Cable Onda helps boost Millicom cable strategy

The acquisition of Panama's Cable Onda "fits perfectly" with the strategy of Latin American telco Millicom to accelerating its expansion into cable, said CEO Mauricio Ramos.

The Luxembourg-based telco, which operates throughout Central and South America as well as in Africa, announced early this month it was acquiring an 80% stake in Cable Onda, the largest cable and fixed telecommunications provider in Panama, valued at US$1.46bn. The company will pay approximately US$1bn.

As part of the review of the operator's Q3, Ramos said the focus on rolling out cable was progressing well in Guatemala, Bolivia and Colombia.

Millicom, which operates under the Tigo brand, has been making a comeback in the competitive Colombian market. Ebitda grew 13.7% in the country on the quarter.

Overall, Millicom saw overall service revenue grow 0.3% to US$1.5bn. In Latin America revenue grew 4.7% and Ebitda grew 4.2%. Cable and home connectivity services grew 12.5%

The company said it was on track to meet the full-year target of adding 3mn 4G customers. In the home connectivity market, the target has been raised for HFC homes connected to 400,000 net additions from 300,000.

For 2018, the company expects revenue to grow 2-4% and Ebitda 3-6%. Capex is unchanged at US$1bn.