Document and entity information
Document and entity information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | MILLICOM INTERNATIONAL CELLULAR SA |
Entity Central Index Key | 912,958 |
Document Type | 20-F |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 101,739,217 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Document Period End Date | Dec. 31, 2018 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Consolidated statement of incom
Consolidated statement of income - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Profit or loss [abstract] | |||||
Revenue | $ 4,074 | $ 4,076 | [1] | $ 4,043 | [1] |
Cost of sales | (1,146) | (1,205) | [1] | (1,175) | [1] |
Gross profit | 2,928 | 2,871 | [1] | 2,868 | [1] |
Operating expenses | (1,674) | (1,593) | [1] | (1,627) | [1] |
Depreciation | (685) | (695) | [1] | (678) | [1] |
Amortization | (144) | (146) | [1] | (175) | [1] |
Share of profit in joint ventures in Guatemala and Honduras | 154 | 140 | [1],[2] | 115 | [1],[2] |
Other operating income (expenses), net | 76 | 68 | [1] | (14) | [1] |
Operating profit | 655 | 645 | [1] | 490 | [1] |
Interest and other financial expenses | (371) | (396) | [1] | (372) | [1] |
Interest and other financial income | 21 | 16 | [1] | 21 | [1] |
Other non-operating (expenses) income, net | (40) | (4) | 20 | ||
Profit (loss) from other joint ventures and associates, net | (136) | (85) | [1],[2] | (49) | [1],[2] |
Profit before taxes from continuing operations | 129 | 176 | [1],[2] | 109 | [1],[2] |
Charge for taxes, net | (116) | (158) | [1] | (179) | [1] |
Profit (loss) for the year from continuing operations | 13 | 18 | [1] | (70) | [1] |
Profit (loss) for the year from discontinued operations, net of tax | (39) | 51 | [1] | (20) | [1] |
Net profit (loss) for the year | (26) | 69 | [1],[3] | (90) | [1],[3] |
Net profit (loss) for the year Attributable to: | |||||
The owners of Millicom | (10) | 86 | [1] | (32) | [1] |
Non-controlling interests | $ (16) | $ (17) | [1] | $ (58) | [1] |
Basic (US$ per common share): | |||||
— from continuing operations (usd per share) | $ 0.29 | $ 0.36 | [1] | $ (0.12) | [1] |
— from discontinued operations (usd per share) | (0.39) | 0.50 | [1] | (0.20) | [1] |
— total (usd per share) | (0.10) | 0.86 | [1] | (0.32) | [1] |
Diluted (US$ per common share): | |||||
— from continuing operations (usd per share) | 0.29 | 0.36 | [1] | (0.12) | [1] |
— from discontinued operations (usd per share) | (0.39) | 0.50 | [1] | (0.20) | [1] |
—total (usd per share) | $ (0.10) | $ 0.86 | [1] | $ (0.32) | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||
[3] | Re-presented for discontinued operations (shown in note A.4.). |
Consolidated statement of compr
Consolidated statement of comprehensive income Statement - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Statement of comprehensive income [abstract] | |||||
Profit (loss) | $ (26) | $ 69 | [2] | $ (90) | [2] |
Other comprehensive income (to be reclassified to the statement of income in subsequent periods), net of tax: | |||||
Change in value of cash flow hedges, net of tax effects | (81) | 85 | (14) | ||
Other comprehensive income (not to be reclassified to the statement of income in subsequent periods), net of tax: | (1) | 4 | (3) | ||
Other comprehensive income (not to be reclassified to the statement of income in subsequent periods), net of tax: | |||||
Remeasurements of post-employment benefit obligations, net of tax effects | 0 | (2) | (2) | ||
Total comprehensive income (loss) for the year | (108) | 158 | (109) | ||
Attributable to: | |||||
Owners of the Company | (78) | 173 | (60) | ||
Non-controlling interests | (30) | (15) | (49) | ||
Total comprehensive income (loss) for the year arises from: | |||||
Continuing operations | (97) | 120 | (86) | ||
Discontinued operations | $ (11) | $ 38 | $ (23) | ||
[1] | Re-presented for discontinued operations (shown in note A.4.). | ||||
[2] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Consolidated statement of finan
Consolidated statement of financial position - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
NON-CURRENT ASSETS | |||
Intangible assets, net | $ 2,374 | $ 1,265 | |
Property, plant and equipment, net | 3,041 | 2,880 | |
Investments in joint ventures | 2,867 | 2,966 | |
Investments in associates | 169 | 241 | |
Contract costs, net | 4 | 0 | |
Deferred tax assets | 202 | 180 | |
Derivative financial instruments | 0 | 0 | |
Other non-current assets | 126 | 113 | |
TOTAL NON-CURRENT ASSETS | 8,784 | 7,646 | |
CURRENT ASSETS | |||
Inventories, net | 39 | 45 | |
Trade receivables, net | 343 | 386 | |
Contract assets, net | 37 | 0 | |
Amounts due from non-controlling interests, associates and joint ventures | 34 | 37 | |
Prepayments and accrued income | 129 | 145 | |
Current income tax assets | 108 | 99 | |
Supplier advances for capital expenditure | 25 | 18 | |
Other current assets | 127 | 90 | |
Restricted cash | 158 | 145 | |
Cash and cash equivalents | 528 | 619 | [1] |
TOTAL CURRENT ASSETS | 1,529 | 1,585 | |
Assets held for sale | 3 | 233 | |
TOTAL ASSETS | 10,316 | 9,464 | |
EQUITY | |||
Share capital and premium | 635 | 637 | [2] |
Treasury shares | (81) | (106) | [2] |
Other reserves | (538) | (472) | [2] |
Retained profits | 2,535 | 2,950 | [2] |
Profit (loss) for the year attributable to equity holders | (10) | 86 | [2] |
Equity attributable to owners of the Company | 2,542 | 3,096 | [2] |
Non-controlling interests | 249 | 185 | [2] |
TOTAL EQUITY | 2,790 | 3,281 | [2] |
Non-current liabilities [abstract] | |||
Debt and financing | 4,123 | 3,600 | [2] |
Amounts due to non-controlling interests, associates and joint ventures | 135 | 124 | [2] |
Provisions and other non-current liabilities | 351 | 335 | [2] |
Deferred tax liabilities | 233 | 56 | [2] |
TOTAL NON-CURRENT LIABILITIES | 4,841 | 4,116 | [2] |
Current liabilities [abstract] | |||
Debt and financing | 458 | 185 | [2] |
Put option liability | 239 | 0 | [2] |
Payables and accruals for capital expenditures | 335 | 304 | [2] |
Other current liabilities | 282 | 288 | [2] |
Amounts due to non-controlling interests, associates and joint ventures | 348 | 296 | [2] |
Accrued interest and other expenses | 383 | 353 | [2] |
Current income tax liabilities | 58 | 81 | [2] |
Contract liabilities | 87 | 0 | [2] |
Derivative financial instruments | 0 | 56 | [2] |
Provisions and other current liabilities | 494 | 425 | [2] |
TOTAL CURRENT LIABILITIES | 2,684 | 1,989 | [2] |
Liabilities directly associated with assets held for sale | 0 | 79 | [2] |
TOTAL LIABILITIES | 7,526 | 6,183 | [2] |
TOTAL EQUITY AND LIABILITIES | $ 10,316 | $ 9,464 | [2] |
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||
[2] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Cash flows from operating activities (including discontinued operations) | ||||||
Profit before taxes from continuing operations | $ 129 | $ 176 | [1],[2] | $ 109 | [1],[2] | |
Profit (loss) before taxes from discontinued operations | (39) | 51 | [1] | (26) | [1] | |
Profit (loss) before taxes | 91 | 227 | [1] | 83 | [1] | |
Adjustments to reconcile to net cash: | ||||||
Interest and other financial expenses, net | 373 | 416 | [1] | 397 | [1] | |
Interest and other financial income | (21) | (16) | [1] | (22) | [1] | |
Adjustments for non-cash items: | ||||||
Depreciation and amortization | 830 | 879 | [1] | 932 | [1] | |
Share of profit in Guatemala and Honduras joint ventures | (154) | (140) | [1],[2] | (115) | [1],[2] | |
Gain (loss) on disposal and impairment of assets, net | (36) | (99) | [1] | 19 | [1] | |
Share-based compensation | 22 | 22 | [1] | 14 | [1] | |
Transaction costs assumed by Cable Onda | 30 | 0 | [1] | 0 | [1] | |
(Profit) loss from other joint ventures and associates, net | 136 | 85 | [1],[2] | 49 | [1],[2] | |
Other non-cash non-operating (income) expenses, net | 40 | (2) | [1] | (22) | [1] | |
Changes in working capital: | ||||||
Decrease (increase) in trade receivables, prepayments and other current assets, net | (128) | 5 | [1] | 102 | [1] | |
(Increase) decrease in inventories | 2 | 16 | [1] | 19 | [1] | |
Increase (decrease) in trade and other payables, net | 69 | (82) | [1] | (109) | [1] | |
Changes in contract assets, liabilities and costs, net | (9) | 0 | [1] | 0 | [1] | |
Total changes in working capital | (66) | (61) | [1] | 12 | [1] | |
Interest (paid) | (318) | (372) | [1] | (357) | [1] | |
Interest received | 20 | 16 | [1] | 19 | [1] | |
Taxes (paid) | (153) | (132) | [1] | (130) | [1] | |
Net cash from operating activities | 792 | 820 | [1] | 878 | [1] | |
Cash flows from investing activities (including discontinued operations): | ||||||
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | (953) | (22) | [1] | 0 | [1] | |
Proceeds from disposal of subsidiaries and associates, net of cash disposed | 176 | 22 | [1] | 147 | [1] | |
Purchase of intangible assets and licenses | (148) | (133) | [1] | (143) | [1] | |
Proceeds from sale of intangible assets | 0 | 4 | [1] | 6 | [1] | |
Purchase of property, plant and equipment | (632) | (650) | [1] | (719) | [1] | |
Purchase of property, plant and equipment | 154 | 179 | [1] | 6 | [1] | |
Dividend received from joint ventures | 243 | 203 | [1] | 143 | [1] | |
Settlement of derivative financial instruments | (63) | 0 | [1] | 0 | [1] | |
Cash (used in) provided by other investing activities, net | 24 | 31 | [1] | 8 | [1] | |
Net cash used in investing activities | (1,199) | (367) | [1] | (552) | [1] | |
Cash flows from financing activities (including discontinued operations): | ||||||
Proceeds from debt and other financing | 1,155 | 996 | [1] | 713 | [1] | |
Repayment of debt and other financing | (546) | (1,195) | [1] | (821) | [1] | |
Advances for, and dividends paid to non-controlling interests | 0 | 0 | [1] | (68) | [1] | |
Dividends paid to non-controlling interests | (2) | 0 | [1] | 0 | [1] | |
Dividends paid to owners of the Company | (266) | (265) | [1] | (265) | [1] | |
Net cash provided by (used in) financing activities | 341 | (464) | [1] | (441) | [1] | |
Exchange impact on cash and cash equivalents, net | (33) | 4 | [1] | (8) | [1] | |
Net (decrease) increase in cash and cash equivalents | (98) | (8) | [1] | (123) | [1] | |
Cash and cash equivalents, beginning balance | [1] | 619 | 646 | 769 | ||
Effect of cash in disposal group held for sale | 6 | (19) | [1] | 0 | [1] | |
Cash and cash equivalents, ending balance | $ 528 | $ 619 | [1] | $ 646 | [1] | |
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||
[2] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Consolidated statement of chang
Consolidated statement of changes in equity - USD ($) shares in Thousands, $ in Millions | Total | Total | Share capital | Share premium | Treasury shares | Retained profits | [2] | Other reserves | Non- controlling interests | |||
Number of shares, beginning of period (in shares) | 101,739 | (1,574) | ||||||||||
Equity, beginning of period at Dec. 31, 2015 | $ 3,728 | $ 3,477 | $ 153 | [1] | $ 486 | $ (143) | $ 3,513 | $ (531) | $ 251 | |||
Number of shares, beginning of period (in shares) | 101,739 | (1,395) | ||||||||||
Comprehensive income | (109) | [3] | (60) | (32) | (28) | (49) | ||||||
Dividends | [4] | (265) | (265) | (265) | ||||||||
Purchase of treasury shares (in shares) | (37) | |||||||||||
Purchase of treasury shares | (3) | (3) | $ (3) | |||||||||
Share-based compensation | [5] | 14 | 14 | 14 | ||||||||
Issuance of shares under share-based payment schemes (in shares) | 216 | |||||||||||
Issuance of shares under share-based payment schemes | 4 | 4 | (1) | $ 23 | (1) | (17) | ||||||
Equity, end of period at Dec. 31, 2016 | 3,368 | 3,167 | $ 153 | [1] | 485 | $ (123) | 3,215 | (562) | 201 | |||
Number of shares, end of period (in shares) at Dec. 31, 2016 | 101,739 | (1,395) | ||||||||||
Number of shares, beginning of period (in shares) | 101,739 | (1,395) | ||||||||||
Statutory reserves unavailable for distribution | 321 | |||||||||||
Number of shares, beginning of period (in shares) | 101,739 | (1,195) | ||||||||||
Comprehensive income | 158 | [3] | 173 | 86 | 87 | (15) | ||||||
Dividends | [4] | (265) | (265) | (265) | ||||||||
Purchase of treasury shares (in shares) | (32) | |||||||||||
Purchase of treasury shares | (3) | (3) | $ (3) | |||||||||
Share-based compensation | [5] | 22 | 22 | 22 | ||||||||
Issuance of shares under share-based payment schemes (in shares) | 233 | |||||||||||
Issuance of shares under share-based payment schemes | 1 | 1 | (1) | $ 21 | 1 | (18) | ||||||
Equity, end of period at Dec. 31, 2017 | 3,281 | [6] | 3,096 | $ 153 | [1] | 484 | $ (106) | 3,035 | (472) | 185 | ||
Number of shares, end of period (in shares) at Dec. 31, 2017 | 101,739 | (1,195) | ||||||||||
Number of shares, beginning of period (in shares) | 101,739 | (1,195) | ||||||||||
Statutory reserves unavailable for distribution | 345 | |||||||||||
Number of shares, beginning of period (in shares) | 101,739 | (913) | ||||||||||
Comprehensive income | (108) | (78) | (10) | (68) | (30) | |||||||
Dividends | [4] | (266) | (266) | (266) | ||||||||
Dividends to non-controlling interests | (13) | (13) | ||||||||||
Purchase of treasury shares (in shares) | (70) | |||||||||||
Purchase of treasury shares | (6) | (6) | $ (6) | |||||||||
Share-based compensation | [5] | 22 | 22 | 0 | 22 | |||||||
Issuance of shares under share-based payment schemes (in shares) | 351 | |||||||||||
Issuance of shares under share-based payment schemes | 2 | 2 | (2) | $ 31 | (5) | (22) | ||||||
Effect of change in consolidation scope | [7] | 111 | 111 | |||||||||
Put option reserve | [7] | (239) | (239) | (239) | ||||||||
Equity, end of period at Dec. 31, 2018 | 2,790 | $ 2,542 | $ 153 | [1] | $ 482 | $ (81) | $ 2,525 | $ (538) | $ 249 | |||
Number of shares, end of period (in shares) at Dec. 31, 2018 | 101,739 | (913) | ||||||||||
Number of shares, beginning of period (in shares) | 101,739 | (913) | ||||||||||
Statutory reserves unavailable for distribution | $ 324 | |||||||||||
[1] | Share capital and share premium – see note C.1. | |||||||||||
[2] | Retained profits – includes profit for the year attributable to equity holders, of which $324 million (2017: $345 million; 2016: $321 million) are not distributable to equity holders. | |||||||||||
[3] | Re-presented for discontinued operations (shown in note A.4.). | |||||||||||
[4] | Dividends – see note C.2. | |||||||||||
[5] | Share-based compensation – see note C.1. | |||||||||||
[6] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||||||||
[7] | Effect of the acquisition of Cable Onda S.A. See notes A.1.2. and C.6.3. for further details. |
Introduction
Introduction | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Introduction | Introduction Corporate Information Millicom International Cellular S.A. (the “Company” or “MIC S.A.”), a Luxembourg Société Anonyme, and its subsidiaries, joint ventures and associates (the “Group” or “Millicom”) is an international telecommunications and media group providing digital lifestyle services in emerging markets, through mobile and fixed telephony, cable, broadband, Pay-TV in Latin America (Latam) and Africa. The Company’s shares are traded as Swedish Depositary Receipts on the Stockholm stock exchange under the symbol TIGO SDB (formerly MIC SDB) and, since January 9, 2019, on the Nasdaq Stock Market in the U.S. under the ticker symbol TIGO. The Company has its registered office at 2, Rue du Fort Bourbon, L-1249 Luxembourg, Grand Duchy of Luxembourg and is registered with the Luxembourg Register of Commerce under the number RCS B 40 630. On February 28, 2019, the Board of Directors authorized these consolidated financial statements for issuance. Business activities Millicom operates its mobile businesses in Central America (El Salvador, Guatemala and Honduras) in South America (Bolivia, Colombia and Paraguay), and in Africa (Chad, Ghana and Tanzania). Millicom operates various cable and fixed line businesses in Latam (Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Bolivia, Paraguay and Panama). Millicom also provides direct to home satellite service in most of its Latam countries. On December 31, 2015 , Millicom deconsolidated its operations in Guatemala and Honduras which are, since that date and for accounting purposes, under joint control. Millicom has investments in online/e-commerce businesses in several countries in Latam and Africa, investments in a tower holding company in Africa and various investments in start-up businesses providing e-payments and content to its mobile and cable customers. IFRS Consolidated Financial Statements Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the IASB (IFRS). They are also compliant with International Financial Reporting Standards as adopted by the European Union. This is in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of July 19, 2002, on the application of international accounting standards for listed companies domiciled in the European Union. The financial statements have been prepared on an historical cost basis, except for certain items including derivative financial instruments and call options (measured at fair value), financial instruments that contain obligations to purchase own equity instruments (measured at the present value of the redemption price), and property, plant and equipment under finance leases (initially measured at the lower of fair value and present value of the future minimum lease payments). This section contains the Group’s significant accounting policies that relate to the financial statements as a whole. Significant accounting policies specific to one note are included within that note. Accounting policies relating to non-material items are not included in these financial statements. Consolidation The consolidated financial statements of the Group comprise the financial statements of the Company and its subsidiaries as of December 31 of each year. The financial statements of the subsidiaries are prepared for the same reporting year as the Company, using consistent accounting policies. All intra-group balances, transactions, income and expenses, and profits and losses resulting from intra-group transactions are eliminated. Foreign currency Financial information in these financial statements are shown in the US dollar presentation currency of the Group and rounded to the nearest million (US$ million) except where otherwise indicated. The financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which each entity operates (the functional currency). The functional currency of each subsidiary, joint venture and associate reflects the economic substance of the underlying events and circumstances of these entities. Except for El Salvador where the functional currency is US dollar, the functional currency in other countries is the local currency. The results and financial position of all Group entities (none of which operate in an economy with a hyperinflationary environment) with functional currency other than the US dollar presentation currency are translated into the presentation currency as follows: (i) Assets and liabilities are translated at the closing rate on the date of the statement of financial position; (ii) Income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and (iii) All resulting exchange differences are recognized as a separate component of equity (currency translation reserve), in the caption “Other reserves”. On consolidation, exchange differences arising from the translation of net investments in foreign operations, and of borrowings and other currency instruments designated as hedges of such investments, are recorded in equity. When the Group disposes of or loses control over a foreign operation, exchange differences that were recorded in equity are recognized in the consolidated income statement as part of gain or loss on sale or loss of control. Goodwill and fair value adjustments arising on acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. The following table presents functional currency translation rates for the Group’s locations to the US dollar on December 31, 2018 , 2017 and 2016 and the average rates for the years ended December 31, 2018 , 2017 and 2016 . Exchange Rates to the US Dollar Functional Currency 2018 Average Rate 2018 Year-end Rate Change % 2017 Average Rate 2017 Year-end Rate Change % 2016 Average Rate Bolivia Boliviano (BOB) 6.91 6.91 n/a 6.91 6.91 n/a 6.91 Chad CFA Franc (XAF) 571 580 3.99 % 588 558 12.00 600 Colombia Peso (COP) 2,973 3,250 8.91 % 2,961 2,984 1.00 3,049 Costa Rica Costa Rican Colon (CRC) 578 608 6.12 % 571 573 (2.00 ) 551 El Salvador US dollar n/a n/a n/a n/a n/a n/a n/a Ghana Cedi (GHS) 4.63 4.82 9.12 % 4.36 4.42 (5.00 ) 3.92 Guatemala Quetzal (GTQ) 7.52 7.74 5.41 % 7.36 7.34 2.00 7.61 Honduras Lempira (HNL) 23.99 24.42 3.19 % 23.58 23.67 — 22.92 Luxembourg Euro (EUR) 0.85 0.87 5.08 % 0.89 0.83 12.00 0.91 Nicaragua Cordoba (NIO) 31.55 32.33 5 % 30.05 30.79 (5.00 ) 28.62 Panama Balboa (B/.) (i) n/a n/a n/a n/a n/a n/a n/a Paraguay Guarani (PYG) 5,743 5,961 6.64 % 5,626 5,590 3.00 5,686 Sweden Krona (SEK) 8.71 8.85 8.23 % 8.53 8.18 10.00 8.58 Tanzania Shilling (TZS) 2,274 2,299 2.42 % 2,233 2,245 (3.00 ) 2,183 United Kingdom Pound (GBP) 0.75 0.78 5.93 % 0.77 0.74 9.00 0.74 (i) the balboa is tied to the United States dollar at an exchange rate of 1:1. New and amended IFRS accounting standards The following changes to standards effective for annual periods starting on January 1, 2018 have been adopted by the Group: • IFRS 15 “Contracts with customers” establishes a five-step model related to revenue recognition from contracts with customers. Under IFRS 15, revenue is recognized at amounts that reflect the consideration that an entity expects to be entitled to in exchange for transferring goods or services to a customer. The Group adopted the accounting standard on January 1, 2018 using the modified retrospective method which had an immaterial impact on its Group financial statements. IFRS 15 mainly affects the timing of recognition of revenue as it introduces more differences between the billing and the recognition of the revenue and, in some cases, the recognition of the revenue as a principal (gross) or as an agent (net). However, it does not affect the cash flows generated by the Group. As a consequence of adopting this Standard: 1) some revenue is recognized earlier, as a larger portion of the total consideration received in a bundled contract is attributable to the component delivered at contract inception (i.e. typically a subsidized handset). Therefore, this produces a shift from service revenue (which decreases) to the benefit of Telephone and Equipment revenue. This results in the recognition of a Contract Asset on the statement of financial position, as more revenue is recognized upfront, while the cash will be received throughout the subscription period (which is usually between 12 to 36 months). Contract Assets (and liabilities) are reported on a separate line in current assets / liabilities even if their realization period is longer than 12 months. This is because they are realized / settled as part of the normal operating cycle of our core business. 2) the cost incurred to obtain a contract (mainly commissions) is now capitalized in the statement of financial position and amortized over the average contract term. This results in the recognition of Contract Costs being capitalized under non-current assets on the statement of financial position. 3) the Group recognizes revenue from its wholesale carrier business on a net basis as an agent rather than as a principal under the modified retrospective IFRS 15 transition. Except for this effect, there were no other material changes for the purpose of determining whether the Group acts as principal or an agent in the sale of products. 4) the presentation of certain material amounts in the consolidated statement of financial position has been changed to reflect the terminology of IFRS 15: a. Contract assets recognized in relation to service contracts. b. Contract costs in relation to capitalized cost incurred to obtain a contract (mainly commissions). c. Contract liabilities in relation to service contracts were previously included in trade and other payables. The Group has adopted the standard using the modified retrospective method. Hence, the cumulative effect of initially applying the Standard has been recognized as an adjustment to the opening balance of retained earnings as at January 1, 2018 and comparative financial statements have not been restated in accordance with the transitional provisions in IFRS 15. The impact on the opening balance of retained profits as at January 1, 2018 is summarized in the table set out at the end of this section. Additionally, the Group has decided to take some of the practical expedients foreseen in the Standard, such as: • No adjustment to the transaction price for the means of a financing component whenever the period between the transfer of a promised good or service to a customer and the associated payment is one year or less; when the period is more than one year the financing component is adjusted, if material. • Disclosure in the Group Financial Statements the transaction price allocated to unsatisfied performance obligations only for contracts that have an original expected duration of more than one year (e.g. unsatisfied performance obligations for contracts that have an original duration of one year or less are not disclosed). • Application of the practical expedient not to disclose the price allocated to unsatisfied performance obligations, if the consideration from a customer corresponds to the value of the entity’s performance obligation to the customer (i.e, if billing corresponds to accounting revenue). • Application of the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. • Revenue recognition accounting principles are further described in Note B.1.1. • IFRS 9 “Financial Instruments ” addresses the classification, measurement and recognition and impairments of financial assets and financial liabilities as well as hedge accounting. It replaces the parts of IAS 39 that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: those measured at fair value and those measured at amortized cost. The determination is made at initial recognition. The classification depends on the Group’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch. A final standard on hedging (excluding macro-hedging) was issued in November 2013 which aligns hedge accounting more closely with risk management and allows to continue hedge accounting under IAS 39. IFRS 9 also clarifies the accounting for certain modifications and exchanges of financial liabilities measured at amortized cost. The application of IFRS 9 did not have an impact for the Group on classification, measurement and recognition of financial assets and financial liabilities compared to IAS 39, but it has an impact on impairment of trade receivables and contracts assets (IFRS 15) as well as on amounts due from joint ventures and related parties - with the application of the expected credit loss model instead of the current incurred loss model. As permitted under IFRS 9, the Group adopted the standard without restating comparatives for classification, measurement and impairment. Hence, the cumulative effect of initially applying the Standard has been recognized as an adjustment to the opening balance of retained profits at January 1, 2018 . The impact on the opening balance of retained profits at January 1, 2018 is summarized in the table set out at the end of this section. Additionally, the Group continues applying IAS 39 rules with respect to hedge accounting. Finally, the clarification introduced by IFRS 9 on the accounting for certain modifications and exchanges of financial liabilities measured at amortized cost did not have an impact for the Group. Financial instruments accounting principles are further described in Note C.6. The application of IFRS 15 and IFRS 9 had the following impact on the Group financial statements at January 1, 2018 : As at January 1, 2018 before application Effect of adoption of IFRS 15 Effect of adoption of IFRS 9 As at January 1, 2018 after application Reason for the change (US$ millions) FINANCIAL POSITION ASSETS Investment in joint ventures (non-current) 2,966 27 (4 ) 2,989 (i) Contract costs, net (non-current) NEW — 4 — 4 (ii) Deferred tax asset 180 — 10 191 (viii) Other non-current assets 113 — (1 ) 113 (iii) Trade receivables, net (current) 386 — (47 ) 339 (iv) Contract assets, net (current) NEW — 29 (1 ) 28 (v) LIABILITIES Contract liabilities (current) NEW — 51 — 51 (vi) Provisions and other current liabilities 425 (46 ) — 379 (vii) Deferred tax liability (non-current) 56 7 (1 ) 62 (viii) EQUITY Retained profits and loss for the year 3,035 48 (38 ) 3,045 (ix) Non-controlling interests 185 — (5 ) 181 (ix) (i) Impact of application of IFRS 15 and IFRS 9 for our joint ventures in Guatemala, Honduras and Ghana. (ii) This mainly represents commissions capitalized and amortized over the average contract term. (iii) Effect of the application of the expected credit losses required by IFRS 9 on amounts due from joint ventures. (iv) Effect of the application of the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables. (v) Contract assets mainly represents subsidized handsets as more revenue is recognized upfront while the cash will be received throughout the subscription period (which is usually between 12 to 36 months). (vi) This mainly represents deferred revenue for goods and services not yet delivered to customers that will be recognized when the goods are delivered and the services are provided to customers. The balance also comprises revenue from the billing of subscription fees or ‘one-time’ fees at the inception of a contract that are deferred and will be recognized over the average customer retention period or the contract term. (vii) Reclassification of deferred revenue to contract liabilities - see previous paragraph. (viii) Tax effects of the above adjustments. (ix) Cumulative catch-up effect. As of January 1, 2018 , IFRS 9 and IFRS 15 implementations had no impact on the statement of cash flows or on EPS. The following summarizes the amount by which each financial statement line item is affected in the current reporting year by the application of IFRS 15 as compared to previous standard and interpretations: 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change (US$ millions) INCOME STATEMENT Total revenue 4,074 4,151 (77 ) (i) Cost of sales (1,146 ) (1,194 ) 48 (ii) Operating expenses (1,674 ) (1,714 ) 40 (ii) Share of profit in the joint ventures in Guatemala and Honduras 154 152 2 (iii) Tax impact (116 ) (115 ) (1 ) (iv) (i) Mainly for adjustments for "principal vs agent" considerations under IFRS 15 for wholesale carrier business, as well as for the shift in the timing of revenue recognition due to the reallocation of revenue from service (over time) to telephone and equipment revenue (point in time). (ii) Mainly for the reallocation of cost for selling devices due to shift from service revenue to telephone and equipment revenue, for the capitalization and amortization of contract costs and for adjustments for "principal vs agent" under IFRS 15 for wholesale carrier business. (iii) Impact of IFRS 15 related to our share of profit in our joint ventures in Guatemala and Honduras. (iv) Tax effects of the above adjustments. 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change (US$ millions) FINANCIAL POSITION ASSETS Investment in joint ventures (non-current) 2,867 2,839 28 (i) Contract costs, net (non-current) 4 — 4 (ii) Deferred tax assets 202 200 2 (vi) Contract assets, net (current) 37 — 37 (iii) LIABILITIES Contract liabilities (current) 87 — 87 (iv) Provisions and other current liabilities 494 576 (82 ) (v) Current income tax liabilities 58 55 3 (vi) Deferred tax liabilities (non-current) 233 226 7 (vi) EQUITY Retained profits and loss for the year 2,525 2,468 57 (vii) Non-controlling interests 249 246 3 (vii) (i) Impact of application of IFRS 15 for our joint ventures in Guatemala, Honduras and Ghana. (ii) This mainly represents commissions capitalized and amortized over the average contract term. (iii) Contract assets mainly represents subsidized handsets as more revenue is recognized upfront while the cash will be received throughout the subscription period (which are usually between 12 to 36 months). Throughout the year ended December 31, 2018 no material impairment loss has been recognized. (iv) This mainly represents deferred revenue for goods and services not yet delivered to customers that will be recognized when the goods are delivered and the services are provided to customers. The balance also comprises the revenue from the billing of subscription fees or ‘one-time’ fees at the inception of a contract that are deferred and will be recognized over the average customer retention period or the contract term. (v) Reclassification of deferred revenue to contract liabilities - see previous paragraph. (vi) Tax effects of the above adjustments. (vii) Cumulative catch-up effect and IFRS 15 effect in the current year. The application of the following new standards or interpretations applicable on January 1, 2018 did not have an impact for the Group: • Amendments to IFRS 2, ‘Share based payments’ , on clarifying how to account for certain types of share-based payment transactions. • Amendments to IFRS 4, ‘Insurance contracts’ regarding the implementation of IFRS 9, ‘Financial instruments’. • IFRIC 22 ‘Foreign currency transactions and advance consideration’ regarding foreign currency transactions or parts of transactions where there is consideration that is denominated or priced in a foreign currency. • Annual improvements to IFRS Standards 2014-2016. There are no other significant changes to standards effective for the annual year starting on January 1, 2018 . The following standard, which is expected to materially affect the Group, will be effective from January 1, 2019 : • IFRS 16 “Leases” will primarily affect the accounting for the Group’s operating leases. These commitments will result in the recognition of a right of use asset and a lease liability for future payments. The application of this standard will affect the Group’s depreciation, debt and other financing and leverage ratios. The change in presentation of operating lease expenses will result in a corresponding improvement in cash flows derived from operating activities and a decline in cash flows from financing activities. The Group will adopt the standard using the modified retrospective approach with the cumulative effect of applying the new Standard recognized in retained profits as of January 1, 2019 . Comparatives for the 2018 financial statements will not be restated. Short-term leases with a term not exceeding the 12 months as well as leases where the underlying asset is of low value will not be capitalized: instead, Millicom will use the practical expedient and associated lease payments will be recognized as an expense. Furthermore, the Group has taken the additional following decisions to adopt the standard: • Non-lease components will be capitalized (IFRS16.15) • Intangible assets are out of IFRS 16 scope (IFRS16.4) At transition date, the Group will recognize lease liabilities in relation to leases which had previously been classified as operating leases under the principles of IAS 17 Leases (such as site leases, land and buildings leases, etc). These liabilities will be measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019 . The right-of-use asset will be measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the statement of financial position immediately before the date of initial application. According to the new Standard, Millicom shall determine the lease term including any lessee's extension or termination option that is deemed reasonably certain as well as lessors' extension or termination option. The assessment of such options shall be performed at the commencement of a lease. This requires judgment by the management of Millicom, which may have a significant impact on the lease liability recognized under IFRS 16. Measuring the lease liability at the present value of the remaining lease payments requires using an appropriate discount rate in accordance with IFRS 16. Millicom uses the interest rate implicit in the lease or if that cannot be determined, the incremental borrowing rate at the date of the lease commencement. Millicom renders this judgment in accordance with its accounting policy on leases. The incremental borrowing rate applied can have a significant impact on the net present value of the lease liability recognized under IFRS 16. Under the new Standard, the accounting of sale and leaseback transactions will change as the underlying sale transaction needs to be firstly analyzed using the guidance of IFRS 15. The seller/lessee recognizes a right-of-use asset in the amount of the proportional original carrying amount that relates to the right of use retained. Accordingly, only the proportional amount of gain or loss from the sale must be recognized. The impact from sale and leaseback transactions will not be material for Millicom Group as of the date of initial application. While the Group is finalizing the implementation of the new Standard, as a preliminary result, it expects to recognize additional lease liabilities of approximately $600 million . The impact on retained profits is expected to be immaterial. Further changes to standards not yet effective and not early adopted by Millicom on January 1, 2018 Amendment to IFRS 9, Financial instruments’, on prepayment features with negative compensation This amendment confirms that when a financial liability measured at amortized cost is modified without this resulting in de-recognition, a gain or loss should be recognized immediately in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. This means that the difference cannot be spread over the remaining life of the instrument which may be a change in practice from IAS 39. January 1, 2019 IFRIC 23 Uncertainty over income tax treatments IFRIC 23 clarifies how the recognition and measurement requirements of IAS 12 Income taxes, are applied where there is uncertainty over income tax treatments. The interpretation is effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted. The Group is currently assessing the impact of this interpretation but does not expect any significant effect of applying it. January 1, 2019 Annual improvements 2015-2017 These amendments impact four standards: IFRS 3, Business Combinations and IFRS 11 Joint Arrangements regarding previously held interest in a joint operation. IAS 12, Income Taxes regarding income tax consequences of payments on financial instruments classified as equity. And finally, IAS 23, Borrowing Costs regarding eligibility for capitalization. Again, the Group does not expect these improvements to have a material impact on the consolidated financial statements. These improvements have not been endorsed by the EU yet. January 1, 2019 Amendments to IAS 19, These amendments require an entity to: January 1, 2019 Amendments to IFRS 3 –definition of a business This amendment revises the definition of a business. The Group does not expect these amendments to have a material impact on the consolidated financial statements. These amendments have not been endorsed by the EU yet. January 1, 2020 Amendments to IAS 1, ‘Presentation of financial statements’, and IAS 8, ‘Accounting policies, changes in accounting estimates and errors’ These amendments to IAS 1, ‘Presentation of financial statements’, and IAS 8, ‘Accounting policies, changes in accounting estimates and errors’, and consequential amendments to other IFRSs: i) use a consistent definition of materiality throughout IFRSs and the Conceptual Framework for Financial Reporting; ii) clarify the explanation of the definition of material; and iii) incorporate some of the guidance in IAS 1 about immaterial information. The Group does not expect these amendments to have a material impact on the consolidated financial statements. These amendments have not been endorsed by the EU yet. January 1, 2020 Judgments and critical estimates The preparation of IFRS financial statements requires management to use judgment in applying accounting policies. It also requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates are based on management's best knowledge of current events, actions and best estimates as of a specified date, and actual results may ultimately differ from these estimates. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in each note and are summarized below: Judgments Management apply judgment in accounting treatment and accounting policies in preparation of these financial statements. In particular, a significant level of judgment is applied regarding the following items: • Contingent liabilities – whether or not a provision should be recorded for any potential liabilities (see note G.3.); • Leases – whether the substance of leases meets the IFRS criteria for recognition as finance or operating leases or services contracts, or elements of each (see notes E.2. and G.2.); • Control – whether Millicom, through voting rights and potential voting rights attached to shares held, or by way of shareholders’ agreements or other factors, has the ability to direct the relevant activities of the subsidiaries it consolidates, or jointly direct the relevant activities of its joint ventures (see notes A.1., A.2.); • Discontinued operations and assets held for sale – definition, classification and presentation (see notes A.4., E.3.1.) as well as measurement of potential provisions related to indemnities; • Deferred tax assets – recognition based on likely timing and level of future taxable profits together with future tax planning strategies (see notes B.6.3. and G.3.2.); • Acquisitions – measurement at fair value of existing and newly identified assets, including the measurement of property, plant and equipment and intangible assets, liabilities and remaining goodwill; the assessment of useful lives; as well as the accounting treatment for transaction costs (see notes A.1.2., E.1.1., E.1.5., E.2.1.); • Defined benefit obligations – key assumptions related to life expectancies, salary increases and leaving rates, mainly related to UNE Colombia (see note B.4.3.); • Impairment testing – key assumptions related to future business performance, perpetual growth rates and discount rates (see notes E.1.2., E.1.6., E.2.2.). • Revenue recognition – whether or not the Group acts as principal or as an agent and when there is one or several performance obligations (see note B.1.1.). Estimates Estimates are based on historical experience and other factors, including reasonable expectations of future events. These factors are reviewed in preparation of the financial statements although, due to inherent uncertainties in the evaluation process, actual results may differ from original estimates. Estimates are subject to change as new information becomes available and may significantly affect future operating results. Significant estimates have been applied in respect of the following items: • Accounting for property, plant and equipment, and intangible assets in determining fair values at acquisition dates, particularly for assets acquired in business combinations and sale and leaseback transactions (see note E.2.1.); • Useful lives of property, plant and equipment and intangible assets (see notes E.1.1., E.2.1.); • Provisions, in particular provisions for asset retirement obligations, legal and tax risks (see note F.4.); • Revenue recognition (see note B.1.1.); • Impairment testing including weighted average cost of capital (WACC) and long term growth rates (see note E.1.6.); • Estimates for defined benefit obligations (see note B.4.3.); • Accounting for share-based compensation in particular estimates of forfeitures and future performance criteria (see notes B.4.1., B.4.2.). |
