XML 499 R21.htm IDEA: XBRL DOCUMENT v3.22.0.1
Performance (Tables)
12 Months Ended
Dec. 31, 2021
Analysis of income and expense [abstract]  
Disclosure of revenue
Revenue from continuing operations by
202120202019
(US$ millions)
Mobile2,347 2,116 2,150 
Cable and other fixed services1,947 1,803 1,928 
Other60 52 51 
Service revenue4,354 3,971 4,130 
Telephone and equipment263 201 206 
Total revenue4,617 4,171 4,336 

Revenue from continuing operations by country or operation (i)
202120202019
(US$ millions)
Colombia1,414 1,346 1,532 
Paraguay555 544 610 
Bolivia623 584 639 
El Salvador445 389 386 
Tanzania357 366 382 
Nicaragua238 220 157 
Costa Rica141 140 153 
Panama632 585 475 
Guatemala (ii)223 — — 
Other operations
Eliminations(13)(5)(3)
Total
4,617 4,171 4,336 
(i)    The revenue figures above are shown after intercompany eliminations.
(ii)        Tigo Guatemala is fully consolidated since the acquisition of the remaining 45% shareholding on November 12, 2021. See note A.1.2. for further details.
Revenue from contracts with customers from continuing operations:
Twelve months ended December 31, 2021Twelve months ended December 31, 2020Twelve months ended December 31, 2019
$ millionsTiming of revenue recognitionLatin AmericaAfricaTotal GroupLatin AmericaAfricaTotal GroupLatin AmericaAfricaTotal Group
MobileOver time1,963 233 2,196 1,728 239 1,967 1,747 261 2,007 
Mobile Financial ServicesPoint in time37 114 150 31 118 149 31 112 143 
Cable and other fixed servicesOver time1,938 1,947 1,794 1,803 1,919 1,928 
OtherOver time60 — 60 51 52 51 52 
Service Revenue3,998 357 4,354 3,604 366 3,971 3,748 382 4,130 
Telephone and equipmentPoint in time263 — 263 201 — 201 206 — 206 
Revenue from contracts with customers4,261 357 4,617 3,805 366 4,171 3,954 382 4,336 
Disclosure of cost of sales
The cost of sales and operating expenses incurred by the Group can be summarized as follows:
Cost of sales
202120202019
(US$ millions)
Direct costs of services sold (938)(847)(878)
Cost of telephone, equipment and other accessories (278)(216)(230)
Bad debt and obsolescence costs (86)(108)(93)
Cost of sales(1,302)(1,171)(1,201)
Disclosure of operating expenses
Operating expenses, net
202120202019
(US$ millions)
Marketing expenses(495)(396)(402)
Site and network maintenance costs(254)(234)(245)
Employee related costs (B.4.)(503)(477)(496)
External and other services(177)(174)(204)
Rentals and leases— (1)(1)
Other operating expenses(248)(225)(257)
Operating expenses, net(1,677)(1,505)(1,604)
Disclosure of other operating income (expense)
The other operating income and expenses incurred by the Group can be summarized as follows:
Other operating income (expenses), net
Notes
202120202019
(US$ millions)
Income from tower deal transactionsE.3.— — 
Impairment of intangible assets and property, plant and equipmentE.1., E.2.(5)— (8)
Gain (loss) on disposals of intangible assets and property, plant and equipment— — 
Impairment of AirtelTigo's receivableG.5.(45)— 
Reverse earn-out in respect of Zantel's acquisition (i)11 — — 
Gain (loss) on disposal of equity investmentsC.7.3.(15)25 (32)
Other income (expenses) (ii)10 
Other operating income (expenses), net6 (12)(34)
(i)     In January 2022, Millicom received $11 million from Etisalat as earn-out income related to the purchase of Zantel in 2015. This settlement was considered as an adjusting event and recorded in 'other operating income' in the statement of income.
(ii) Other income (expenses) can be mainly attributed to social obligations spectrum liability derecognition in Paraguay of $4 million and reversal provision related to Ghana of $4 million.
