MIC’s Q2 results boosted by World Cup and mobile financial services

Strong mobile data growth, including from a World Cup mobile app, and the take-up of mobile financial services were flagged by Millicom International Cellular (MIC) as positive factors in its Q214 numbers.

The operator reported a 6.6 per cent rise in Q2 revenue to US$1.45 billion alongside pre-tax profits of US$310 million, up from US$181 million in the same period in 2013.

Among the highlights was the adoption of data services driven by an expanding range of attractively priced handsets and Millicom’s exclusive mobile rights to the FIFA World Cup.

Music and entertainment was also a contributor, said the company. Tigo Music is established as the leading digital music provider in Colombia. The Latin American country reported a 27 per cent increase in service revenue.

Millicom is pushing the boundaries as an operator in other ways too. It is one of those working with Facebook on innovative data plans. It mentioned data consumption driven by free access to the social network in Tanzania.

The company also signed up 114,000 new customers to its mobile financial services during the second quarter, driven by Honduras and El Salvador.

The total base for such money services is now over 7.4 million; with an impressive 18 per cent penetration (excluding recently launched Senegal).

There was also strong organic revenue growth from fixed services as Millicom extended its pay TV offering with direct to home (DTH) services in five new markets.

Finally, the company has announced the sale of its 50 per cent stake of Emtel, an operator in Mauritius, to its existing partner Currimjee, as part of a strategy to focus on Latin America and Africa.

Emtel is one of three operators in Mauritius. According to GSMA Intelligence, the operator has over 550,000 mobile connections.

KDDI and Sumitomo partner for Myanmar telecom sector entry

Japanese companies KDDI and Sumitomo have signed an agreement with state-backed operator Myanmar Posts & Telecommunications (MPT) to modernise the country’s mobile and fixed infrastructure.

The two companies were reportedly invited into exclusive talks earlier this year with MPT, which needs to brace itself against the imminent entry into the country’s mobile market by Ooredoo and Telenor.

According to GSMA Intelligence, MPT has around 8.8 million mobile connections.

A Reuters report claims the two Japanese companies, in partnership with MPT, will invest about US$2 billion over the next decade in Myanmar’s telecom networks.

MPT will split earnings from Myanmar roughly equally with the two Japanese firms, which are running their local operations through a Singapore joint venture.

Although a leading operator in Japan, KDDI has little exposure internationally. Its international business includes a mobile operation in Mongolia, as well as a MVNO in the US.

Trading house Sumitomo has been running various businesses in Myanmar for sixty years.

State-backed Yatanarpon, until now primarily an Internet service provider, also holds a licence for future launch.

Zain Group reports flat Q2 results, with net income down 2%

Zain Group today reported that in Q214 to end-June the company generated consolidated revenues of KD316 million (US$1.12 billion) up two per cent year-on-year. EBITDA for the quarter amounted to US$474 million, down three per cent on Q213, resulting in an EBITDA margin for the period of 42.2 per cent. Net income for the quarter was US$209 million, down two per cent.

For the first six months of 2014, Zain Group generated consolidated revenues of US$2.23 billion, up three per cent year-on-year. The company’s consolidated EBITDA for the period reached US$943 million, reflecting an increase of one per cent. EBITDA margin stood at a 42.3 per cent at the end of the period, while net income increased by three per cent to US$407 million.

The operator added 2.1 million new active customers in the twelve months to end-June to serve 46.5 million customers, up five per cent year-on-year.

David Gaul appointed head of Central, East and West Africa for Nokia Networks

Nokia Networks today announced the appointment of David Gaul as head of Central, East and West Africa (CEWA) effective today. In his new role, Gaul is responsible for overall sales and operations of Nokia Networks across the CEWA region in the Middle East and Africa (MEA). Previously, he headed the delivery for the CEWA from 2012. He has held a number of senior management positions in European and African telecom companies, including Vodafone in the UK and Ghana.David Gaul Nokia Networks

Born in the UK, he holds an undergraduate degree in Engineering, and has an MSc in Design of Information Systems from Cranfield University, an MA in Defence Studies from Kings College London, and an MBA from the Open University.

Zimbabwe looks to raise US$173 million from 4G spectrum award

Zimbabwe’s government is looking to auction off 4G licences later this year, with the aim of raising at least US$173 million from the country’s three mobile networks.

The government has set the target to be raised as the cost of the digital migration programme, which will see the spectrum released by television broadcasters. That project is due to be completed by next June.

Network operators Econet Wireless, NetOne, and Telecel are already testing LTE-based services, and Econet ran a small test network for a UN conference held last year on the border with Zambia.

NetOne has also signed a network upgrade contract with Huawei, which also aims to build LTE cell towers.