The Millicom Group
The Millicom Group | 12 Months Ended |
Dec. 31, 2018 | |
Interests In Other Entities [Abstract] | |
The Millicom Group | The Millicom Group The Group comprises a number of holding companies, operating subsidiaries and joint ventures with various combinations of mobile, fixed-line telephony, cable and wireless Pay TV, Internet and Mobile Financial Services (MFS) businesses. The Group also holds investments in a tower holding company investing in Africa and in online businesses in Latam and Africa. Subsidiaries Subsidiaries are all entities which Millicom controls. Millicom controls an entity when it is exposed to, or has rights to variable returns from its investment in the entity, and has the ability to affect those returns through its power over the subsidiary. Millicom has power over an entity when it has existing rights that give it the current ability to direct the relevant activities, i.e. the activities that significantly affect the entity’s returns. Generally, control accompanies a shareholding of more than half of the voting rights although certain other factors (including contractual arrangements with other shareholders, voting and potential voting rights) are considered when assessing whether Millicom controls an entity. For example, although Millicom holds less than 50% of the shares in its Colombian businesses, it holds more than 50% of shares with voting rights. The contrary may also be true (e.g. Guatemala and Honduras). In respect of the joint ventures in Guatemala and Honduras, shareholders’ agreements require unanimous consents for decisions over the relevant activities of these entities (see also note A.2.2). Therefore, the Group has joint control over these entities and accounts for them under the equity method. Our main subsidiaries are as follows: Entity Country Activity December 31, 2018 December 31, 2017 December 31, 2016 Latin America Telemovil El Salvador S.A. de C.V. El Salvador Mobile, MFS, Cable, DTH, PayTV 100 100 100 Navega.com SA, Sucursal El Salvador El Salvador Cable, DTH 100 100 100 Cable Costa Rica S.A. Costa Rica Cable, DTH 100 100 100 Telefonica Celular de Bolivia S.A. Bolivia Mobile, DTH, MFS, Cable, PayTV 100 100 100 Telefonica Celular del Paraguay S.A. Paraguay Mobile, MFS, Cable, PayTV 100 100 100 Cable Onda S.A (i). Panama Cable, PayTV, Internet, DTH, Fixed-line 80 — — Colombia Móvil S.A. E.S.P.(ii) Colombia Mobile 50-1 share 50-1 share 50-1 share UNE EPM Telecomunicaciones S.A.(ii) Colombia Fixed-line, Internet, PayTV, Mobile 50-1 share 50-1 share 50-1 share Edatel S.A. E.S.P.(ii) Colombia Fixed-line, Internet, PayTV, Cable 50-1 share 50-1 share 50-1 share Africa Millicom Ghana Company Limited(iii) Ghana Mobile, MFS — — 100 Sentel GSM S.A.(iv) Senegal Mobile, MFS — 100 100 MIC Tanzania Public Limited Company Tanzania Mobile, MFS 100 100 100 Millicom Tchad S.A. Chad Mobile, MFS 100 100 100 Millicom Rwanda Limited(iv) Rwanda Mobile, MFS — 100 100 Zanzibar Telecom Limited Tanzania Mobile, MFS 85 85 85 Unallocated Millicom International Operations S.A. Luxembourg Holding Company 100 100 100 Millicom International Operations B.V. Netherlands Holding Company 100 100 100 Millicom LIH S.A. Luxembourg Holding Company 100 100 100 MIC Latin America B.V. Netherlands Holding Company 100 100 100 Millicom Africa B.V. Netherlands Holding Company 100 100 100 Millicom Holding B.V. Netherlands Holding Company 100 100 100 Millicom Spain S.L. Spain Holding Company 100 100 100 (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) Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities. (iii) Merged with Airtel Ghana in October 2017 and classified as discontinued operations for the year then ended (see note E.3.2.). Merged entity is accounted for as a joint venture as from merger date (see note A.2.2.). (iv) See note A.1.3. Accounting for subsidiaries and non-controlling interests Subsidiaries are fully consolidated from the date on which control is transferred to Millicom. If facts and circumstances indicate that there are changes to one or more of the elements of control, a reassessment is performed to determine if control still exists. Subsidiaries are de-consolidated from the date that control ceases. Transactions with non-controlling interests are accounted for as transactions with equity owners of the Group. Gains or losses on disposals of non-controlling interests are recorded in equity. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is also recorded in equity. Acquisition of subsidiaries and increases in non-controlling interests in subsidiaries On October 7, 2018, the Company entered into an agreement to acquire a controlling 80% stake in Cable Onda, the largest cable and fixed telecommunications services provider in Panama. The transaction valued 100% of Cable Onda at an enterprise value of $1,460 million . The selling shareholders retained a 20% equity stake in the company. The transaction closed on December 13, 2018 after receipt of necessary approvals for a cash consideration of $956 million . In addition, Millicom assumed Cable Onda’s debt obligations. The Group funded the purchase price for this acquisition by incurring additional indebtedness, including $250 million under the Bridge Facility and $500 million aggregate principal amount of the 6.625% Notes (see note C.3.1) and with available resources. A final price adjustment, per the terms of the agreement, is expected to occur in Q1 2019. Millicom concluded that it controls Cable Onda since closing date and therefore fully consolidates it in its financial statements with a 20% non-controlling interest. The deal also includes certain liquidity rights such as call and put options. See note C.6.3. for further details on the accounting treatment of these options. The purchase consideration also includes certain amounts under escrow in respect of final price adjustment and potential indemnifications from the sellers (potential tax and litigations). For the purchase accounting, Millicom determined the fair value of Cable Onda identifiable assets and liabilities based on transaction and relative values. The non-controlling interest was measured based on the proportionate share of the fair value of the net assets of Cable Onda. The purchase accounting is still provisional at December 31, 2018 , particularly in respect of the evaluation of certain tangible assets. Provisional Fair values (100%) (US$ millions) Intangible assets (excluding goodwill), net (i) 673 Property, plant and equipment, net 348 Current assets (excluding cash) (ii) (iii) 54 Cash and cash equivalents 12 Total assets acquired 1,088 Non-current liabilities (iv) 422 Current liabilities (v) 141 Total liabilities assumed 563 Fair value of assets acquired and liabilities assumed, net 525 Transaction costs assumed by Cable Onda (vi) 30 Fair value of non-controlling interest in Cable Onda (20%) 111 Millicom’s interest in the fair value of Cable Onda (80%) 444 Acquisition price 956 Provisional Goodwill 512 (i) Intangible assets not previously recognized (or partially recognized as a result of previous acquisitions) are trademarks for an amount of $280 million , with estimated useful lives of 3 years , a customer list for an amount of $370 million , with estimated useful life of 20 years and favorable content contracts for $19 million , with a useful life of 10 years . (ii) Current assets include indemnification assets for tax contingencies at fair value for an amount of $4 million - see below. (iii) The fair value of trade receivables acquired was $34 million . (iv) Non-current liabilities include the deferred tax liability of $158 million resulting from the above adjustments. (v) Current liabilities include the fair value of certain tax contingent liabilities of $5 million . These are partly covered by the indemnification assets described in (ii) above. (vi) Transaction costs of $30 million have been assumed and paid by Cable Onda before the acquisition or by Millicom on the closing date. Because of their relationship with the acquisition, these costs have been accounted for as post-acquisition costs in the Millicom Group statement of income. These, together with acquisition-related costs of $11 million , have been recorded under operating expenses in the statement of income of the year. The goodwill, which is not expected to be tax deductible, is attributable to Cable Onda’s strong market position and profitability, as well as to the fair value of the assembled work force. From December 13, 2018 to December 31, 2018, Cable Onda contributed $17 million of revenue and a net loss of $7 million to the Group. If Cable Onda had been acquired on 1 January 2018 incremental revenue for the 2018 year would have been $403 million and incremental net loss for that period of $59 million , including amortization of assets not previously recognized of $85 million (net of tax). During the year ended December 31, 2018 , the Group also completed minor additional acquisitions for $9 million . During the year ended December 31, 2017 , Tigo Paraguay completed the acquisition of TV Cable Parana for a total consideration of approximately $18 million , net of cash acquired. The purchase accounting was finalized in March 2017. The purchase price has been mainly allocated to a customer list ( $14 million ) and to other tangible and intangible fixed assets ( $3 million ). As a result, the final goodwill amounted to $1 million . Disposal of subsidiaries and decreases in non-controlling interests of subsidiaries Rwanda On December 19, 2017, Millicom announced that it has signed an agreement for the sale of its Rwanda operations to subsidiaries of Bharti Airtel Limited. The sale was subsequently completed on January 31, 2018. In accordance with Group practices, Rwanda operations’ assets and liabilities were classified as held for sale on January 23, 2018. Rwanda’s operations also represented a separate geographical area and did qualify for discontinued operations presentation. As a result, the Group statements of income for the years ended December 31, 2016 and 2017 have been restated accordingly to show the results on a single line in the statements of income (‘Profit (loss) for the year from discontinued operations, net of tax’). On January 31, 2018, the Group's operations in Rwanda were deconsolidated and no material loss on disposal was recognized (its carrying value was aligned to its fair value less costs of disposal as of December 31, 2017). However, a loss of $32 million was recognized in 2018 corresponding to the recycling of foreign currency exchange losses accumulated in equity since the creation of the Company. This loss was recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. The final sale consideration is still subject to adjustment under the terms of the sale and purchase agreement with Airtel. Management does not expect any material deviation from the initial consideration. (see note E.3.) Senegal On July 28, 2017, Millicom announced that it had agreed to sell its Senegal business to a consortium consisting of NJJ, Sofima (managed by the Axian Group) and Teylium Group, subject to customary closing conditions and regulatory approvals. In accordance with Group practices, Senegal operations’ assets and liabilities were classified as held for sale on February 2, 2017. Senegal’s operations also represented a separate geographical area and did qualify for discontinued operations. On April 19, 2018, the President of Senegal issued an approval decree in respect of the proposed sale by Millicom of its Tigo operation in Senegal to a consortium consisting of NJJ, Sofima (a telecom investment vehicle managed by the Axian Group) and Teylium Group. The sale was completed on April 27, 2018. (see note E.3.) Ghana merger On March 3, 2017, Millicom and Bharti Airtel Limited (Airtel) announced that they had entered into an agreement for Tigo Ghana Limited and Airtel Ghana Limited to combine their operations in Ghana. In accordance with Group practices, Ghana operations’ assets and liabilities were classified as held for sale on September 30, 2017. Ghana’s operations also represented a separate geographical area and did qualify for discontinued operations. As a result, the Group statement of income for the year ended December 31, 2016 was restated accordingly to show the results on a single line in the statements of income (‘Profit (loss) for the year from discontinued operations, net of tax’). The transaction was completed on October 12, 2017 (see note E.3.). DRC On February 8, 2016, Millicom announced that it had signed an agreement for the sale of its businesses in the Democratic Republic of Congo (DRC) to Orange S.A. (see note E.3.). In accordance with Group practices, DRC operations’ assets and liabilities were classified as held for sale on February 8, 2016. DRC’s operations also represented a separate geographical area and did qualify for discontinued operations. The sale was completed on April 20, 2016. Other disposals For the years ended December 31, 2018 , 2017 and 2016 , Millicom did not dispose of any other significant investments. Summarized financial information relating to significant subsidiaries with non-controlling interests At December 31, 2018 and 2017, Millicom’s subsidiaries with material non-controlling interests were the Group’s operations in Colombia and Panama (2018 only). Balance sheet – non-controlling interests December 31, 2018 2017 (US$ millions) Colombia 161 197 Panama 103 — Others (16 ) (11 ) Total 249 185 Profit (loss) attributable to non-controlling interests 2018 2017 2016 (US$ millions) Colombia (5 ) (13 ) (55 ) Panama (8 ) — — Others (3 ) (4 ) (3 ) Total (16 ) (17 ) (58 ) The summarized financial information for material non-controlling interests in our operations in Colombia is provided below. This information is based on amounts before inter-company eliminations. Detailed information on Cable Onda has been voluntarily omitted here as all details are already disclosed in note A.1.2. Colombia 2018 2017 2016 (US$ millions) Revenue 1,661 1,739 1,717 Total operating expenses (667 ) (647 ) (660 ) Operating profit 147 106 40 Net (loss) for the year (10 ) (25 ) (110 ) 50% non-controlling interest in net (loss) (5 ) (13 ) (55 ) Total assets (excluding goodwill) 1,966 2,193 2,221 Total liabilities 1,620 1,771 1,776 Net assets 346 422 445 50% non-controlling interest in net assets 173 211 223 Consolidation adjustments (12 ) (14 ) (16 ) Total non-controlling interest 161 197 207 Dividends and advances paid to non-controlling interest (2 ) — (67 ) Net cash from operating activities 348 331 366 Net cash from (used in) investing activities (270 ) (209 ) (340 ) Net cash from (used in) financing activities (75 ) (46 ) (24 ) Exchange impact on cash and cash equivalents, net (18 ) 3 1 Net increase in cash and cash equivalents (15 ) 80 3 Joint ventures Joint ventures are businesses over which Millicom exercises joint control as decisions over the relevant activities of each require unanimous consent of shareholders. Millicom determines the existence of joint control by reference to joint venture agreements, articles of association, structures and voting protocols of the board of directors of those ventures. At December 31, 2018 , the equity accounted net assets of our joint ventures in Guatemala, Honduras and Ghana totaled $3,405 million ( December 31, 2017 : $3,457 million for Guatemala and Honduras only). These net assets do not necessarily represent statutory reserves available for distribution as these include consolidation adjustments (such as goodwill and identified assets and assumed liabilities recognized as part of the purchase accounting). Out of these reserves, $133 million ( December 31, 2017 : $123 million ) represent statutory reserves that are unavailable to be distributed to owners of the Company. During the year ended December 31, 2018 , Millicom’s joint ventures paid $243 million ( December 31, 2017 : $203 million ) as dividends or dividend advances to the Company. Our main joint ventures are as follows: Entity Country Activity December 31, 2018 % holding December 31, 2017 % holding Comunicaciones Celulares S.A(i). Guatemala Mobile, MFS 55 55 Navega.com S.A.(i) Guatemala Cable, DTH 55 55 Telefonica Celular S.A(i). Honduras Mobile, MFS 66.7 66.7 Navega S.A. de CV(i) Honduras Cable 66.7 66.7 Bharti Airtel Ghana Holdings B.V. Netherlands Mobile, MFS 50 50 (i) Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities must be taken by a supermajority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity method. The carrying values of Millicom’s investments in joint ventures were as follows: Carrying value of investments in joint ventures at December 31 % 2018 2017 (US$ millions) Honduras operations(i) 66.7 730 726 Guatemala operations(i) 55 2,104 2,145 AirtelTigo Ghana operations 50 32 96 Total 2,867 2,966 (i) Includes all the companies under the Honduras and Guatemala groups. 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, 2017 2,179 766 — Change in scope — — 102 Results for the year 2017 126 15 (6 ) Dividends declared during the year (168 ) (46 ) — Currency exchange differences 7 (9 ) — Closing balance at December 31, 2017 2,145 726 96 Adjustment on adoption of IFRS 15 and IFRS 9 (net of tax) 18 5 — Capital increase — 3 — Results for the year 2018 131 23 (68 ) Dividends declared during the year (177 ) — — Currency exchange differences (14 ) (26 ) 3 Closing balance at December 31, 2018 2,104 730 32 (i) Share of profit (loss) is recognized under ‘Share of profit in the joint ventures in Guatemala and Honduras’ in the statement of income. (ii) Share of profit (loss) is recognized under ‘Income (loss) from other joint ventures and associates, net’ in the statement of income. At December 31, 2018 and 2017 the Group had not incurred obligations, nor made payments on behalf of the Guatemala, Honduras or Ghana operations. Accounting for joint ventures Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost (calculated at fair value if it was a subsidiary of the Group before becoming a joint venture). The Group’s investments in joint ventures include goodwill (net of any accumulated impairment loss) on acquisition. The Group’s share of post-acquisition profits or losses of joint ventures is recognized in the consolidated statement of income and its share of post-acquisition movements in reserves is recognized in reserves. Cumulative post-acquisition movements are adjusted against the carrying amount of the investments. When the Group’s share of losses in a joint venture equals or exceeds its interest in the joint venture, including any other unsecured receivables, the Group does not recognize further losses, unless the Group has incurred obligations or made payments on behalf of the joint ventures. Gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group. Dilution gains and losses arising in investments in joint ventures are recognized in the statement of income. After application of the equity method, including recognizing the joint ventures’ losses, the Group applies IAS 39 to determine whether it is necessary to recognize any additional impairment loss with respect to its net investment in the joint venture. Material joint ventures – Guatemala, Honduras and Ghana operations Summarized financial information for the years ended December 31, 2018 , 2017 and 2016 of the Guatemala and Honduras operations is as follows. This information is based on amounts before inter-company eliminations. Guatemala 2018 2017 2016 (US$ millions) Revenue 1,373 1,328 1,284 Depreciation and amortization (283 ) (295 ) (281 ) Operating profit(i) 387 352 330 Financial income (expenses), net (56 ) (60 ) (73 ) Profit before taxes 309 305 261 Charge for taxes, net (69 ) (74 ) (67 ) Profit for the year 240 230 194 Net profit for the year attributable to Millicom 131 126 106 Dividends and advances paid to Millicom 211 162 77 Total non-current assets (excluding goodwill) 2,280 2,406 2,297 Total non-current liabilities 981 1,052 1,039 Total current assets 718 756 909 Total current liabilities 221 220 211 Cash and cash equivalents 217 303 289 Debt and financing – non-current 927 995 987 Net cash from operating activities 545 498 438 Net cash from (used in) investing activities (173 ) (171 ) (174 ) Net cash from (used in) financing activities (455 ) (315 ) (127 ) Exchange impact on cash and cash equivalents, net (3 ) 2 (3 ) Net (decrease) increase in cash and cash equivalents (86 ) 14 134 (i) In 2016 , operating profit included a provision for impairment of $24 million related to amounts receivable from video surveillance contracts with the Civil National Police. In 2017 , it also includes an additional impairment of $10 million ( 2016 : $18 million ) on the fixed assets related to the same contracts. Honduras 2018 2017 2016 (US$ millions) Revenue 586 585 609 Depreciation and amortization (133 ) (156 ) (160 ) Operating profit 91 70 54 Financial income (expenses), net (29 ) (27 ) (27 ) Profit before taxes 52 41 13 Charge for taxes, net (19 ) (18 ) — Profit for the year 34 24 13 Net profit for the year attributable to Millicom 23 15 9 Dividends and advances paid to Millicom 32 40 66 Total non-current assets (excluding goodwill) 506 576 645 Total non-current liabilities 386 407 454 Total current assets 304 208 259 Total current liabilities 226 282 237 Cash and cash equivalents 25 16 13 Debt and financing – non-current 298 308 339 Debt and financing – current 85 80 63 Net cash from operating activities 147 152 85 Net cash from (used in) investing activities (87 ) (74 ) (17 ) Net cash from (used in) financing activities (50 ) (74 ) (69 ) Net (decrease) increase in cash and cash equivalents 9 3 (1 ) s mentioned in note A.1.3., in 2017 Millicom and Airtel signed a Combination Agreement, whereby both investors decided to combine their respective subsidiaries in Ghana, namely Tigo Ghana Limited and Airtel Ghana Limited under an existing company – Bharti Airtel Ghana Holdings B.V. (the ‘JV’ or ‘AirtelTigo Ghana’) both Millicom and Airtel each owning 50% . As part of the transaction, the government of Ghana retained an option to acquire a 25% stake in the newly combined entity for a period of two years . In the event the government exercises its option, Millicom’s stake may reduce to 37.5% or, in certain circumstances, be maintained at 50% . On October 12, 2017, both parties announced the completion of the transaction. As consideration received, each party owns 50% of the equity capital and voting rights of the JV, and Millicom holds a $40 million loan against Tigo Ghana (the “Millicom Note”), which shall rank in priority to all other obligations of the joint venture owed to its shareholders. The Millicom Note bears interest and is classified under ‘other non-current assets’ in the statement of financial position. Decisions about the relevant activities require the unanimous consent of the parties sharing control. Therefore, based on IFRS 11, this agreement results in Millicom and Airtel having joint control over the combined entity, which is a joint venture. Millicom therefore uses the equity method to account for its investment in the combined entity since October 12, 2017. On the same date, each investor agreed and committed to fund the operations of the JV in accordance with the approved business plan on an equal basis and on the same terms. In this regard, both parties have agreed to provide, on an equal basis, a committed credit facility in the total aggregate amount of $50 million , with Millicom providing a commitment of $25 million and Airtel providing the same. The credit facility remains undrawn as of December 31, 2018 and 2017 and would bear interest and would be subordinated to the Millicom Note. As a consequence, on October 12, 2017 , Millicom deconsolidated its investments in Ghana operations and accounted for its investment in the combined entity under the equity method, initially at fair value of $102 million , resulting in a net gain on the deconsolidation of these operations amounting to $36 million , including recycling of foreign currency exchange losses accumulated in equity of $79 million . The net gain has been recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. As of December 31, 2017 , the purchase accounting was still provisional and was completed in the first six months of 2018. Newly identified assets have been recognized by the joint venture resulting in an additional depreciation of $3 million for the period from the merger date to December 31, 2017 . Comparative figures have not been restated for this depreciation charge given it was immaterial for the Group. As a result, this charge was recorded in the 2018 statement of income. Fair value has been determined using valuation techniques such as discounted cash flows and comparable transaction multiples. As of December 31, 2018 and 2017 Millicom determined the fair value of the option granted to the government to be immaterial. AirtelTigo Ghana 2018 2017 (i) (US$ millions) (US$ millions) Revenue 187 58 Depreciation and amortization (110 ) (11 ) Operating loss (100 ) (1 ) Financial income (expenses), net (42 ) (10 ) Loss before taxes (135 ) (12 ) Charge for taxes, net — — Loss for the period (135 ) (12 ) Net loss for the period attributable to Millicom (68 ) (6 ) Dividends and advances paid to Millicom — — Total non-current assets (excluding goodwill) 277 184 Total non-current liabilities 277 214 Total current assets 71 60 Total current liabilities 134 106 Cash and cash equivalents 19 15 Debt and financing – non-current 276 145 Debt and financing – current 17 — Net cash from operating activities (19 ) 13 Net cash from (used in) investing activities (8 ) — Net cash from (used in) financing activities 42 (3 ) Net increase in cash and cash equivalents 15 10 (i) From the date of merger (October 12, 2017) to December 31, 2017 , for statement of income and cash flow metrics. Investments in associates Millicom’s investments in associates mainly represent its shareholding in Helios Towers Africa Ltd (HTA) and its investments in the African online business (AIH). Millicom has significant influence over these companies through its voting rights but not control or joint control. The Group’s main associates are as follows: December 31, 2018 December 31, 2017 Entity Country Activity(ies) % holding % holding Africa Helios Towers Africa Ltd (HTA) Mauritius Holding of Tower infrastructure company 22.83 22.83 Africa Internet Holding GmbH (AIH) Germany Online marketplace, retail and services 10.15 10.15 West Indian Ocean Cable Company Limited (WIOCC) Republic of Mauritius Telecommunication carriers’ carrier 9.1 9.1 Latin America MKC Brilliant Holding GmbH (LIH) Germany Online marketplace, retail and services 35.0 35.0 Unallocated Milvik AB Sweden Other 12.3 12.3 At December 31, 2018 and 2017 , the carrying value of Millicom’s main associates was as follows: Carrying value of investments in associates at December 31 2018 2017 (US$ millions) MKC Brilliant Holding GmbH (LIH) — — African Internet Holding GmbH (AIH) 38 61 Helios Tower Africa Ltd (HTA) 105 149 Milvik AB 13 16 West Indian Ocean Cable Company Limited (WIOCC) 14 14 Total 169 241 The summarized financial information for the Group’s main material associates (i.e. HTA and AIH) is provided below. Summary of statement of financial position of associates at December 31, 2018 2017 (US$ millions) Total current assets 473 409 Total non-current assets 717 766 Total assets 1,190 1,176 Total current liabilities 343 268 Total non-current liabilities 627 602 Total liabilities 969 870 Total net assets 221 306 Millicom’s carrying value of its investment in HTA and AIH 142 211 Millicom’s carrying value of its investment in other associates 27 30 Millicom’s carrying value of its investment in associates 169 241 Profit (loss) from other joint ventures and associates 2018 2017 2016 (US$ millions) Revenue 511 449 378 Operating expenses (459 ) (321 ) (302 ) Operating profit (loss) (214 ) (148 ) (167 ) Net loss for the year (327 ) (220 ) (228 ) Millicom’s share of results from HTA and AIH (66 ) (34 ) (39 ) Millicom’s share of results from other associates (2 ) (45 ) (10 ) Millicom’s share of results from other joint ventures (Ghana) (68 ) (6 ) — Millicom’s share of results from other joint ventures and associates (136 ) (85 ) (49 ) Accounting for investments in associates The Group accounts for associates in the same way as it accounts for joint ventures. Acquisitions and disposals of interests in associates Africa Internet Holding GmbH (AIH) AIH indirectly owns a number of companies that provide online services and online marketplaces in certain countries in Africa mainly under the brand name of Jumia. Early January 2019, Millicom has been further diluted in the capital of AIH following the entry of a new investor. This triggered the recognition of a net dilution gain of $7 million in January 2019. In addition, on January 31, 2019, some changes in the company's governance became effective and Millicom relinquished its seat on the board of directors, which resulted in the loss of the Group's significant influence over AIH. As a result, as from January 31, 2019, Millicom will stop equity accounting for its investment in AIH and start measuring it at fair value. This change in accounting is expected to trigger the recognition of a gain at initial measurement. Other various shareholder funding rounds were signed in 2016 whereby Millicom's interest was diluted. At that time, Millicom’s shareholding in AIH was reduced to 10% . This triggered the recognition of a net dilution gain of $43 million in the 2016 Group statement of income under 'Income (loss) from associates, net'. Millicom investment in African towers company, Helios Towers Africa Helios Towers Africa owns and operates telecommunications towers and passive infrastructure in four African markets. The company's principal business lies in building, acquiring and operating telecommunications towers that are capable of accommodating and powering the needs of multiple tenants. During 2016, Millicom’s shareholding was diluted from 28.2% to 22.8% as a result of previous committed cash calls and new investors’ funding. This resulted in Millicom recognizing a gain on dilution of $16 million . The gain was recorded in the 2016 Group statement of income under 'Income (loss) from other joint ventures and associates, net'. MKC Brilliant Holding GmbH (LIH) During 2016, Millicom’s 35% investment in LIH had been impaired by $40 million mainly as a result of the decrease in fair value of LIH’s investment in the Global Fashion Group. In April 2017, LIH completed the disposal of its shareholding in Easy Taxi to Cabify. As a result, and ultimately, LIH received cash and shares in Cabify. The transaction resulted in Millicom recognizing a loss of $11 million (Millicom’s share). Additionally, as a result of the annual impairment test conducted in 2017, Management fully impaired the remaining carrying value of its investment in LIH for $48 million . The impairment test performed in 2018 confirmed this conclusion. These losses were recorded under the caption 'Income (loss) from other joint ventures and associates, net' in the year ended December 31, 2017 . Milvik AB (BIMA) On December 19, 2017, Millicom announced that it had sold a portion of its ownership stake in BIMA - a leading emerging market insurance player - (from 20.4% to 12.0% – on a fully diluted basis) to Kinnevik and a new investor, with the latter contributing $97 million in the micro-insurance business. As a result of the transaction, Millicom received $24 million in ca |
Performance
Performance | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Performance | Performance Revenue Millicom’s revenue comprises sale of services from its mobile business (including Mobile Financial Services - MFS) and its cable and other fixed services, as well as related devices and equipment. Recurring revenue consists of monthly subscription fees, airtime and data usage fees, interconnection fees, roaming fees, TV services, B2B contracts, MFS commissions and fees from other telecommunications services such as data services, short message services and other value added services. Revenue from continuing operations by category 2018 2017 2016 (US$ millions) Mobile 2,248 2,281 2,343 Cable and other fixed services 1,568 1,553 1,437 Other 46 41 39 Service revenue 3,861 3,876 3,820 Telephone and equipment and other 213 200 223 Total revenue 4,074 4,076 4,043 Revenue from continuing operations by country or operation 2018 2017 2016 (US$ millions) Colombia 1,661 1,739 1,717 Paraguay 679 662 623 Bolivia 614 555 542 El Salvador 405 422 425 Tanzania (excluding Zantel) 356 348 347 Chad 128 140 166 Costa Rica 155 153 152 Panama 17 — — Other operations 60 57 71 Total 4,074 4,076 4,043 Accounting for revenue Revenue recognition Revenue is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Post-paid connection fees are derived from the payment of a non-refundable / one-time fee charged to customer to connect to the network (e.g. connection / installation fee). Usually, it does not represent a distinct good or service, and therefore does not give rise to a separate performance obligation and revenue is recognized over the minimum contract duration. However, if the fee is paid by a customer to get the right to receive goods or services without having to pay this fee again over his tenure with the Group (e.g. the customer can readily extend his contract without having to pay the same fee again), it is accounted for as a material right and revenue should be recognized over the customer retention period. Post-paid mobile / cable subscription fees are recognized over the relevant enforceable/subscribed service period (recurring monthly access fees that do not vary based on usage). The service provision is usually considered as a series of distinct services that have the same pattern of transfer to the customer. Remaining unrecognized subscription fees, which are not refunded to the customers, are fully recognized once the customer has been disconnected. Prepaid scratch / SIM cards are services where customers purchase a specified amount of airtime or other credit in advance. Revenue is recognized as the credit is used. Unused credit is carried in the statement of financial position as a contract liability. Upon expiration of the validity period, the portion of the contract liability relating to the expiring credit is recognized as revenue, since there is no longer an obligation to provide those services. Telephone and equipment sales are recognized as revenue once the customer obtains control of the good. That criteria is fulfilled when the customer has the ability to direct the use and obtain substantially all of the remaining benefits from that good. Revenue from provision of Mobile Financial Services (MFS) is recognized once the primary service has been provided to the customer. Customer premise equipment (CPE) are provided to customers as a prerequisite to receive the subscribed Home services and shall be returned at the end of the contract duration. Since CPEs provided over the contract term do not provide benefit to the customer on their own, they do not give rise to separate performance obligations and therefore are accounted for as part of the service provided to the customers. Bundled offers are considered arrangements with multiple deliverables or elements, which can lead to the identification of separate performance obligations. Revenue is recognized in accordance with the transfer of goods or services to customers in an amount that reflects the relative standalone selling price of the performance obligation (e.g. sale of telecom services, revenue over time + sale of handset, revenue at a point in time). Principal-Agent, some arrangements involve two or more unrelated parties that contribute to providing a specified good or service to a customer. In these instances, the Group determines whether it has promised to provide the specified good or service itself (as a principal) or to arrange for those specified goods or services to be provided by another party (as an agent). For example, performance obligations relating to services provided by third-party content providers (i.e., mobile Value Added Services or “VAS”) or service providers (i.e., wholesale international traffic) where the Group neither controls a right to the provider’s service nor controls the underlying service itself are presented net because the Group is acting as an agent. The Group generally acts as a principal for other types of services where the Group is the primary obligor of the arrangement. In cases the Group determines that it acts as a principal, revenue is recognized in the gross amount, whereas in cases the Group acts as an agent revenue is recognized in the net amount. Revenue from the sale of cables, fiber, wavelength or capacity contracts, when part of the ordinary activities of the operation, is recognized as recurring revenue. Revenue is recognized when the cable, fiber, wavelength or capacity has been delivered to the customer, based on the amount expected to be received from the customer. Revenue from operating lease of tower space is recognized over the period of the underlying lease contracts. Finance leases revenue is apportioned between lease of tower space and interest income. Expenses The cost of sales and operating expenses incurred by the Group can be summarized as follows: Cost of sales 2018 2017 2016 (US$ millions) Direct costs of services sold (829 ) (913 ) (857 ) Cost of telephone, equipment and other accessories (230 ) (219 ) (254 ) Bad debt and obsolescence costs (87 ) (72 ) (63 ) Cost of sales (1,146 ) (1,205 ) (1,175 ) Operating expenses, net 2018 2017 2016 (US$ millions) Marketing expenses (404 ) (463 ) (442 ) Site and network maintenance costs (209 ) (176 ) (160 ) Employee related costs (B.4.) (514 ) (451 ) (451 ) External and other services (185 ) (152 ) (218 ) Rentals and operating leases (155 ) (155 ) (159 ) Other operating expenses (207 ) (197 ) (196 ) Operating expenses, net (1,674 ) (1,593 ) (1,627 ) The other operating income and expenses incurred by the Group can be summarized as follows: Other operating income (expenses), net Notes 2018 2017 2016 (US$ millions) Income from tower deal transactions C.3.4. 