Disclosure of operating segments
Revenue, operating profit (loss), EBITDA and other segment information for the years ended December 31, 2021, 2020 and 2019, were as follows:
Latin America
Africa
Unallocated
Guatemala and Honduras (vii) (viii)
Eliminations and
Transfers
Total
(US$ millions)
Year ended December 31, 2021
Mobile revenue 3,372 347 — (1,372)— 2,347 
Cable and other fixed services revenue 2,275 — (334)(2)1,947 
Other revenue 70 — — (8)(2)60 
Service revenue (i) 5,716 357 — (1,715)(4)4,354 
Telephone and equipment and other revenue (i) 503 — — (240)— 263 
Revenue 6,220 357  (1,955)(4)4,617 
Operating profit (loss) 1,001 29 (7)(574)210 659 
Add back:
Depreciation and amortization 1,504 83 12 (403)— 1,196 
Share of profit in joint ventures— — — — (210)(210)
Other operating income (expenses), net (8)(1)— — (6)
EBITDA (ii) 2,498 111 6 (977) 1,639 
EBITDA from discontinued operations — — — — — — 
EBITDA incl discontinued operations 2,498 111 6 (977) 1,639 
Capital expenditure (iii) (1,015)(42)(7)238 — (827)
Changes in working capital and others (iv) (200)33 116 (13)— (65)
Taxes paid (241)(20)(9)143 — (127)
Operating free cash flow (v) 1,041 81 106 (609) 619 
Total Assets (vi)14,400 870 6,401 (6,430)(103)15,139 
Total Liabilities8,333 937 5,081 (1,761)(191)12,399 
Latin America
Africa
Unallocated
Guatemala and Honduras(vii)
Eliminations and
Transfers
Total
(US$ millions)
Year ended December 31, 2020
Mobile revenue 3,220 357 — (1,461)— 2,116 
Cable and other fixed services revenue 2,097 — (302)(1)1,803 
Other revenue 60 — (6)(2)52 
Service revenue (i) 5,377 366 — (1,769)(4)3,971 
Telephone and equipment revenue (i) 466 — — (266)— 201 
Revenue 5,843 366  (2,035)(4)4,171 
Operating profit (loss) 803 36 (32)(536)175 446 
Add back:
Depreciation and amortization 1,561 89 11 (453)— 1,208 
Share of profit in joint ventures— — — — (171)(171)
Other operating income (expenses), net (5)— 23 (3)(4)12 
EBITDA (ii) 2,360 125 2 (992) 1,495 
EBITDA from discontinued operations — (4)— — — (4)
EBITDA incl discontinued operations 2,360 121 2 (992) 1,491 
Capital expenditure (iii) (926)(42)(4)258 — (714)
Changes in working capital and others (iv)61 11 (7)(43)— 22 
Taxes paid (260)(10)(2)131 — (142)
Operating free cash flow (v) 1,234 80 (11)(645) 657 
Total Assets (vi)13,418 926 4,052 (5,116)(859)12,422 
Total Liabilities8,878 959 3,342 (2,044)(987)10,148 
Latin America
Africa
Unallocated
Guatemala and Honduras(vii)
Eliminations and
Transfers
Total
(US$ millions)
Year ended December 31, 2019
Mobile revenue3,258 372 — (1,480)— 2,150 
Cable and other fixed services revenue2,197 — (277)— 1,928 
Other revenue60 — (9)— 51 
Service revenue (i)5,514 382 — (1,766)— 4,130 
Telephone and equipment revenue (i)449 — — (243)— 206 
Total Revenue5,964 382  (2,010) 4,336 
Operating profit (loss)980 19 (64)(540)179 575 
Add back:
Depreciation and amortization1,435 99 (444)— 1,100 
Share of profit in joint ventures— — — — (179)(179)
Other operating income (expenses), net(2)42 (8)— 34 
EBITDA (ii)2,418 117 (13)(992) 1,530 
EBITDA from discontinued operations— (3)— — — (3)
EBITDA incl discontinued operations2,418 114 (13)(992) 1,527 
Capital expenditure (iii)(1,040)(58)(9)261 — (846)
Changes in working capital and others (iv)(86)14 (52)(18)— (143)
Taxes paid(225)(10)(8)129 — (114)
Operating free cash flow (v)1,067 59 (82)(619) 425 
Total Assets (vi)13,859 936 3,715 (5,465)(150)12,895 
Total Liabilities8,413 909 3,977 (2,119)(965)10,215 
(i)    Service revenue is Group revenue related to the provision of ongoing services such as monthly subscription fees, airtime and data usage fees, interconnection fees, roaming fees, mobile finance service commissions, installation fees and fees from other telecommunications services such as data services, SMS and other value-added services excluding telephone and equipment sales. Revenues from other sources comprises rental, sub-lease rental income and other non-recurring revenues. The Group derives revenue from the transfer of goods and services over time and at a point in time. Refer to the table below.
