(132)(132)
Operating profit99 77 102 
Financial income (expenses), net(34)(24)(37)
Profit before taxes62 58 60 
Charge for taxes, net(22)(19)(21)
Profit for the year40 39 39 
Net profit for the year attributable to Millicom27 27 27 
Dividends and advances paid to Millicom— 24 28 
Total non-current assets (excluding goodwill)473 461 516 
Total non-current liabilities362 533 469 
Total current assets176 300 312 
Total current liabilities305 236 183 
Total net assets(18)(8)176 
Group's share in %66.7 %66.7 %66.7 %
Group's share in USD millions(12)(5)117 
Goodwill and consolidation adjustments608 615 591 
Carrying value of investment in joint venture596 610 708 
Cash and cash equivalents39 60 40 
Debt and financing – non-current267 390 384 
Debt and financing – current73 10 39 
Net cash from operating activities166 151 169 
Net cash from (used in) investing activities(89)(145)(77)
Net cash from (used in) financing activities(98)14 (77)
Net (decrease) increase in cash and cash equivalents(21)20 15 
Honduras financing
On September 19, 2019, Telefónica Celular, S.A. de C.V. entered into a new credit agreement with Banco Industrial S.A. and Banco Pais S.A for an amount up to $185 million, in tranches of $100 million, $60 million and $25 million. The Loan Agreement has a 10-year maturity and an interest rate of LIBOR plus 3.80% per annum, subject to a floor of minimum 5.25%. The new credit agreement has been used to consolidate the portion of a syndicated $250 million facility with Scotiabank dated March 27, 2015, and $90 million credit agreement with Banco Industrial S.A. dated March 20, 2018.
On September 19, 2019, Navega S.A. de C.V., entered into a new facility agreement with Banco Industrial S.A. for an amount of $20 million and a duration of 10 years. The new agreement bears an annual interest of LIBOR plus 3.80% , subject to a floor of 5.25%. and will be used to refinance the portion corresponding to it as borrower under the $250 million facility with Scotiabank dated March 27, 2015.
On June 1, 2020, Telefónica Celular, S.A. de C.V. executed a $32 million bank loan agreement in equivalent amount in local currency for a 10-year term.
Guatemala
2021(ii)2020 (i)2019
(US$ millions)
Revenue1,379 1,503 1,434 
Depreciation and amortization(282)(323)(313)
Operating profit462 452 429 
Financial income (expenses), net (i)(40)(95)(66)
Profit before taxes432 347 356 
Charge for taxes, net(99)(83)(79)
Profit for the year333 264 277 
Net profit for the year attributable to Millicom183 144 152 
Dividends and advances paid to Millicom13 47 209 
Total non-current assets (excluding goodwill)N/A2,195 2,517 
Total non-current liabilitiesN/A751 1,216 
Total current assetsN/A742 717 
Total current liabilitiesN/A523 251 
Total net assetsN/A1,662 1,767 
Group's share in %N/A55 %55 %
Group's share in USD millionsN/A914 972 
Goodwill and consolidation adjustmentsN/A1,117 1,117 
Carrying value of investment in joint ventureN/A2,031 2,089 
Cash and cash equivalentsN/A188 189 
Debt and financing – non-currentN/A619 1,152 
Debt and financing – currentN/A24 21 
Net cash from operating activities611 598 588 
Net cash from (used in) investing activities(192)(289)(205)
Net cash from (used in) financing activities(406)(308)(412)
Exchange impact on cash and cash equivalents, net(2)
Net increase in cash and cash equivalents13 (1)(28)
(i)    In 2020, Financial expenses include a $18 million charge related to early redemption of bonds - see below.
(ii) Information for the statement of income and cash flows is for the period from January 1 to November 12, 2021. No information is disclosed on statement of financial position items as these are now fully consolidated in the Group numbers.
Guatemala financing
In 2014, Intertrust SPV (Cayman) Limited, acting as trustee of the Comcel Trust, a trust established and consolidated by Comcel for the purposes of the transaction, issued $800 million 6.875% Senior Notes to refinance existing local and MIC S.A. corporate debt. The bond was issued at 98.233% of the principal and had an effective interest rate of 7.168%. The bond was guaranteed by Comcel and listed on the Luxembourg Stock Exchange.
On November 18, 2020, the $800 million aggregate principal amount of its outstanding 6.875% Senior Notes due 2024 was early redeemed at a redemption price equal to 102.292% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest of $16 million, resulting in an aggregate amount of $834 million. The redemption premium ($18 million) and additional interest ($7 million), as well as the remaining unamortized deferred costs of $8 million were recorded as financial expenses during the year. This early redemption was financed through local financing in local currency as well as by shareholder loans (see note G.5.).
The impact on the Group's statement of income was a $18 million expense (at 55% ownership) reported on the line "Share of profit in joint ventures".
On October 5, 2020, Comcel executed a credit agreement with Banco Industrial for GTQ 1,697 million (approximately $218 million using the exchange rate as of December 31, 2020) for a 5 year term to refinance other credit agreements with Banco Industrial and to finance and refinance working capital, capital expenditures and general corporate purposes.
AirtelTigo Ghana
Our joint venture in Ghana has been disposed of during the year. The only material effect for this year's statement of income is the loss recognized on the exit financing which is further explain in note A.2.. Therefore, the 2021 financial information is not disclosed in the table below.
20202019
Revenue132 142 
Depreciation and amortization(42)(69)
Operating loss(30)(72)
Financial income (expenses), net(41)(77)
Loss before taxes(85)(123)
Charge for taxes, net— — 
Loss for the period(85)(123)
Net loss for the period attributable to Millicom0 (40)
Total non-current assets (excluding goodwill)204 168 
Total non-current liabilities289 245 
Total current assets41 42 
Total current liabilities218 187 
Total net assets(263)(223)
Group's share in %50 %50 %
Group's share in USD millions(132)(111)
Goodwill and consolidation adjustments89 90 
Unrecognised losses(42)(22)
Carrying value of investment in joint venture— 
Cash and cash equivalents
Debt and financing – non-current289 245 
Debt and financing – current40 27 
Net cash from operating activities(8)(5)
Net cash from (used in) investing activities— — 
Net cash from (used in) financing activities(6)
Net increase in cash and cash equivalents(4)(11)
Disclosure of interests in associates
December 31, 2021December 31, 2020
Entity
Country
Activity(ies)
% holding
% holding
Africa
West Indian Ocean Cable Company Limited (WIOCC)Republic of MauritiusTelecommunication carriers’ carrier9.1 9.1 
Latin America
MKC Brilliant Holding GmbH (LIH)GermanyOnline marketplace, retail and services35.0 35.0 
Unallocated
Milvik ABSwedenOther9.7 9.7 
At December 31, 2021 and 2020, the carrying value of Millicom’s main associates was as follows:
Carrying value of investments in associates at December 31
20212020
(US$ millions)
Milvik AB10 
West Indian Ocean Cable Company Limited (WIOCC)14 14 
Total22 24