65 63 — Impairment of intangible assets and property, plant and equipment E.1., E.2. (6 ) (12 ) (6 ) Gain (loss) on disposals of intangible assets and property, plant and equipment 8 1 (8 ) Other income (expenses) 9 16 — Other operating income (expenses), net 76 68 (14 ) Accounting for cost of sales and operating expenses Cost of sales Cost of sales is recorded on an accrual basis. Customer acquisition costs Specific customer acquisition costs, including dealer commissions and handset subsidies, are charged to marketing expenses when the customer is activated. Operating leases Operating leases are all leases that do not qualify as finance leases. Operating lease payments are recognized as expenses in the consolidated statement of income on a straight-line basis over the lease term. Segmental information Management determines operating and reportable segments based on information used by the chief operating decision maker (CODM) to make strategic and operational decisions from both a business and geographic perspective. The Group’s risks and rates of return are predominantly affected by operating in different geographical regions. The Group has businesses in two main regions: Latin America ("Latam") and Africa. The Latam figures below include Honduras and Guatemala as if they are fully consolidated by the Group, as this reflects the way management reviews and uses internally reported information to make decisions. Honduras and Guatemala are shown under the Latam segment. The joint venture in Ghana is not reported as if fully consolidated. As from January 1, 2018 , segment EBITDA includes inter-company management fees and incentive compensation paid to local management teams. These items, were previously included in unallocated corporate costs. This change in presentation has no impact on Group EBITDA. Accordingly, 2017 and 2016 have been represented. Revenue, operating profit (loss), EBITDA and other segment information for the years ended December 31, 2018 , 2017 and 2016 , were as follows: Latin America Africa (vii) Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2018 Mobile revenue 3,214 510 — (1,475 ) — 2,248 Cable and other fixed services revenue 1,808 12 — (253 ) — 1,568 Other revenue 48 3 — (6 ) — 46 Service revenue (i) 5,069 526 — (1,734 ) — 3,861 Telephone and equipment and other revenue 415 1 — (203 ) — 213 Revenue 5,485 526 — (1,937 ) — 4,074 Operating profit (loss) 995 40 (47 ) (488 ) 154 655 Add back: Depreciation and amortization 1,133 107 5 (416 ) 830 Share of profit in joint ventures in Guatemala and Honduras — — — — (154 ) (154 ) Other operating income (expenses), net (51 ) (3 ) (2 ) (19 ) — (76 ) EBITDA(ii) 2,077 143 (44 ) (922 ) — 1,254 EBITDA from discontinued operations — 3 — — — 3 EBITDA incl. discontinued operations 2,077 146 (44 ) (922 ) — 1,257 Capex(iii) (872 ) (59 ) (2 ) 225 — (708 ) Changes in working capital and others(iv) (42 ) 28 13 (12 ) — (13 ) Taxes paid (264 ) (24 ) (6 ) 142 — (153 ) Operating Free Cash Flow(v) 899 91 (39 ) (568 ) — 383 Total Assets(vi) 11,754 839 2,752 (5,219 ) 190 10,316 Total Liabilities 6,132 905 2,953 (1,814 ) (650 ) 7,526 Latin America Africa (vii) Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2017 (viii) Mobile revenue 3,283 509 — (1,510 ) — 2,281 Cable and other fixed services revenue 1,755 12 — (213 ) — 1,553 Other revenue 40 5 — (4 ) — 41 Service revenue (i) 5,078 524 — (1,727 ) — 3,876 Telephone and equipment and other revenue 363 2 — (165 ) — 200 Revenue 5,441 526 — (1,892 ) — 4,076 Operating profit (loss) 899 41 (5 ) (431 ) 140 645 Add back: Depreciation and amortization 1,174 110 6 (450 ) — 841 Share of profit in joint ventures in Guatemala and Honduras — — — — (140 ) (140 ) Other operating income (expenses), net (49 ) (11 ) 10 (18 ) — (68 ) EBITDA(ii) 2,024 140 11 (899 ) — 1,278 EBITDA from discontinued operations — 73 — — — 73 EBITDA incl. discontinued operations 2,024 213 11 (899 ) — 1,351 Capex(iii) (855 ) (99 ) (1 ) 237 — (718 ) Changes in working capital and others(iv) (53 ) (6 ) (10 ) 27 — (42 ) Taxes paid (239 ) (18 ) 1 124 — (132 ) Operating Free Cash Flow(v) 877 90 1 (511 ) — 459 Total Assets(vi) 10,411 1,482 598 (5,420 ) 2,393 9,464 Total liabilities 5,484 1,673 1,465 (1,961 ) (478 ) 6,183 Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2016 (viii) Mobile revenue 3,318 541 — (1,514 ) — 2,343 Cable and other fixed services revenue 1,611 15 — (191 ) — 1,437 Other revenue 37 6 — (4 ) — 39 Service revenue (i) 4,966 562 — (1,709 ) — 3,820 Telephone and equipment and other revenue 386 2 — (165 ) — 223 Revenue 5,352 565 — (1,875 ) — 4,043 Operating profit (loss) 721 43 4 (394 ) (115 ) 490 Add back: Depreciation and amortization 1,173 113 7 (441 ) — 853 Share of profit in joint ventures in Guatemala and Honduras — — — — (115 ) (115 ) Other operating income (expenses), net 42 2 (6 ) (24 ) — 14 EBITDA(ii) 1,935 158 5 (859 ) — 1,241 EBITDA from discontinued operations — 77 — — — 77 EBITDA incl. discontinued operations 1,935 235 5 (859 ) — 1,319 Capex(iii) (886 ) (161 ) (6 ) 242 — (811 ) Changes in working capital and others(iv) 37 (2 ) (33 ) 24 — 26 Taxes paid (233 ) (33 ) (9 ) 145 — (130 ) Operating Free Cash Flow(v) 853 39 (43 ) (448 ) — 404 Total Assets(vi) 10,386 1,406 1,357 (5,589 ) 2,067 9,627 Total liabilities 5,229 1,852 1,997 (1,942 ) (877 ) 6,258 (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 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 recurrent 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 $61 million ( 2017 : $53 million ; 2016 : $39 million ) and cash received on tower deals of $141 million ( 2017 : $167 million ; 2016 : nil ). (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 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) Restated as a result of classification of certain of our African operations as discontinued operations (see notes A.4. and E.3.). Revenue from contracts with customers from continuing operations: Year ended December 31, 2018 $ millions Timing of revenue recognition Latin America Africa Total Group Mobile Over time 1,701 401 2,102 Mobile Financial Services Point in time 37 109 147 Cable and other fixed services Over time 1,556 12 1,568 Other Over time 42 3 46 Service Revenue 3,336 526 3,861 Telephone and equipment Point in time 212 1 213 Revenue from contracts with customers 3,548 526 4,074 People Number of permanent employees 2018 2017 2016 Continuing operations(i) 16,987 14,404 13,211 Joint ventures (Guatemala, Honduras and Ghana – for 2018 and 2017) 4,416 4,326 4,023 Discontinued operations — 397 751 Total 21,403 19,127 17,985 (i) Emtelco headcount are excluded from this report and any internal reporting because their costs are classified as direct costs and not employee related costs . Notes 2018 2017 2016 (US$ millions) Wages and salaries (356 ) (320 ) (290 ) Social security (61 ) (57 ) (67 ) Share based compensation B.4.1. (21 ) (22 ) (14 ) Pension and other long-term benefit costs B.4.2. (7 ) (8 ) (6 ) Other employee related costs (70 ) (45 ) (74 ) Total (514 ) (451 ) (451 ) Share-based compensation Millicom shares granted to management and key employees includes share-based compensation in the form of long-term share incentive plans. Up until 2015, Millicom had two types of annual plan, a future performance plan and a deferred share plan. In 2015, Millicom issued four different types of plans; a deferred share plan, a performance share plan, an executive share plan and the sign-on CEO share plan (a one-off plan). Since 2016, Millicom has two types of annual plans, a performance share plan and a deferred share plan. The different plans are further detailed below. Cost of share based compensation 2018 2017 2016 (US$ millions) 2014 incentive plans — — (1 ) 2015 incentive plans — (3 ) (3 ) 2016 incentive plans (4 ) (6 ) (10 ) 2017 incentive plans (8 ) (12 ) — 2018 incentive plans (11 ) — — Total share-based compensation (21 ) (22 ) (14 ) Deferred share plan (unchanged since 2014) For the deferred awards plan, participants are granted shares based on past performance, with 16.5% of the shares vesting on January 1 of each of year one and two, and the remaining 67% on 1 January of year three . Vesting is conditional upon the participant remaining employed with Millicom at each vesting date. The cost of this long-term incentive plan, which is not conditional on performance conditions, is calculated as follows: Fair value (share price) of Millicom’s shares at grant date x number of shares expected to vest. Sign-on CEO share plan (issued in 2015 – one off) As part of his employment contract Millicom CEO (from April 1, 2015) received a sign-on grant of 77,344 shares. Vesting is conditional, among other conditions, on the CEO not being dismissed for cause. The cost of this long-term incentive plan, which is not conditional on market conditions, is calculated in the same way as the deferred share plan above. The expense for this plan has been taken in full during 2015. Performance share plan (issued in 2015) Under this plan, shares granted did vest in full in 2018 , subject to performance conditions, 62.5% based on Absolute Total Shareholder Return (TSR) and 37.5% based on actual vs budgeted EBITDA minus CAPEX minus Change in Working Capital (Free Cash Flow). As the TSR measure is a market condition, the fair value of the shares in the performance share plan requires consideration of potential adjustments for future market-based conditions at grant date. For this, a specific valuation had been performed at grant date based on the probability of the TSR conditions being met (and to which extent) and the expected payout based upon leaving conditions. The Free Cash Flows (FCF) condition is a non-market measure which had been considered together with the leaving estimate and based initially on a 100% fulfillment expectation. The reference share price for 2015 performance share plan is the same share price as the share price for the deferred share plan. Executive share plan (issued in 2015 – one off) Under this plan, shares were granted to the CEO and CFO based on an allocated holding of 3,333 (CEO) and 2,000 (CFO) shares for which vesting occurs based on three components at multipliers based on market conditions (a TSR for component A and B) and performance conditions (on actual vs budgeted FCF for component C). The maximum number of shares that could vest under the plan was 26,664 (CEO) and 14,000 (CFO). The plan vested in 2018 at the end of a three -year period. Similarly to the performance share plan, a specific valuation had been performed based on the probability of the TSR conditions being met (and to which extent) and the expected payout based upon leaving conditions. The FCF condition being a non-market measure, it had been considered together with the leaving estimate and based initially on a 100% fulfillment expectation. Therefore, the reference share price is the share price on the date that the CEO and the CFO agreed to the executive share plan. Performance share plan (for plans issued in 2016 and 2017) Shares granted under this performance share plan vest at the end of the three -year period, subject to performance conditions, 25% based on Positive Absolute Total Shareholder Return (Absolute TSR), 25% based on Relative Total Shareholder Return (Relative TSR) and 50% based on budgeted Earnings Before Interest Tax Depreciation and Amortization (EBITDA) minus Capital Expenditure (Capex) minus Change in Working Capital (CWC) (Free Cash Flow). This performance share plan is measured similarly to the performance share plan issued in 2015, see above. Performance share plan (for plan issued in 2018) Shares granted under this performance share plan vest at the end of the three -year period, subject to performance conditions, 25% based on Relative Total Shareholder Return (“Relative TSR”), 25% based on the achievement of the Service Revenue target measured on a 3-year CAGRs from years 2018 to 2020 (“Service Revenue”) and 50% based on the achievement of the Operating Free Cash Flow (“Operating Free Cash Flow”) target measured on a 3-year CAGRs from years 2018 to 2020. For the performance share plans and the executive share plan, and in order to calculate the fair value of the TSR portion of those plans, it is necessary to make a number of assumptions which are set out below. The assumptions have been set based on an analysis of historical data as at grant date. Assumptions and fair value of the shares under the TSR portion Risk-free Dividend yield % Share price volatility(i) % Award term (years) Share fair value (in US$) Performance share plan 2018 (Relative TSR) (0.39 ) 3.21 30.27 2.93 57.70 Performance share plan 2017 (Relative TSR) (0.40 ) 3.80 22.50 2.92 27.06 Performance share plan 2017 (Absolute TSR) (0.40 ) 3.80 22.50 2.92 29.16 Performance share plan 2016 (Relative TSR) (0.65 ) 3.49 30.00 2.61 43.35 Performance share plan 2016 (Absolute TSR) (0.65 ) 3.49 30.00 2.61 45.94 Performance share plan 2015 (Absolute TSR) (0.32 ) 2.78 23.00 2.57 32.87 Executive share plan 2015 – Component A (0.32 ) N/A 23.00 2.57 53.74 Executive share plan 2015 – Component B (0.32 ) N/A 23.00 2.57 29.53 (i) Historical volatility retained was determined on the basis of a three-year historic average. The cost of the long-term incentive plans which are conditional on market conditions is calculated as follows: Fair value (market value) of shares at grant date (as calculated above) x number of shares expected to vest. The cost of these plans is recognized, together with a corresponding increase in equity (share compensation reserve), over the period in which the performance and/or employment conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award. Adjustments are made to the expense recorded for forfeitures, mainly due to management and employees leaving Millicom. Non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. These are treated as vested, regardless of whether or not the market conditions are satisfied, provided that all other performance conditions are satisfied. Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms had not been modified. In addition, an expense is recognized for any modification that increases the total fair value of the share based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification. Plan awards and shares expected to vest 2018 plans 2017 plans 2016 plans 2015 plans Performance plan Deferred plan Performance plan Deferred plan Performance plan Deferred plan Performance plan Executive plan CEO plan Deferred plan (number of shares) Initial shares granted 237,196 262,317 279,807 438,505 200,617 287,316 98,137 40,664 77,344 237,620 Additional shares granted(i) — 3,290 2,868 29,406 — — — — 3,537 — Revision for forfeitures (13,531 ) (18,086 ) (34,556 ) (74,325 ) (49,164 ) (77,924 ) (37,452 ) — — (68,121 ) Revision for cancellations (4,728 ) — — — — — — — — — Total before issuances 218,927 247,521 248,119 393,586 151,453 209,392 60,685 40,664 80,881 169,499 Shares issued in 2016 — — — — (1,214 ) (1,733 ) (771 ) — (25,781 ) (38,745 ) Shares issued in 2017 — — — (2,686 ) (752 ) (43,579 ) (357 ) — (28,139 ) (30,124 ) Shares issued in 2018 (97 ) (18,747 ) (2,724 ) (99,399 ) (2,050 ) (46,039 ) (27,619 ) (19,022 ) (26,961 ) (100,630 ) Performance conditions — — — — — — (31,938 ) (21,642 ) — — Shares still expected to vest 218,830 228,774 245,395 291,501 147,437 118,041 — — — — Estimated cost over the vesting period (US$ millions) 12 14 9 20 8 12 4 2 6 12 (i) Additional shares granted represent grants made for new joiners and/or as per CEO contractual arrangements. Pension and other long-term employee benefit plans Pension plans The pension plans apply to employees who meet certain criteria (including years of service, age and participation in collective agreements). Pension and other similar employee related obligations can result from either defined contribution plans or defined benefit plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. No further payment obligations exist once the contributions have been paid. The contributions are recognized as employee benefit expenses when they are due. Prepaid contributions are recognized as assets to the extent that a cash refund or a reduction in future payments is available. Defined benefit pension plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of the defined benefit pension plan is the present value of the defined benefit obligation at the statement of financial position date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows, using an appropriate discount rate based on maturities of the related pension liability. Re-measurement of net defined benefit liabilities are recognized in other comprehensive income and not reclassified to the statement of income in subsequent years. Past service costs are recognized in the statement of income on the earlier of the date of the plan amendment or curtailment, and the date that the Group recognizes related restructuring costs. Net interest is calculated by applying the discount rate to the net defined benefit asset/liability. Long-service plans Long-service plans apply for Colombian subsidiary UNE employees with more than five years of service whereby additional bonuses are paid to employees that reach each incremental length of service milestone (from five to 40 years ). Termination plans In addition, UNE has a number of employee defined benefit plans. The level of benefits provided under the plans depends on collective employment agreements and Colombian labor regulations. There are no defined assets related to the plans, and UNE make payments to settle obligations under the plans out of available cash balances. At December 31, 2018 , the defined benefit obligation liability amounted to $60 million ( 2017 : $66 million ) and payments expected in the plans in future years totals $111 million ( 2017 : $87 million ). The average duration of the defined benefit obligation at December 31, 2018 is 7 years ( 2017 : 7 years). The termination plans apply to employees that joined UNE prior to December 30, 1996. The level of payments depends on the number of years in which the employee has worked before retirement or termination of their contract with UNE. Except for the UNE pension plan described above, there are no other significant defined benefits plans in the Group. Directors and executive management The remuneration of the members of the Board of Directors comprises an annual fee and shares. Director remuneration is proposed by the Nomination Committee and approved by the shareholders at their Annual General Meeting (AGM). Remuneration charge for the Board (gross of withholding tax) 2018 2017 2016 (US$ ’000) Chairperson 169 233 243 Other members of the Board 774 889 900 Total (i) 943 1,122 1,143 (i) Cash compensation converted from SEK to USD at exchange rates on payment dates each year. Share based compensation based on the market value of Millicom shares on the corresponding AGM date ( 2018 : in total 6,591 shares; 2017 : in total 8,731 shares; 2016: in total 8,002 shares). Net remuneration comprised 51% in shares and 49% in cash (SEK) ( 2017 : 52% in shares and 48% in cash; 2016: 50% in shares and 50% in cash). Shares beneficially owned by the Directors 2018 2017 (number of shares) Chairperson 8,554 7,000 Other members of the Board 15,333 20,067 Total 23,887 27,067 The remuneration of executive management of Millicom comprises an annual base salary, an annual bonus, share based compensation, social security contributions, pension contributions and other benefits. Bonus and share based compensation plans (see note B.4.1.) are based on actual and future performance. Share based compensation is granted once a year by the Compensation Committee of the Board. If the employment of Millicom’s senior executives is terminated, severance of up to 12 months’ salary is potentially payable. The annual base salary and other benefits of the Chief Executive Officer (CEO) and the Executive Vice Presidents (Executive team) are proposed by the Compensation Committee and approved by the Board. Remuneration charge for the Executive Team CEO CFO Executive Team (9 members)(iii) (US$ ’000) 2018 Base salary 1,112 673 3,930 Bonus 1,492 557 2,445 Pension 247 101 962 Other benefits 66 63 805 Termination benefits — — 301 Total before share based compensation 2,918 1,393 8,444 Share based compensation(i)(ii) in respect of 2018 LTIP 5,027 1,567 4,957 Total 7,945 2,960 13,401 Remuneration charge for the Executive Team CEO CFO Executive Team (9 members) (US$ ’000) 2017 Base salary 1,000 648 3,822 Bonus 707 455 1,590 Pension 150 97 629 Other benefits 64 15 1,193 Total before share based compensation 1,921 1,215 7,233 Share based compensation(i)(ii) in respect of 2017 LTIP 2,783 1,492 5,202 Total 4,704 2,707 12,435 Remuneration charge for the Executive team CEO CFO Executive team (US$ ’000) 2016 Base salary 1,000 599 3,797 Bonus 660 450 1,411 Pension 150 82 513 Other benefits 48 18 720 Total before share based compensation 1,858 1,149 6,441 Share based compensation(i)(ii) in respect of 2016 LTIP 2,660 1,481 4,031 Total 4,518 2,630 10,472 (i) See note B.4.1. (ii) Share awards of 80,264 and 112,472 were granted in 2018 under the 2018 LTIPs to the CEO, and Executive Team ( 2017 : 61,724 and 167,371 , respectively; 2016 : 49,171 and 104,573 , respectively). (iii) Other Executives’ compensation includes Daniel Loria, former CHRO and Rodrigo Diehl, EVP Strategy. Share ownership and unvested share awards granted from Company equity plans to the Executive team CEO Executive team Total (number of shares) 2018 Share ownership (vested from equity plans and otherwise acquired) 122,310 84,782 207,092 Share awards not vested 172,485 339,726 512,211 2017 Share ownership (vested from equity plans and otherwise acquired) 80,159 55,888 136,047 Share awards not vested 148,324 299,067 447,391 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. Year ended December 31, 2018 2017 2016 (US$ millions) Change in fair value of derivatives (see note D.1.2.) (1 ) (22 ) 3 Exchange gain (loss), net (41 ) 18 25 Other non-operating income (expenses), net 2 0 (9 ) Total (40 ) (4 ) 20 Foreign exchange gains and losses Transactions denominated in a currency other than the functional currency are translated into the functional currency using exchange rates prevailing at the transaction dates. Foreign exchange gains and losses resulting from the settlement of such transactions, and on translation of monetary assets and liabilities denominated in currencies other than the functional currency at year-end exchange rates, are recognized in the consolidated statement of income, except when deferred in equity as qualifying cash flow hedges. Taxation Income tax expense Tax mainly comprises income taxes of subsidiaries and withholding taxes on intragroup dividends and royalties for use of Millicom trademarks and brands. Millicom operations are in jurisdictions with income tax rates of 10% to 40% levied on either revenue or profit before income tax ( 2017 : 10% to 40% ; 2016 : 10% to 40% ). Income tax relating to items recognized directly in equity is recognized in equity and not in the consolidated statement of income. Income tax charge 2018 2017 2016 (US$ millions) Income tax (charge) credit Withholding tax (64 ) (74 ) (44 ) Other income tax relating to the current year (86 ) (85 ) (74 ) (150 ) (159 ) (118 ) Adjustments in respect of prior years 1 (12 ) (26 ) (149 ) (17 |
Capital structure and financing
Capital structure and financing | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |
Capital structure and financing | Capital structure and financing Share capital, share premium and reserves Common shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. Where any Group company purchases the Company’s share capital, the consideration paid, including any directly attributable incremental costs, is shown under Treasury shares and deducted from equity attributable to the Company’s equity holders until the shares are canceled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental costs and the related income tax effects is included in equity attributable to the Company’s equity holders. Share capital, share premium 2018 2017 Authorized and registered share capital (number of shares) 133,333,200 133,333,200 Subscribed and fully paid up share capital (number of shares) 101,739,217 101,739,217 Par value per share 1.50 1.50 Share capital (US$ millions) 153 153 Share premium (US$ millions) 482 484 Total (US$ millions) 635 637 Other equity reserves Legal reserve Equity settled transaction reserve Hedge reserve Currency translation reserve Pension obligation reserve Total (US$ millions) As of January 1, 2016 16 46 (1 ) (593 ) 1 (531 ) Share based compensation — 14 — — — 14 Issuance of shares – 2013, 2014, 2015 LTIPs — (17 ) — — — (17 ) Remeasurements of post-employment benefit obligations — — — — (2 ) (2 ) Cash flow hedge reserve movement — — (3 ) — — (3 ) Currency translation movement — — — (23 ) — (23 ) As of December 31, 2016 16 43 (4 ) (616 ) (1 ) (562 ) Share based compensation — 22 — — — 22 Issuance of shares – 2014, 2015, 2016 LTIPs — (18 ) — — — (18 ) Remeasurements of post-employment benefit obligations — — — — (2 ) (2 ) Cash flow hedge reserve movement — — 4 — — 4 Currency translation movement — — — 85 — 85 As of December 31, 2017 16 47 — (531 ) (3 ) (472 ) Share based compensation — 22 — — — 22 Issuance of shares –2015, 2016, 2017 LTIPs — (22 ) — — — (22 ) Currency translation movement — — — (68 ) — (68 ) As of December 31, 2018 16 47 — (599 ) (3 ) (538 ) Legal reserve If Millicom International Cellular S.A. reports an annual net profit on a non-consolidated basis, Luxembourg law requires appropriation of an amount equal to at least 5% of the annual net profit to a legal reserve until such reserve equals 10% of the issued share capital. This reserve is not available for dividend distribution. No appropriation was required in 2017 or 2018 as the 10% minimum level was reached in 2011 and maintained each subsequent year. Equity settled transaction reserve The cost of LTIPs is recognized as an increase in the equity-settled transaction reserve over the period in which the performance and/or service conditions are rendered. When shares under the LTIPs vest and are issued the corresponding reserve is transferred to share premium. Hedge reserve The effective portions of changes in value of cash flow hedges are recorded in the hedge reserve (see note C.1.). Currency translation reserve In the financial statements, the relevant captions in the statements of financial position of subsidiaries without US dollar functional currencies are translated to US dollars using the closing exchange rate. Statements of income or statement of income captions (including those of joint ventures and associates) are translated to US dollars at monthly average exchange rates during the year. The currency translation reserve includes foreign exchange gains and losses arising from these translations. Dividend distributions On May 17, 2018, a dividend distribution of $2.64 per share from Millicom’s retained profits at December 31, 2017 , was approved by the shareholders at the AGM and paid in equal portions in May and November 2018. On May 4, 2017, a dividend distribution of $2.64 per share from Millicom’s retained profits at December 31, 2016 , was approved by the shareholders at the AGM and distributed in May 2017. On May 17, 2016, a dividend distribution of $2.64 per share from Millicom’s retained profits at December 31, 2015 , was approved by the shareholders at the AGM and distributed in May 2016. The ability of the Company to make dividend payments is subject to, among other things, the terms of indebtedness, legal restrictions and the ability to repatriate funds from Millicom’s various operations. At December 31, 2018 , $324 million ( December 31, 2017 : $345 million ; December 31, 2016 : $321 million ) of Millicom’s retained profits represent statutory reserves that are unavailable to be distributed to owners of the Company. Debt and financing Debt and financing by type (i) Note 2018 2017 (US$ millions) Debt and financing due after more than one year Bonds C.3.1. 2,501 2,147 Banks C.3.2. 1,324 1,158 Finance leases C.3.4. 353 362 Other financing (ii) 113 74 Total non-current financing 4,291 3,742 Less: portion payable within one year (168 ) (142 ) Total non-current financing due after more than one year 4,123 3,600 Debt and financing due within one year Bonds C.3.1. — — Banks C.3.2. 289 40 Finance leases C.3.4. — 3 Other financing — — Total current debt and financing 289 43 Add: portion of non-current debt payable within one year 168 142 Total 458 185 Total debt and financing 4,580 3,785 (i) See note D.1.1 for further details on maturity profile of the Group debt and financing. (ii) In July 2018, the Company issued a COP 144,054.5 million / $50 million bilateral facility with IIC (Inter-American Development Bank) for a USD indexed to COP Note. The note bears interest at 9.45% p.a.. This COP Note is used as net investment hedge of the net assets of our operations in Colombia. Debt and financing by location 2018 2017 (US$ millions) Millicom International Cellular S.A. (Luxembourg) 1,770 1,255 Colombia 1,016 1,130 Paraguay 504 488 Bolivia 317 352 Panama 261 — Tanzania 201 217 Rwanda — 50 Chad 64 70 Costa Rica 148 76 El Salvador 299 147 Total debt and financing 4,580 3,785 Debt and financings are initially recognized at fair value, net of directly attributable transaction costs. They are subsequently measured at amortized cost using the effective interest rate method or at fair value. Amortized cost is calculated by taking into account any discount or premium on acquisition and any fees or costs that are an integral part of the effective interest rate. Any difference between the initial amount and the maturity amount is recognized in the consolidated statement of income over the period of the borrowing. Borrowings are classified as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least 12 months from the statement of financial position date. Bond financing Bond financing Note Country Final Maturity Interest Rate % 2018 2017 (US$ millions) SEK Senior Unsecured Variable Rate Notes 1 Luxembourg 2019 STIBOR +3.3(i) — 243 USD 6.625% Senior Notes 2 Luxembourg 2026 6.625 495 — USD 6% Senior Notes 3 Luxembourg 2025 6 491 496 USD 6.625% Senior Notes 4 Luxembourg 2021 6.625 — — USD 5.125% Senior Notes 5 Luxembourg 2028 5.125 493 494 USD 6.75% Senior Notes 6 Paraguay 2022 6.75 297 296 BOB 4.75% Notes 7 Bolivia 2020 4.75 59 86 BOB 4.05% Notes 7 Bolivia 2020 4.05 7 11 BOB 4.85% Notes 7 Bolivia 2023 4.85 71 85 BOB 3.95% Notes 7 Bolivia 2024 3.95 43 50 BOB 4.30% Notes 7 Bolivia 2029 4.3 23 25 BOB 4.30% Notes 7 Bolivia 2022 4.3 30 30 BOB 4.70% Notes 7 Bolivia 2024 4.7 35 35 BOB 5.30% Notes 7 Bolivia 2026 5.3 13 13 UNE Bond 1 (tranches A and B) 8 Colombia 2020 CPI + 5.10 46 50 UNE Bond 2 (tranches A and B) 8 Colombia 2023 CPI + 4.76 46 50 UNE Bond 3 (tranche A) 8 Colombia 2024 9.35 49 54 UNE Bond 3 (tranche B) 8 Colombia 2026 CPI+4.15 78 85 UNE Bond 3 (tranche C) 8 Colombia 2036 CPI+4.89 39 43 Cable Onda Bonds 9 Panama 2025 5.75 184 — Total bond financing 2,501 2,147 (i) STIBOR – Swedish Interbank Offered Rate. (1) SEK Senior Unsecured Notes In August 2018, the Company redeemed all of the aggregate principal amount of the outstanding SEK Senior Unsecured Notes due 2019 ( $227 million ). The early redemption fees amounting to $3 million and $1 million of related unamortized costs have been expensed in August 2018 under interest and other financial expenses. As of September 30, 2018, the notes have been fully redeemed. (2) USD 6.625% Senior Notes On October 16, 2018, the Company issued $500 million aggregate principal amount of 6.625% Senior Notes due 2026. The Notes bear interest at 6.625% p.a., payable semiannually in arrears on each interest payment date. Proceeds were used to finance Cable Onda’s acquisition (Note A.1.2.). Costs of issuance of $6 million are amortized over the eight -year life of the notes (the effective interest rate is 6.75% ). (3) USD 6% Senior Notes On March 11, 2015, Millicom issued a $500 million 6% fixed interest rate bond repayable in ten years, to repay the El Salvador 8% Senior Notes and for general corporate purposes. The bond was issued at 100% of the principal and has an effective interest rate of 6.132% . $8.6 million of withheld and upfront costs are being amortized over the ten -year life of the bond. (4) USD 6.625% Senior Notes In December 2016, the Company confirmed that it had accepted for purchase $142 million of principal of its 6.625% Senior Notes due 2021. The early redemption fees amounting to $8 million and $2 million of related unamortized costs had been expensed in December 2016 under interest and other financial expenses. On September 11, 2017, the Group made a tender offer for the outstanding 6.625% Senior Notes. On September 20, 2017, MIC S.A. repurchased $186 million in principal amount in the tender offer using the proceeds of the issue of the 5.125% Notes – see below. Also on September 11, 2017, the Group delivered a redemption notice for the 6.625% Senior Notes. MIC S.A. redeemed the remaining $473 million in principal amount on October 15, 2017. The total early redemption fees amounting to $22 million and $6 million of related unamortized costs have been expensed in September 2017 under interest and other financial expenses. At December 31, 2017 , there are no 2021 Notes outstanding. (5) USD 5.125% Senior Notes On September 20, 2017, MIC S.A. issued a $500 million , ten -year bond with an interest rate of 5.125% at an issue price of 100% (the 5.125% Notes) and will mature in 2028. Costs of issuance of $7 million are amortized over the seven -year life of the notes (effective interest rate is 5.24% ). (6) USD 6.75% Senior Notes On December 7, 2012, Telefónica Cellular del Paraguay S.A., Millicom’s fully owned subsidiary in Paraguay issued $300 million of notes at 100% of the aggregate principal amount. Distribution and other transaction fees of $7 million reduced the total proceeds from issuance to $293 million . The 6.75% Senior Notes have a 6.75% per annum coupon with interest payable semi-annually in arrears on June 13 and 13 December. The effective interest rate is 7.12% . The 6.75% Senior Notes are general unsecured obligations of Telefónica Celular del Paraguay S.A. and rank equal in right of payment with all future unsecured and unsubordinated obligations of Telefónica Celular del Paraguay S.A. The 6.75% Senior Notes are unguaranteed. (7) BOB Notes In May 2012, Telecel Bolivia issued Boliviano (BOB) 1.36 billion of notes repayable in installments until April 2, 2020. Distribution and other transaction fees of BOB 5 million reduced the total proceeds from issuance to BOB 1.32 billion ( $191 million ). The bond has a 4.75% per annum coupon with interest payable semi-annually in arrears in May and November each year. The effective interest rate is 4.79% . In November 2015, Telecel Bolivia issued BOB 696 million (approximately $100 million ) of notes in two series, A for BOB 104.4 million (approximately $15 million ), with a fixed annual interest rate of 4.05% , maturing in August 2020 and series B for BOB 591.6 million (approximately $85 million ) with a fixed annual interest rate of 4.85% , maturing in August 2023. The bond has coupon with interest payable semi-annually in arrears in March and September during the first two years, thereafter each February and August. The effective interest rate is 4.84% . In the placement, the final interest rate was reduced as Telecel Bolivia took advantage of strong demand for the bonds resulting in a reduction of the average interest rate to 4.55% . Telecel Bolivia received BOB 4.59 million in excess of the BOB 696 million issued (upfront premium). On August 11, 2016, the operation in Bolivia issued a new bond for a total amount of BOB 522 million consisting of two tranches (approximately $50 million and $25 million , respectively). Tranche A and B bear fixed interest at 3.95% and 4.30% , and will mature in June 2024 and June 2029, respectively. On October 12, 2017, Tigo Bolivia placed approximately $80 million of local currency debt in three tranches, which will mature in 2022, 2024 and 2026 and bear an average interest rate of 4.66% . (8) UNE Bonds In March 2010, UNE issued a COP 300 billion (approximately $126 million ) bond consisting of two tranches with five and ten -year maturities. Interest rates are either fixed or variable depending on the tranche. Tranche A bears variable interest, based on CPI, in Colombian peso and paid in Colombian peso. Tranche B bears variable interest, based on fixed term deposits, in Colombian peso and paid in Colombian peso. UNE applied the proceeds to finance its investment plan. Tranche A matured in March 2015 and tranche B will mature in March 2020. In May 2011, UNE issued a COP 300 billion (approximately $126 million ) bond consisting of two equal tranches with five and twelve -year maturities. Interest rates are variable and depend on the tranche. Tranche A bears variable interest, based on CPI, in Colombian peso and paid in Colombian peso. Tranche B bears variable interest, based on fixed term deposits, in Colombian peso and paid in Colombian peso. UNE applied the proceeds to finance its investment plan. Tranche A matured in October 2016 and tranche B will mature in October 2023. In May 2016, UNE issued a COP 540 billion bond (approximately $176 million ) consisting of three tranches (approximately $52 million , $83 million and $41 million respectively). Interest rates are either fixed or variable depending on the tranche. Tranche A bears fixed interest at 9.35% , while tranche B and C bear variable interest, based on CPI, (respective margins of CPI + 4.15% and CPI + 4.89% ), in Colombian peso. UNE applied the proceeds to finance its investment plan and repay one bond (COP 150 billion tranche). Tranches A, B and C will mature in May 2024, May 2026 and May 2036, respectively. (9) Cable Onda Bonds On August 4, 2015, Cable Onda issued public bonds in Panama for a total amount of $185 million . These bonds bear a fixed annual interest of 5.75% and are due on August 4, 2025. The bonds have been assumed by Millicom as part of the acquisition of the company. See note A.1.2. for further details on the acquisition. Bank and Development Financial Institution financing Note Country Maturity Interest rate % 2018 2017 (US$ millions) Fixed rate loans PYG Long-term loan Paraguay 2020/2023/2025 9.00 90 106 PYG Long-term loan 1 Paraguay 2022 10.10 61 65 PYG Long-term loan Paraguay 2023 10.25 9 — PYG Long-term loan Paraguay 2025 8.90 19 — USD - Long-term loans Panama 2019 4.00 15 — USD - Long-term loans Panama 2019 3.80 9 — BOB Long-term loans Bolivia 2025 4.30 10 — BOB Long-term loans Bolivia 2025 4.30 10 — Variable rate loans USD Long-term loans 2 Costa Rica 2021 3.5 variable 148 76 USD Long-term loans Chad 2019 4 variable 1 3 USD Long-term loans 3 Rwanda 2019 2.9 variable — 40 USD Long-term loans Tanzania (Zantel) 2020 3.75 variable 90 96 USD Short-term loans 4 Luxembourg 2019 Libor + 1.50 250 — COP Long-term loans 5 Colombia (UNE) 2025/2030 4.1+IBR variable(i) 277 363 USD Long-term loans 5 Colombia (Tigo) 2021/2022 LIBOR + 2.5 298 297 USD Senior Unsecured Term Loan Facility 6 El Salvador 2021 LIBOR + 3.0 50 50 USD Credit Facility 6 El Salvador 2021 LIBOR + 2.25 24 29 USD Credit Facility El Salvador 2022 LIBOR + 3.15 50 50 USD Credit Facility 6 El Salvador 2023 LIBOR + 2.55 100 — USD Credit Facility 6 El Salvador 2023 LIBOR + 3 50 — Other Long-term loans Various Various 51 25 Total Bank and Development Financial Institution financing 1,613 1,198 (i) IBR – Colombia Interbank Rate. 1. Paraguay On July 4, 2017, the Paraguayan subsidiary signed a five -year loan agreement with the IPS ( Instituto de Prevision Social ) and the Inter-American Development Bank for a total amount of PYG $367,000 million (approximately $66 million ). The loan, denominated in local currency carries a 10.10% interest rate per annum and start amortizing in Q4 2019. This facility is guaranteed by the Company. 2. Costa Rica In April 2018, Millicom Cable Costa Rica S.A. entered into a $150 million variable rate loan with Citibank as agent. Simultaneously, the outstanding loan balance of $72 million was repaid in full with the proceeds from this loan. In June 2018, Millicom Cable Costa Rica S.A. entered into a cross currency swap to hedge part of the principal of the loan against interest rate and currency risks. Interest rate and currency swap agreements had been made on $35 million of the principal amount and interest rate swaps for an additional $35 million . 3. Rwanda In January 2018, the Group repaid the remaining $40 million loan due by Rwanda to different banks. 4. Luxembourg MIC S.A. Bridge Facility In October 2018, the Company entered into a $1 billion term loan facility agreement with a consortium of banks (the “Bridge Facility”), subsequently reduced to $250 million in December 2018. The Bridge Facility matures in October 2019 (unless extended for a period not exceeding six months). Interest on amounts drawn under the Bridge Facility is payable at LIBOR plus a variable margin. At December 31, 2018 , $250 million have been drawn under this facility to finance Cable Onda’s acquisition (note 3). MIC S.A. revolving credit facility On January 30, 2017, the Company announced the closing of a new $600 million , five years revolving credit facility (RCF) and notified the lenders in the 2014 RCF of the formal cancellation of the commitments outstanding under the 2014 RCF (none of which were drawn at such date). Interest on amounts drawn under the revolving credit facility is payable at LIBOR or EURIBOR, as applicable, plus an initial margin of 1.5% . As of December 31, 2018 , the committed facility was fully undrawn. MIC S.A. term loan facility In July 2016, MIC S.A. entered into a $50 million term loan facility agreement, of which half was repaid in 2017 and in January 2018 the remaining outstanding amount was fully repaid. The facility bears variable interest rate at six-month LIBOR + 2.25% per annum. 