(ii) EBITDA is operating profit excluding impairment losses, depreciation and amortization and gains/losses on the disposal of fixed assets. EBITDA is used by the management to monitor the segmental performance and for capital management.
(iii) Cash spent for capex excluding spectrum and licenses of $37 million (2020: $101 million; 2019: $59 million) and cash received on tower deals of nil (2020: nil ; 2019: $22 million).
(iv)    Changes in working capital and others include changes in working capital as stated in the cash flow statement, as well as share-based payments expense and non-cash bonuses.
(v)    Operating Free Cash Flow is EBITDA less cash capex (excluding spectrum and license costs) less change in working capital, other non-cash items (share-based payment expense and non-cash bonuses) and taxes paid.
(vi)    Segment assets include goodwill and other intangible assets.
(vii)    Including eliminations for Guatemala and Honduras as reported in the Latam segment.
(viii)    Our operations in Guatemala are fully consolidated since the acquisition of the remaining 45% shareholding on November 12, 2021. See note A.1.2. for further details. As a result, from the acquisition date of November 12, 2021, Guatemala's statement of income and cash flow figures are no longer deducted to reconcile to the total consolidated balances.
Disclosure of number of permanent employees
Number of permanent employees
202120202019
Continuing operations (i)19,749 16,955 17,687 
Joint ventures (ii) 938 4,464 4,688 
Discontinued operations— — — 
Total20,687 21,419 22,375 
(i)    Emtelco headcount are excluded from this disclosure and any internal reporting because their costs are classified as direct costs and not employee related costs. Includes Guatemala for 2021.
(ii)    Includes only Honduras for 2021 and also Guatemala and Ghana for 2020 and 2019.
Disclosure of employee related costs
Notes
202120202019
(US$ millions)
Wages and salaries(383)(356)(358)
Social security(71)(66)(68)
Share based compensationB.4.1.(17)(24)(27)
Pension and other long-term benefit costsB.4.2.(6)(4)(4)
Other employees related costs(27)(27)(39)
Total(503)(477)(496)
Disclosure of cost of share-based compensation
Cost of share-based compensation
202120202019
(US$ millions)
2017 incentive plans— — (7)
2018 incentive plans— (2)(8)
2019 incentive plans(8)(14)
2020 incentive plans(3)(13)— 
2021 incentive plans(17)— — 
Total share based compensation(17)(24)(27)
Disclosure of assumptions and fair value of the shares under the TSR portion Assumptions and fair value of the shares under the TSR portion(s)
Risk-free
rate %
Dividend yield %
Share price volatility(i) %
Award term (years)
Share fair value (in US$)
Performance share plan 2021 (Relative TSR)0.29 1.28 46.28 2.82 52.99 
Performance share plan 2020 (Relative TSR)0.61 1.47 24.54 2.93 55.66 
Performance share plan 2019 (Relative TSR)(0.24)3.01 26.58 2.93 49.79 
Performance share plan 2018 (Relative TSR)(0.39)3.21 30.27 2.93 57.70 
(i)    Historical volatility retained was determined on the basis of a three-year historic average.
Disclosure of plan awards and shares expected to vest
Plan awards and shares expected to vest
2021 plans2020 plans2019 plans2018 plans
PSP
DSP
PSP
DSP
PSP
DSP
PSP
DSP
(number of shares)
Initial shares granted451,363 536,890 341,897 370,131 257,601 297,856 237,196 262,317 
Additional shares granted(i)— 5,824 — 5,928 — 43,115 — 3,290 
Revision for forfeitures(17,469)(11,790)(264,137)(26,815)(204,649)(31,553)(78,903)(38,167)
Revision for cancellations— — — — — — (4,728)— 
Total before issuances433,894 530,924 77,760 349,244 52,952 309,418 153,565 227,440 
Shares issued in 2018— — — — — — (97)(18,747)
Shares issued in 2019— — — — (150)(24,294)(3,109)(54,971)
Shares issued in 2020— — — (3,571)(17)(96,629)(304)(35,125)
Shares issued in 2021(1,121)(5,760)— (113,653)— (87,141)(103,725)(118,597)
Performance conditions not met— — — — — — (46,330)— 
Shares still expected to vest432,773 525,164 77,760 232,020 52,785 101,354 — — 
Estimated cost over the vesting period (US$ millions)16 19 15 18 12 14 
(i)    Additional shares granted represent grants made for new joiners and/or as per CEO contractual arrangements.
