Millicom International Cellular S.A. (MICC) posted modest 2Q 09 revenue growth, driven by the acquisition of Amnet Telecommomunictions Holding Limited (Amnet) and growth in African operations. In addition, MICC's EBITDA and adjusted operating margin registered a y-o-y increase due to the decline in operating expenses, as a percentage of revenues. Although the current rating supports a SELL, in light of better-than-expected street results and strong underlying…

Millicom International Cellular S.A. (MICC) posted modest 1Q 09 revenue growth, below our estimate, driven by the acquisition of Amnet Telecommomunictions Holding Limited (Amnet) and strong growth in operations across Africa and Asia. In addition, MICC’s adjusted1 operating margin registered a y-o-y decline, below our estimate, due to increased depreciation and amortization expenses, as a percentage of revenues. As results were broadly below our…

Given relatively low mobile penetration levels in Africa and Asia as well as Management’s focus on improving its network infrastructure in strong growth markets, we expect the company to report strong growth in its subscriber-base there. However, this is expected to be partially offset by a decline in ARPU over the next two years. Deconsolidation of Sierra Leone in 4Q 08 (which had negative margin) and the acquisition of mobile license......