5. Colombia In June 2017, Colombia Movil completed a $300 million syndicated loan. The loan, denominated in US dollars, which carries an interest rate of LIBOR + 2.50% will be repaid in three tranches of $100 million in June and December 2021 for the two first tranches, and in June 2022 for the last tranche. Proceeds have been used to repay an inter-company loan from Millicom, which used the funds to reduce holding company debt (see note C.3.1.) and for general corporate purposes. In March 2018, TigoUne prepaid $34 million equivalent in COP on bank financing debt. 6. El Salvador On April 15, 2016, Telemovil El Salvador, S.A. de C.V. entered into a Senior Unsecured Term Loan Facility up to $50 million maturing in April 2021 and bearing variable interest at LIBOR + 3.0% per annum, which was restated and amended as of May 30, 2017, for a second tranche of $50 million and bearing an interest rate at LIBOR + 3% per annum. This facility is guaranteed by the Company. On June 6, 2016, Telemovil El Salvador, S.A. de C.V. entered into a $30 million Credit Facility for general corporate purposes maturing in June 2021 and bearing variable interest rate at LIBOR + 2.25% per annum. The facility is guaranteed by the Company. In January 2018, Telemovil El Salvador entered into an amended and restated the 2017 agreement with Scotiabank for a $50 million variable rate loan, with a 5 -year bullet repayment. In March 2018, Telemovil El Salvador entered into a $100 million variable rate facility with DNB and Nordea with a 5 -year bullet repayment. The remaining $50 million of the facility was disbursed during 2018. In addition, Telemovil El Salvador entered into an interest rate swap with Scotiabank to fix interest rates for up to $100 million of the outstanding debt. Right of set-off and derecognition Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. A financial asset (or a part of a financial asset or part of a group of similar financial assets) is derecognized when: • Rights to receive cash flows from the asset have expired; or • Rights to receive cash flows from the asset or obligations to pay the received cash flows in full without material delay have been transferred to a third party under a “pass-through” arrangement; and the Group has either transferred substantially all the risks and rewards of the asset or the control of the asset. When rights to receive cash flows from an asset have been transferred or a pass-through arrangement concluded, an evaluation is made if and to what extent the risks and rewards of ownership have been retained. When the Group has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. A financial liability is derecognized when the obligation under the liability is discharged or canceled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of income. Interest and other financial expenses The Group’s interest and other financial expenses comprised the following: Year ended December 31, 2018 2017 2016 (US$ millions) Interest expense on bonds and bank financing (234 ) (246 ) (262 ) Interest expense on finance leases (92 ) (65 ) (48 ) Early redemption charges (4 ) (43 ) (25 ) Others (41 ) (41 ) (36 ) Total interest and other financial expenses (371 ) (396 ) (372 ) Finance leases Millicom’s finance leases mainly consist of long-term lease of tower space from tower companies or competitors on which Millicom locates its network equipment. Finance lease liabilities Leases which transfer substantially all risks and benefits incidental to ownership of the leased item to the lessee are capitalized at the inception of the lease. The amount capitalized is the lower of the fair value of the asset or the present value of the minimum lease payments. Lease payments are allocated between finance charges (interest) and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recorded as interest expenses in the statement of income. The sale and leaseback of towers and related site operating leases and service contracts are accounted for in accordance with the underlying characteristics of the assets, and the terms and conditions of the lease agreements. When sale and leaseback agreements are concluded, the portions of assets that will not be leased back by Millicom are classified as assets held for sale as completion of their sale is highly probable. Asset retirement obligations related to the towers are classified as liabilities directly associated with assets held for sale. On transfer to the tower companies, the portion of the towers leased back are accounted for as operating leases or finance leases according to the criteria set out above. The portion of towers being leased back represents the dedicated part of each tower on which Millicom’s equipment is located and was derived from the average technical capacity of the towers. Rights to use the land on which the towers are located are accounted for as operating leases, and costs of services for the towers are recorded as operating expenses. The gain on disposal is recognized upfront for the portion of towers that is not leased back, and is deferred and recognized over the term of the lease for the portion leased back. Finance lease liabilities Country Maturity 2018 2017 (US$ millions) Lease of tower space Tanzania 2029/2030 112 121 Lease of tower space Colombia Movil 2032 83 87 Lease of poles Colombia (UNE) 2032 99 100 Lease of tower space Paraguay 2030 27 21 Lease of tower space El Salvador 2026 26 20 Other finance lease liabilities various various 6 17 Total finance lease liabilities 353 365 Tower Sale and Leaseback In 2017 and 2018 , the Group announced agreements to sell and leaseback wireless communications towers in Paraguay, Colombia and El Salvador. The table below summarizes the main aspects of these deals and impacts on the Group financial statements: Paraguay Colombia El Salvador Agreement date April 26, 2017 July 18, 2017 February 6, 2018 Total number of towers expected to be sold 1,410 1,207 811 Total number of towers transferred as of December 31, 2018 1,276 902 496 Expected total cash proceeds ($ millions) 125 147 145 Cash proceeds received in 2017 ($ millions) 75 86 — Cash proceeds received in 2018 ($ millions) 41 26 73 Upfront gain on sale recognized in 2017 ($ millions) (Note B.2) 26 37 — Upfront gain on sale recognized in 2018 ($ millions) (Note B.2) 19 13 33 Guarantees and pledged assets Guarantees Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the best estimate of the expenditure required to settle the present obligation at the reporting date and the amount recognized, less cumulative amortization. Liabilities to which guarantees are related are recorded in the consolidated statement of financial position under Debt and financing, and liabilities covered by supplier guarantees are recorded under Trade payables or Debt and financing, depending on the underlying terms and conditions. Maturity of guarantees At December 31, 2018 At December 31, 2017 Term Outstanding exposure(i) Maximum exposure(ii) Outstanding exposure(i) Maximum exposure(ii) (US$ millions) 0–1 year 133 133 159 159 1–3 years 281 281 368 368 3–5 years 212 212 144 144 Total guarantees 626 626 671 671 (i) The outstanding exposure represents the carrying amount of the related liability at December 31. (ii) The maximum exposure represents the total amount of the Guarantee at December 31. Pledged assets The Group’s share of total debt and financing secured by either pledged assets, pledged deposits issued to cover letters of credit, or guarantees issued by the Company at December 31, 2018 , was $626 million ( 2017 : $671 million ), out of this, assets pledged by the Group over this debt and financing at the same date amounted to $2 million ( 2017 : $1 million ). The remainder represented primarily guarantees issued by Millicom S.A. to guarantee financings raised by other Group operating entities. Covenants Millicom’s financing facilities are subject to a number of covenants including net leverage ratio, debt service coverage ratios, debt to earnings ratios, and cash levels. In addition, certain of its financings contain restrictions on sale of businesses or significant assets within the businesses. At December 31, 2018 , there were no breaches in financial covenants. Cash and deposits Cash and cash equivalents 2018 2017 (US$ millions) Cash and cash equivalents in USD 229 302 Cash and cash equivalents in other currencies 299 317 Total cash and cash equivalents 528 619 Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Cash deposits with bank with maturities of more than three months that generally earn interest at market rates are classified as time deposits. Restricted cash 2018 2017 (US$ millions) Mobile Financial Services 155 143 Others 3 2 Restricted cash 158 145 Cash held with banks related to MFS which is restricted in use due to local regulations is denoted as restricted cash. Pledged deposits Pledged deposits represent contracted cash deposits with banks that are held as security for debts at corporate or operational entity level. Millicom is unable to access these funds until either the relevant debt is repaid or alternative security is arranged with the lender. At December 31, 2018 , there were no non-current pledged deposits ( 2017 : $nil ). At December 31, 2018 , current pledged deposits amounted to $2 million ( 2017 : $1 million ). Net debt Net debt (i) 2018 2017 (US$ millions) Total debt and financing 4,580 3,785 Less: Cash and cash equivalents (528 ) (619 ) Pledged deposits (2 ) (1 ) Time deposits related to bank borrowings — — Net debt at the end of the year 4,051 3,164 Add (less) derivatives related to debt (SEK currency swap) — 56 Net debt including derivatives related to debt 4,051 3,220 (i) As from 2018, the Group has excluded 'restricted cash' from its definition of Net debt. 2017 figures have been represented accordingly. The effect of the change is a $145 million increase in 2017 net debt. Assets Liabilities from financing activities Cash and cash equivalents Other Bond and bank debt and financing Finance lease liabilities Total Net debt as at January 1, 2017 646 4 3,606 295 3,250 Cash flows 10 (1 ) (177 ) (22 ) (209 ) Additions / acquisitions (22 ) — 3 195 220 Interest accretion — — 8 (1 ) 7 Foreign exchange movements 4 — 34 (2 ) 28 Transfers (to)/from assets held for sale (19 ) (2 ) (49 ) (13 ) (42 ) Transfers — — 10 — 9 Other non-cash movements — — (14 ) (86 ) (101 ) Net debt as at December 31, 2017 619 2 3,420 365 3,164 Cash flows (72 ) — 621 (17 ) 676 Additions — — — 44 44 Scope changes 7 — 267 — 260 Interest accretion — — 11 — 11 Foreign exchange movements (33 ) — (84 ) (21 ) (72 ) Transfers (to)/from assets held for sale 6 — 9 (8 ) (4 ) Transfers — — 3 (11 ) (9 ) Other non-cash movements — — (19 ) — (19 ) Net debt as at December 31, 2018 528 2 4,227 353 4,051 Financial instruments i) Equity and debt instruments Classification From January 1, 2018 , and the application of IFRS 9, the Group classifies its financial assets in the following measurement categories: • those to be measured subsequently at fair value either through Other Comprehensive Income (OCI), or through profit or loss, and • those to be measured at amortized cost. The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The Group reclassifies debt investments when and only when its business model for managing those assets changes. Measurement At initial recognition, the Group measures a financial asset at its fair value p |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Financial risk management | Financial risk management Exposure to interest rate, foreign currency, non-repatriation, liquidity, capital management and credit risks arise in the normal course of Millicom’s business. Each year Group Treasury revisits and presents to the Audit committee updated Treasury and Financial Risks Management policies. The Group analyzes each of these financial risks individually as well as on an interconnected basis and defines and implements strategies to manage the economic impact on the Group’s performance in line with its Financial Risk Management policy. These policies were last reviewed in late 2018. As part of the annual review of the above mentioned risks, the Group agrees to a strategy over the use of derivatives and natural hedging instruments ranging from raising debt in local currency (where the Company targets to reach 40% of debt in local currency over the medium term) to maintain a 70/30% mix between fixed and floating rate debt or agreeing to cover up to six months forward of operating costs and capex denominated in non-functional currencies through a rolling and layering strategy. Millicom’s risk management strategies may include the use of derivatives to the extent a market would exist in the jurisdictions where the Group operates. Millicom’s policy prohibits the use of such derivatives in the context of speculative trading. Accounting policies for derivatives is further detailed in note C.6. On December 31, 2018 and 2017 fair value of derivatives held by the Group can be summarized as follows: 2018 2017 (US$ millions) Derivatives Cash flow hedge derivatives — (56 ) Net derivative asset (liability) — (56 ) Interest rate risk Debt and financing issued at floating interest rates expose the Group to cash flow interest rate risk. Debt and financing issued at fixed rates expose the Group to fair value interest rate risk. The Group’s exposure to risk of changes in market interest rates relate to both of the above. To manage this risk, the Group’s policy is to maintain a combination of fixed and floating rate debt with target for the debt to be distributed between fixed (up to 70% ) and variable (up to 30% ) rates. The Group actively monitors borrowings against this target. The target mix between fixed and floating rate debt is reviewed periodically. The purpose of Millicom’s policy is to achieve an optimal balance between cost of funding and volatility of financial results, while taking into account market conditions as well as our overall business strategy. At December 31, 2018 , approximately 68% of the Group’s borrowings are at a fixed rate of interest or for which variable rates have been swapped for fixed rates with interest rate swaps ( 2017 : 65% ). Fixed and floating rate debt Financing at December 31, 2018 Amounts due within: 1 year 1–2 years 2–3 years 3–4 years 4–5 years >5 years Total (US$ millions) Fixed rate financing 140 162 137 436 204 2,036 3,115 Weighted average nominal interest rate 6.35 % 6.59 % 6.64 % 6.61 % 4.10 % 6.47 % 6.34 % Floating rate financing 319 175 266 133 263 309 1,465 Weighted average nominal interest rate 10.28 % 5.89 % 2.73 % 0.49 % 4.41 % 1.13 % 1.98 % Total 458 337 403 569 468 2,345 4,580 Weighted average nominal interest rate 9.08 % 6.23 % 4.06 % 5.18 % 4.28 % 5.76 % 4.95 % Financing at December 31, 2017 Amounts due within: 1 year 1-2 years 2-3 years 3-4 years 4-5 years >5 years Total (US$ millions) Fixed rate financing 87 365 141 104 396 1,369 2,462 Weighted average nominal interest rate 7.17 % 5.52 % 8.28 % 9.92 % 7.73 % 7.68 % 7.48 % Floating rate financing 98 134 206 327 188 370 1,323 Weighted average nominal interest rate 4.24 % 2.37 % 8.40 % 12.20 % 1.98 % 2.25 % 3.06 % Total 185 500 347 431 584 1,738 3,785 Weighted average nominal interest rate 5.61 % 4.68 % 8.35 % 11.65 % 5.88 % 6.52 % 5.94 % A 100 basis point fall or rise in market interest rates for all currencies in which the Group had borrowings at December 31, 2018 would increase or reduce profit before tax from continuing operations for the year by approximately $15 million ( 2017 : $13 million ). Interest rate swap contracts From time to time, Millicom enters into currency and interest rate swap contracts to manage its exposure to fluctuations in interest rates and currency fluctuations in accordance with its Financial Risk Management policy. Details of these arrangements are provided below. Interest rate and currency swaps on SEK denominated debt These swaps matured in April 2018 and were settled against a cash payment of $63 million . Interest rate and currency swaps on SEK denominated debt were measured with reference to Level 2 of the fair value hierarchy. Interest rate and currency swaps on Euro-denominated debt In June 2013, Millicom entered into interest rate and currency swaps whereby Millicom will sell Euros and receive USD to hedge against exchange rate fluctuations on an intercompany seven -year Euro 134 million principal and related interest financing of its operation in Senegal. The outstanding 2020 Notes were repaid in August 2017 and as a result these swaps have been settled. The year-to-date 2017 revaluation of the swap resulted in a $22 million loss. The Millicom Group finally received $10 million in cash on settlement date. The above hedge was considered ineffective, with fluctuations in the fair value of the hedge recorded through the statement of income. No other financial instruments have a significant fair value at December 31, 2018 and 2017 . Foreign currency risks The Group is exposed to foreign exchange risk arising from various currency exposures in the countries in which it operates. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. Millicom seeks to reduce its foreign currency exposure through a policy of matching, as far as possible, assets and liabilities denominated in foreign currencies, or entering into agreements that limit the risk of exposure to currency fluctuations against the US dollar reporting currency. In some cases, Millicom may also borrow in US dollars where it is either commercially more advantageous for joint ventures and subsidiaries to incur debt obligations in US dollars or where US dollar denominated borrowing is the only funding source available to a joint venture or subsidiary. In these circumstances, Millicom accepts the remaining currency risk associated with financing its joint ventures and subsidiaries, principally because of the relatively high cost of forward cover, when available, in the currencies in which the Group operates. Debt denominated in US dollars and other currencies Debt denomination at December 31 2018 2017 (US$ millions) Debt denominated in US dollars 3,132 1,983 Debt denominated in currencies of the following countries: Colombia 718 834 Chad 62 61 Tanzania 112 121 Bolivia 306 337 Paraguay 207 191 Luxembourg (SEK denominated) 43 243 Other — 15 Total debt denominated in other currencies 1,448 1,802 Total debt 4,580 3,785 At December 31, 2018 , if the US dollar had weakened/strengthened by 10% against the other functional currencies of our operations and all other variables held constant, then profit before tax from continuing operations would have increased/decreased by $53 million and $(53) million respectively ( 2017 : $104 million and $(104) million respectively). This increase/decrease in profit before tax would have mainly been as a result of the conversion of the USD-denominated net debts in our operations with functional currencies other than the US dollar. Foreign currency swaps See note D.1.2. Interest rate swap contracts. Non-repatriation risk Most of Millicom’s operating subsidiaries and joint ventures generate most of the revenue of the Group and in the currency of the countries in which they operate. Millicom is therefore dependent on the ability of its subsidiaries and joint venture operations to transfer funds to the Company. Although foreign exchange controls exist in some of the countries in which Millicom Group companies operate, none of these controls currently significantly restrict the ability of these operations to pay interest, dividends, technical service fees, royalties or repay loans by exporting cash, instruments of credit or securities in foreign currencies. However, existing foreign exchange controls may be strengthened in countries where the Group operates, or foreign exchange controls may be introduced in countries where the Group operates that do not currently impose such restrictions. If such events were to occur, the Company’s ability to receive funds from the operations could be subsequently restricted, which would impact the Company’s ability to make payments on its interest and loans and, or pay dividends to its shareholders. As a policy, all operations which do not face restrictions to deposit funds offshore and in hard currencies should do so for the surplus cash generated on a weekly basis. The Company and its subsidiaries make use of notional and physical cash pooling arrangements in hard currencies to the extent permitted. In addition, in some countries it may be difficult to convert large amounts of local currency into foreign currency because of limited foreign exchange markets. The practical effects of this may be time delays in accumulating significant amounts of foreign currency and exchange risk, which could have an adverse effect on the Group. This is a relatively rare case for the countries in which the Group operates. Lastly, repatriation most often gives raise to taxation, which is evidenced in the amount of taxes paid by the Group relative to the Corporate Income Tax reported in its statement of income. Credit and counterparty risk Financial instruments that subject the Group to credit risk include cash and cash equivalents, pledged deposits, letters of credit, trade receivables, amounts due from joint venture partners and associates, supplier advances and other current assets and derivatives. Counterparties to agreements relating to the Group’s cash and cash equivalents, pledged deposits and letters of credit are significant financial institutions with investment grade ratings. Management does not believe there are significant risks of non-performance by these counterparties and maintain a diversified portfolio of banking partners. Allocation of deposits across banks are managed such that the Group’s counterparty risk with a given bank stays within limits which have been set, based on each bank’s credit rating. A large portion of revenue of the Group is comprised of prepaid products and services. For postpaid customers, the Group follows risk control procedures to assess the credit quality of the customer, taking into account its financial position, past experience and other factors. Accounts receivable also comprise balances due from other telecom operators. Credit risk of other telecom operators is limited due to the regulatory nature of the telecom industry, in which licenses are normally only issued to credit-worthy companies. The Group maintains a provision for expected credit losses of trade receivables based on its historical credit loss experience. As the Group has a large number of internationally dispersed customers, there is generally no significant concentration of credit risk with respect to trade receivables, except for certain B2B customers (mainly governments). See note F.1. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Group has significant indebtedness but also has significant cash balances. Millicom evaluates its ability to meet its obligations on an ongoing basis using a recurring liquidity planning tool. This tool considers the operating net cash flows generated from its operations and the future cash needs for borrowing, interest payments, dividend payments and capital and operating expenditures required in maintaining and developing its operating businesses. The Group manages its liquidity risk through use of bank overdrafts, bank loans, bonds, vendor financing, Export Credit Agencies and Development Finance Institutions (DFI) loans. Millicom believes that there is sufficient liquidity available in the markets to meet ongoing liquidity needs. Additionally, Millicom is able to arrange offshore funding. Millicom has a diversified financing portfolio with commercial banks representing about 34% of its gross financing ( 2017 : 30% ), bonds 54% ( 2017 : 57% ), Development Finance Institutions 4% ( 2017 : 3% ) and finance leases 8% ( 2017 : 10% ). Maturity profile of net financial liabilities at December 31, 2018 (i) Less than 1 year 1 to 5 years > 5 years Total (US$ millions) Total debt and financing (458 ) (1,778 ) (2,345 ) (4,580 ) Cash and cash equivalents 528 — — 528 Pledged deposits (related to bank borrowings) 2 — — 2 Derivative financial instruments (SEK currency swap) — — — — Net cash (debt) including derivatives related to debt 72 (1,778 ) (2,345 ) (4,051 ) Future interest commitments (248 ) (786 ) (77 ) (1,111 ) Trade payables (excluding accruals) (478 ) — — (478 ) Other financial liabilities (including accruals) (1,217 ) (135 ) — (1,352 ) Put Option liability (239 ) — — (239 ) Trade receivables 343 — — 343 Other financial assets 184 126 — 310 Net financial liabilities (1,583 ) (2,573 ) (2,422 ) (6,578 ) (i) As from 2018, the Group has excluded 'restricted cash' from its definition of Net debt. 2017 figures have been re-presented accordingly. Maturity profile of net financial liabilities at December 31, 2017 Less than 1 year 1 to 5 years > 5 years Total (US$ millions) Total debt and financing (185 ) (1,862 ) (1,738 ) (3,785 ) Cash and cash equivalents 619 — — 619 Pledged deposits (related to bank borrowings) 1 — — 1 Derivative financial instruments (SEK currency swap) (56 ) — — (56 ) Net cash (debt) including derivatives related to debt 380 (1,862 ) (1,738 ) (3,220 ) Future interest commitments (255 ) (785 ) (68 ) (1,108 ) Trade payables (excluding accruals) (427 ) — — (427 ) Other financial liabilities (including accruals) (1,094 ) (124 ) — (1,218 ) Trade receivables 386 — — 386 Other financial assets 144 113 — 257 Net financial liabilities (866 ) (2,658 ) (1,806 ) (5,330 ) Capital management The primary objective of the Group’s capital management is to ensure a strong credit rating and solid capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure with reference to local economic conditions and imposed restrictions such as debt covenants. To maintain or adjust its capital structure, the Group may make dividend payments to shareholders, return capital to shareholders through share repurchases or issue new shares. At December 31, 2018 , Millicom is rated at one notch below investment grade by the independent rating agencies Moody’s (Ba1 negative) and Fitch (BB+ stable). The Group primarily monitors capital using net debt to EBITDA. The Group reviews its gearing ratio (net debt divided by total capital plus net debt) periodically. Net debt includes interest bearing loans and borrowings, less cash and cash equivalents (included restricted cash) and pledged and time deposits related to bank borrowings. Capital represents equity attributable to the equity holders of the parent. Net debt to EBITDA Note 2018 2017 (US$ millions) Net debt C.5. 4,051 3,164 EBITDA B.3. 1,254 1,278 Net debt to EBITDA (i) 3.23 2.48 (i) Ratio is above 3x on an IFRS basis. However, covenants are calculated on proportionate net debt/EBITDA, including Guatemala and Honduras, which show results below 3x. Gearing ratio Note 2018 2017 (US$ millions) Net debt C.5. 4,051 3,164 Equity C.1. 2,542 3,096 Net debt and equity 6,593 6,260 Gearing ratio 0.61 0.51 |
Long-term assets
Long-term assets | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Long-term assets | Long-term assets Intangible assets Millicom’s intangible assets mainly consist of goodwill arising from acquisitions, customer lists acquired through acquisitions, licenses and rights to operate and use spectrum. Accounting for intangible assets Intangible assets acquired in business acquisitions are initially measured at fair value at the date of acquisition, and those which are acquired separately are measured at cost. Internally generated intangible assets, excluding capitalized development costs, are not capitalized but expensed to the statement of income in the expense category consistent with the function of the intangible assets. Subsequently intangible assets are carried at cost, less any accumulated amortization and any accumulated impairment losses. Intangible assets with finite useful lives are amortized over their estimated useful economic lives using the straight-line method and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for intangible assets with finite useful lives are reviewed at least at each financial year end. Changes in expected useful lives or the expected beneficial use of the assets are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. Amortization expense on intangible assets with finite lives is recognized in the consolidated statement of income in the expense category consistent with the function of the intangible assets. Goodwill Goodwill represents the excess of cost of an acquisition over the Group’s share in the fair value of identifiable assets less liabilities and contingent liabilities of the acquired subsidiary, at the date of the acquisition. If the fair value or the cost of the acquisition can only be determined provisionally, then goodwill is initially accounted for using provisional values. Within 12 months of the acquisition date, any adjustments to the provisional values are recognized. This is done when the fair values and the cost of the acquisition have been finally determined. Adjustments to provisional fair values are made as if the adjusted fair values had been recognized from the acquisition date. Goodwill on acquisition of subsidiaries is included in intangible assets, net. Goodwill on acquisition of joint ventures or associates is included in investments in joint ventures and associates. Following initial recognition, goodwill is measured at cost, less any accumulated impairment losses. Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Where goodwill forms part of a cash-generating unit (or group of cash-generating units) and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed of in this manner is measured, based on the relative values of the operation disposed and the portion of the cash-generating unit retained. Licenses Licenses are recorded at either historical cost or, if acquired in a business combination, at fair value at the date of acquisition. Cost includes cost of acquisition and other costs directly related to acquisition and retention of licenses over the license period. These costs may include estimates related to fulfillment of terms and conditions related to the licenses such as service or coverage obligations, and may include up-front and deferred payments. Licenses have a finite useful life and are carried at cost less accumulated amortization and any accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of the licenses over their estimated useful lives. The terms of licenses, which have been awarded for various periods, are subject to periodic review for, among other things, rate setting, frequency allocation and technical standards. Licenses are initially measured at cost and are amortized from the date the network is available for use on a straight-line basis over the license period. Licenses held, subject to certain conditions, are usually renewable and generally non-exclusive. When estimating useful lives of licenses, renewal periods are included only if there is evidence to support renewal by the Group without significant cost. Trademarks and customer lists Trademarks and customer bases are recognized as intangible assets only when acquired or gained in a business combination. Their cost represents fair value at the date of acquisition. Trademarks and customer bases have indefinite or finite useful lives. Indefinite useful life trademarks are tested for impairment annually. Finite useful life trademarks are carried at cost, less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of the trademarks and customer bases over their estimated useful lives. The estimated useful lives for trademarks and customer bases are based on specific characteristics of the market in which they exist. Trademarks and customer bases are included in Intangible assets, net. Estimated useful lives are: Years Estimated useful lives Trademarks 1 to 15 Customer lists 4 to 20 Programming and content rights Programming and content master rights which are purchased or acquired in business combinations which meet certain criteria are recorded at cost as intangible assets. The rights must be exclusive, related to specific assets which are sufficiently developed, and probable to bring future economic benefits and have validity for more than one year. Cost includes consideration paid or payable and other costs directly related to the acquisition of the rights, and are recognized at the earlier of payment or commencement of the broadcasting period to which the rights relate. Programming and content rights capitalized as intangible assets have a finite useful life and are carried at cost, less accumulated amortization and any accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of the rights over their estimated useful lives. Non-exclusive and programming and content rights for periods less than one year are expensed over the period of the rights. Indefeasible rights of use There is no universally-accepted definition of an indefeasible rights of use (IRU). These agreements come in many forms. However, the key characteristics of a typical arrangement include: • The right to use specified network infrastructure or capacity; • For a specified term (often the majority of the useful life of the relevant assets); • Legal title is not transferred; • A number of associated service agreements including operations and maintenance (O&M) and co-location agreements. These are typically for the same term as the IRU; and • Any payments are usually made in advance. IRUs are accounted for either as a lease, or service contract based on the substance of the underlying agreement. IRU arrangements will qualify as a lease if, and when: • The purchaser has an exclusive right for a specified period and has the ability to resell (or sublet) the capacity; and • The capacity is physically limited and defined; and • The purchaser bears all costs related to the capacity (directly or not) including costs of operation, administration and maintenance; and • The purchaser bears the risk of obsolescence during the contract term. If all of these criteria are not met, the IRU is treated as a service contract. If an IRU is determined to be a lease, the following indicators need to be present in order for the capitalization of an IRU as a finance lease to be considered: • The Group will be consuming the major part of the useful economic life of the asset (generally considered to be 75% of the total remaining useful economic life of the asset). The Group assumes that the useful economic life of a new fiber cable is 15 years; • Substantially, all of the risks and rewards of ownership are transferred to the Group (e.g. Millicom can sublease excess capacity on the cables to other operators; Millicom is responsible for maintaining the cables during the contract period); • Neither party has the right to terminate the contract early (other than for “force majeure”); • The contract price is not subject to renegotiation or change (other than for inflationary increases); • The minimum contractual payments are for substantially all of the fair value of the asset (generally considered to be greater or equal to 90% of the fair value of the leased asset); • The Group can determine the fair value of the leased asset; • The Group has physical access rights to the cable. Otherwise the IRU will be considered as an operating lease. A finance lease of an IRU of network infrastructure (cables or fiber) is accounted for as a tangible asset. A finance lease of a capacity IRU (wavelength) is accounted for as an intangible asset. Estimated useful lives of finance leases of capacity IRUs are between 12 and 15 years, or shorter if the estimated useful life of the underlying cable is shorter. The costs of an IRU recognized as operating lease is recognized as prepayment and amortized in the statement of income on a straight-line basis over the lease term. The costs of an IRU recognized as service contract is recognized as prepayment and amortized in the statement of income as incurred over the duration of the contract. Impairment of non-financial assets At each reporting date Millicom assesses whether there is an indication that a non-financial asset may be impaired. If any such indication exists, or when annual impairment testing for a non-financial asset is required, an estimate of the asset’s recoverable amount is made. The recoverable amount is determined based on the higher of its fair value less cost to sell, and its value in use, for individual assets, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Where no comparable market information is available, the fair value, less cost to sell, is determined based on the estimated future cash flows discounted to their present value using a discount rate that reflects current market conditions for the time value of money and risks specific to the asset. The foregoing analysis also evaluates the appropriateness of the expected useful lives of the assets. Impairment losses of continuing operations are recognized in the consolidated statement of income in expense categories consistent with the function of the impaired asset. At each reporting date an assessment is made as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. Other than for goodwill, a previously recognized impairment loss is reversed if there has been a change in the estimate used to determine the asset’s recoverable amount since the last impairment loss was recognized. If so, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. Movements in intangible assets Movements in intangible assets in 2018 Goodwill Licenses Customer lists IRUs Trademarks Other(i) Total (US$ millions) Opening balance, net 599 324 33 105 10 194 1,265 Change in scope (ii) 512 — 370 — 280 23 1,185 Additions — 66 — 2 — 91 158 Amortization charge — (48 ) (11 ) (14 ) (8 ) (65 ) (144 ) Impairment (6 ) — — — — — (6 ) Disposals, net — — — — — — — Transfers — — — — — (16 ) (16 ) Transfers to/from assets held for sale (see note E.3.) — (12 ) — — — — (12 ) Exchange rate movements (28 ) (12 ) (1 ) (5 ) — (9 ) (55 ) Closing balance, net 1,077 318 391 89 282 218 2,374 Cost or valuation 1,077 646 581 176 325 646 3,451 Accumulated amortization and impairment — (328 ) (190 ) (87 ) (43 ) (428 ) (1,077 ) Net 1,077 318 391 89 282 218 2,374 Movements in intangible assets in 2017 Goodwill Licenses Customer lists IRUs Trademarks Other(i) Total (US$ millions) Opening balance, net 615 380 32 114 18 200 1,359 Change in scope (ii) 3 — 15 — — 1 20 Additions — 40 — (2 ) — 92 130 Amortization charge — (49 ) (15 ) (14 ) (8 ) (67 ) (153 ) Impairment (7 ) (8 ) — — — — (15 ) Disposals, net — — — — — (1 ) (1 ) Transfers (2 ) 3 — 8 — (28 ) (19 ) Transfers to/from assets held for sale (see note E.3.) (8 ) (50 ) (1 ) — — (5 ) (64 ) Exchange rate movements (1 ) 7 1 — — 2 9 Closing balance, net 599 324 33 105 10 194 1,265 Cost or valuation 599 650 225 181 49 584 2,288 Accumulated amortization and impairment — (327 ) (192 ) (76 ) (39 ) (389 ) (1,022 ) Net 599 324 33 105 10 194 1,265 (i) Other includes mainly software costs (ii) See note A.1.2. Cash used for the purchase of intangible assets Cash used for intangible asset additions 2018 2017 (US$ millions) Additions 158 130 Change in accruals and payables for intangibles (10 ) 3 Cash used for additions 148 133 Goodwill Allocation of Goodwill to cash generating units (CGUs), net of exchange rate movements and after impairment 2018 2017 (US$ millions) Panama (see note A.1.2.) 512 — El Salvador 194 194 Costa Rica 116 123 Paraguay 54 57 Colombia 183 199 Tanzania (Zantel) (see note E.1.6.) 4 10 Other 15 16 Total 1,077 599 Impairment testing of goodwill Goodwill from CGUs is tested for impairment at least each year and more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Impairment losses on goodwill are not reversed. Goodwill arising on business combinations is allocated to each of the Group’s CGUs or groups of CGUs that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Each unit or group of units to which the goodwill is allocated: • Represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and • Is not larger than an operating segment. Impairment is determined by assessing the value-in-use and, if appropriate, the fair value less costs to sell of the CGU (or group of CGUs), to which goodwill relates. Impairment testing at December 31, 2018 Goodwill was tested for impairment by assessing the recoverable amount against the carrying amount of the CGU based on discounted cash flows. The cash flow projections used (adjusted operating profit margins, income tax, working capital, capex and license renewal cost) are extracted from financial budgets approved by management and the Board usually covering a period of five years. This planning horizon reflects industry practice in the countries where the Group operates and stage of development or redevelopment of the business in those countries. Cash flows beyond this period are extrapolated using a perpetual growth rate of 1.6%–4.6% ( 2017 : 1.1%–3.8% ). When value-in-use model resulted in the carrying values of the CGUs being higher than their recoverable amount, management has determined the fair value less cost of disposal (FVLCD) of the CGUs. Fair value less cost of disposal has been determined by using recent offers received from third parties (Level 1). For the year ended December 31, 2018 , and as a result of the annual impairment testing, management concluded that the Zantel CGU, part of the Africa segment, should be impaired. Hence, in accordance with IAS 36, an impairment loss of $6 million has been allocated to the amount of goodwill allocated to Zantel to reduce the carrying amount of our operations in Zantel to its value in use. The impairment has been classified within the caption "Other operating income (expenses), net", in the Group’s statement of income. For the year ended December 31, 2017 , and as a result of the annual impairment testing the Group recognised an impairment loss of $15 million related mainly to our operations in Rwanda and on an investment in Guatemala. Given the recent acquisition date, the goodwill recognized for Cable Onda has not been tested for impairment in 2018. In addition, no triggering event have occurred that would make us believe that the goodwill should be tested for impairment. Sensitivity analysis was performed on key assumptions within the impairment tests. The sensitivity analysis determined that sufficient margin exists from realistic changes to the assumptions that would not impact the overall results of the testing. Discount rates used in determining recoverable amount Discount rate after tax (%) 2018 2017 Bolivia 10.2 11.2 Chad 14.8 15.8 Colombia 8.9 9.9 Costa Rica 10.2 11.9 El Salvador 11.7 13.2 Paraguay 9.8 10.2 Rwanda (See note A.1.3.) n/a 14.7 Tanzania 14.4 14.6 Property, plant and equipment Accounting for property, plant and equipment Items of property, plant and equipment are stated at either historical cost, or the lower of fair value and present value of the future minimum lease payments for assets under finance leases, less accumulated depreciation and accumulated impairment. Historical cost includes expenditure that is directly attributable to acquisition of items. The carrying amount of replaced parts is derecognized. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset and the remaining life of the license associated with the assets, unless the renewal of the license is contractually possible. Estimated useful lives Duration Buildings 40 years or lease period, if shorter Networks (including civil works) 5 to 15 years or lease period, if shorter Other 2 to 7 years The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The assets’ residual value and useful life is reviewed, and adjusted if appropriate, at each statement of financial position date. An asset’s carrying amount is written down immediately to its recoverable amount if its carrying amount is greater than its estimated recoverable amount. Construction in progress consists of the cost of assets, labor and other direct costs associated with property, plant and equipment being constructed by the Group, or purchased assets which have yet to be deployed. When the assets become operational, the related costs are transferred from construction in progress to the appropriate asset category and depreciation commences. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Ongoing routine repairs and maintenance are charged to the statement of income in the financial period in which they are incurred. Costs of major inspections and overhauls are added to the carrying value of property, plant and equipment and the carrying amount of previous major inspections and overhauls is derecognized. Equipment installed on customer premises which is not sold to customers is capitalized and amortized over the customer contract period. A liability for the present value of the cost to remove an asset on both owned and leased sites (for example cell towers) and for assets installed on customer premises (for example set-top boxes), is recognized when a present obligation for the removal exists. The corresponding cost of the obligation is included in the cost of the asset and depreciated over the useful life of the asset, or lease period if shorter. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset when it is probable that such costs will contribute to future economic benefits for the Group and the costs can be measured reliably. Movements in tangible assets Movements in tangible assets in 2018 Network equipment(ii) Land and buildings Construction in progress Other(i) Total (US$ millions) Opening balance, net 2,399 147 206 128 2,880 Change in scope (see note A.1.2.) 276 46 32 — 354 Additions 63 1 626 7 698 Impairments/reversal of impairment,net 1 — — — 1 Disposals, net (24 ) (2 ) (2 ) — (29 ) Depreciation charge (631 ) (11 ) — (43 ) (685 ) Asset retirement obligations 14 1 — — 15 Transfers 551 9 (568 ) 14 6 Transfers from/(to) assets held for sale (45 ) (3 ) (2 ) (2 ) (52 ) Exchange rate movements (124 ) (8 ) (8 ) (7 ) (147 ) Closing balance, net 2,480 181 284 97 3,041 Cost or valuation 6,802 252 284 409 7,747 Accumulated amortization and impairment (4,322 ) (71 ) — (312 ) (4,706 ) Net at December 31, 2018 2,480 181 284 97 3,041 Movements in tangible assets in 2017 Network equipment(ii) Land and buildings Construction in progress Other(i) Total (US$ millions) Opening balance, net 2,525 147 250 135 3,057 Change in scope 2 1 — — 3 Additions 201 — 616 7 824 Impairments/reversal of impairment,net (6 ) — 1 (2 ) (8 ) Disposals, net (115 ) — 3 (1 ) (114 ) Depreciation charge (663 ) (9 ) — (53 ) (725 ) Asset retirement obligations 18 2 — — 20 Transfers 613 7 (650 ) 48 19 Transfers from/(to) assets held for sale (184 ) (3 ) (16 ) (8 ) (211 ) Exchange rate movements 9 2 3 1 15 Closing balance, net 2,399 147 206 128 2,880 Cost or valuation 6,164 191 206 477 7,038 Accumulated amortization and impairment (3,764 ) (44 ) — (349 ) (4,158 ) Net at December 31, 2017 2,399 147 206 128 2,880 (i) Other mainly includes office equipment and motor vehicles. (ii) The net carrying amount of network equipment under finance leases at December 31, 2018 , was $307 million ( 2017 : $329 million ). Borrowing costs capitalized for the years ended December 31, 2018 , 2017 and 2016 were not significant. Cash used for the purchase of tangible assets Cash used for property, plant and equipment additions 2018 2017 2016 (US$ millions) Additions 698 824 683 Change in advances to suppliers 2 (8 ) (16 ) Change in accruals and payables for property, plant and equipment (25 ) 26 51 Finance leases (43 ) (192 ) 1 Cash used for additions 632 650 719 Assets held for sale If Millicom decides to sell subsidiaries, investments in joint ventures or associates, or specific non-current assets in its businesses, these items qualify as assets held for sale if certain conditions are met. Classification of assets held for sale Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is expected to be recovered principally through sale, not through continuing use. Liabilities of disposal groups are classified as Liabilities directly associated with assets held for sale. Millicom’s assets held for sale The following table summarizes the nature of the assets and liabilities reported under assets held for sale and liabilities directly associated with assets held for sale as at December 31, 2018 and 2017 : As at December 31, 2018 2017 (US$ millions) Assets and liabilities reclassified as held for sale Senegal operations — 223 Towers Paraguay (see note C.3.4.) 2 7 Towers Colombia (see note C.3.4.) — 1 Towers El Salvador (see note C.3.4.) 1 — Other — 2 Total assets of held for sale 3 233 Senegal operations — 77 Towers Paraguay — 2 Total liabilities directly associated with assets held for sale — 79 Net assets held for sale / book value 3 154 Ghana merger As mentioned in note A.2.2., on March 3, 2017, Millicom and Bharti Airtel Limited (Airtel) announced that they have entered into an agreement for Tigo Ghana Limited and Airtel Ghana Limited to combine their operations in Ghana. As per the agreement, Millicom and Airtel have equal ownership and governance rights in the combined entity. Necessary regulatory approvals were received in the course of September 2017. As a result, Millicom's operations in Ghana have been classified as assets held for sale and discontinued operations as from September 28, 2017. The merger was completed on October 12, 2017. The assets and liabilities deconsolidated as a result of the Ghana merger were as follows: Assets and liabilities reclassified as held for sale – Ghana October 12, 2017 (US$ millions) Intangible assets, net 12 Property, plant and equipment, net 77 Current assets 29 Cash and cash equivalents 8 Total assets of disposal group held for sale 126 Non-current financial liabilities 51 Current liabilities 50 Total liabilities of disposal group held for sale 102 Net assets / book value 24 For further details on the effect of the deconsolidation of the operations in Ghana, refer to note A.2.3. Senegal As mentioned in note A.1.3. Millicom announced that it had agreed to sell its Senegal business to a consortium consisting of NJJ, Sofima (managed by the Axian Group) and Teylium Group, subject to customary closing conditions and regulatory approvals. The sale was completed on April 27, 2018 and the operations in Senegal have been deconsolidated resulting in a net gain on disposal of $6 million , including the recycling of foreign currency exchange losses accumulated in equity since the creation of the local operations. This gain has been recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. The assets and liabilities were transferred to assets held for sale in relation to our operations in Senegal as at February 7, 2017 and therefore classified as held for sale as at December 31, 2017. The table below shows the assets and liabilities deconsolidated at the date of the disposal: Assets and liabilities disposed of in respect of our operations in Senegal April 27, 2018 (US$ millions) Intangible assets, net 40 Property, plant and equipment, net 126 Other non-current assets 2 Current assets 56 Cash and cash equivalents 3 Total assets of disposal group held for sale 227 Non-current financial liabilities 8 Current liabilities 73 Total liabilities of disposal group held for sale 81 Net assets held for sale / book value 146 Rwanda As mentioned in note A.1.3. on December 19, 2017, Millicom announced that it has signed an agreement for the sale of its Rwanda operations to subsidiaries of Bharti Airtel Limited. The total consideration of the transaction is approximately 6 x 2017 adjusted EBITDA of the Rwandan operation, payable over two years, consisting of a mix of cash, vendor loan note and earn out. The Group received regulatory approvals on January 23, 2018 and the sale was subsequently completed on January 31, 2018. On January 31, 2018, Millicom's operations in Rwanda have been deconsolidated and no material loss on disposal was recognized (its carrying value was aligned to its fair value less costs of disposal as of December 31, 2017 ). However, a loss of $32 million has been recognized in 2018 corresponding to the recycling of foreign currency exchange losses accumulated in equity since the creation of the local operation. This loss has been recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. The final sale consideration is still subject to adjustment under the terms of the sale and purchase agreement with Airtel. Management does not expect any material deviation from the initial consideration. The table below shows the assets and liabilities deconsolidated at the date of the disposal: Assets and liabilities disposed of in respect of our operations in Rwanda January 31, 2018 (US$ millions) Intangible assets, net 12 Property, plant and equipment, net 53 Other non-current assets 4 Current assets 14 Cash and cash equivalents 2 Total assets of disposal group held for sale 85 Non-current financial liabilities 11 Current liabilities 28 Total liabilities of disposal group held for sale 40 Net assets held for sale / book value 46 In accordance with IFRS 5, the Group’s businesses in Rwanda (Q1 2018), Ghana (Q3 2017) and Senegal (Q1 2017) had been classified as assets held for sale and their results were classified as discontinued operations. Comparative figures of the statement of income have therefore been represented accordingly. Financial information relating to the discontinued operations for the year ended December 31, 2018 , 2017 and 2016 is set out below. Figures shown below are after intercompany eliminations. Results from discontinued operations Year ended December 31, 2018 2017 2016 (US$ millions) Revenue 62 299 371 Cost of sales (23 ) (95 ) (119 ) Operating expenses (26 ) (131 ) (174 ) Depreciation and amortization — (37 ) (79 ) Other operating income (expenses), net (10 ) (4 ) (6 ) Gain on disposal of discontinued operations (29 ) 39 32 Other expenses linked to the disposal of discontinued operations (10 ) (7 ) (19 ) Operating profit (loss) (36 ) 64 6 Interest income (expense), net (3 ) (20 ) (23 ) Other non-operating (expenses) income, net — 6 (10 ) Profit (loss) before taxes (39 ) 51 (26 ) Credit (charge) for taxes, net — — 6 Net profit (loss) from discontinued operations (39 ) 51 (20 ) Cash flows from discontinued operations Year ended December 31, 2018 2017 2016 (US$ millions) Cash from (used in) operating activities, net (4 ) 26 10 Cash from (used in) investing activities, net (6 ) (33 ) (53 ) Cash from (used in) financing activities, net — (22 ) 18 4G spectrum (UNE) A depreciation catch-up has been recorded in 2016 for $11 million on the 4G spectrum in Colombia. In October 2016, the date on which UNE stopped rendering 4G services, the 4G spectrum was fully depreciated. |