Disclosure of directors renumeration charge
Remuneration charge for the Board (gross of withholding tax)
202120202019
(US$ ’000)
Chairperson300 300 366 
Other members of the Board1,338 1,188 1,557 
Total (i)1,638 1,488 1,923 

Shares beneficially owned by the Directors
20212020
(number of shares)
Chairperson18,634 13,427 
Other members of the Board61,022 52,593 
Total (i)79,656 66,020 
(i)Cash compensation is denominated in USD. Share based compensation based on the market value of Millicom shares on the corresponding AGM date (2021: in total 24,737 shares; 2020: in total 32,358 shares; 2019: in total 19,483 shares-includes 2,876 additional shares that were awarded for the period from the 9 January 2019 date of listing on the Nasdaq Stock Market in the US and the date of the 2019 AGM). Net remuneration comprised 73% in shares and 27% in cash (SEK) (2020: 71% in shares and 29% in cash; 2019: 73% in shares and 27% in cash).
Disclosure of executive team renumeration charge
Remuneration charge for the Executive Team
CEO
CFO
Executive Team (5 members)
(US$ ’000)
2021
Base salary1,185 708 2,783 
Bonus2,164 969 2,718 
Pension284 106 652 
Other benefits88 46 791 
MSU (v)991 198 545 
Total before share based compensation4,712 2,027 7,489 
Share based compensation(i)(ii) in respect of 2021 LTIP (iv)7,914 1,652 5,383 
Total12,626 3,679 12,872 
CEO
CFO
Executive Team (9 members) (iii)
(US$ ’000)
2020
Base salary1,173 670 2,612 
Bonus1,301 509 1,837 
Pension285 100 663 
Other benefits82 38 303 
Total before share based compensation2,841 1,317 5,414 
Share based compensation(i)(ii) in respect of 2020 LTIP (iv)7,114 1,834 3,796 
Total9,955 3,151 9,210 
CEO
CFO
Executive team
(9 members)
(US$ ’000)
2019
Base salary1,167 654 3,498 
Bonus1,428 626 2,098 
Pension279 98 798 
Other benefits50 260 1,521 
Termination benefits— — 863 
Total before share based compensation2,924 1,639 8,779 
Share based compensation(i)(ii) in respect of 2019 LTIP (iv)5,625 1,576 5,965 
Total8,549 3,215 14,743 
(i)    See note B.4.1.
(ii)    Share awards of 196,904 and 211,578 were granted in 2021 under the 2019 LTIPs to the CEO, and Executive Team (2020: 153,894 and 135,269, respectively; 2019: 102,122 and 135,480, respectively).
(iii)    'Other Executives' includes compensation paid in 2020 to Rachel Samren former Chief External Affairs Officer (departure August 31, 2020) and to HL Rogers former Chief Ethics and Compliance Officer (departure January 1, 2020). Additionally other Benefits' for 'Other Executives' include medical and dental insurance for Daniel Loria, former CHRO.
(iv)    Calculated based on the closing Millicom share price on the Nasdaq in the US at the grant date.
(v)    Represents the amount earned in 2021.
Disclosure of vested and unvested share awards beneficially granted to the Executive team
CEOExecutive teamTotal
(number of shares)
2021
Share ownership (vested from equity plans and otherwise acquired)232,562 221,407 453,969 
Share awards not vested278,666 295,568 574,234 
2020
Share ownership (vested from equity plans and otherwise acquired)194,432 169,725 364,157 
Share awards not vested325,250 297,317 622,567 
Disclosure of other non-operating (expenses) income, net
Non-operating items mainly comprise changes in fair value of derivatives and the impact of foreign exchange fluctuations on the results of the Group.