Other assets and liabilities
Other assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other assets and liabilities | Other assets and liabilities Trade receivables Millicom’s trade receivables mainly comprise interconnect receivables from other operators, postpaid mobile and residential cable subscribers, as well as B2B customers. The nominal value of receivables adjusted for impairment approximates the fair value of trade receivables. 2018 2017 (US$ millions) Gross trade receivables 592 597 Less: provisions for expected credit losses (249 ) (211 ) Trade receivables, net 343 386 Aging of trade receivables Neither past due nor impaired Past due (net of impairments) 30–90 days >90 days Total (US$ millions) 2018: Telecom operators 17 9 14 39 Own customers 158 69 19 246 Others 36 17 5 58 Total 210 95 37 343 2017: Telecom operators 29 16 4 49 Own customers 186 52 34 273 Others 43 16 5 64 Total 259 83 43 386 Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less provision for expected credit losses. The Group recognizes an allowance for expected credit losses (ECLs) applying a simplified approach in calculating the ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime of ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The provision for expected credit losses is recognized in the consolidated statement of income within Cost of sales. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those maturing more than 12 months after the end of the reporting period. These are classified within non-current assets. Loans and receivables are carried at amortized cost using the effective interest method. Gains and losses are recognized in the statement of income when the loans and receivables are derecognized or impaired, as well as through the amortization process. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Inventories 2018 2017 (US$ millions) Telephone and equipment 26 28 SIM cards 4 6 IRUs 3 3 Other 6 9 Inventory at December 31, 39 45 Trade payables Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method where the effect of the passage of time is material. From time to time, the Group enters into agreements to extend payment terms with various suppliers, and with factoring companies when such payments are discounted. The corresponding amount pending payment as of December 31, 2018 , is recognized in Trade payables for an amount of $26 million ( 2017 : $25 million ). Current and non-current provisions and other liabilities Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, risks specific to the liability. Where discounting is used, increases in the provision due to the passage of time are recognized as interest expenses. Current provisions and other liabilities Current 2018 2017 (US$ millions) Deferred revenue(i) 85 86 Customer deposits 15 13 Current legal provisions 27 24 Tax payables 68 57 Customer and MFS distributor cash balances 147 144 Withholding tax on payments to third parties 17 17 Other provisions 7 1 Other current liabilities(ii) 128 83 Total 494 425 (i) Deferred revenue has partly been reclassified to Contract Liabilities as a result of the adoption of IFRS 15. See the 'Accounting Policy Changes' note. (ii) In the caption "Other current liabilities", for 2018 $38 million of provision for tax risk not related to income tax is included. Non-current provisions and other liabilities Non-current 2018 2017 (US$ millions) Non-current legal provisions 8 15 Long-term portion of asset retirement obligations 77 69 Long-term portion of deferred income on tower sale and leasebacks 85 73 Long-term employment obligations 68 76 Accruals and payables in respect of spectrum and license acquisitions 41 31 Other non-current liabilities 71 70 Total 351 335 Assets and liabilities related to contract with customers Contract assets, net 2018 (US$ millions) Long-term portion 3 Short-term portion 35 Less: provisions for expected credit losses (1 ) Total 37 Contract liabilities 2018 (US$ millions) Long-term portion 1 Short-term portion 86 Total 87 The Group recognised revenue for $45 million in 2018 that was included in the contract liability balance at the beginning of the year. The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at December 31, 2018 is $42 million ( $41 million is expected to be recognized as revenue in the 2020 financial year and the remaining $1 million in the 2021 financial year or later) (i) . (i) This amount does not consider contracts that have an original expected duration of one year or less, neither contracts in which consideration from a customer corresponds to the value of the entity’s performance obligation to the customer (i.e. billing corresponds to accounting revenue). Contract costs, net (i) 2018 (US$ millions) Net at January 1 4 Contract costs capitalized 4 Amortization of contract costs (4 ) Net at December 31 4 (i) Incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that Millicom otherwise would have recognized is one year or less. |
Additional disclosure items
Additional disclosure items | 12 Months Ended |
Dec. 31, 2018 | |
Additional information [abstract] | |
Additional disclosure items | Additional disclosure items Fees to auditors 2018 2017 2016 (US$ millions) Audit fees 6.7 4.7 4.3 Audit related fees 0.4 0.3 0.3 Tax fees 0.2 0.2 0.2 Other fees 0.6 0.7 1.8 Total 7.7 5.9 6.6 Capital and operational commitments Millicom has a number of capital and operational commitments to suppliers and service providers in the normal course of its business. These commitments are mainly contracts for acquiring network and other equipment, and leases for towers and other operational equipment. Capital commitments At December 31, 2018 , the Company and its subsidiaries and joint ventures had fixed commitments to purchase network equipment, land and buildings, other fixed assets and intangible assets of $154 million of which $126 million are due within one year ( December 31, 2017 : $194 million of which $182 million were due within one year). Out of these commitments, respectively $66 million and $56 million related to Millicom’s share in joint ventures. ( December 31, 2017 : $25 million of which $23 million were due within one year). Lease commitments Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement and involves an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and whether or not the arrangement conveys a right to use the asset. The sale and leaseback of towers and related site operating leases and service contracts are accounted for in accordance with the underlying characteristics of the assets, and the terms and conditions of the lease agreements. On transfer to the tower companies, the portion of the towers leased back are accounted for as operating leases or finance leases according to the criteria set out above. The portion of towers being leased back represents the dedicated part of each tower on which Millicom’s equipment is located and was derived from the average technical capacity of the towers. Rights to use the land on which the towers are located are accounted for as operating leases, and costs of services for the towers are recorded as operating expenses. Operating leases Operating leases are all other leases that are not finance leases. Operating lease payments are recognized as expenses in the consolidated statement of income on a straight-line basis over the lease term. Operating leases mainly comprise land in which cell towers are located (including those related to towers sold and leased back) and buildings. Total operating lease expense from continuing operations for the year ended December 31, 2018 , was $155 million ( 2017 : $155 million ; 2016 : $159 million – see note B.2.). Annual operating lease commitments from continuing operations 2018 (i) 2017 (i) (US$ millions) Within one year 127 130 Between one and five years 412 372 After five years 262 258 Total 800 759 (i) The Group’s share in joint ventures operating lease commitments amount to US$312 million ( 2017 : US$194 million ; 2016 : US$210 million ) and are excluded from the table above. Finance leases Finance leases, which transfer substantially all risks and benefits incidental to ownership of the leased item to the lessee, are capitalized at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Where a finance lease results from a sale and leaseback transaction, any excess of sales proceeds over the carrying amount of the assets is deferred and amortized over the lease term. Capitalized leased assets are depreciated over the shorter of the estimated useful lives of the assets, or the lease term if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term. Finance leases mainly comprise lease of tower space in El Salvador, Paraguay, Tanzania and Colombia (see note C.3.4.), lease of poles in Colombia and tower sharing in other countries. Other financial leases mainly consist of lease agreements relating to vehicles and IT equipment. Annual minimum finance lease commitments from continuing operations 2018 (i) 2017 (i) (US$ millions) Within one year 99 97 Between one and five years 400 404 After five years 415 477 Total 914 978 (i) The Group’s share in joint ventures finance lease commitments amount to $1 million ( 2017 : $5 million ) and are excluded from the table above. The corresponding finance lease liabilities at December 31, 2018 , were $353 million ( 2017 : $365 million ). Interest expense on finance lease liabilities amounted to $92 million for the year 2018 ( 2017 : $65 million ). Contingent liabilities Litigation and legal risks The Company and its operations are contingently liable with respect to lawsuits, legal, regulatory, commercial and other legal risks that arise in the normal course of business. As of December 31, 2018 , the total amount of claims and litigation risks against Millicom and its operations was $687 million , of which $5 million related to its share in joint ventures ( December 31, 2017 : $438 million , of which $5 million related to its share in joint ventures). As at December 31, 2018 , $26 million has been provided for these risks in the consolidated statement of financial position ( December 31, 2017 : $29 million ). The Group’s share of provisions made by the joint ventures was $4 million ( December 31, 2017 : $2 million ). While it is not possible to ascertain the ultimate legal and financial liability with respect to these claims and risks, the ultimate outcome is not anticipated to have a material effect on the Group’s financial position and operations. Improper filling of shareholding in MIC Tanzania Public Limited Company In June 2016, Millicom was served with claims by a third party seeking to exert rights as a shareholder of MIC Tanzania Public Limited Company. In June 2015, Millicom identified that an incorrect filing related to MIC Tanzania Public Limited Company had been made in the commercial register, causing the register to incorrectly indicate that shares in the local subsidiary were owned by this third party. On July 26, 2018, the Court of Appeal of Tanzania, the country’s highest court, reaffirmed in a ruling that MIC Tanzania Public Limited Company remains owned and controlled by Millicom. Late 2018, the opposite party has filed a review of the ruling by the same Court of Appeals, which already ruled in Millicom's favor. Millicom considers the success of this review as remote and therefore continues to control and fully consolidate MIC Tanzania Public Limited Company. Ongoing investigation by the International Commission Against Impunity in Guatemala (CICIG) On July 14, 2017, the CICIG disclosed an ongoing investigation into alleged illegal campaign financing that includes a competitor of Comcel, our Guatemalan joint venture. The CICIG further indicated that the investigation would include Comcel. On November 23 and 24, 2017, Guatemala's attorney general and CICIG executed search warrants on the offices of Comcel. As at December 31, 2018 , the matter is still under investigation, and Management has not been able to assess the potential impact on these consolidated financial statements of any remedial actions that may need to be taken as a result of the investigations, or penalties that may be imposed by law enforcement authorities. Accordingly, no provision has been recorded as of December 31, 2018 . Other At December 31, 2018 , Millicom has various other less significant claims which are not disclosed separately in these consolidated financial statements because they are either not material or the related risk is remote. Tax related risks and uncertain tax position The Group operates in developing countries where the tax systems, regulations and enforcement processes have varying stages of development creating uncertainty regarding the application of the tax law and interpretation of tax treatments. The Group is also subject to regular tax audits in the countries where it operates. When there is uncertainty over whether the taxation authority will accept a specific tax treatment under the local tax law, that tax treatment is therefore uncertain. The resolution of tax positions taken by the Group, through negotiations with relevant tax authorities or through litigation, can take several years to complete and, in some cases, it is difficult to predict the ultimate outcome. Therefore, judgment is required to determine provisions for taxes. In assessing whether and how an uncertain tax treatment affects the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, the Group assumes that a taxation authority with the right to examine amounts reported to it will examine those amounts and have full knowledge of all relevant information when making those examinations. The Group has a process in place to identify its uncertain tax positions. Management then considers whether or not it is probable that a taxation authority will accept an uncertain tax treatment. On that basis, the identified risks are split into three categories (i) remote risks (risk of outflow of tax payments are up to 20% ), (ii) possible risks (risk of outflow of tax payments assessed from 21% to 49% ) and probable risks (risk of outflow is more than 50% ). The process is repeated every quarter by the Group. If the Group concludes that it is probable or certain that the taxation authority will accept the tax treatment, the risks are categorized either as possible or remote, and it determines the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment used or planned to be used in its income tax filings. The risks considered as possible are not provisioned but disclosed as tax contingencies in the Group consolidated financial statements while remote risks are neither provisioned nor disclosed. If the Group concludes that it is probable that the taxation authority will not accept the Group’s interpretation of the uncertain tax treatment, the risks are categorized as probable, and are presented to reflect the effect of uncertainty in determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates by generally using the most likely amount method – the single most likely amount in a range of possible outcomes. If an uncertain tax treatment affects both deferred tax and current tax, the Group makes consistent estimates and judgments for both. For example, an uncertain tax treatment may affect both taxable profits used to determine the current tax and tax bases used to determine deferred tax. If facts and circumstances change, the Group reassesses the judgments and estimates regarding the uncertain tax position taken. At December 31, 2018 , potential tax risks estimated by the Group amount to $254 million , of which provisions of $47 million have been recorded representing the probable amount of eventual claims and required payments related to those risks ( 2017 : $313 million of which provisions of $53 million were recorded). Out of these potential claims and provisions, respectively $29 million ( 2017 : $38 million ) and $2 million ( 2017 : $2 million ) related to Millicom’s share in these joint ventures. Non-cash investing and financing activities Non-cash investing and financing activities from continuing operations Note 2018 2017 2016 (US$ millions) Investing activities Acquisition of property, plant and equipment, including finance leases E.2.2. (66 ) (174 ) 34 Asset retirement obligations E.2.2. 15 (20 ) (17 ) Acquisition of subsidiaries, joint ventures and associates, net of cash acquired A.1.2. 30 — — Financing activities Finance leases G.2.2. (43 ) 192 1 Share based compensation B.4.1. 22 22 14 Related party balances and transactions The Group’s significant related parties are: • Kinnevik AB (Kinnevik) and subsidiaries, Millicom’s principal shareholder; • Helios Towers Africa Ltd (HTA) , in which Millicom holds a direct or indirect equity interest (see note A.3.2.); • EPM and subsidiaries (EPM) , the non-controlling shareholder in our Colombian operations (see note A.1.4.); • Miffin Associates Corp and subsidiaries (Miffin) , our joint venture partner in Guatemala. • Cable Onda partners and subsidiaries , the non-controlling shareholders in our Panama operations (see note A.1.2.). Kinnevik Millicom’s principal shareholder is Kinnevik. Kinnevik is a Swedish holding company with interests in the telecommunications, media, publishing, paper and financial services industries. At December 31, 2018 , Kinnevik owned approximately 37% of Millicom ( 2017 : 37% ). During 2018 , 2017 and 2016 , Kinnevik did not purchase any Millicom shares. There are no significant loans made by Millicom to or for the benefit of Kinnevik or Kinnevik controlled entities. During 2018 , 2017 and 2016 , the Company purchased services from Kinnevik subsidiaries including fraud detection, procurement and professional services. Transactions and balances with Kinnevik Group companies are disclosed under Other in the tables below. Also refer to note A.3. for further details with respect to the disposal of one portion of our investment in Milvik AB. Helios Towers Millicom sold its tower assets and leased back a portion of space on the towers in several African countries and contracted for related operation and management services with HTA. The Group has future lease commitments in respect of the tower companies (see note G.2.2.). Empresas Públicas de Medellín (EPM) EPM is a state-owned, industrial and commercial enterprise, owned by the municipality of Medellin, and provides electricity, gas, water, sanitation, and telecommunications. EPM owns 50% of our operations in Colombia. Miffin Associates Corp (Miffin) The Group purchases and sells products and services from and to the Miffin Group. Transactions with Miffin represent recurring commercial operations such as purchase of handsets, and sale of airtime. Cable Onda Partners Our partners in Panama are the non-controlling shareholders of Cable Onda and own 20% of the company. Additionally, they also hold interests in several entities which have purchasing and selling recurring commercial operations with Cable Onda (such as the sale of content costs, delivery of broadband services, etc.). Expenses from transactions with related parties 2018 2017 2016 (US$ millions) Purchases of goods and services from Miffin (173 ) (181 ) (167 ) Purchases of goods and services from EPM (40 ) (36 ) (22 ) Lease of towers and related services from HTA (28 ) (28 ) (35 ) Other expenses (3 ) (4 ) (9 ) Total (244 ) (250 ) (233 ) Income and gains from transactions with related parties 2018 2017 2016 (US$ millions) Sale of goods and services to EPM 17 18 18 Sale of goods and services to Miffin 284 277 261 Other revenue 2 1 10 Total 303 295 289 As at December 31, the Company had the following balances with related parties: Year ended December 31, 2018 2017 (US$ millions) Non-current and current liabilities Payables to Guatemala joint venture(i) 315 273 Payables to Honduras joint venture(ii) 143 135 Payables to EPM 14 3 Other accounts payable 9 10 Sub-total 482 421 Finance lease liabilities to tower companies(iii) 99 108 Total 580 529 (i) Shareholder loans bearing interest. Out of the amount above, $135 million are due over more than one year. (ii) Amount payable mainly consist of dividend advances for which dividends are expected to be declared later in 2019 and/or shareholder loans. (iii) Disclosed under Debt and other financing in the statement of financial position. Year ended December 31, 2018 2017 (US$ millions) Non-current and current assets Receivables from EPM 5 3 Receivables from Guatemala and Honduras joint ventures 20 25 Advance payments to Helios Towers Tanzania 6 8 Receivable from AirtelTigo Ghana(i) 41 40 Other accounts receivable 1 1 Total 73 77 (i) Disclosed under Other non-current assets in the statement of financial position. See note A.2.2. |
IPO - Millicom's operations in
IPO - Millicom's operations in Tanzania | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity [Abstract] | |
IPO - Millicom's operations in Tanzania | IPO – Millicom’s operations in Tanzania In June 2016, an amendment to the Electronic and Postal Communications Act (“EPOCA”) in the Finance Act 2016 required all Tanzanian licensed telecom operators to sell 25% of the authorised share capital in a public offering on the Dar Es Salaam Stock Exchange. Early 2017, Tigo Tanzania, Zantel and Telesis each received from the Tanzanian Communications Regulatory Authority (TCRA) a notice of material breach of the license giving thirty-days to comply. Millicom has signaled its intention for its subsidiaries to comply with the law and list its businesses but did not complete the public offerings by such time until the incorrect filing related to Tigo Tanzania made in the commercial register was corrected (see note G.3.1.). Accordingly, Millicom’s businesses in Tanzania may face sanctions from the regulator or other government bodies, which could include financial penalties, or even suspension or cancellation of its license although to-date there has been no notification from the TCRA of any indication or intention to proceed with sanctions. Management is currently not able to assess the financial impact on its consolidated financial statements (although the Company deems the suspension or cancellation of the license to be unlikely) and therefore, no provision has been recorded as of December 31, 2018. This said, the Group is currently working on the preliminary steps (e.g., converting Tigo Tanzania into a public limited company) with the view of listing in the first half of 2019. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events Nasdaq On January 9, 2019, Millicom shares began trading on the Nasdaq Stock Exchange in the U.S. under ticker symbol TIGO. Dividend On February 7, 2019, Millicom’s Board decided to propose to the AGM of the shareholders a dividend distribution of US$2.64 per share to be paid in two equal installments in May and November 2019, out of Millicom profits for the year ended December 31, 2018 . The AGM to vote this matter is scheduled for May 2, 2019. Telefónica acquisition On February 20, 2019, the Group announced it has entered into agreements with Telefónica S.A. and certain of its affiliates (Telefónica), to acquire the entire share capital of Telefónica Móviles Panamá, S.A., Telefónica de Costa Rica TC, S.A. (and its wholly owned subsidiary, Telefónica Gestión de Infraestructura y Sistemas de Costa Rica, S.A.) and Telefonía Celular de Nicaragua, S.A. (together, Telefonica CAM) for a combined enterprise value of $1,650 million (the Transaction) payable in cash. The Transaction is subject to customary closing conditions, including regulatory approval in each market, and closings are expected during H2 2019. Millicom has secured bridge funding commitments to finance the acquisition, and the bridge will be refinanced predominantly with the issuance of new debt by Millicom and its operating subsidiaries. |
Introduction (Policies)
Introduction (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Description of accounting policy for foreign currency translation | Financial information in these financial statements are shown in the US dollar presentation currency of the Group and rounded to the nearest million (US$ million) except where otherwise indicated. The financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which each entity operates (the functional currency). The functional currency of each subsidiary, joint venture and associate reflects the economic substance of the underlying events and circumstances of these entities. Except for El Salvador where the functional currency is US dollar, the functional currency in other countries is the local currency. The results and financial position of all Group entities (none of which operate in an economy with a hyperinflationary environment) with functional currency other than the US dollar presentation currency are translated into the presentation currency as follows: (i) Assets and liabilities are translated at the closing rate on the date of the statement of financial position; (ii) Income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and (iii) All resulting exchange differences are recognized as a separate component of equity (currency translation reserve), in the caption “Other reserves”. On consolidation, exchange differences arising from the translation of net investments in foreign operations, and of borrowings and other currency instruments designated as hedges of such investments, are recorded in equity. When the Group disposes of or loses control over a foreign operation, exchange differences that were recorded in equity are recognized in the consolidated income statement as part of gain or loss on sale or loss of control. Goodwill and fair value adjustments arising on acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. Foreign exchange gains and losses Transactions denominated in a currency other than the functional currency are translated into the functional currency using exchange rates prevailing at the transaction dates. Foreign exchange gains and losses resulting from the settlement of such transactions, and on translation of monetary assets and liabilities denominated in currencies other than the functional currency at year-end exchange rates, are recognized in the consolidated statement of income, except when deferred in equity as qualifying cash flow hedges. |
Description of accounting policy for subsidiaries | Subsidiaries are fully consolidated from the date on which control is transferred to Millicom. If facts and circumstances indicate that there are changes to one or more of the elements of control, a reassessment is performed to determine if control still exists. Subsidiaries are de-consolidated from the date that control ceases. Transactions with non-controlling interests are accounted for as transactions with equity owners of the Group. Gains or losses on disposals of non-controlling interests are recorded in equity. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is also recorded in equity. |
Description of accounting policy for investments in joint ventures | Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost (calculated at fair value if it was a subsidiary of the Group before becoming a joint venture). The Group’s investments in joint ventures include goodwill (net of any accumulated impairment loss) on acquisition. The Group’s share of post-acquisition profits or losses of joint ventures is recognized in the consolidated statement of income and its share of post-acquisition movements in reserves is recognized in reserves. Cumulative post-acquisition movements are adjusted against the carrying amount of the investments. When the Group’s share of losses in a joint venture equals or exceeds its interest in the joint venture, including any other unsecured receivables, the Group does not recognize further losses, unless the Group has incurred obligations or made payments on behalf of the joint ventures. Gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group. Dilution gains and losses arising in investments in joint ventures are recognized in the statement of income. After application of the equity method, including recognizing the joint ventures’ losses, the Group applies IAS 39 to determine whether it is necessary to recognize any additional impairment loss with respect to its net investment in the joint venture. |
Description of accounting policy for investment in associates | The Group accounts for associates in the same way as it accounts for joint ventures. |
Description of accounting policy for discontinued operations | Discontinued operations are those which have identifiable operations and cash flows (for both operating and management purposes) and represent a major line of business or geographic area which has been disposed of, or are held for sale. Revenue and expenses associated with discontinued operations are presented retrospectively in a separate line in the consolidated statement of income. Millicom determined that the loss of path to control of operations by the termination of a contractual arrangement (e.g. termination without exercise of an unconditional call option agreement giving path to control, as occurred with the Guatemala and Honduras operations) does not require presentation as a discontinued operation. |
Description of accounting policy for recognition of revenue | Revenue is recognized at an amount that reflects the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. Post-paid connection fees are derived from the payment of a non-refundable / one-time fee charged to customer to connect to the network (e.g. connection / installation fee). Usually, it does not represent a distinct good or service, and therefore does not give rise to a separate performance obligation and revenue is recognized over the minimum contract duration. However, if the fee is paid by a customer to get the right to receive goods or services without having to pay this fee again over his tenure with the Group (e.g. the customer can readily extend his contract without having to pay the same fee again), it is accounted for as a material right and revenue should be recognized over the customer retention period. Post-paid mobile / cable subscription fees are recognized over the relevant enforceable/subscribed service period (recurring monthly access fees that do not vary based on usage). The service provision is usually considered as a series of distinct services that have the same pattern of transfer to the customer. Remaining unrecognized subscription fees, which are not refunded to the customers, are fully recognized once the customer has been disconnected. Prepaid scratch / SIM cards are services where customers purchase a specified amount of airtime or other credit in advance. Revenue is recognized as the credit is used. Unused credit is carried in the statement of financial position as a contract liability. Upon expiration of the validity period, the portion of the contract liability relating to the expiring credit is recognized as revenue, since there is no longer an obligation to provide those services. Telephone and equipment sales are recognized as revenue once the customer obtains control of the good. That criteria is fulfilled when the customer has the ability to direct the use and obtain substantially all of the remaining benefits from that good. Revenue from provision of Mobile Financial Services (MFS) is recognized once the primary service has been provided to the customer. Customer premise equipment (CPE) are provided to customers as a prerequisite to receive the subscribed Home services and shall be returned at the end of the contract duration. Since CPEs provided over the contract term do not provide benefit to the customer on their own, they do not give rise to separate performance obligations and therefore are accounted for as part of the service provided to the customers. Bundled offers are considered arrangements with multiple deliverables or elements, which can lead to the identification of separate performance obligations. Revenue is recognized in accordance with the transfer of goods or services to customers in an amount that reflects the relative standalone selling price of the performance obligation (e.g. sale of telecom services, revenue over time + sale of handset, revenue at a point in time). Principal-Agent, some arrangements involve two or more unrelated parties that contribute to providing a specified good or service to a customer. In these instances, the Group determines whether it has promised to provide the specified good or service itself (as a principal) or to arrange for those specified goods or services to be provided by another party (as an agent). For example, performance obligations relating to services provided by third-party content providers (i.e., mobile Value Added Services or “VAS”) or service providers (i.e., wholesale international traffic) where the Group neither controls a right to the provider’s service nor controls the underlying service itself are presented net because the Group is acting as an agent. The Group generally acts as a principal for other types of services where the Group is the primary obligor of the arrangement. In cases the Group determines that it acts as a principal, revenue is recognized in the gross amount, whereas in cases the Group acts as an agent revenue is recognized in the net amount. Revenue from the sale of cables, fiber, wavelength or capacity contracts, when part of the ordinary activities of the operation, is recognized as recurring revenue. Revenue is recognized when the cable, fiber, wavelength or capacity has been delivered to the customer, based on the amount expected to be received from the customer. Revenue from operating lease of tower space is recognized over the period of the underlying lease contracts. Finance leases revenue is apportioned between lease of tower space and interest income. |
Description of accounting policy for expenses | Cost of sales Cost of sales is recorded on an accrual basis. Customer acquisition costs Specific customer acquisition costs, including dealer commissions and handset subsidies, are charged to marketing expenses when the customer is activated. Operating leases Operating leases are all leases that do not qualify as finance leases. Operating lease payments are recognized as expenses in the consolidated statement of income on a straight-line basis over the lease term. |
Description of accounting policy for segment reporting | Management determines operating and reportable segments based on information used by the chief operating decision maker (CODM) to make strategic and operational decisions from both a business and geographic perspective. The Group’s risks and rates of return are predominantly affected by operating in different geographical regions. The Group has businesses in two main regions: Latin America ("Latam") and Africa. The Latam figures below include Honduras and Guatemala as if they are fully consolidated by the Group, as this reflects the way management reviews and uses internally reported information to make decisions. Honduras and Guatemala are shown under the Latam segment. The joint venture in Ghana is not reported as if fully consolidated. As from January 1, 2018 , segment EBITDA includes inter-company management fees and incentive compensation paid to local management teams. These items, were previously included in unallocated corporate costs. |
Description of accounting policy for share-based payment transactions | The cost of these plans is recognized, together with a corresponding increase in equity (share compensation reserve), over the period in which the performance and/or employment conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award. Adjustments are made to the expense recorded for forfeitures, mainly due to management and employees leaving Millicom. Non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. These are treated as vested, regardless of whether or not the market conditions are satisfied, provided that all other performance conditions are satisfied. Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms had not been modified. In addition, an expense is recognized for any modification that increases the total fair value of the share based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification. |
Description of accounting policy for employee benefits | The pension plans apply to employees who meet certain criteria (including years of service, age and participation in collective agreements). Pension and other similar employee related obligations can result from either defined contribution plans or defined benefit plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. No further payment obligations exist once the contributions have been paid. The contributions are recognized as employee benefit expenses when they are due. Prepaid contributions are recognized as assets to the extent that a cash refund or a reduction in future payments is available. Defined benefit pension plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of the defined benefit pension plan is the present value of the defined benefit obligation at the statement of financial position date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows, using an appropriate discount rate based on maturities of the related pension liability. Re-measurement of net defined benefit liabilities are recognized in other comprehensive income and not reclassified to the statement of income in subsequent years. Past service costs are recognized in the statement of income on the earlier of the date of the plan amendment or curtailment, and the date that the Group recognizes related restructuring costs. Net interest is calculated by applying the discount rate to the net defined benefit asset/liability. Long-service plans Long-service plans apply for Colombian subsidiary UNE employees with more than five years of service whereby additional bonuses are paid to employees that reach each incremental length of service milestone (from five to 40 years ). Termination plans In addition, UNE has a number of employee defined benefit plans. The level of benefits provided under the plans depends on collective employment agreements and Colombian labor regulations. There are no defined assets related to the plans, and UNE make payments to settle obligations under the plans out of available cash balances. |
Description of accounting policy for deferred income tax | Deferred tax is calculated using the liability method on temporary differences at the statement of financial position date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting, nor taxable profit or loss. Deferred tax assets are recognized for all temporary differences including unused tax credits and tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized, except where the deferred tax assets relate to deductible temporary differences from initial recognition of an asset or liability in a transaction that is not a business combination, and, at the time of the transaction, affects neither accounting, nor taxable profit or loss. It is probable that taxable profit will be available when there are sufficient taxable temporary differences relating to the same tax authority and the same taxable entity which are expected to reverse in the same period as the expected reversal of the deductible temporary difference. The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to utilize them. Unrecognized deferred tax assets are reassessed at each statement of financial position date and are recognized to the extent it is probable that future taxable profit will enable the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rate expected to apply in the year when the assets are realized or liabilities settled, based on tax rates and tax laws that have been enacted or substantively enacted at the statement of financial position date. Deferred tax assets and deferred tax liabilities are offset where legally enforceable set off rights exist and the deferred taxes relate to the same taxable entity and the same taxation authority. |
Description of accounting policy for earnings per share | Basic earnings (loss) per share are calculated by dividing net profit for the year attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings (loss) per share are calculated by dividing the net profit for the year attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year, plus the weighted average number of dilutive potential shares. |
Description of accounting policy for treasury shares | Where any Group company purchases the Company’s share capital, the consideration paid, including any directly attributable incremental costs, is shown under Treasury shares and deducted from equity attributable to the Company’s equity holders until the shares are canceled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable incremental costs and the related income tax effects is included in equity attributable to the Company’s equity holders. |
Description of accounting policy for intangible assets and goodwill | Intangible assets acquired in business acquisitions are initially measured at fair value at the date of acquisition, and those which are acquired separately are measured at cost. Internally generated intangible assets, excluding capitalized development costs, are not capitalized but expensed to the statement of income in the expense category consistent with the function of the intangible assets. Subsequently intangible assets are carried at cost, less any accumulated amortization and any accumulated impairment losses. Intangible assets with finite useful lives are amortized over their estimated useful economic lives using the straight-line method and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for intangible assets with finite useful lives are reviewed at least at each financial year end. Changes in expected useful lives or the expected beneficial use of the assets are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. Amortization expense on intangible assets with finite lives is recognized in the consolidated statement of income in the expense category consistent with the function of the intangible assets. Goodwill Goodwill represents the excess of cost of an acquisition over the Group’s share in the fair value of identifiable assets less liabilities and contingent liabilities of the acquired subsidiary, at the date of the acquisition. If the fair value or the cost of the acquisition can only be determined provisionally, then goodwill is initially accounted for using provisional values. Within 12 months of the acquisition date, any adjustments to the provisional values are recognized. This is done when the fair values and the cost of the acquisition have been finally determined. Adjustments to provisional fair values are made as if the adjusted fair values had been recognized from the acquisition date. Goodwill on acquisition of subsidiaries is included in intangible assets, net. Goodwill on acquisition of joint ventures or associates is included in investments in joint ventures and associates. Following initial recognition, goodwill is measured at cost, less any accumulated impairment losses. Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Where goodwill forms part of a cash-generating unit (or group of cash-generating units) and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed of in this manner is measured, based on the relative values of the operation disposed and the portion of the cash-generating unit retained. Licenses Licenses are recorded at either historical cost or, if acquired in a business combination, at fair value at the date of acquisition. Cost includes cost of acquisition and other costs directly related to acquisition and retention of licenses over the license period. These costs may include estimates related to fulfillment of terms and conditions related to the licenses such as service or coverage obligations, and may include up-front and deferred payments. Licenses have a finite useful life and are carried at cost less accumulated amortization and any accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of the licenses over their estimated useful lives. The terms of licenses, which have been awarded for various periods, are subject to periodic review for, among other things, rate setting, frequency allocation and technical standards. Licenses are initially measured at cost and are amortized from the date the network is available for use on a straight-line basis over the license period. Licenses held, subject to certain conditions, are usually renewable and generally non-exclusive. When estimating useful lives of licenses, renewal periods are included only if there is evidence to support renewal by the Group without significant cost. Trademarks and customer lists Trademarks and customer bases are recognized as intangible assets only when acquired or gained in a business combination. Their cost represents fair value at the date of acquisition. Trademarks and customer bases have indefinite or finite useful lives. Indefinite useful life trademarks are tested for impairment annually. Finite useful life trademarks are carried at cost, less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of the trademarks and customer bases over their estimated useful lives. The estimated useful lives for trademarks and customer bases are based on specific characteristics of the market in which they exist. Trademarks and customer bases are included in Intangible assets, net. |
Description of accounting policy for impairment of non-financial assets | At each reporting date Millicom assesses whether there is an indication that a non-financial asset may be impaired. If any such indication exists, or when annual impairment testing for a non-financial asset is required, an estimate of the asset’s recoverable amount is made. The recoverable amount is determined based on the higher of its fair value less cost to sell, and its value in use, for individual assets, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Where no comparable market information is available, the fair value, less cost to sell, is determined based on the estimated future cash flows discounted to their present value using a discount rate that reflects current market conditions for the time value of money and risks specific to the asset. The foregoing analysis also evaluates the appropriateness of the expected useful lives of the assets. Impairment losses of continuing operations are recognized in the consolidated statement of income in expense categories consistent with the function of the impaired asset. At each reporting date an assessment is made as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. Other than for goodwill, a previously recognized impairment loss is reversed if there has been a change in the estimate used to determine the asset’s recoverable amount since the last impairment loss was recognized. If so, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. |
Description of accounting policy for impairment of assets | Goodwill from CGUs is tested for impairment at least each year and more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Impairment losses on goodwill are not reversed. Goodwill arising on business combinations is allocated to each of the Group’s CGUs or groups of CGUs that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Each unit or group of units to which the goodwill is allocated: • Represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and • Is not larger than an operating segment. Impairment is determined by assessing the value-in-use and, if appropriate, the fair value less costs to sell of the CGU (or group of CGUs), to which goodwill relates. |
Description of accounting policy for property, plant and equipment | Items of property, plant and equipment are stated at either historical cost, or the lower of fair value and present value of the future minimum lease payments for assets under finance leases, less accumulated depreciation and accumulated impairment. Historical cost includes expenditure that is directly attributable to acquisition of items. The carrying amount of replaced parts is derecognized. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset and the remaining life of the license associated with the assets, unless the renewal of the license is contractually possible. Estimated useful lives Duration Buildings 40 years or lease period, if shorter Networks (including civil works) 5 to 15 years or lease period, if shorter Other 2 to 7 years The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The assets’ residual value and useful life is reviewed, and adjusted if appropriate, at each statement of financial position date. An asset’s carrying amount is written down immediately to its recoverable amount if its carrying amount is greater than its estimated recoverable amount. Construction in progress consists of the cost of assets, labor and other direct costs associated with property, plant and equipment being constructed by the Group, or purchased assets which have yet to be deployed. When the assets become operational, the related costs are transferred from construction in progress to the appropriate asset category and depreciation commences. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Ongoing routine repairs and maintenance are charged to the statement of income in the financial period in which they are incurred. Costs of major inspections and overhauls are added to the carrying value of property, plant and equipment and the carrying amount of previous major inspections and overhauls is derecognized. Equipment installed on customer premises which is not sold to customers is capitalized and amortized over the customer contract period. A liability for the present value of the cost to remove an asset on both owned and leased sites (for example cell towers) and for assets installed on customer premises (for example set-top boxes), is recognized when a present obligation for the removal exists. The corresponding cost of the obligation is included in the cost of the asset and depreciated over the useful life of the asset, or lease period if shorter. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset when it is probable that such costs will contribute to future economic benefits for the Group and the costs can be measured reliably. |
Description of accounting policy for non-current assets or disposal groups classified as held for sale | If Millicom decides to sell subsidiaries, investments in joint ventures or associates, or specific non-current assets in its businesses, these items qualify as assets held for sale if certain conditions are met. Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying amount and fair value less costs to sell if their carrying amount is expected to be recovered principally through sale, not through continuing use. Liabilities of disposal groups are classified as Liabilities directly associated with assets held for sale. |
Description of accounting policy for trade receivables | Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less provision for expected credit losses. The Group recognizes an allowance for expected credit losses (ECLs) applying a simplified approach in calculating the ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime of ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The provision for expected credit losses is recognized in the consolidated statement of income within Cost of sales. |
Description of accounting policy for loans and receivables | Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those maturing more than 12 months after the end of the reporting period. These are classified within non-current assets. Loans and receivables are carried at amortized cost using the effective interest method. Gains and losses are recognized in the statement of income when the loans and receivables are derecognized or impaired, as well as through the amortization process. |
Description of accounting policy for measuring inventories | Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. |
Description of accounting policy for trade and other payables | Trade payables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method where the effect of the passage of time is material. |
Description of accounting policy for provisions | Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, risks specific to the liability. Where discounting is used, increases in the provision due to the passage of time are recognized as interest expenses. |
Description of accounting policy for leases | Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement and involves an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and whether or not the arrangement conveys a right to use the asset. The sale and leaseback of towers and related site operating leases and service contracts are accounted for in accordance with the underlying characteristics of the assets, and the terms and conditions of the lease agreements. On transfer to the tower companies, the portion of the towers leased back are accounted for as operating leases or finance leases according to the criteria set out above. The portion of towers being leased back represents the dedicated part of each tower on which Millicom’s equipment is located and was derived from the average technical capacity of the towers. Rights to use the land on which the towers are located are accounted for as operating leases, and costs of services for the towers are recorded as operating expenses. Operating leases Operating leases are all other leases that are not finance leases. Operating lease payments are recognized as expenses in the consolidated statement of income on a straight-line basis over the lease term. Finance leases Finance leases, which transfer substantially all risks and benefits incidental to ownership of the leased item to the lessee, are capitalized at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Where a finance lease results from a sale and leaseback transaction, any excess of sales proceeds over the carrying amount of the assets is deferred and amortized over the lease term. Capitalized leased assets are depreciated over the shorter of the estimated useful lives of the assets, or the lease term if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term. |
Description of accounting policy for income tax | Current tax assets and liabilities for current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rate and tax laws used to compute the amount are those enacted or substantively enacted by the statement of financial position date. The Group operates in developing countries where the tax systems, regulations and enforcement processes have varying stages of development creating uncertainty regarding the application of the tax law and interpretation of tax treatments. The Group is also subject to regular tax audits in the countries where it operates. When there is uncertainty over whether the taxation authority will accept a specific tax treatment under the local tax law, that tax treatment is therefore uncertain. The resolution of tax positions taken by the Group, through negotiations with relevant tax authorities or through litigation, can take several years to complete and, in some cases, it is difficult to predict the ultimate outcome. Therefore, judgment is required to determine provisions for taxes. In assessing whether and how an uncertain tax treatment affects the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, the Group assumes that a taxation authority with the right to examine amounts reported to it will examine those amounts and have full knowledge of all relevant information when making those examinations. The Group has a process in place to identify its uncertain tax positions. Management then considers whether or not it is probable that a taxation authority will accept an uncertain tax treatment. On that basis, the identified risks are split into three categories (i) remote risks (risk of outflow of tax payments are up to 20% ), (ii) possible risks (risk of outflow of tax payments assessed from 21% to 49% ) and probable risks (risk of outflow is more than 50% ). The process is repeated every quarter by the Group. If the Group concludes that it is probable or certain that the taxation authority will accept the tax treatment, the risks are categorized either as possible or remote, and it determines the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment used or planned to be used in its income tax filings. The risks considered as possible are not provisioned but disclosed as tax contingencies in the Group consolidated financial statements while remote risks are neither provisioned nor disclosed. If the Group concludes that it is probable that the taxation authority will not accept the Group’s interpretation of the uncertain tax treatment, the risks are categorized as probable, and are presented to reflect the effect of uncertainty in determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates by generally using the most likely amount method – the single most likely amount in a range of possible outcomes. If an uncertain tax treatment affects both deferred tax and current tax, the Group makes consistent estimates and judgments for both. For example, an uncertain tax treatment may affect both taxable profits used to determine the current tax and tax bases used to determine deferred tax. If facts and circumstances change, the Group reassesses the judgments and estimates regarding the uncertain tax position taken. |
Introduction (Tables)
Introduction (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Foreign exchange rates | The following table presents functional currency translation rates for the Group’s locations to the US dollar on December 31, 2018 , 2017 and 2016 and the average rates for the years ended December 31, 2018 , 2017 and 2016 . Exchange Rates to the US Dollar Functional Currency 2018 Average Rate 2018 Year-end Rate Change % 2017 Average Rate 2017 Year-end Rate Change % 2016 Average Rate Bolivia Boliviano (BOB) 6.91 6.91 n/a 6.91 6.91 n/a 6.91 Chad CFA Franc (XAF) 571 580 3.99 % 588 558 12.00 600 Colombia Peso (COP) 2,973 3,250 8.91 % 2,961 2,984 1.00 3,049 Costa Rica Costa Rican Colon (CRC) 578 608 6.12 % 571 573 (2.00 ) 551 El Salvador US dollar n/a n/a n/a n/a n/a n/a n/a Ghana Cedi (GHS) 4.63 4.82 9.12 % 4.36 4.42 (5.00 ) 3.92 Guatemala Quetzal (GTQ) 7.52 7.74 5.41 % 7.36 7.34 2.00 7.61 Honduras Lempira (HNL) 23.99 24.42 3.19 % 23.58 23.67 — 22.92 Luxembourg Euro (EUR) 0.85 0.87 5.08 % 0.89 0.83 12.00 0.91 Nicaragua Cordoba (NIO) 31.55 32.33 5 % 30.05 30.79 (5.00 ) 28.62 Panama Balboa (B/.) (i) n/a n/a n/a n/a n/a n/a n/a Paraguay Guarani (PYG) 5,743 5,961 6.64 % 5,626 5,590 3.00 5,686 Sweden Krona (SEK) 8.71 8.85 8.23 % 8.53 8.18 10.00 8.58 Tanzania Shilling (TZS) 2,274 2,299 2.42 % 2,233 2,245 (3.00 ) 2,183 United Kingdom Pound (GBP) 0.75 0.78 5.93 % 0.77 0.74 9.00 0.74 (i) the balboa is tied to the United States dollar at an exchange rate of 1:1. |
Effects of implementation of new IFRS | The following summarizes the amount by which each financial statement line item is affected in the current reporting year by the application of IFRS 15 as compared to previous standard and interpretations: 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change (US$ millions) INCOME STATEMENT Total revenue 4,074 4,151 (77 ) (i) Cost of sales (1,146 ) (1,194 ) 48 (ii) Operating expenses (1,674 ) (1,714 ) 40 (ii) Share of profit in the joint ventures in Guatemala and Honduras 154 152 2 (iii) Tax impact (116 ) (115 ) (1 ) (iv) (i) Mainly for adjustments for "principal vs agent" considerations under IFRS 15 for wholesale carrier business, as well as for the shift in the timing of revenue recognition due to the reallocation of revenue from service (over time) to telephone and equipment revenue (point in time). (ii) Mainly for the reallocation of cost for selling devices due to shift from service revenue to telephone and equipment revenue, for the capitalization and amortization of contract costs and for adjustments for "principal vs agent" under IFRS 15 for wholesale carrier business. (iii) Impact of IFRS 15 related to our share of profit in our joint ventures in Guatemala and Honduras. (iv) Tax effects of the above adjustments. 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change (US$ millions) FINANCIAL POSITION ASSETS Investment in joint ventures (non-current) 2,867 2,839 28 (i) Contract costs, net (non-current) 4 — 4 (ii) Deferred tax assets 202 200 2 (vi) Contract assets, net (current) 37 — 37 (iii) LIABILITIES Contract liabilities (current) 87 — 87 (iv) Provisions and other current liabilities 494 576 (82 ) (v) Current income tax liabilities 58 55 3 (vi) Deferred tax liabilities (non-current) 233 226 7 (vi) EQUITY Retained profits and loss for the year 2,525 2,468 57 (vii) Non-controlling interests 249 246 3 (vii) (i) Impact of application of IFRS 15 for our joint ventures in Guatemala, Honduras and Ghana. (ii) This mainly represents commissions capitalized and amortized over the average contract term. (iii) Contract assets mainly represents subsidized handsets as more revenue is recognized upfront while the cash will be received throughout the subscription period (which are usually between 12 to 36 months). Throughout the year ended December 31, 2018 no material impairment loss has been recognized. (iv) This mainly represents deferred revenue for goods and services not yet delivered to customers that will be recognized when the goods are delivered and the services are provided to customers. The balance also comprises the revenue from the billing of subscription fees or ‘one-time’ fees at the inception of a contract that are deferred and will be recognized over the average customer retention period or the contract term. (v) Reclassification of deferred revenue to contract liabilities - see previous paragraph. (vi) Tax effects of the above adjustments. (vii) Cumulative catch-up effect and IFRS 15 effect in the current year. The application of IFRS 15 and IFRS 9 had the following impact on the Group financial statements at January 1, 2018 : As at January 1, 2018 before application Effect of adoption of IFRS 15 Effect of adoption of IFRS 9 As at January 1, 2018 after application Reason for the change (US$ millions) FINANCIAL POSITION ASSETS Investment in joint ventures (non-current) 2,966 27 (4 ) 2,989 (i) Contract costs, net (non-current) NEW — 4 — 4 (ii) Deferred tax asset 180 — 10 191 (viii) Other non-current assets 113 — (1 ) 113 (iii) Trade receivables, net (current) 386 — (47 ) 339 (iv) Contract assets, net (current) NEW — 29 (1 ) 28 (v) LIABILITIES Contract liabilities (current) NEW — 51 — 51 (vi) Provisions and other current liabilities 425 (46 ) — 379 (vii) Deferred tax liability (non-current) 56 7 (1 ) 62 (viii) EQUITY Retained profits and loss for the year 3,035 48 (38 ) 3,045 (ix) Non-controlling interests 185 — (5 ) 181 (ix) (i) Impact of application of IFRS 15 and IFRS 9 for our joint ventures in Guatemala, Honduras and Ghana. (ii) This mainly represents commissions capitalized and amortized over the average contract term. (iii) Effect of the application of the expected credit losses required by IFRS 9 on amounts due from joint ventures. (iv) Effect of the application of the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables. (v) Contract assets mainly represents subsidized handsets as more revenue is recognized upfront while the cash will be received throughout the subscription period (which is usually between 12 to 36 months). (vi) This mainly represents deferred revenue for goods and services not yet delivered to customers that will be recognized when the goods are delivered and the services are provided to customers. The balance also comprises revenue from the billing of subscription fees or ‘one-time’ fees at the inception of a contract that are deferred and will be recognized over the average customer retention period or the contract term. (vii) Reclassification of deferred revenue to contract liabilities - see previous paragraph. (viii) Tax effects of the above adjustments. (ix) Cumulative catch-up effect. |
The Millicom Group (Tables)
The Millicom Group (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interests In Other Entities [Abstract] | |
Disclosure of main subsidiaries | Our main subsidiaries are as follows: Entity Country Activity December 31, 2018 December 31, 2017 December 31, 2016 Latin America Telemovil El Salvador S.A. de C.V. El Salvador Mobile, MFS, Cable, DTH, PayTV 100 100 100 Navega.com SA, Sucursal El Salvador El Salvador Cable, DTH 100 100 100 Cable Costa Rica S.A. Costa Rica Cable, DTH 100 100 100 Telefonica Celular de Bolivia S.A. Bolivia Mobile, DTH, MFS, Cable, PayTV 100 100 100 Telefonica Celular del Paraguay S.A. Paraguay Mobile, MFS, Cable, PayTV 100 100 100 Cable Onda S.A (i). Panama Cable, PayTV, Internet, DTH, Fixed-line 80 — — Colombia Móvil S.A. E.S.P.(ii) Colombia Mobile 50-1 share 50-1 share 50-1 share UNE EPM Telecomunicaciones S.A.(ii) Colombia Fixed-line, Internet, PayTV, Mobile 50-1 share 50-1 share 50-1 share Edatel S.A. E.S.P.(ii) Colombia Fixed-line, Internet, PayTV, Cable 50-1 share 50-1 share 50-1 share Africa Millicom Ghana Company Limited(iii) Ghana Mobile, MFS — — 100 Sentel GSM S.A.(iv) Senegal Mobile, MFS — 100 100 MIC Tanzania Public Limited Company Tanzania Mobile, MFS 100 100 100 Millicom Tchad S.A. Chad Mobile, MFS 100 100 100 Millicom Rwanda Limited(iv) Rwanda Mobile, MFS — 100 100 Zanzibar Telecom Limited Tanzania Mobile, MFS 85 85 85 Unallocated Millicom International Operations S.A. Luxembourg Holding Company 100 100 100 Millicom International Operations B.V. Netherlands Holding Company 100 100 100 Millicom LIH S.A. Luxembourg Holding Company 100 100 100 MIC Latin America B.V. Netherlands Holding Company 100 100 100 Millicom Africa B.V. Netherlands Holding Company 100 100 100 Millicom Holding B.V. Netherlands Holding Company 100 100 100 Millicom Spain S.L. Spain Holding Company 100 100 100 (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) Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities. (iii) Merged with Airtel Ghana in October 2017 and classified as discontinued operations for the year then ended (see note E.3.2.). Merged entity is accounted for as a joint venture as from merger date (see note A.2.2.). (iv) See note A.1.3. The summarized financial information for material non-controlling interests in our operations in Colombia is provided below. This information is based on amounts before inter-company eliminations. Detailed information on Cable Onda has been voluntarily omitted here as all details are already disclosed in note A.1.2. Colombia 2018 2017 2016 (US$ millions) Revenue 1,661 1,739 1,717 Total operating expenses (667 ) (647 ) (660 ) Operating profit 147 106 40 Net (loss) for the year (10 ) (25 ) (110 ) 50% non-controlling interest in net (loss) (5 ) (13 ) (55 ) Total assets (excluding goodwill) 1,966 2,193 2,221 Total liabilities 1,620 1,771 1,776 Net assets 346 422 445 50% non-controlling interest in net assets 173 211 223 Consolidation adjustments (12 ) (14 ) (16 ) Total non-controlling interest 161 197 207 Dividends and advances paid to non-controlling interest (2 ) — (67 ) Net cash from operating activities 348 331 366 Net cash from (used in) investing activities (270 ) (209 ) (340 ) Net cash from (used in) financing activities (75 ) (46 ) (24 ) Exchange impact on cash and cash equivalents, net (18 ) 3 1 Net increase in cash and cash equivalents (15 ) 80 3 |
Disclosure of business combination | The purchase accounting is still provisional at December 31, 2018 , particularly in respect of the evaluation of certain tangible assets. Provisional Fair values (100%) (US$ millions) Intangible assets (excluding goodwill), net (i) 673 Property, plant and equipment, net 348 Current assets (excluding cash) (ii) (iii) 54 Cash and cash equivalents 12 Total assets acquired 1,088 Non-current liabilities (iv) 422 Current liabilities (v) 141 Total liabilities assumed 563 Fair value of assets acquired and liabilities assumed, net 525 Transaction costs assumed by Cable Onda (vi) 30 Fair value of non-controlling interest in Cable Onda (20%) 111 Millicom’s interest in the fair value of Cable Onda (80%) 444 Acquisition price 956 Provisional Goodwill 512 (i) Intangible assets not previously recognized (or partially recognized as a result of previous acquisitions) are trademarks for an amount of $280 million , with estimated useful lives of 3 years , a customer list for an amount of $370 million , with estimated useful life of 20 years and favorable content contracts for $19 million , with a useful life of 10 years . (ii) Current assets include indemnification assets for tax contingencies at fair value for an amount of $4 million - see below. (iii) The fair value of trade receivables acquired was $34 million . (iv) Non-current liabilities include the deferred tax liability of $158 million resulting from the above adjustments. (v) Current liabilities include the fair value of certain tax contingent liabilities of $5 million . These are partly covered by the indemnification assets described in (ii) above. (vi) Transaction costs of $30 million have been assumed and paid by Cable Onda before the acquisition or by Millicom on the closing date. Because of their relationship with the acquisition, these costs have been accounted for as post-acquisition costs in the Millicom Group statement of income. These, together with acquisition-related costs of $11 million , have been recorded under operating expenses in the statement of income of the year. |
Disclosure of interests in joint ventures | Our main joint ventures are as follows: Entity Country Activity December 31, 2018 % holding December 31, 2017 % holding Comunicaciones Celulares S.A(i). Guatemala Mobile, MFS 55 55 Navega.com S.A.(i) Guatemala Cable, DTH 55 55 Telefonica Celular S.A(i). Honduras Mobile, MFS 66.7 66.7 Navega S.A. de CV(i) Honduras Cable 66.7 66.7 Bharti Airtel Ghana Holdings B.V. Netherlands Mobile, MFS 50 50 (i) Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities must be taken by a supermajority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity method. The carrying values of Millicom’s investments in joint ventures were as follows: Carrying value of investments in joint ventures at December 31 % 2018 2017 (US$ millions) Honduras operations(i) 66.7 730 726 Guatemala operations(i) 55 2,104 2,145 AirtelTigo Ghana operations 50 32 96 Total 2,867 2,966 (i) Includes all the companies under the Honduras and Guatemala groups. 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, 2017 2,179 766 — Change in scope — — 102 Results for the year 2017 126 15 (6 ) Dividends declared during the year (168 ) (46 ) — Currency exchange differences 7 (9 ) — Closing balance at December 31, 2017 2,145 726 96 Adjustment on adoption of IFRS 15 and IFRS 9 (net of tax) 18 5 — Capital increase — 3 — Results for the year 2018 131 23 (68 ) Dividends declared during the year (177 ) — — Currency exchange differences (14 ) (26 ) 3 Closing balance at December 31, 2018 2,104 730 32 (i) Share of profit (loss) is recognized under ‘Share of profit in the joint ventures in Guatemala and Honduras’ in the statement of income. (ii) Share of profit (loss) is recognized under ‘Income (loss) from other joint ventures and associates, net’ in the statement of income. |
Disclosure of summarised financial information of joint venture | Summarized financial information for the years ended December 31, 2018 , 2017 and 2016 of the Guatemala and Honduras operations is as follows. This information is based on amounts before inter-company eliminations. Guatemala 2018 2017 2016 (US$ millions) Revenue 1,373 1,328 1,284 Depreciation and amortization (283 ) (295 ) (281 ) Operating profit(i) 387 352 330 Financial income (expenses), net (56 ) (60 ) (73 ) Profit before taxes 309 305 261 Charge for taxes, net (69 ) (74 ) (67 ) Profit for the year 240 230 194 Net profit for the year attributable to Millicom 131 126 106 Dividends and advances paid to Millicom 211 162 77 Total non-current assets (excluding goodwill) 2,280 2,406 2,297 Total non-current liabilities 981 1,052 1,039 Total current assets 718 756 909 Total current liabilities 221 220 211 Cash and cash equivalents 217 303 289 Debt and financing – non-current 927 995 987 Net cash from operating activities 545 498 438 Net cash from (used in) investing activities (173 ) (171 ) (174 ) Net cash from (used in) financing activities (455 ) (315 ) (127 ) Exchange impact on cash and cash equivalents, net (3 ) 2 (3 ) Net (decrease) increase in cash and cash equivalents (86 ) 14 134 (i) In 2016 , operating profit included a provision for impairment of $24 million related to amounts receivable from video surveillance contracts with the Civil National Police. In 2017 , it also includes an additional impairment of $10 million ( 2016 : $18 million ) on the fixed assets related to the same contracts. Honduras 2018 2017 2016 (US$ millions) Revenue 586 585 609 Depreciation and amortization (133 ) (156 ) (160 ) Operating profit 91 70 54 Financial income (expenses), net (29 ) (27 ) (27 ) Profit before taxes 52 41 13 Charge for taxes, net (19 ) (18 ) — Profit for the year 34 24 13 Net profit for the year attributable to Millicom 23 15 9 Dividends and advances paid to Millicom 32 40 66 Total non-current assets (excluding goodwill) 506 576 645 Total non-current liabilities 386 407 454 Total current assets 304 208 259 Total current liabilities 226 282 237 Cash and cash equivalents 25 16 13 Debt and financing – non-current 298 308 339 Debt and financing – current 85 80 63 Net cash from operating activities 147 152 85 Net cash from (used in) investing activities (87 ) (74 ) (17 ) Net cash from (used in) financing activities (50 ) (74 ) (69 ) Net (decrease) increase in cash and cash equivalents 9 3 (1 ) AirtelTigo Ghana 2018 2017 (i) (US$ millions) (US$ millions) Revenue 187 58 Depreciation and amortization (110 ) (11 ) Operating loss (100 ) (1 ) Financial income (expenses), net (42 ) (10 ) Loss before taxes (135 ) (12 ) Charge for taxes, net — — Loss for the period (135 ) (12 ) Net loss for the period attributable to Millicom (68 ) (6 ) Dividends and advances paid to Millicom — — Total non-current assets (excluding goodwill) 277 184 Total non-current liabilities 277 214 Total current assets 71 60 Total current liabilities 134 106 Cash and cash equivalents 19 15 Debt and financing – non-current 276 145 Debt and financing – current 17 — Net cash from operating activities (19 ) 13 Net cash from (used in) investing activities (8 ) — Net cash from (used in) financing activities 42 (3 ) Net increase in cash and cash equivalents 15 10 (i) From the date of merger (October 12, 2017) to December 31, 2017 , for statement of income and cash flow metrics. |
Disclosure of interests in associates | The Group’s main associates are as follows: December 31, 2018 December 31, 2017 Entity Country Activity(ies) % holding % holding Africa Helios Towers Africa Ltd (HTA) Mauritius Holding of Tower infrastructure company 22.83 22.83 Africa Internet Holding GmbH (AIH) Germany Online marketplace, retail and services 10.15 10.15 West Indian Ocean Cable Company Limited (WIOCC) Republic of Mauritius Telecommunication carriers’ carrier 9.1 9.1 Latin America MKC Brilliant Holding GmbH (LIH) Germany Online marketplace, retail and services 35.0 35.0 Unallocated Milvik AB Sweden Other 12.3 12.3 At December 31, 2018 and 2017 , the carrying value of Millicom’s main associates was as follows: Carrying value of investments in associates at December 31 2018 2017 (US$ millions) MKC Brilliant Holding GmbH (LIH) — — African Internet Holding GmbH (AIH) 38 61 Helios Tower Africa Ltd (HTA) 105 149 Milvik AB 13 16 West Indian Ocean Cable Company Limited (WIOCC) 14 14 Total 169 241 |
Disclosure of summarised financial information of associates | The summarized financial information for the Group’s main material associates (i.e. HTA and AIH) is provided below. Summary of statement of financial position of associates at December 31, 2018 2017 (US$ millions) Total current assets 473 409 Total non-current assets 717 766 Total assets 1,190 1,176 Total current liabilities 343 268 Total non-current liabilities 627 602 Total liabilities 969 870 Total net assets 221 306 Millicom’s carrying value of its investment in HTA and AIH 142 211 Millicom’s carrying value of its investment in other associates 27 30 Millicom’s carrying value of its investment in associates 169 241 Profit (loss) from other joint ventures and associates 2018 2017 2016 (US$ millions) Revenue 511 449 378 Operating expenses (459 ) (321 ) (302 ) Operating profit (loss) (214 ) (148 ) (167 ) Net loss for the year (327 ) (220 ) (228 ) Millicom’s share of results from HTA and AIH (66 ) (34 ) (39 ) Millicom’s share of results from other associates (2 ) (45 ) (10 ) Millicom’s share of results from other joint ventures (Ghana) (68 ) (6 ) — Millicom’s share of results from other joint ventures and associates (136 ) (85 ) (49 ) |
Performance (Tables)
Performance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Disclosure of revenue | Revenue from continuing operations by category 2018 2017 2016 (US$ millions) Mobile 2,248 2,281 2,343 Cable and other fixed services 1,568 1,553 1,437 Other 46 41 39 Service revenue 3,861 3,876 3,820 Telephone and equipment and other 213 200 223 Total revenue 4,074 4,076 4,043 Revenue from continuing operations by country or operation 2018 2017 2016 (US$ millions) Colombia 1,661 1,739 1,717 Paraguay 679 662 623 Bolivia 614 555 542 El Salvador 405 422 425 Tanzania (excluding Zantel) 356 348 347 Chad 128 140 166 Costa Rica 155 153 152 Panama 17 — — Other operations 60 57 71 Total 4,074 4,076 4,043 Revenue from contracts with customers from continuing operations: Year ended December 31, 2018 $ millions Timing of revenue recognition Latin America Africa Total Group Mobile Over time 1,701 401 2,102 Mobile Financial Services Point in time 37 109 147 Cable and other fixed services Over time 1,556 12 1,568 Other Over time 42 3 46 Service Revenue 3,336 526 3,861 Telephone and equipment Point in time 212 1 213 Revenue from contracts with customers 3,548 526 4,074 Revenue from contracts with customers from continuing operations: Year ended December 31, 2018 $ millions Timing of revenue recognition Latin America Africa Total Group Mobile Over time 1,701 401 2,102 Mobile Financial Services Point in time 37 109 147 Cable and other fixed services Over time 1,556 12 1,568 Other Over time 42 3 46 Service Revenue 3,336 526 3,861 Telephone and equipment Point in time 212 1 213 Revenue from contracts with customers 3,548 526 4,074 |
Disclosure of cost of sales | The cost of sales and operating expenses incurred by the Group can be summarized as follows: Cost of sales 2018 2017 2016 (US$ millions) Direct costs of services sold (829 ) (913 ) (857 ) Cost of telephone, equipment and other accessories (230 ) (219 ) (254 ) Bad debt and obsolescence costs (87 ) (72 ) (63 ) Cost of sales (1,146 ) (1,205 ) (1,175 ) |
Disclosure of operating expenses | Operating expenses, net 2018 2017 2016 (US$ millions) Marketing expenses (404 ) (463 ) (442 ) Site and network maintenance costs (209 ) (176 ) (160 ) Employee related costs (B.4.) (514 ) (451 ) (451 ) External and other services (185 ) (152 ) (218 ) Rentals and operating leases (155 ) (155 ) (159 ) Other operating expenses (207 ) (197 ) (196 ) Operating expenses, net (1,674 ) (1,593 ) (1,627 ) |
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 2018 2017 2016 (US$ millions) Income from tower deal transactions C.3.4. 65 63 — Impairment of intangible assets and property, plant and equipment E.1., E.2. (6 ) (12 ) (6 ) Gain (loss) on disposals of intangible assets and property, plant and equipment 8 1 (8 ) Other income (expenses) 9 16 — Other operating income (expenses), net 76 68 (14 ) |