December 31
Note202120202019
(US$ millions)
Change in fair value of derivativesC.7.2.(11)
Change in fair value in investment in Jumia (i)— (18)(38)
Change in fair value in investment in HT (ii)C.7.3.18 (16)312 
Change in value of call option asset and put option liabilityC.7.4.(31)(25)
Exchange gains (losses), net(43)(69)(32)
Other non-operating income (expenses), net10 
Total(50)(106)227 
Disclosure of income tax charge
Income tax charge
202120202019
(US$ millions)
Income tax (charge) credit
Withholding tax(56)(83)(56)
Other income tax relating to the current year(112)(65)(88)
Adjustments in respect of prior years(18)(29)(7)
Total
(186)(177)(151)
Deferred tax (charge) credit
Origination and reversal of temporary differences73 99 58 
Effect of change in tax rates29 (5)(8)
Tax income (expense) before valuation allowances102 94 50 
Effect of valuation allowances(87)(19)(9)
Total
15 75 41 
Adjustments in respect of prior years(18)— (10)
(3)75 31 
Tax (charge) credit on continuing operations(189)(102)(120)
Tax (charge) credit on discontinuing operations— (2)(2)
Total tax (charge) credit(189)(104)(122)
Disclosure of income tax calculation
Income tax calculation
202120202019
TotalContinuing operationsDiscontinued operationsTotalContinuing operationsDiscontinued operationsTotal
(US$ millions)
Profit before tax732 (271)(11)(282)218 59 277 
Tax at the weighted average statutory rate(154)82 85 (37)(11)(48)
Effect of:
Items taxed at a different rate— (1)— (1)
Change in tax rates on deferred tax balances29 (5)— (5)(8)— (8)
Expenditure not deductible and income not taxable79 (106)(3)(109)(37)(28)
Unrelieved withholding tax(55)(83)— (83)(56)— (56)
Accounting for associates and joint ventures41 42 — 42 36 — 36 
Movement in deferred tax on unremitted earnings(15)15 — 15 — 
Unrecognized deferred tax assets(144)(27)— (27)(20)— (20)
Recognition of previously unrecognized deferred tax assets57 — 11 — 11 
Adjustments in respect of prior years(36)(29)(2)(31)(17)— (17)
Total tax (charge) credit(189)(102)(2)(104)(120)(2)(122)
Weighted average statutory tax rate21.0 %30.3 %30.1 %17.0 %17.3 %
Effective tax rate25.8 %-37.5 %-36.8 %55.0 %44.0 %
Disclosure of deferred taxes and deductible temporary differences
Deferred tax
Fixed assetsUnused tax lossesUnremitted earningsOtherOffsetTotal
(US$ millions)
Balance at December 31, 2019(223)34 (25)129 — (85)
Deferred tax assets84 34 — 134 (52)200 
Deferred tax liabilities(307)— (25)(5)52 (285)
Balance at December 31, 2019(223)34 (25)129  (85)
(Charge)/credit to income statement81 150 15 (171)— 75 
Change in scope— — — — — — 
Exchange differences— (1)(4)— (2)
Balance at December 31, 2020(142)187 (11)(46) (12)
Deferred tax assets97 187 — 102 (189)197 
Deferred tax liabilities(239)— (11)(148)189 (209)
Balance at December 31, 2020(142)187 (11)(46) (12)
Change in scope(9)— — — (6)
(Charge)/credit to income statement (i)23 (27)(15)16 — (3)
Charge to Other Comprehensive Income— — — (1)— (1)
Exchange differences(2)(4)— (6)— (12)
Balance at Balance at 31 December 2021(130)156 (26)(34) (34)
Deferred tax assets97 156 — 162 (235)180 
Deferred tax liabilities(227)— (26)(196)235 (214)
Balance at December 31, 2021(130)156 (26)(34) (34)
(i) The movement in the deferred tax balance includes the net effect of the derecognition and recognition of certain deferred tax assets in Colombia (a net negative movement of $30 million).
Deferred tax assets have not been recognized in respect of the following deductible temporary differences:
Fixed assetsUnused tax lossesOtherTotal
(US$ millions)
At December 31, 2021117 4,856 103 5,076 
At December 31, 202057 4,668 218 4,943 
Disclosure of unrecognized loss carryforwards
Unrecognized tax losses carryforward related to continuing operations expire as follows:
202120202019
(US$ millions)
Expiry:
Within one year
Within one to five years
After five years1,232 1,089 493 
No expiry3,621 3,573 4,209 
Total4,856 4,668 4,705 
Disclosure of earnings per share
Net profit/(loss) used in the earnings (loss) per share computation
202120202019
(US$ millions)
Basic and Diluted
Net profit (loss) attributable to equity holders from continuing operations 591 (332)93 
Net profit (loss) attributable to equity holders from discontinued operations — (12)57 
Net profit/(loss) attributable to all equity holders to determine the basic profit (loss) per share 590 (344)149 
Weighted average number of shares in the earnings (loss) per share computation
202120202019
(thousands of shares)
Weighted average number of ordinary shares (excluding treasury shares) for basic earnings (loss) per share101,129 101,172 101,144 
Potential incremental shares— — — 
Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution101,129 101,172 101,144