Disclosure of operating segments | Revenue, operating profit (loss), EBITDA and other segment information for the years ended December 31, 2018 , 2017 and 2016 , were as follows: Latin America Africa (vii) Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2018 Mobile revenue 3,214 510 — (1,475 ) — 2,248 Cable and other fixed services revenue 1,808 12 — (253 ) — 1,568 Other revenue 48 3 — (6 ) — 46 Service revenue (i) 5,069 526 — (1,734 ) — 3,861 Telephone and equipment and other revenue 415 1 — (203 ) — 213 Revenue 5,485 526 — (1,937 ) — 4,074 Operating profit (loss) 995 40 (47 ) (488 ) 154 655 Add back: Depreciation and amortization 1,133 107 5 (416 ) 830 Share of profit in joint ventures in Guatemala and Honduras — — — — (154 ) (154 ) Other operating income (expenses), net (51 ) (3 ) (2 ) (19 ) — (76 ) EBITDA(ii) 2,077 143 (44 ) (922 ) — 1,254 EBITDA from discontinued operations — 3 — — — 3 EBITDA incl. discontinued operations 2,077 146 (44 ) (922 ) — 1,257 Capex(iii) (872 ) (59 ) (2 ) 225 — (708 ) Changes in working capital and others(iv) (42 ) 28 13 (12 ) — (13 ) Taxes paid (264 ) (24 ) (6 ) 142 — (153 ) Operating Free Cash Flow(v) 899 91 (39 ) (568 ) — 383 Total Assets(vi) 11,754 839 2,752 (5,219 ) 190 10,316 Total Liabilities 6,132 905 2,953 (1,814 ) (650 ) 7,526 Latin America Africa (vii) Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2017 (viii) Mobile revenue 3,283 509 — (1,510 ) — 2,281 Cable and other fixed services revenue 1,755 12 — (213 ) — 1,553 Other revenue 40 5 — (4 ) — 41 Service revenue (i) 5,078 524 — (1,727 ) — 3,876 Telephone and equipment and other revenue 363 2 — (165 ) — 200 Revenue 5,441 526 — (1,892 ) — 4,076 Operating profit (loss) 899 41 (5 ) (431 ) 140 645 Add back: Depreciation and amortization 1,174 110 6 (450 ) — 841 Share of profit in joint ventures in Guatemala and Honduras — — — — (140 ) (140 ) Other operating income (expenses), net (49 ) (11 ) 10 (18 ) — (68 ) EBITDA(ii) 2,024 140 11 (899 ) — 1,278 EBITDA from discontinued operations — 73 — — — 73 EBITDA incl. discontinued operations 2,024 213 11 (899 ) — 1,351 Capex(iii) (855 ) (99 ) (1 ) 237 — (718 ) Changes in working capital and others(iv) (53 ) (6 ) (10 ) 27 — (42 ) Taxes paid (239 ) (18 ) 1 124 — (132 ) Operating Free Cash Flow(v) 877 90 1 (511 ) — 459 Total Assets(vi) 10,411 1,482 598 (5,420 ) 2,393 9,464 Total liabilities 5,484 1,673 1,465 (1,961 ) (478 ) 6,183 Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2016 (viii) Mobile revenue 3,318 541 — (1,514 ) — 2,343 Cable and other fixed services revenue 1,611 15 — (191 ) — 1,437 Other revenue 37 6 — (4 ) — 39 Service revenue (i) 4,966 562 — (1,709 ) — 3,820 Telephone and equipment and other revenue 386 2 — (165 ) — 223 Revenue 5,352 565 — (1,875 ) — 4,043 Operating profit (loss) 721 43 4 (394 ) (115 ) 490 Add back: Depreciation and amortization 1,173 113 7 (441 ) — 853 Share of profit in joint ventures in Guatemala and Honduras — — — — (115 ) (115 ) Other operating income (expenses), net 42 2 (6 ) (24 ) — 14 EBITDA(ii) 1,935 158 5 (859 ) — 1,241 EBITDA from discontinued operations — 77 — — — 77 EBITDA incl. discontinued operations 1,935 235 5 (859 ) — 1,319 Capex(iii) (886 ) (161 ) (6 ) 242 — (811 ) Changes in working capital and others(iv) 37 (2 ) (33 ) 24 — 26 Taxes paid (233 ) (33 ) (9 ) 145 — (130 ) Operating Free Cash Flow(v) 853 39 (43 ) (448 ) — 404 Total Assets(vi) 10,386 1,406 1,357 (5,589 ) 2,067 9,627 Total liabilities 5,229 1,852 1,997 (1,942 ) (877 ) 6,258 (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 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 recurrent 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 $61 million ( 2017 : $53 million ; 2016 : $39 million ) and cash received on tower deals of $141 million ( 2017 : $167 million ; 2016 : nil ). (iv) Changes in working capital and others include changes in working capital as stated in the cash flow statement, as well as share-based payments expense and non-cash bonuses. (v) Operating Free Cash Flow is EBITDA less capex (excluding spectrum and license costs) less change in working capital, other non-cash items (share-based payment expense and non-cash bonuses) and taxes paid. (vi) Segment assets include goodwill and other intangible assets. (vii) Including eliminations for Guatemala and Honduras as reported in the Latam segment. (viii) Restated as a result of classification of certain of our African operations as discontinued operations (see notes A.4. and E.3.). |
Disclosure of number of permanent employees | Number of permanent employees 2018 2017 2016 Continuing operations(i) 16,987 14,404 13,211 Joint ventures (Guatemala, Honduras and Ghana – for 2018 and 2017) 4,416 4,326 4,023 Discontinued operations — 397 751 Total 21,403 19,127 17,985 (i) Emtelco headcount are excluded from this report and any internal reporting because their costs are classified as direct costs and not employee related costs . |
Disclosure of employee related costs | Notes 2018 2017 2016 (US$ millions) Wages and salaries (356 ) (320 ) (290 ) Social security (61 ) (57 ) (67 ) Share based compensation B.4.1. (21 ) (22 ) (14 ) Pension and other long-term benefit costs B.4.2. (7 ) (8 ) (6 ) Other employee related costs (70 ) (45 ) (74 ) Total (514 ) (451 ) (451 ) |
Disclosure of cost of share-based compensation | Cost of share based compensation 2018 2017 2016 (US$ millions) 2014 incentive plans — — (1 ) 2015 incentive plans — (3 ) (3 ) 2016 incentive plans (4 ) (6 ) (10 ) 2017 incentive plans (8 ) (12 ) — 2018 incentive plans (11 ) — — Total share-based compensation (21 ) (22 ) (14 ) |
Disclosure of assumptions and fair value of the shares under the TSR portion | Assumptions and fair value of the shares under the TSR portion Risk-free Dividend yield % Share price volatility(i) % Award term (years) Share fair value (in US$) Performance share plan 2018 (Relative TSR) (0.39 ) 3.21 30.27 2.93 57.70 Performance share plan 2017 (Relative TSR) (0.40 ) 3.80 22.50 2.92 27.06 Performance share plan 2017 (Absolute TSR) (0.40 ) 3.80 22.50 2.92 29.16 Performance share plan 2016 (Relative TSR) (0.65 ) 3.49 30.00 2.61 43.35 Performance share plan 2016 (Absolute TSR) (0.65 ) 3.49 30.00 2.61 45.94 Performance share plan 2015 (Absolute TSR) (0.32 ) 2.78 23.00 2.57 32.87 Executive share plan 2015 – Component A (0.32 ) N/A 23.00 2.57 53.74 Executive share plan 2015 – Component B (0.32 ) N/A 23.00 2.57 29.53 (i) Historical volatility retained was determined on the basis of a three-year historic average. |
Disclosure of plan awards and shares expected to vest | Plan awards and shares expected to vest 2018 plans 2017 plans 2016 plans 2015 plans Performance plan Deferred plan Performance plan Deferred plan Performance plan Deferred plan Performance plan Executive plan CEO plan Deferred plan (number of shares) Initial shares granted 237,196 262,317 279,807 438,505 200,617 287,316 98,137 40,664 77,344 237,620 Additional shares granted(i) — 3,290 2,868 29,406 — — — — 3,537 — Revision for forfeitures (13,531 ) (18,086 ) (34,556 ) (74,325 ) (49,164 ) (77,924 ) (37,452 ) — — (68,121 ) Revision for cancellations (4,728 ) — — — — — — — — — Total before issuances 218,927 247,521 248,119 393,586 151,453 209,392 60,685 40,664 80,881 169,499 Shares issued in 2016 — — — — (1,214 ) (1,733 ) (771 ) — (25,781 ) (38,745 ) Shares issued in 2017 — — — (2,686 ) (752 ) (43,579 ) (357 ) — (28,139 ) (30,124 ) Shares issued in 2018 (97 ) (18,747 ) (2,724 ) (99,399 ) (2,050 ) (46,039 ) (27,619 ) (19,022 ) (26,961 ) (100,630 ) Performance conditions — — — — — — (31,938 ) (21,642 ) — — Shares still expected to vest 218,830 228,774 245,395 291,501 147,437 118,041 — — — — Estimated cost over the vesting period (US$ millions) 12 14 9 20 8 12 4 2 6 12 (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) 2018 2017 2016 (US$ ’000) Chairperson 169 233 243 Other members of the Board 774 889 900 Total (i) 943 1,122 1,143 (i) Cash compensation converted from SEK to USD at exchange rates on payment dates each year. Share based compensation based on the market value of Millicom shares on the corresponding AGM date ( 2018 : in total 6,591 shares; 2017 : in total 8,731 shares; 2016: in total 8,002 shares). Net remuneration comprised 51% in shares and 49% in cash (SEK) ( 2017 : 52% in shares and 48% in cash; 2016: 50% in shares and 50% in cash). |
Disclosure of shares beneficially owned by directors | Shares beneficially owned by the Directors 2018 2017 (number of shares) Chairperson 8,554 7,000 Other members of the Board 15,333 20,067 Total 23,887 27,067 |
Disclosure of executive team renumeration charge | Remuneration charge for the Executive Team CEO CFO Executive Team (9 members)(iii) (US$ ’000) 2018 Base salary 1,112 673 3,930 Bonus 1,492 557 2,445 Pension 247 101 962 Other benefits 66 63 805 Termination benefits — — 301 Total before share based compensation 2,918 1,393 8,444 Share based compensation(i)(ii) in respect of 2018 LTIP 5,027 1,567 4,957 Total 7,945 2,960 13,401 Remuneration charge for the Executive Team CEO CFO Executive Team (9 members) (US$ ’000) 2017 Base salary 1,000 648 3,822 Bonus 707 455 1,590 Pension 150 97 629 Other benefits 64 15 1,193 Total before share based compensation 1,921 1,215 7,233 Share based compensation(i)(ii) in respect of 2017 LTIP 2,783 1,492 5,202 Total 4,704 2,707 12,435 Remuneration charge for the Executive team CEO CFO Executive team (US$ ’000) 2016 Base salary 1,000 599 3,797 Bonus 660 450 1,411 Pension 150 82 513 Other benefits 48 18 720 Total before share based compensation 1,858 1,149 6,441 Share based compensation(i)(ii) in respect of 2016 LTIP 2,660 1,481 4,031 Total 4,518 2,630 10,472 (i) See note B.4.1. (ii) Share awards of 80,264 and 112,472 were granted in 2018 under the 2018 LTIPs to the CEO, and Executive Team ( 2017 : 61,724 and 167,371 , respectively; 2016 : 49,171 and 104,573 , respectively). (iii) Other Executives’ compensation includes Daniel Loria, former CHRO and Rodrigo Diehl, EVP Strategy. |
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. Year ended December 31, 2018 2017 2016 (US$ millions) Change in fair value of derivatives (see note D.1.2.) (1 ) (22 ) 3 Exchange gain (loss), net (41 ) 18 25 Other non-operating income (expenses), net 2 0 (9 ) Total (40 ) (4 ) 20 |
Disclosure of income tax charge | Income tax charge 2018 2017 2016 (US$ millions) Income tax (charge) credit Withholding tax (64 ) (74 ) (44 ) Other income tax relating to the current year (86 ) (85 ) (74 ) (150 ) (159 ) (118 ) Adjustments in respect of prior years 1 (12 ) (26 ) (149 ) (171 ) (144 ) Deferred tax (charge) credit Origination and reversal of temporary differences 32 15 45 Effect of change in tax rates (10 ) 19 1 Tax income (expense) before valuation allowances 22 34 46 Effect of valuation allowances (8 ) (30 ) (88 ) 14 4 (42 ) Adjustments in respect of prior years 19 9 7 33 13 (35 ) Tax (charge) credit on continuing operations (116 ) (158 ) (179 ) Tax (charge) credit on discontinuing operations — — 6 Total tax (charge) credit (116 ) (158 ) (173 ) |
Disclosure of income tax calculation | Income tax calculation 2018 2017 2016 Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total (US $ millions) Profit before tax 129 (39 ) 90 176 51 227 109 (26 ) 83 Tax at the weighted average statutory rate (5 ) 4 (1 ) (12 ) (10 ) (22 ) 9 6 15 Effect of: Items taxed at a different rate 7 — 7 (11 ) 0 (11 ) 13 0 13 Change in tax rates on deferred tax balances (10 ) — (10 ) 19 0 19 1 0 1 Expenditure not deductible and income not taxable (59 ) (2 ) (61 ) (66 ) 7 (59 ) (65 ) 8 (57 ) Unrelieved withholding tax (64 ) — (64 ) (73 ) 0 (73 ) (43 ) 0 (43 ) Accounting for associates and joint ventures 5 — 5 17 0 17 29 0 29 Movement in deferred tax on unremitted earnings (2 ) — (2 ) 1 0 1 (16 ) 0 (16 ) Unrecognized deferred tax assets (8 ) (2 ) (10 ) (31 ) (10 ) (41 ) (105 ) (15 ) (120 ) Recognition of previously unrecognized deferred tax assets — — — 1 13 14 17 0 17 Adjustments in respect of prior years 20 — 20 (3 ) 0 (3 ) (19 ) 7 (12 ) Total tax (charge) credit (116 ) — (116 ) (158 ) 0 (158 ) (179 ) 6 (173 ) Weighted average statutory tax rate 3.9 % 1.1 % 6.82 % 9.69 % (8.26 )% (17.90 )% Effective tax rate 89.9 % 128.9 % 89.77 % 69.60 % 164.22 % 207.10 % |
Disclosure of deferred taxes and deductible temporary differences | Deferred tax Fixed assets Unused tax losses Unremitted earnings Other Offset Total (US$ millions) Balance at December 31, 2016 (23 ) 113 (32 ) 51 — 109 (Charge)/credit to statement of income 53 (61 ) 1 20 — 13 Exchange differences 2 — (1 ) 1 — 2 Balance at December 31, 2017 32 52 (32 ) 72 — 124 Deferred tax assets 88 52 — 79 (39 ) 180 Deferred tax liabilities (56 ) — (32 ) (7 ) 39 (56 ) Balance at December 31, 2017 32 52 (32 ) 72 — 124 (Charge)/credit to statement of income (18 ) (3 ) (2 ) 56 — 33 Change in scope (190 ) — — 9 — (181 ) Accounting policy changes — — — 4 — 4 Exchange differences — (5 ) — (6 ) — (11 ) Balance at December 31, 2018 (176 ) 44 (34 ) 135 — (31 ) Deferred tax assets 76 44 — 134 (52 ) 202 Deferred tax liabilities (252 ) — (34 ) 1 52 (233 ) Balance at December 31, 2018 (176 ) 44 (34 ) 135 — (31 ) Deferred tax assets have not been recognized in respect of the following deductible temporary differences: Deductible temporary differences Fixed assets Unused tax losses Other Total (US$ millions) At December 31, 2018 92 4,886 134 5,112 At December 31, 2017 68 4,844 162 5,074 |
Disclosure of unrecognized loss carryforwards | Unrecognized loss carryforwards expire as follows: Unrecognized tax losses related to continuing operations 2018 2017 2016 (US$ millions) Expiry: Within one year — 39 27 Within one to five years 3 494 493 After five years 493 — — No expiry 4,390 4,311 3,981 Total 4,886 4,844 4,501 |
Disclosure of earnings per share | Net profit/(loss) used in the earnings (loss) per share computation 2018 2017 2016 (US$ millions) Basic and diluted: Net profit/(loss) attributable to equity holders from continuing operations 29 36 (12 ) Net profit/(loss) attributable to equity holders from discontinued operations (39 ) 51 (20 ) Net profit/(loss) attributable to all equity holders to determine the basic earnings (loss) per share (10 ) 86 (32 ) Weighted average number of shares in the earnings (loss) per share computation 2018 2017 2016 (thousands of shares) Weighted average number of ordinary shares (excluding treasury shares) for basic earnings (loss) per share 100,793 100,384 100,337 Potential incremental shares as a result of share options — — — Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution 100,793 100,384 100,337 |
Disclosure of vested and unvested share awards beneficially granted to the Executive team | hare ownership and unvested share awards granted from Company equity plans to the Executive team CEO Executive team Total (number of shares) 2018 Share ownership (vested from equity plans and otherwise acquired) 122,310 84,782 207,092 Share awards not vested 172,485 339,726 512,211 2017 Share ownership (vested from equity plans and otherwise acquired) 80,159 55,888 136,047 Share awards not vested 148,324 299,067 447,391 |
Capital structure and financi_2
Capital structure and financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |
Disclosure of share capital, share premium | Share capital, share premium 2018 2017 Authorized and registered share capital (number of shares) 133,333,200 133,333,200 Subscribed and fully paid up share capital (number of shares) 101,739,217 101,739,217 Par value per share 1.50 1.50 Share capital (US$ millions) 153 153 Share premium (US$ millions) 482 484 Total (US$ millions) 635 637 |
Disclosure of other equity reserves | Legal reserve Equity settled transaction reserve Hedge reserve Currency translation reserve Pension obligation reserve Total (US$ millions) As of January 1, 2016 16 46 (1 ) (593 ) 1 (531 ) Share based compensation — 14 — — — 14 Issuance of shares – 2013, 2014, 2015 LTIPs — (17 ) — — — (17 ) Remeasurements of post-employment benefit obligations — — — — (2 ) (2 ) Cash flow hedge reserve movement — — (3 ) — — (3 ) Currency translation movement — — — (23 ) — (23 ) As of December 31, 2016 16 43 (4 ) (616 ) (1 ) (562 ) Share based compensation — 22 — — — 22 Issuance of shares – 2014, 2015, 2016 LTIPs — (18 ) — — — (18 ) Remeasurements of post-employment benefit obligations — — — — (2 ) (2 ) Cash flow hedge reserve movement — — 4 — — 4 Currency translation movement — — — 85 — 85 As of December 31, 2017 16 47 — (531 ) (3 ) (472 ) Share based compensation — 22 — — — 22 Issuance of shares –2015, 2016, 2017 LTIPs — (22 ) — — — (22 ) Currency translation movement — — — (68 ) — (68 ) As of December 31, 2018 16 47 — (599 ) (3 ) (538 ) |
Disclosure of detailed information about borrowings | Debt and financing by type (i) Note 2018 2017 (US$ millions) Debt and financing due after more than one year Bonds C.3.1. 2,501 2,147 Banks C.3.2. 1,324 1,158 Finance leases C.3.4. 353 362 Other financing (ii) 113 74 Total non-current financing 4,291 3,742 Less: portion payable within one year (168 ) (142 ) Total non-current financing due after more than one year 4,123 3,600 Debt and financing due within one year Bonds C.3.1. — — Banks C.3.2. 289 40 Finance leases C.3.4. — 3 Other financing — — Total current debt and financing 289 43 Add: portion of non-current debt payable within one year 168 142 Total 458 185 Total debt and financing 4,580 3,785 (i) See note D.1.1 for further details on maturity profile of the Group debt and financing. (ii) In July 2018, the Company issued a COP 144,054.5 million / $50 million bilateral facility with IIC (Inter-American Development Bank) for a USD indexed to COP Note. The note bears interest at 9.45% p.a.. This COP Note is used as net investment hedge of the net assets of our operations in Colombia. Debt and financing by location 2018 2017 (US$ millions) Millicom International Cellular S.A. (Luxembourg) 1,770 1,255 Colombia 1,016 1,130 Paraguay 504 488 Bolivia 317 352 Panama 261 — Tanzania 201 217 Rwanda — 50 Chad 64 70 Costa Rica 148 76 El Salvador 299 147 Total debt and financing 4,580 3,785 Bond financing Note Country Final Maturity Interest Rate % 2018 2017 (US$ millions) SEK Senior Unsecured Variable Rate Notes 1 Luxembourg 2019 STIBOR +3.3(i) — 243 USD 6.625% Senior Notes 2 Luxembourg 2026 6.625 495 — USD 6% Senior Notes 3 Luxembourg 2025 6 491 496 USD 6.625% Senior Notes 4 Luxembourg 2021 6.625 — — USD 5.125% Senior Notes 5 Luxembourg 2028 5.125 493 494 USD 6.75% Senior Notes 6 Paraguay 2022 6.75 297 296 BOB 4.75% Notes 7 Bolivia 2020 4.75 59 86 BOB 4.05% Notes 7 Bolivia 2020 4.05 7 11 BOB 4.85% Notes 7 Bolivia 2023 4.85 71 85 BOB 3.95% Notes 7 Bolivia 2024 3.95 43 50 BOB 4.30% Notes 7 Bolivia 2029 4.3 23 25 BOB 4.30% Notes 7 Bolivia 2022 4.3 30 30 BOB 4.70% Notes 7 Bolivia 2024 4.7 35 35 BOB 5.30% Notes 7 Bolivia 2026 5.3 13 13 UNE Bond 1 (tranches A and B) 8 Colombia 2020 CPI + 5.10 46 50 UNE Bond 2 (tranches A and B) 8 Colombia 2023 CPI + 4.76 46 50 UNE Bond 3 (tranche A) 8 Colombia 2024 9.35 49 54 UNE Bond 3 (tranche B) 8 Colombia 2026 CPI+4.15 78 85 UNE Bond 3 (tranche C) 8 Colombia 2036 CPI+4.89 39 43 Cable Onda Bonds 9 Panama 2025 5.75 184 — Total bond financing 2,501 2,147 (i) STIBOR – Swedish Interbank Offered Rate. (1) SEK Senior Unsecured Notes In August 2018, the Company redeemed all of the aggregate principal amount of the outstanding SEK Senior Unsecured Notes due 2019 ( $227 million ). The early redemption fees amounting to $3 million and $1 million of related unamortized costs have been expensed in August 2018 under interest and other financial expenses. As of September 30, 2018, the notes have been fully redeemed. (2) USD 6.625% Senior Notes On October 16, 2018, the Company issued $500 million aggregate principal amount of 6.625% Senior Notes due 2026. The Notes bear interest at 6.625% p.a., payable semiannually in arrears on each interest payment date. Proceeds were used to finance Cable Onda’s acquisition (Note A.1.2.). Costs of issuance of $6 million are amortized over the eight -year life of the notes (the effective interest rate is 6.75% ). (3) USD 6% Senior Notes On March 11, 2015, Millicom issued a $500 million 6% fixed interest rate bond repayable in ten years, to repay the El Salvador 8% Senior Notes and for general corporate purposes. The bond was issued at 100% of the principal and has an effective interest rate of 6.132% . $8.6 million of withheld and upfront costs are being amortized over the ten -year life of the bond. (4) USD 6.625% Senior Notes In December 2016, the Company confirmed that it had accepted for purchase $142 million of principal of its 6.625% Senior Notes due 2021. The early redemption fees amounting to $8 million and $2 million of related unamortized costs had been expensed in December 2016 under interest and other financial expenses. On September 11, 2017, the Group made a tender offer for the outstanding 6.625% Senior Notes. On September 20, 2017, MIC S.A. repurchased $186 million in principal amount in the tender offer using the proceeds of the issue of the 5.125% Notes – see below. Also on September 11, 2017, the Group delivered a redemption notice for the 6.625% Senior Notes. MIC S.A. redeemed the remaining $473 million in principal amount on October 15, 2017. The total early redemption fees amounting to $22 million and $6 million of related unamortized costs have been expensed in September 2017 under interest and other financial expenses. At December 31, 2017 , there are no 2021 Notes outstanding. (5) USD 5.125% Senior Notes On September 20, 2017, MIC S.A. issued a $500 million , ten -year bond with an interest rate of 5.125% at an issue price of 100% (the 5.125% Notes) and will mature in 2028. Costs of issuance of $7 million are amortized over the seven -year life of the notes (effective interest rate is 5.24% ). (6) USD 6.75% Senior Notes On December 7, 2012, Telefónica Cellular del Paraguay S.A., Millicom’s fully owned subsidiary in Paraguay issued $300 million of notes at 100% of the aggregate principal amount. Distribution and other transaction fees of $7 million reduced the total proceeds from issuance to $293 million . The 6.75% Senior Notes have a 6.75% per annum coupon with interest payable semi-annually in arrears on June 13 and 13 December. The effective interest rate is 7.12% . The 6.75% Senior Notes are general unsecured obligations of Telefónica Celular del Paraguay S.A. and rank equal in right of payment with all future unsecured and unsubordinated obligations of Telefónica Celular del Paraguay S.A. The 6.75% Senior Notes are unguaranteed. (7) BOB Notes In May 2012, Telecel Bolivia issued Boliviano (BOB) 1.36 billion of notes repayable in installments until April 2, 2020. Distribution and other transaction fees of BOB 5 million reduced the total proceeds from issuance to BOB 1.32 billion ( $191 million ). The bond has a 4.75% per annum coupon with interest payable semi-annually in arrears in May and November each year. The effective interest rate is 4.79% . In November 2015, Telecel Bolivia issued BOB 696 million (approximately $100 million ) of notes in two series, A for BOB 104.4 million (approximately $15 million ), with a fixed annual interest rate of 4.05% , maturing in August 2020 and series B for BOB 591.6 million (approximately $85 million ) with a fixed annual interest rate of 4.85% , maturing in August 2023. The bond has coupon with interest payable semi-annually in arrears in March and September during the first two years, thereafter each February and August. The effective interest rate is 4.84% . In the placement, the final interest rate was reduced as Telecel Bolivia took advantage of strong demand for the bonds resulting in a reduction of the average interest rate to 4.55% . Telecel Bolivia received BOB 4.59 million in excess of the BOB 696 million issued (upfront premium). On August 11, 2016, the operation in Bolivia issued a new bond for a total amount of BOB 522 million consisting of two tranches (approximately $50 million and $25 million , respectively). Tranche A and B bear fixed interest at 3.95% and 4.30% , and will mature in June 2024 and June 2029, respectively. On October 12, 2017, Tigo Bolivia placed approximately $80 million of local currency debt in three tranches, which will mature in 2022, 2024 and 2026 and bear an average interest rate of 4.66% . (8) UNE Bonds In March 2010, UNE issued a COP 300 billion (approximately $126 million ) bond consisting of two tranches with five and ten -year maturities. Interest rates are either fixed or variable depending on the tranche. Tranche A bears variable interest, based on CPI, in Colombian peso and paid in Colombian peso. Tranche B bears variable interest, based on fixed term deposits, in Colombian peso and paid in Colombian peso. UNE applied the proceeds to finance its investment plan. Tranche A matured in March 2015 and tranche B will mature in March 2020. In May 2011, UNE issued a COP 300 billion (approximately $126 million ) bond consisting of two equal tranches with five and twelve -year maturities. Interest rates are variable and depend on the tranche. Tranche A bears variable interest, based on CPI, in Colombian peso and paid in Colombian peso. Tranche B bears variable interest, based on fixed term deposits, in Colombian peso and paid in Colombian peso. UNE applied the proceeds to finance its investment plan. Tranche A matured in October 2016 and tranche B will mature in October 2023. In May 2016, UNE issued a COP 540 billion bond (approximately $176 million ) consisting of three tranches (approximately $52 million , $83 million and $41 million respectively). Interest rates are either fixed or variable depending on the tranche. Tranche A bears fixed interest at 9.35% , while tranche B and C bear variable interest, based on CPI, (respective margins of CPI + 4.15% and CPI + 4.89% ), in Colombian peso. UNE applied the proceeds to finance its investment plan and repay one bond (COP 150 billion tranche). Tranches A, B and C will mature in May 2024, May 2026 and May 2036, respectively. (9) Cable Onda Bonds On August 4, 2015, Cable Onda issued public bonds in Panama for a total amount of $185 million . These bonds bear a fixed annual interest of 5.75% and are due on August 4, 2025. The bonds have been assumed by Millicom as part of the acquisition of the company. See note A.1.2. for further details on the acquisition. Bank and Development Financial Institution financing Note Country Maturity Interest rate % 2018 2017 (US$ millions) Fixed rate loans PYG Long-term loan Paraguay 2020/2023/2025 9.00 90 106 PYG Long-term loan 1 Paraguay 2022 10.10 61 65 PYG Long-term loan Paraguay 2023 10.25 9 — PYG Long-term loan Paraguay 2025 8.90 19 — USD - Long-term loans Panama 2019 4.00 15 — USD - Long-term loans Panama 2019 3.80 9 — BOB Long-term loans Bolivia 2025 4.30 10 — BOB Long-term loans Bolivia 2025 4.30 10 — Variable rate loans USD Long-term loans 2 Costa Rica 2021 3.5 variable 148 76 USD Long-term loans Chad 2019 4 variable 1 3 USD Long-term loans 3 Rwanda 2019 2.9 variable — 40 USD Long-term loans Tanzania (Zantel) 2020 3.75 variable 90 96 USD Short-term loans 4 Luxembourg 2019 Libor + 1.50 250 — COP Long-term loans 5 Colombia (UNE) 2025/2030 4.1+IBR variable(i) 277 363 USD Long-term loans 5 Colombia (Tigo) 2021/2022 LIBOR + 2.5 298 297 USD Senior Unsecured Term Loan Facility 6 El Salvador 2021 LIBOR + 3.0 50 50 USD Credit Facility 6 El Salvador 2021 LIBOR + 2.25 24 29 USD Credit Facility El Salvador 2022 LIBOR + 3.15 50 50 USD Credit Facility 6 El Salvador 2023 LIBOR + 2.55 100 — USD Credit Facility 6 El Salvador 2023 LIBOR + 3 50 — Other Long-term loans Various Various 51 25 Total Bank and Development Financial Institution financing 1,613 1,198 (i) IBR – Colombia Interbank Rate. 1. Paraguay On July 4, 2017, the Paraguayan subsidiary signed a five -year loan agreement with the IPS ( Instituto de Prevision Social ) and the Inter-American Development Bank for a total amount of PYG $367,000 million (approximately $66 million ). The loan, denominated in local currency carries a 10.10% interest rate per annum and start amortizing in Q4 2019. This facility is guaranteed by the Company. 2. Costa Rica In April 2018, Millicom Cable Costa Rica S.A. entered into a $150 million variable rate loan with Citibank as agent. Simultaneously, the outstanding loan balance of $72 million was repaid in full with the proceeds from this loan. In June 2018, Millicom Cable Costa Rica S.A. entered into a cross currency swap to hedge part of the principal of the loan against interest rate and currency risks. Interest rate and currency swap agreements had been made on $35 million of the principal amount and interest rate swaps for an additional $35 million . 3. Rwanda In January 2018, the Group repaid the remaining $40 million loan due by Rwanda to different banks. 4. Luxembourg MIC S.A. Bridge Facility In October 2018, the Company entered into a $1 billion term loan facility agreement with a consortium of banks (the “Bridge Facility”), subsequently reduced to $250 million in December 2018. The Bridge Facility matures in October 2019 (unless extended for a period not exceeding six months). Interest on amounts drawn under the Bridge Facility is payable at LIBOR plus a variable margin. At December 31, 2018 , $250 million have been drawn under this facility to finance Cable Onda’s acquisition (note 3). MIC S.A. revolving credit facility On January 30, 2017, the Company announced the closing of a new $600 million , five years revolving credit facility (RCF) and notified the lenders in the 2014 RCF of the formal cancellation of the commitments outstanding under the 2014 RCF (none of which were drawn at such date). Interest on amounts drawn under the revolving credit facility is payable at LIBOR or EURIBOR, as applicable, plus an initial margin of 1.5% . As of December 31, 2018 , the committed facility was fully undrawn. MIC S.A. term loan facility In July 2016, MIC S.A. entered into a $50 million term loan facility agreement, of which half was repaid in 2017 and in January 2018 the remaining outstanding amount was fully repaid. The facility bears variable interest rate at six-month LIBOR + 2.25% per annum. 5. Colombia In June 2017, Colombia Movil completed a $300 million syndicated loan. The loan, denominated in US dollars, which carries an interest rate of LIBOR + 2.50% will be repaid in three tranches of $100 million in June and December 2021 for the two first tranches, and in June 2022 for the last tranche. Proceeds have been used to repay an inter-company loan from Millicom, which used the funds to reduce holding company debt (see note C.3.1.) and for general corporate purposes. In March 2018, TigoUne prepaid $34 million equivalent in COP on bank financing debt. 6. El Salvador On April 15, 2016, Telemovil El Salvador, S.A. de C.V. entered into a Senior Unsecured Term Loan Facility up to $50 million maturing in April 2021 and bearing variable interest at LIBOR + 3.0% per annum, which was restated and amended as of May 30, 2017, for a second tranche of $50 million and bearing an interest rate at LIBOR + 3% per annum. This facility is guaranteed by the Company. On June 6, 2016, Telemovil El Salvador, S.A. de C.V. entered into a $30 million Credit Facility for general corporate purposes maturing in June 2021 and bearing variable interest rate at LIBOR + 2.25% per annum. The facility is guaranteed by the Company. In January 2018, Telemovil El Salvador entered into an amended and restated the 2017 agreement with Scotiabank for a $50 million variable rate loan, with a 5 -year bullet repayment. In March 2018, Telemovil El Salvador entered into a $100 million variable rate facility with DNB and Nordea with a 5 -year bullet repayment. The remaining $50 million of the facility was disbursed during 2018. In addition, Telemovil El Salvador entered into an interest rate swap with Scotiabank to fix interest rates for up to $100 million of the outstanding debt. |
Disclosure of interest and other financial expenses | Year ended December 31, 2018 2017 2016 (US$ millions) Interest expense on bonds and bank financing (234 ) (246 ) (262 ) Interest expense on finance leases (92 ) (65 ) (48 ) Early redemption charges (4 ) (43 ) (25 ) Others (41 ) (41 ) (36 ) Total interest and other financial expenses (371 ) (396 ) (372 ) |
Disclosure of finance lease liabilities | Finance lease liabilities Country Maturity 2018 2017 (US$ millions) Lease of tower space Tanzania 2029/2030 112 121 Lease of tower space Colombia Movil 2032 83 87 Lease of poles Colombia (UNE) 2032 99 100 Lease of tower space Paraguay 2030 27 21 Lease of tower space El Salvador 2026 26 20 Other finance lease liabilities various various 6 17 Total finance lease liabilities 353 365 |
Disclosure of sale and leaseback | The table below summarizes the main aspects of these deals and impacts on the Group financial statements: Paraguay Colombia El Salvador Agreement date April 26, 2017 July 18, 2017 February 6, 2018 Total number of towers expected to be sold 1,410 1,207 811 Total number of towers transferred as of December 31, 2018 1,276 902 496 Expected total cash proceeds ($ millions) 125 147 145 Cash proceeds received in 2017 ($ millions) 75 86 — Cash proceeds received in 2018 ($ millions) 41 26 73 Upfront gain on sale recognized in 2017 ($ millions) (Note B.2) 26 37 — Upfront gain on sale recognized in 2018 ($ millions) (Note B.2) 19 13 33 |
Disclosure of contingent liabilities | Maturity of guarantees At December 31, 2018 At December 31, 2017 Term Outstanding exposure(i) Maximum exposure(ii) Outstanding exposure(i) Maximum exposure(ii) (US$ millions) 0–1 year 133 133 159 159 1–3 years 281 281 368 368 3–5 years 212 212 144 144 Total guarantees 626 626 671 671 (i) The outstanding exposure represents the carrying amount of the related liability at December 31. (ii) The maximum exposure represents the total amount of the Guarantee at December 31. |
Schedule of cash and cash equivalents | 2018 2017 (US$ millions) Cash and cash equivalents in USD 229 302 Cash and cash equivalents in other currencies 299 317 Total cash and cash equivalents 528 619 |
Schedule of restricted cash | 2018 2017 (US$ millions) Mobile Financial Services 155 143 Others 3 2 Restricted cash 158 145 |
Disclosure of net debt | Net debt (i) 2018 2017 (US$ millions) Total debt and financing 4,580 3,785 Less: Cash and cash equivalents (528 ) (619 ) Pledged deposits (2 ) (1 ) Time deposits related to bank borrowings — — Net debt at the end of the year 4,051 3,164 Add (less) derivatives related to debt (SEK currency swap) — 56 Net debt including derivatives related to debt 4,051 3,220 (i) As from 2018, the Group has excluded 'restricted cash' from its definition of Net debt. 2017 figures have been represented accordingly. The effect of the change is a $145 million increase in 2017 net debt. Assets Liabilities from financing activities Cash and cash equivalents Other Bond and bank debt and financing Finance lease liabilities Total Net debt as at January 1, 2017 646 4 3,606 295 3,250 Cash flows 10 (1 ) (177 ) (22 ) (209 ) Additions / acquisitions (22 ) — 3 195 220 Interest accretion — — 8 (1 ) 7 Foreign exchange movements 4 — 34 (2 ) 28 Transfers (to)/from assets held for sale (19 ) (2 ) (49 ) (13 ) (42 ) Transfers — — 10 — 9 Other non-cash movements — — (14 ) (86 ) (101 ) Net debt as at December 31, 2017 619 2 3,420 365 3,164 Cash flows (72 ) — 621 (17 ) 676 Additions — — — 44 44 Scope changes 7 — 267 — 260 Interest accretion — — 11 — 11 Foreign exchange movements (33 ) — (84 ) (21 ) (72 ) Transfers (to)/from assets held for sale 6 — 9 (8 ) (4 ) Transfers — — 3 (11 ) (9 ) Other non-cash movements — — (19 ) — (19 ) Net debt as at December 31, 2018 528 2 4,227 353 4,051 |
Disclosure of fair value measurement of assets | Carrying value Fair value(i) Note 2018 2017 2018 2017 (US$ millions) Financial assets Derivative financial instruments — — — — Other non-current assets 87 73 87 73 Trade receivables, net 343 386 343 386 Amounts due from non-controlling interests, associates and joint venture partners G.5. 73 77 73 77 Prepayments and accrued income 129 145 129 145 Supplier advances for capital expenditures 25 18 25 18 Other current assets 127 90 127 90 Restricted cash C.4.2. 158 145 158 145 Cash and cash equivalents C.4.1. 528 619 528 619 Total financial assets 1,470 1,553 1,470 1,553 Current 1,344 1,440 1,344 1,440 Non-current 126 113 126 113 Financial liabilities Debt and financing(i) C.3. 4,580 3,785 4,418 3,971 Trade payables 282 288 282 288 Payables and accruals for capital expenditure 335 304 335 304 Derivative financial instruments — 56 — 56 Put option liability C.6.3. 239 — 239 — Amounts due to non-controlling interests, associates and joint venture partners G.5. 483 420 483 420 Accrued interest and other expenses 383 353 383 353 Other liabilities 402 371 402 371 Total financial liabilities 6,704 5,577 6,542 5,763 Current 2,335 1,753 2,335 1,753 Non-current 4,370 3,824 4,207 4,010 (i) Fair values are measured with reference to Level 1 (for listed bonds) or 2. |
Disclosure of fair value measurement of liabilities | Carrying value Fair value(i) Note 2018 2017 2018 2017 (US$ millions) Financial assets Derivative financial instruments — — — — Other non-current assets 87 73 87 73 Trade receivables, net 343 386 343 386 Amounts due from non-controlling interests, associates and joint venture partners G.5. 73 77 73 77 Prepayments and accrued income 129 145 129 145 Supplier advances for capital expenditures 25 18 25 18 Other current assets 127 90 127 90 Restricted cash C.4.2. 158 145 158 145 Cash and cash equivalents C.4.1. 528 619 528 619 Total financial assets 1,470 1,553 1,470 1,553 Current 1,344 1,440 1,344 1,440 Non-current 126 113 126 113 Financial liabilities Debt and financing(i) C.3. 4,580 3,785 4,418 3,971 Trade payables 282 288 282 288 Payables and accruals for capital expenditure 335 304 335 304 Derivative financial instruments — 56 — 56 Put option liability C.6.3. 239 — 239 — Amounts due to non-controlling interests, associates and joint venture partners G.5. 483 420 483 420 Accrued interest and other expenses 383 353 383 353 Other liabilities 402 371 402 371 Total financial liabilities 6,704 5,577 6,542 5,763 Current 2,335 1,753 2,335 1,753 Non-current 4,370 3,824 4,207 4,010 (i) Fair values are measured with reference to Level 1 (for listed bonds) or 2. |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information derivatives | Accounting policies for derivatives is further detailed in note C.6. On December 31, 2018 and 2017 fair value of derivatives held by the Group can be summarized as follows: 2018 2017 (US$ millions) Derivatives Cash flow hedge derivatives — (56 ) Net derivative asset (liability) — (56 ) |
Disclosure of nature and extent of risks arising from financial instruments | Financing at December 31, 2018 Amounts due within: 1 year 1–2 years 2–3 years 3–4 years 4–5 years >5 years Total (US$ millions) Fixed rate financing 140 162 137 436 204 2,036 3,115 Weighted average nominal interest rate 6.35 % 6.59 % 6.64 % 6.61 % 4.10 % 6.47 % 6.34 % Floating rate financing 319 175 266 133 263 309 1,465 Weighted average nominal interest rate 10.28 % 5.89 % 2.73 % 0.49 % 4.41 % 1.13 % 1.98 % Total 458 337 403 569 468 2,345 4,580 Weighted average nominal interest rate 9.08 % 6.23 % 4.06 % 5.18 % 4.28 % 5.76 % 4.95 % Financing at December 31, 2017 Amounts due within: 1 year 1-2 years 2-3 years 3-4 years 4-5 years >5 years Total (US$ millions) Fixed rate financing 87 365 141 104 396 1,369 2,462 Weighted average nominal interest rate 7.17 % 5.52 % 8.28 % 9.92 % 7.73 % 7.68 % 7.48 % Floating rate financing 98 134 206 327 188 370 1,323 Weighted average nominal interest rate 4.24 % 2.37 % 8.40 % 12.20 % 1.98 % 2.25 % 3.06 % Total 185 500 347 431 584 1,738 3,785 Weighted average nominal interest rate 5.61 % 4.68 % 8.35 % 11.65 % 5.88 % 6.52 % 5.94 % Debt denomination at December 31 2018 2017 (US$ millions) Debt denominated in US dollars 3,132 1,983 Debt denominated in currencies of the following countries: Colombia 718 834 Chad 62 61 Tanzania 112 121 Bolivia 306 337 Paraguay 207 191 Luxembourg (SEK denominated) 43 243 Other — 15 Total debt denominated in other currencies 1,448 1,802 Total debt 4,580 3,785 |
Disclosure of maturity analysis for derivative financial liabilities | Maturity profile of net financial liabilities at December 31, 2018 (i) Less than 1 year 1 to 5 years > 5 years Total (US$ millions) Total debt and financing (458 ) (1,778 ) (2,345 ) (4,580 ) Cash and cash equivalents 528 — — 528 Pledged deposits (related to bank borrowings) 2 — — 2 Derivative financial instruments (SEK currency swap) — — — — Net cash (debt) including derivatives related to debt 72 (1,778 ) (2,345 ) (4,051 ) Future interest commitments (248 ) (786 ) (77 ) (1,111 ) Trade payables (excluding accruals) (478 ) — — (478 ) Other financial liabilities (including accruals) (1,217 ) (135 ) — (1,352 ) Put Option liability (239 ) — — (239 ) Trade receivables 343 — — 343 Other financial assets 184 126 — 310 Net financial liabilities (1,583 ) (2,573 ) (2,422 ) (6,578 ) (i) As from 2018, the Group has excluded 'restricted cash' from its definition of Net debt. 2017 figures have been re-presented accordingly. Maturity profile of net financial liabilities at December 31, 2017 Less than 1 year 1 to 5 years > 5 years Total (US$ millions) Total debt and financing (185 ) (1,862 ) (1,738 ) (3,785 ) Cash and cash equivalents 619 — — 619 Pledged deposits (related to bank borrowings) 1 — — 1 Derivative financial instruments (SEK currency swap) (56 ) — — (56 ) Net cash (debt) including derivatives related to debt 380 (1,862 ) (1,738 ) (3,220 ) Future interest commitments (255 ) (785 ) (68 ) (1,108 ) Trade payables (excluding accruals) (427 ) — — (427 ) Other financial liabilities (including accruals) (1,094 ) (124 ) — (1,218 ) Trade receivables 386 — — 386 Other financial assets 144 113 — 257 Net financial liabilities (866 ) (2,658 ) (1,806 ) (5,330 ) |
Disclosure of maturity analysis for non-derivative financial liabilities | Maturity profile of net financial liabilities at December 31, 2018 (i) Less than 1 year 1 to 5 years > 5 years Total (US$ millions) Total debt and financing (458 ) (1,778 ) (2,345 ) (4,580 ) Cash and cash equivalents 528 — — 528 Pledged deposits (related to bank borrowings) 2 — — 2 Derivative financial instruments (SEK currency swap) — — — — Net cash (debt) including derivatives related to debt 72 (1,778 ) (2,345 ) (4,051 ) Future interest commitments (248 ) (786 ) (77 ) (1,111 ) Trade payables (excluding accruals) (478 ) — — (478 ) Other financial liabilities (including accruals) (1,217 ) (135 ) — (1,352 ) Put Option liability (239 ) — — (239 ) Trade receivables 343 — — 343 Other financial assets 184 126 — 310 Net financial liabilities (1,583 ) (2,573 ) (2,422 ) (6,578 ) (i) As from 2018, the Group has excluded 'restricted cash' from its definition of Net debt. 2017 figures have been re-presented accordingly. Maturity profile of net financial liabilities at December 31, 2017 Less than 1 year 1 to 5 years > 5 years Total (US$ millions) Total debt and financing (185 ) (1,862 ) (1,738 ) (3,785 ) Cash and cash equivalents 619 — — 619 Pledged deposits (related to bank borrowings) 1 — — 1 Derivative financial instruments (SEK currency swap) (56 ) — — (56 ) Net cash (debt) including derivatives related to debt 380 (1,862 ) (1,738 ) (3,220 ) Future interest commitments (255 ) (785 ) (68 ) (1,108 ) Trade payables (excluding accruals) (427 ) — — (427 ) Other financial liabilities (including accruals) (1,094 ) (124 ) — (1,218 ) Trade receivables 386 — — 386 Other financial assets 144 113 — 257 Net financial liabilities (866 ) (2,658 ) (1,806 ) (5,330 ) |
Disclosure of detailed information about managing capital | Net debt to EBITDA Note 2018 2017 (US$ millions) Net debt C.5. 4,051 3,164 EBITDA B.3. 1,254 1,278 Net debt to EBITDA (i) 3.23 2.48 (i) Ratio is above 3x on an IFRS basis. However, covenants are calculated on proportionate net debt/EBITDA, including Guatemala and Honduras, which show results below 3x. Gearing ratio Note 2018 2017 (US$ millions) Net debt C.5. 4,051 3,164 Equity C.1. 2,542 3,096 Net debt and equity 6,593 6,260 Gearing ratio 0.61 0.51 |
Long-term assets (Tables)
Long-term assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of intangible assets useful lives | Estimated useful lives are: Years Estimated useful lives Trademarks 1 to 15 Customer lists 4 to 20 |
Movements in intangible assets and goodwill | Movements in intangible assets in 2018 Goodwill Licenses Customer lists IRUs Trademarks Other(i) Total (US$ millions) Opening balance, net 599 324 33 105 10 194 1,265 Change in scope (ii) 512 — 370 — 280 23 1,185 Additions — 66 — 2 — 91 158 Amortization charge — (48 ) (11 ) (14 ) (8 ) (65 ) (144 ) Impairment (6 ) — — — — — (6 ) Disposals, net — — — — — — — Transfers — — — — — (16 ) (16 ) Transfers to/from assets held for sale (see note E.3.) — (12 ) — — — — (12 ) Exchange rate movements (28 ) (12 ) (1 ) (5 ) — (9 ) (55 ) Closing balance, net 1,077 318 391 89 282 218 2,374 Cost or valuation 1,077 646 581 176 325 646 3,451 Accumulated amortization and impairment — (328 ) (190 ) (87 ) (43 ) (428 ) (1,077 ) Net 1,077 318 391 89 282 218 2,374 Movements in intangible assets in 2017 Goodwill Licenses Customer lists IRUs Trademarks Other(i) Total (US$ millions) Opening balance, net 615 380 32 114 18 200 1,359 Change in scope (ii) 3 — 15 — — 1 20 Additions — 40 — (2 ) — 92 130 Amortization charge — (49 ) (15 ) (14 ) (8 ) (67 ) (153 ) Impairment (7 ) (8 ) — — — — (15 ) Disposals, net — — — — — (1 ) (1 ) Transfers (2 ) 3 — 8 — (28 ) (19 ) Transfers to/from assets held for sale (see note E.3.) (8 ) (50 ) (1 ) — — (5 ) (64 ) Exchange rate movements (1 ) 7 1 — — 2 9 Closing balance, net 599 324 33 105 10 194 1,265 Cost or valuation 599 650 225 181 49 584 2,288 Accumulated amortization and impairment — (327 ) (192 ) (76 ) (39 ) (389 ) (1,022 ) Net 599 324 33 105 10 194 1,265 (i) Other includes mainly software costs (ii) See note A.1.2. |
Cash used for purchases of long-term assets | Cash used for intangible asset additions 2018 2017 (US$ millions) Additions 158 130 Change in accruals and payables for intangibles (10 ) 3 Cash used for additions 148 133 Cash used for property, plant and equipment additions 2018 2017 2016 (US$ millions) Additions 698 824 683 Change in advances to suppliers 2 (8 ) (16 ) Change in accruals and payables for property, plant and equipment (25 ) 26 51 Finance leases (43 ) (192 ) 1 Cash used for additions 632 650 719 |
Allocation of goodwill to cash generating units | Allocation of Goodwill to cash generating units (CGUs), net of exchange rate movements and after impairment 2018 2017 (US$ millions) Panama (see note A.1.2.) 512 — El Salvador 194 194 Costa Rica 116 123 Paraguay 54 57 Colombia 183 199 Tanzania (Zantel) (see note E.1.6.) 4 10 Other 15 16 Total 1,077 599 Discount rates used in determining recoverable amount Discount rate after tax (%) 2018 2017 Bolivia 10.2 11.2 Chad 14.8 15.8 Colombia 8.9 9.9 Costa Rica 10.2 11.9 El Salvador 11.7 13.2 Paraguay 9.8 10.2 Rwanda (See note A.1.3.) n/a 14.7 Tanzania 14.4 14.6 |
Schedule of property, plant and equipment and movements in tangible assets | Estimated useful lives Duration Buildings 40 years or lease period, if shorter Networks (including civil works) 5 to 15 years or lease period, if shorter Other 2 to 7 years Movements in tangible assets in 2018 Network equipment(ii) Land and buildings Construction in progress Other(i) Total (US$ millions) Opening balance, net 2,399 147 206 128 2,880 Change in scope (see note A.1.2.) 276 46 32 — 354 Additions 63 1 626 7 698 Impairments/reversal of impairment,net 1 — — — 1 Disposals, net (24 ) (2 ) (2 ) — (29 ) Depreciation charge (631 ) (11 ) — (43 ) (685 ) Asset retirement obligations 14 1 — — 15 Transfers 551 9 (568 ) 14 6 Transfers from/(to) assets held for sale (45 ) (3 ) (2 ) (2 ) (52 ) Exchange rate movements (124 ) (8 ) (8 ) (7 ) (147 ) Closing balance, net 2,480 181 284 97 3,041 Cost or valuation 6,802 252 284 409 7,747 Accumulated amortization and impairment (4,322 ) (71 ) — (312 ) (4,706 ) Net at December 31, 2018 2,480 181 284 97 3,041 Movements in tangible assets in 2017 Network equipment(ii) Land and buildings Construction in progress Other(i) Total (US$ millions) Opening balance, net 2,525 147 250 135 3,057 Change in scope 2 1 — — 3 Additions 201 — 616 7 824 Impairments/reversal of impairment,net (6 ) — 1 (2 ) (8 ) Disposals, net (115 ) — 3 (1 ) (114 ) Depreciation charge (663 ) (9 ) — (53 ) (725 ) Asset retirement obligations 18 2 — — 20 Transfers 613 7 (650 ) 48 19 Transfers from/(to) assets held for sale (184 ) (3 ) (16 ) (8 ) (211 ) Exchange rate movements 9 2 3 1 15 Closing balance, net 2,399 147 206 128 2,880 Cost or valuation 6,164 191 206 477 7,038 Accumulated amortization and impairment (3,764 ) (44 ) — (349 ) (4,158 ) Net at December 31, 2017 2,399 147 206 128 2,880 (i) Other mainly includes office equipment and motor vehicles. (ii) The net carrying amount of network equipment under finance leases at December 31, 2018 , was $307 million ( 2017 : $329 million ). |
Schedule of assets and liabilities reclassified as held for sale | The following table summarizes the nature of the assets and liabilities reported under assets held for sale and liabilities directly associated with assets held for sale as at December 31, 2018 and 2017 : As at December 31, 2018 2017 (US$ millions) Assets and liabilities reclassified as held for sale Senegal operations — 223 Towers Paraguay (see note C.3.4.) 2 7 Towers Colombia (see note C.3.4.) — 1 Towers El Salvador (see note C.3.4.) 1 — Other — 2 Total assets of held for sale 3 233 Senegal operations — 77 Towers Paraguay — 2 Total liabilities directly associated with assets held for sale — 79 Net assets held for sale / book value 3 154 The assets and liabilities deconsolidated as a result of the Ghana merger were as follows: Assets and liabilities reclassified as held for sale – Ghana October 12, 2017 (US$ millions) Intangible assets, net 12 Property, plant and equipment, net 77 Current assets 29 Cash and cash equivalents 8 Total assets of disposal group held for sale 126 Non-current financial liabilities 51 Current liabilities 50 Total liabilities of disposal group held for sale 102 Net assets / book value 24 |
Schedule of assets and liabilities disposed of | Assets and liabilities disposed of in respect of our operations in Rwanda January 31, 2018 (US$ millions) Intangible assets, net 12 Property, plant and equipment, net 53 Other non-current assets 4 Current assets 14 Cash and cash equivalents 2 Total assets of disposal group held for sale 85 Non-current financial liabilities 11 Current liabilities 28 Total liabilities of disposal group held for sale 40 Net assets held for sale / book value 46 Assets and liabilities disposed of in respect of our operations in Senegal April 27, 2018 (US$ millions) Intangible assets, net 40 Property, plant and equipment, net 126 Other non-current assets 2 Current assets 56 Cash and cash equivalents 3 Total assets of disposal group held for sale 227 Non-current financial liabilities 8 Current liabilities 73 Total liabilities of disposal group held for sale 81 Net assets held for sale / book value 146 |
Schedule of discontinued operations | Results from discontinued operations Year ended December 31, 2018 2017 2016 (US$ millions) Revenue 62 299 371 Cost of sales (23 ) (95 ) (119 ) Operating expenses (26 ) (131 ) (174 ) Depreciation and amortization — (37 ) (79 ) Other operating income (expenses), net (10 ) (4 ) (6 ) Gain on disposal of discontinued operations (29 ) 39 32 Other expenses linked to the disposal of discontinued operations (10 ) (7 ) (19 ) Operating profit (loss) (36 ) 64 6 Interest income (expense), net (3 ) (20 ) (23 ) Other non-operating (expenses) income, net — 6 (10 ) Profit (loss) before taxes (39 ) 51 (26 ) Credit (charge) for taxes, net — — 6 Net profit (loss) from discontinued operations (39 ) 51 (20 ) Cash flows from discontinued operations Year ended December 31, 2018 2017 2016 (US$ millions) Cash from (used in) operating activities, net (4 ) 26 10 Cash from (used in) investing activities, net (6 ) (33 ) (53 ) Cash from (used in) financing activities, net — (22 ) 18 |
Other assets and liabilities (T
Other assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of trade receivables | 2018 2017 (US$ millions) Gross trade receivables 592 597 Less: provisions for expected credit losses (249 ) (211 ) Trade receivables, net 343 386 |
Aging of trade receivables | Aging of trade receivables Neither past due nor impaired Past due (net of impairments) 30–90 days >90 days Total (US$ millions) 2018: Telecom operators 17 9 14 39 Own customers 158 69 19 246 Others 36 17 5 58 Total 210 95 37 343 2017: Telecom operators 29 16 4 49 Own customers 186 52 34 273 Others 43 16 5 64 Total 259 83 43 386 |
Inventories | Inventories 2018 2017 (US$ millions) Telephone and equipment 26 28 SIM cards 4 6 IRUs 3 3 Other 6 9 Inventory at December 31, 39 45 |
Provisions and other liabilities | Current 2018 2017 (US$ millions) Deferred revenue(i) 85 86 Customer deposits 15 13 Current legal provisions 27 24 Tax payables 68 57 Customer and MFS distributor cash balances 147 144 Withholding tax on payments to third parties 17 17 Other provisions 7 1 Other current liabilities(ii) 128 83 Total 494 425 (i) Deferred revenue has partly been reclassified to Contract Liabilities as a result of the adoption of IFRS 15. See the 'Accounting Policy Changes' note. (ii) In the caption "Other current liabilities", for 2018 $38 million of provision for tax risk not related to income tax is included. Non-current 2018 2017 (US$ millions) Non-current legal provisions 8 15 Long-term portion of asset retirement obligations 77 69 Long-term portion of deferred income on tower sale and leasebacks 85 73 Long-term employment obligations 68 76 Accruals and payables in respect of spectrum and license acquisitions 41 31 Other non-current liabilities 71 70 Total 351 335 |
Contract assets | Contract costs, net (i) 2018 (US$ millions) Net at January 1 4 Contract costs capitalized 4 Amortization of contract costs (4 ) Net at December 31 4 (i) Incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that Millicom otherwise would have recognized is one year or less. Contract assets, net 2018 (US$ millions) Long-term portion 3 Short-term portion 35 Less: provisions for expected credit losses (1 ) Total 37 |
Contract liabilities | Contract liabilities 2018 (US$ millions) Long-term portion 1 Short-term portion 86 Total 87 |
Additional disclosure items (Ta
Additional disclosure items (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Additional information [abstract] | |
Disclosure of fees to auditors | Fees to auditors 2018 2017 2016 (US$ millions) Audit fees 6.7 4.7 4.3 Audit related fees 0.4 0.3 0.3 Tax fees 0.2 0.2 0.2 Other fees 0.6 0.7 1.8 Total 7.7 5.9 6.6 |
Disclosure of annual minimum finance lease commitments from continuing operations | Annual operating lease commitments from continuing operations 2018 (i) 2017 (i) (US$ millions) Within one year 127 130 Between one and five years 412 372 After five years 262 258 Total 800 759 (i) The Group’s share in joint ventures operating lease commitments amount to US$312 million ( 2017 : US$194 million ; 2016 : US$210 million ) and are excluded from the table above. Annual minimum finance lease commitments from continuing operations 2018 (i) 2017 (i) (US$ millions) Within one year 99 97 Between one and five years 400 404 After five years 415 477 Total 914 978 (i) The Group’s share in joint ventures finance lease commitments amount to $1 million ( 2017 : $5 million ) and are excluded from the table above. |
Non-cash investing and financing activities from continuing operations | Non-cash investing and financing activities from continuing operations Note 2018 2017 2016 (US$ millions) Investing activities Acquisition of property, plant and equipment, including finance leases E.2.2. (66 ) (174 ) 34 Asset retirement obligations E.2.2. 15 (20 ) (17 ) Acquisition of subsidiaries, joint ventures and associates, net of cash acquired A.1.2. 30 — — Financing activities Finance leases G.2.2. (43 ) 192 1 Share based compensation B.4.1. 22 22 14 |
Disclosure of transactions between related parties | Expenses from transactions with related parties 2018 2017 2016 (US$ millions) Purchases of goods and services from Miffin (173 ) (181 ) (167 ) Purchases of goods and services from EPM (40 ) (36 ) (22 ) Lease of towers and related services from HTA (28 ) (28 ) (35 ) Other expenses (3 ) (4 ) (9 ) Total (244 ) (250 ) (233 ) Income and gains from transactions with related parties 2018 2017 2016 (US$ millions) Sale of goods and services to EPM 17 18 18 Sale of goods and services to Miffin 284 277 261 Other revenue 2 1 10 Total 303 295 289 Year ended December 31, 2018 2017 (US$ millions) Non-current and current assets Receivables from EPM 5 3 Receivables from Guatemala and Honduras joint ventures 20 25 Advance payments to Helios Towers Tanzania 6 8 Receivable from AirtelTigo Ghana(i) 41 40 Other accounts receivable 1 1 Total 73 77 (i) Disclosed under Other non-current assets in the statement of financial position. See note A.2.2. As at December 31, the Company had the following balances with related parties: Year ended December 31, 2018 2017 (US$ millions) Non-current and current liabilities Payables to Guatemala joint venture(i) 315 273 Payables to Honduras joint venture(ii) 143 135 Payables to EPM 14 3 Other accounts payable 9 10 Sub-total 482 421 Finance lease liabilities to tower companies(iii) 99 108 Total 580 529 (i) Shareholder loans bearing interest. Out of the amount above, $135 million are due over more than one year. (ii) Amount payable mainly consist of dividend advances for which dividends are expected to be declared later in 2019 and/or shareholder loans. (iii) Disclosed under Debt and other financing in the statement of financial position. |
Introduction - Foreign exchange
Introduction - Foreign exchange rates (Details) | 12 Months Ended | ||
Dec. 31, 2018L / $₡ / $C$ / $Tsh / $$ / $€ / $Q / $GH₵ / $₲ / $Bs. / $ / $kr / $£ / $ | Dec. 31, 2017L / $₡ / $C$ / $Tsh / $$ / $€ / $Q / $GH₵ / $₲ / $Bs. / $ / $kr / $£ / $ | Dec. 31, 2016L / $₡ / $C$ / $Tsh / $$ / $€ / $Q / $GH₵ / $₲ / $Bs. / $ / $kr / $£ / $ | |
Bolivia | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | Bs. / $ | 6.91 | 6.91 | 6.91 |
Closing foreign exchange rate | Bs. / $ | 6.91 | 6.91 | |
Chad | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | / $ | 571 | 588 | 600 |
Closing foreign exchange rate | / $ | 580 | 558 | |
Change in closing foreign exchange rate | 0.0399 | 0.1200 | |
Colombia | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | $ / $ | 2,973 | 2,961 | 3,049 |
Closing foreign exchange rate | $ / $ | 3,250 | 2,984 | |
Change in closing foreign exchange rate | 0.0891 | 0.0100 | |
Costa Rica, Colones | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | ₡ / $ | 578 | 571 | 551 |
Closing foreign exchange rate | ₡ / $ | 608 | 573 | |
Change in closing foreign exchange rate | 0.0612 | (0.0200) | |
Ghanaian cedi | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | GH₵ / $ | 4.63 | 4.36 | 3.92 |
Closing foreign exchange rate | GH₵ / $ | 4.82 | 4.42 | |
Change in closing foreign exchange rate | 0.0912 | (0.0500) | |
Guatemala, Quetzales | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | Q / $ | 7.52 | 7.36 | 7.61 |
Closing foreign exchange rate | Q / $ | 7.74 | 7.34 | |
Change in closing foreign exchange rate | 0.0541 | 0.0200 | |
Honduras, Lempiras | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | L / $ | 23.99 | 23.58 | 22.92 |
Closing foreign exchange rate | L / $ | 24.42 | 23.67 | |
Change in closing foreign exchange rate | 0.0319 | 0 | |
Euro Member Countries, Euro | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | € / $ | 0.85 | 0.89 | 0.91 |
Closing foreign exchange rate | € / $ | 0.87 | 0.83 | |
Change in closing foreign exchange rate | 0.0508 | 0.1200 | |
Nicaragua, Cordobas | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | C$ / $ | 31.55 | 30.05 | 28.62 |
Closing foreign exchange rate | C$ / $ | 32.33 | 30.79 | |
Change in closing foreign exchange rate | 0.05 | (0.0500) | |
Paraguay | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | ₲ / $ | 5,743 | 5,626 | 5,686 |
Closing foreign exchange rate | ₲ / $ | 5,961 | 5,590 | |
Change in closing foreign exchange rate | 0.0664 | 0.0300 | |
Luxembourg (SEK denominated) | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | kr / $ | 8.71 | 8.53 | 8.58 |
Closing foreign exchange rate | kr / $ | 8.85 | 8.18 | |
Change in closing foreign exchange rate | 0.0823 | 0.1000 | |
Tanzania | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | Tsh / $ | 2,274 | 2,233 | 2,183 |
Closing foreign exchange rate | Tsh / $ | 2,299 | 2,245 | |
Change in closing foreign exchange rate | 0.0242 | (0.0300) | |
United Kingdom, Pounds | |||
Foreign Exchange Rate [Line Items] | |||
Average foreign exchange rate | £ / $ | 0.75 | 0.77 | 0.74 |
Closing foreign exchange rate | £ / $ | 0.78 | 0.74 | |
Change in closing foreign exchange rate | 0.0593 | 0.0900 |
Introduction - Initial applica
Introduction - Initial application of standards (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2] | Jan. 01, 2019 | Jan. 01, 2018 | ||
ASSETS | |||||||
Investments in joint ventures | $ 2,867 | $ 2,966 | $ 2,989 | ||||
Contract costs, net | 4 | 0 | 4 | ||||
Deferred tax assets | 202 | 180 | 191 | ||||
Other non-current assets | 126 | 113 | 113 | ||||
Trade receivables, net | 343 | 386 | 339 | ||||
Contract assets, net | 37 | 0 | 28 | ||||
LIABILITIES | |||||||
Contract liabilities | 87 | 0 | [1] | 51 | |||
Provisions and other current liabilities | 494 | 425 | [1] | 379 | |||
Current income tax liabilities | 58 | 81 | [1] | ||||
Deferred tax liabilities | 233 | 56 | [1] | 62 | |||
EQUITY | |||||||
Retained profits and loss for the year | 2,525 | 3,035 | 3,045 | ||||
Non-controlling interests | 249 | 185 | [1] | 181 | |||
Revenue | 4,074 | 4,076 | [2] | $ 4,043 | |||
Cost of sales | (1,146) | (1,205) | [2] | (1,175) | |||
Operating expenses | (1,674) | (1,593) | [2] | (1,627) | |||
Share of profit in joint ventures in Guatemala and Honduras | 154 | 140 | [2],[3] | 115 | [3] | ||
Charge for taxes, net | (116) | (158) | [2] | $ (179) | |||
Finance lease liabilities | 353 | $ 365 | |||||
Increase (decrease) due to application of IFRS 15 [member] | |||||||
ASSETS | |||||||
Investments in joint ventures | 28 | ||||||
Contract costs, net | 4 | ||||||
Deferred tax assets | 2 | ||||||
Contract assets, net | 37 | ||||||
LIABILITIES | |||||||
Contract liabilities | 87 | ||||||
Provisions and other current liabilities | (82) | ||||||
Current income tax liabilities | 3 | ||||||
Deferred tax liabilities | 7 | ||||||
EQUITY | |||||||
Retained profits and loss for the year | 57 | ||||||
Non-controlling interests | 3 | ||||||
Revenue | (77) | ||||||
Cost of sales | 48 | ||||||
Operating expenses | 40 | ||||||
Share of profit in joint ventures in Guatemala and Honduras | 2 | ||||||
Charge for taxes, net | (1) | ||||||
Calculated Under Guidance in Effect Prior to Adoption of IFRS 15 [Member] | |||||||
ASSETS | |||||||
Investments in joint ventures | 2,839 | ||||||
Contract costs, net | 0 | ||||||
Deferred tax assets | 200 | ||||||
Contract assets, net | 0 | ||||||
LIABILITIES | |||||||
Contract liabilities | 0 | ||||||
Provisions and other current liabilities | 576 | ||||||
Current income tax liabilities | 55 | ||||||
Deferred tax liabilities | 226 | ||||||
EQUITY | |||||||
Retained profits and loss for the year | 2,468 | ||||||
Non-controlling interests | 246 | ||||||
Revenue | 4,151 | ||||||
Cost of sales | (1,194) | ||||||
Operating expenses | (1,714) | ||||||
Share of profit in joint ventures in Guatemala and Honduras | 152 | ||||||
Charge for taxes, net | $ (115) | ||||||
IFRS 15 [Member] | |||||||
ASSETS | |||||||
Investments in joint ventures | 27 | ||||||
Contract costs, net | 4 | ||||||
Deferred tax assets | 0 | ||||||
Other non-current assets | 0 | ||||||
Trade receivables, net | 0 | ||||||
Contract assets, net | 29 | ||||||
LIABILITIES | |||||||
Contract liabilities | 51 | ||||||
Provisions and other current liabilities | (46) | ||||||
Deferred tax liabilities | 7 | ||||||
EQUITY | |||||||
Retained profits and loss for the year | 48 | ||||||
Non-controlling interests | 0 | ||||||
IFRS 9 [Member] | |||||||
ASSETS | |||||||
Investments in joint ventures | (4) | ||||||
Contract costs, net | 0 | ||||||
Deferred tax assets | 10 | ||||||
Other non-current assets | (1) | ||||||
Trade receivables, net | (47) | ||||||
Contract assets, net | (1) | ||||||
LIABILITIES | |||||||
Contract liabilities | 0 | ||||||
Provisions and other current liabilities | 0 | ||||||
Deferred tax liabilities | (1) | ||||||
EQUITY | |||||||
Retained profits and loss for the year | (38) | ||||||
Non-controlling interests | $ (5) | ||||||
Minimum [Member] | |||||||
EQUITY | |||||||
Revenue From Contracts with Customers, Subscription Period | 12 months | ||||||
Maximum [Member] | |||||||
EQUITY | |||||||
Revenue From Contracts with Customers, Subscription Period | 36 months | ||||||
Forecast [Member] | Increase (Decrease) Due To Application of IFRS 16 [Member] | |||||||
EQUITY | |||||||
Finance lease liabilities | $ 600 | ||||||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||||
[2] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||||
[3] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
The Millicom Group - A.1. Subsi
The Millicom Group - A.1. Subsidiaries (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Telemovil El Salvador S.A. de C.V. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Navega.com SA, Sucursal El Salvador | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Cable Costa Rica S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Telefonica Celular de Bolivia S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Telefonica Celular del Paraguay S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Cable Onda S.A | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 80.00% | ||
Millicom Ghana Company Limited | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 0.00% | 0.00% | 100.00% |
Sentel GSM S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 0.00% | 100.00% | 100.00% |
MIC Tanzania Public Limited Company | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Millicom Tchad S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Millicom Rwanda Limited | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 0.00% | 100.00% | 100.00% |
Zanzibar Telecom Limited | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 85.00% | 85.00% | 85.00% |
Millicom International Operations S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Millicom International Operations B.V. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Millicom LIH S.A. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
MIC Latin America B.V. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Millicom Africa B.V. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Millicom Holding B.V. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Millicom Spain S.L. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
The Millicom Group - A.1.2. Acq
The Millicom Group - A.1.2. Acquisition of subsidiaries (Details) - USD ($) $ in Millions | Dec. 13, 2018 | Oct. 07, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Revenue of combined entity as if combination occurred at beginning of period | $ 403 | |||
Net loss of combined entity as if combination occurred at beginning of period | 59 | |||
Amortisation of combined entity | 85 | |||
Cable Onda S.A | ||||
Disclosure of detailed information about business combination [line items] | ||||
Percentage of controlling interest acquired | 80.00% | |||
Enterprise value of acquired entity | $ 1,460 | |||
Percentage ownership help by non-controlling interest | 20.00% | 20.00% | ||
Cash transferred | $ 956 | |||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Intangible assets (excluding goodwill), net | $ 673 | |||
Property, plant and equipment, net | 348 | |||
Current assets (excluding cash) | 54 | |||
Cash and cash equivalents | 12 | |||
Total assets acquired | 1,088 | |||
Non-current liabilities | 422 | |||
Current liabilities | 141 | |||
Total liabilities assumed | 563 | |||
Fair value of assets acquired and liabilities assumed, net | 525 | |||
Transaction costs assumed by Cable Onda | 30 | |||
Fair value of non-controlling interest in Cable Onda (20%) | 111 | |||
Millicom’s interest in the fair value of Cable Onda (80%) | 444 | |||
Acquisition price | 956 | |||
Provisional Goodwill | 512 | |||
Indemnification assets | 4 | |||
Fair value of acquired receivables | 34 | |||
Deferred tax liabilities | 158 | |||
Tax contingent liabilities | 5 | |||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 11 | |||
Revenue of acquiree since acquisition date | 17 | |||
Net loss of acquiree since acquisition date | 7 | |||
Cable Onda S.A | Bridge Facility | ||||
Disclosure of detailed information about business combination [line items] | ||||
Borrowings face amount | 250 | |||
Cable Onda S.A | 6.625% Notes | ||||
Disclosure of detailed information about business combination [line items] | ||||
Borrowings face amount | $ 500 | |||
Borrowings, interest rate | 6.625% | |||
Cable Onda S.A | Trademarks | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Intangible assets (excluding goodwill), net | $ 280 | |||
Intangible assets useful lives | 3 years | |||
Cable Onda S.A | Customer lists | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Intangible assets (excluding goodwill), net | $ 370 | |||
Intangible assets useful lives | 20 years | |||
Cable Onda S.A | Favorable content contracts | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Intangible assets (excluding goodwill), net | $ 19 | |||
Intangible assets useful lives | 10 years | |||
Aggregated individually immaterial business combinations | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Acquisition price | 9 | |||
TV Cable Parana | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Acquisition price | $ 18 | |||
Provisional Goodwill | $ 1 | |||
Other tangible and intangible assets | 3 | |||
TV Cable Parana | Customer lists | ||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||||
Intangible assets (excluding goodwill), net | $ 14 |
The Millicom Group - A.1.3. Dis
The Millicom Group - A.1.3. Disposal of subsidiaries and decreases in non-controlling interests of subsidiaries (Details) - Discontinued Operations - Rwanda - USD ($) $ in Millions | Jan. 31, 2018 | Dec. 31, 2018 |
Disclosure of subsidiaries [line items] | ||
Gain (loss) on disposal of discontinued operations | $ (32) | |
Millicom Rwanda Limited | ||
Disclosure of subsidiaries [line items] | ||
Gain (loss) on disposal of discontinued operations | $ (32) |
The Millicom Group - A.1.4. Sum
The Millicom Group - A.1.4. Summarized financial information (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |||
Disclosure of subsidiaries [line items] | ||||||
Operating profit (loss) | $ 655 | $ 645 | [1] | $ 490 | [1] | |
Net (loss) for the year | (26) | 69 | [1],[2] | (90) | [1],[2] | |
50% non-controlling interest in net (loss) | (16) | (17) | [1] | (58) | [1] | |
Total assets (excluding goodwill) | 10,316 | 9,464 | 9,627 | |||
Total liabilities | 7,526 | 6,183 | [3] | 6,258 | ||
Non-controlling interests | 249 | 185 | [3] | $ 181 | ||
Net cash from operating activities | 792 | 820 | [4] | 878 | [4] | |
Net cash from (used in) investing activities | (1,199) | (367) | [4] | (552) | [4] | |
Net cash from (used in) financing activities | 341 | (464) | [4] | (441) | [4] | |
Exchange impact on cash and cash equivalents, net | (33) | 4 | [4] | (8) | [4] | |
Net (decrease) increase in cash and cash equivalents | (98) | (8) | [4] | (123) | [4] | |
Colombia | ||||||
Disclosure of subsidiaries [line items] | ||||||
Revenue | 1,661 | 1,739 | 1,717 | |||
Total operating expenses | (667) | (647) | (660) | |||
Operating profit (loss) | 147 | 106 | 40 | |||
Net (loss) for the year | (10) | (25) | (110) | |||
50% non-controlling interest in net (loss) | (5) | (13) | (55) | |||
Total assets (excluding goodwill) | 1,966 | 2,193 | 2,221 | |||
Total liabilities | 1,620 | 1,771 | 1,776 | |||
Net assets | 346 | 422 | 445 | |||
Non-controlling interests | 161 | 197 | 207 | |||
Dividends and advances paid to non-controlling interest | (2) | 0 | (67) | |||
Net cash from operating activities | 348 | 331 | 366 | |||
Net cash from (used in) investing activities | (270) | (209) | (340) | |||
Net cash from (used in) financing activities | (75) | (46) | (24) | |||
Exchange impact on cash and cash equivalents, net | (18) | 3 | 1 | |||
Net (decrease) increase in cash and cash equivalents | (15) | 80 | 3 | |||
Panama | ||||||
Disclosure of subsidiaries [line items] | ||||||
50% non-controlling interest in net (loss) | (8) | 0 | 0 | |||
Non-controlling interests | 103 | 0 | ||||
Other | ||||||
Disclosure of subsidiaries [line items] | ||||||
50% non-controlling interest in net (loss) | (3) | (4) | (3) | |||
Non-controlling interests | (16) | (11) | ||||
Before Consolidation Adjustments | Colombia | ||||||
Disclosure of subsidiaries [line items] | ||||||
Non-controlling interests | 173 | 211 | 223 | |||
Consolidation adjustments | Colombia | ||||||
Disclosure of subsidiaries [line items] | ||||||
Non-controlling interests | $ (12) | $ (14) | $ (16) | |||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||
[2] | Re-presented for discontinued operations (shown in note A.4.). | |||||
[3] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||
[4] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
The Millicom Group - A.2. Joint
The Millicom Group - A.2. Joint Ventures (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of joint ventures [line items] | ||||
Statutory reserves unavailable for distribution | $ 345,000,000 | $ 324,000,000 | $ 345,000,000 | $ 321,000,000 |
Increase (Decrease) Joint Ventures [Roll Forward] | ||||
Investments in joint ventures | 2,966,000,000 | |||
Results for the year | (68,000,000) | (6,000,000) | 0 | |
Investments in joint ventures | 2,966,000,000 | 2,867,000,000 | 2,966,000,000 | |
Joint ventures | ||||
Disclosure of joint ventures [line items] | ||||
Assets (liabilities) | 3,457,000,000 | 3,405,000,000 | 3,457,000,000 | |
Statutory reserves unavailable for distribution | 123,000,000 | 133,000,000 | 123,000,000 | |
Dividends and advances paid to Millicom | $ 243,000,000 | 203,000,000 | ||
Guatemala joint ventures | ||||
Disclosure of joint ventures [line items] | ||||
Proportion of ownership interest in joint venture | 55.00% | |||
Dividends and advances paid to Millicom | $ 211,000,000 | 162,000,000 | 77,000,000 | |
Increase (Decrease) Joint Ventures [Roll Forward] | ||||
Investments in joint ventures | 2,145,000,000 | 2,179,000,000 | ||
Adjustment on adoption of IFRS 15 and IFRS 9 (net of tax) | 18,000,000 | |||
Capital increase | 0 | |||
Change in scope | 0 | |||
Results for the year | 131,000,000 | 126,000,000 | 106,000,000 | |
Dividends declared during the year | (177,000,000) | (168,000,000) | ||
Currency exchange differences | (14,000,000) | 7,000,000 | ||
Investments in joint ventures | 2,145,000,000 | $ 2,103,500,000 | $ 2,145,000,000 | 2,179,000,000 |
Comunicaciones Celulares S.A | ||||
Disclosure of joint ventures [line items] | ||||
Proportion of ownership interest in joint venture | 55.00% | 55.00% | ||
Navega.com S.A. | ||||
Disclosure of joint ventures [line items] | ||||
Proportion of ownership interest in joint venture | 55.00% | 55.00% | ||
Honduras joint ventures | ||||
Disclosure of joint ventures [line items] | ||||
Proportion of ownership interest in joint venture | 66.70% | |||
Dividends and advances paid to Millicom | $ 32,000,000 | $ 40,000,000 | 66,000,000 | |
Increase (Decrease) Joint Ventures [Roll Forward] | ||||
Investments in joint ventures | 726,000,000 | 766,000,000 | ||
Adjustment on adoption of IFRS 15 and IFRS 9 (net of tax) | 5,000,000 | |||
Capital increase | 3,000,000 | |||
Change in scope | 0 | |||
Results for the year | 23,000,000 | 15,000,000 | 9,000,000 | |
Dividends declared during the year | 0 | (46,000,000) | ||
Currency exchange differences | (26,000,000) | (9,000,000) | ||
Investments in joint ventures | 726,000,000 | $ 730,100,000 | $ 726,000,000 | 766,000,000 |
Telefonica Celular S.A | ||||
Disclosure of joint ventures [line items] | ||||
Proportion of ownership interest in joint venture | 66.70% | 66.70% | ||
Navega S.A. de CV | ||||
Disclosure of joint ventures [line items] | ||||
Proportion of ownership interest in joint venture | 66.70% | 66.70% | ||
Ghana | ||||
Disclosure of joint ventures [line items] | ||||
Proportion of ownership interest in joint venture | 50.00% | 50.00% | ||
Dividends and advances paid to Millicom | 0 | $ 0 | ||
Increase (Decrease) Joint Ventures [Roll Forward] | ||||
Investments in joint ventures | 96,000,000 | $ 0 | ||
Adjustment on adoption of IFRS 15 and IFRS 9 (net of tax) | 0 | |||
Capital increase | 0 | |||
Change in scope | 102,000,000 | |||
Results for the year | (6,000,000) | (68,000,000) | (6,000,000) | |
Dividends declared during the year | 0 | 0 | ||
Currency exchange differences | 3,000,000 | 0 | ||
Investments in joint ventures | $ 96,000,000 | $ 31,800,000 | $ 96,000,000 | $ 0 |
The Millicom Group - A.2.2. Mat
The Millicom Group - A.2.2. Material Joint Ventures - Guatemala and Honduras (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | [2] | |||
Disclosure of joint ventures [line items] | |||||||
Depreciation and amortization | $ (830) | $ (841) | $ (853) | ||||
Operating profit (loss) | 655 | 645 | [1] | 490 | [1] | ||
Profit before taxes from continuing operations | 129 | 176 | [1],[2] | 109 | [1],[2] | ||
Charge for taxes, net | (116) | (158) | [1] | (179) | [1] | ||
Net profit (loss) for the year | (26) | 69 | [1],[3] | (90) | [1],[3] | ||
Share of profit in joint ventures | (68) | (6) | 0 | ||||
Total non-current assets (excluding goodwill) | 8,784 | 7,646 | |||||
Total non-current liabilities | 4,841 | 4,116 | [4] | ||||
Cash and cash equivalents | 528 | 619 | [2] | 646 | [2] | $ 769 | |
Debt and financing – non-current | 4,123 | 3,600 | [4] | ||||
Debt and financing – current | 458 | 185 | [4] | ||||
Net cash from operating activities | 792 | 820 | [2] | 878 | [2] | ||
Net cash from (used in) investing activities | (1,199) | (367) | [2] | (552) | [2] | ||
Net cash from (used in) financing activities | 341 | (464) | [2] | (441) | [2] | ||
Exchange impact on cash and cash equivalents, net | (33) | 4 | [2] | (8) | [2] | ||
Net (decrease) increase in cash and cash equivalents | (98) | (8) | [2] | (123) | [2] | ||
Impairments/reversal of impairment,net | 1 | (8) | |||||
Honduras joint ventures | |||||||
Disclosure of joint ventures [line items] | |||||||
Revenue | 586 | 585 | 609 | ||||
Depreciation and amortization | (133) | (156) | (160) | ||||
Operating profit (loss) | 91 | 70 | 54 | ||||
Financial income (expenses), net | (29) | (27) | (27) | ||||
Profit before taxes from continuing operations | 52 | 41 | 13 | ||||
Charge for taxes, net | (19) | (18) | 0 | ||||
Net profit (loss) for the year | 34 | 24 | 13 | ||||
Share of profit in joint ventures | 23 | 15 | 9 | ||||
Dividends and advances paid to Millicom | 32 | 40 | 66 | ||||
Total non-current assets (excluding goodwill) | 506 | 576 | 645 | ||||
Total non-current liabilities | 386 | 407 | 454 | ||||
Total current assets | 304 | 208 | 259 | ||||
Current liabilities | 226 | 282 | 237 | ||||
Cash and cash equivalents | 25 | 16 | 13 | ||||
Debt and financing – non-current | 298 | 308 | 339 | ||||
Debt and financing – current | 85 | 80 | 63 | ||||
Net cash from operating activities | 147 | 152 | 85 | ||||
Net cash from (used in) investing activities | (87) | (74) | (17) | ||||
Net cash from (used in) financing activities | (50) | (74) | (69) | ||||
Net (decrease) increase in cash and cash equivalents | 9 | 3 | (1) | ||||
Guatemala joint ventures | |||||||
Disclosure of joint ventures [line items] | |||||||
Revenue | 1,373 | 1,328 | 1,284 | ||||
Depreciation and amortization | (283) | (295) | (281) | ||||
Operating profit (loss) | 387 | 352 | 330 | ||||
Financial income (expenses), net | (56) | (60) | (73) | ||||
Profit before taxes from continuing operations | 309 | 305 | 261 | ||||
Charge for taxes, net | (69) | (74) | (67) | ||||
Net profit (loss) for the year | 240 | 230 | 194 | ||||
Share of profit in joint ventures | 131 | 126 | 106 | ||||
Dividends and advances paid to Millicom | 211 | 162 | 77 | ||||
Total non-current assets (excluding goodwill) | 2,280 | 2,406 | 2,297 | ||||
Total non-current liabilities | 981 | 1,052 | 1,039 | ||||
Total current assets | 718 | 756 | 909 | ||||
Current liabilities | 221 | 220 | 211 | ||||
Cash and cash equivalents | 217 | 303 | 289 | ||||
Debt and financing – non-current | 927 | 995 | 987 | ||||
Net cash from operating activities | 545 | 498 | 438 | ||||
Net cash from (used in) investing activities | (173) | (171) | (174) | ||||
Net cash from (used in) financing activities | (455) | (315) | (127) | ||||
Exchange impact on cash and cash equivalents, net | (3) | 2 | (3) | ||||
Net (decrease) increase in cash and cash equivalents | $ (86) | 14 | 134 | ||||
Impairment loss recognised in profit or loss, trade receivables | 24 | ||||||
Impairments/reversal of impairment,net | $ 10 | $ 18 | |||||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||||
[3] | Re-presented for discontinued operations (shown in note A.4.). | ||||||
[4] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
The Millicom Group - A.2.2. M_2
The Millicom Group - A.2.2. Material Joint Ventures - Ghana (Details) - USD ($) $ in Millions | Oct. 12, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | [2] | |||
Financial Results Of Joint Venture [Abstract] | ||||||||||
Depreciation and amortization | $ (830) | $ (841) | $ (853) | |||||||
Operating profit (loss) | 655 | 645 | [1] | 490 | [1] | |||||
Profit before taxes from continuing operations | 129 | 176 | [1],[2] | 109 | [1],[2] | |||||
Charge for taxes, net | (116) | (158) | [1] | (179) | [1] | |||||
Net profit (loss) for the year | (26) | 69 | [1],[3] | (90) | [1],[3] | |||||
Share of profit in joint ventures | (68) | (6) | 0 | |||||||
Total non-current assets (excluding goodwill) | $ 7,646 | 8,784 | 7,646 | |||||||
Total non-current liabilities | 4,116 | [4] | 4,841 | 4,116 | [4] | |||||
Cash and cash equivalents | 619 | [2] | 528 | 619 | [2] | 646 | [2] | $ 769 | ||
Debt and financing | 3,600 | [4] | 4,123 | 3,600 | [4] | |||||
Debt and financing | 185 | [4] | 458 | 185 | [4] | |||||
Net cash from operating activities | 792 | 820 | [2] | 878 | [2] | |||||
Net cash from (used in) investing activities | (1,199) | (367) | [2] | (552) | [2] | |||||
Net cash from (used in) financing activities | 341 | (464) | [2] | (441) | [2] | |||||
Increase (decrease) in cash and cash equivalents | $ (98) | $ (8) | [2] | $ (123) | [2] | |||||
Ghana | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Proportion of ownership interest in joint venture | 50.00% | 50.00% | ||||||||
Government purchase option, percentage | 25.00% | |||||||||
Government purchase option, period | 2 years | |||||||||
Government purchase option, potential ownership percentage | 37.50% | |||||||||
Non-current receivables due from joint ventures | $ 40 | |||||||||
Combined commitment in joint venture | 50 | |||||||||
Commitments in relation to joint ventures | 25 | |||||||||
Investments in associates | 102 | |||||||||
Gain (loss) attributable to recycling of foreign currency exchange | (79) | |||||||||
Additional depreciation recognized by joint venture deconsolidated | 3 | |||||||||
Financial Results Of Joint Venture [Abstract] | ||||||||||
Revenue | 58 | $ 187 | ||||||||
Depreciation and amortization | (11) | (110) | ||||||||
Operating profit (loss) | (1) | (100) | ||||||||
Financial income (expenses), net | (10) | (42) | ||||||||
Profit before taxes from continuing operations | (12) | (135) | ||||||||
Charge for taxes, net | 0 | 0 | ||||||||
Net profit (loss) for the year | (12) | (135) | ||||||||
Share of profit in joint ventures | (6) | (68) | $ (6) | |||||||
Dividends and advances paid to Millicom | 0 | 0 | ||||||||
Total non-current assets (excluding goodwill) | 184 | 277 | 184 | |||||||
Total non-current liabilities | 214 | 277 | 214 | |||||||
Total current assets | 60 | 71 | 60 | |||||||
Current liabilities | 106 | 134 | 106 | |||||||
Cash and cash equivalents | 15 | 19 | 15 | |||||||
Debt and financing | 145 | 276 | 145 | |||||||
Debt and financing | 0 | 17 | $ 0 | |||||||
Net cash from operating activities | 13 | (19) | ||||||||
Net cash from (used in) investing activities | 0 | (8) | ||||||||
Net cash from (used in) financing activities | (3) | 42 | ||||||||
Increase (decrease) in cash and cash equivalents | $ 10 | $ 15 | ||||||||
At fair value | Ghana | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Gains (losses) recognised when control of subsidiary is lost | $ 36 | |||||||||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||||||
[3] | Re-presented for discontinued operations (shown in note A.4.). | |||||||||
[4] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
The Millicom Group - A.2.3 Impa
The Millicom Group - A.2.3 Impairment of Investments in Joint Ventures (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Ghana | ||
Disclosure of joint ventures [line items] | ||
Discount rate applied to cash flow projections | 14.40% | |
Bottom of range | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 1.60% | 1.10% |
Bottom of range | Guatemala and Honduras Joint Ventures | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 3.00% | 3.10% |
Discount rate applied to cash flow projections | 11.00% | 9.30% |
Bottom of range | Ghana | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 3.80% | |
Top of range | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 4.80% | 3.80% |
Top of range | Guatemala and Honduras Joint Ventures | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 3.20% | 3.20% |
Discount rate applied to cash flow projections | 10.30% | 10.20% |
The Millicom Group - A.3. Inves
The Millicom Group - A.3. Investments in associates (Details) - USD ($) $ in Millions | Dec. 19, 2017 | Dec. 18, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Disclosure of associates [line items] | ||||||||||
Investments in associates | $ 241 | $ 169 | $ 241 | |||||||
Total non-current assets (excluding goodwill) | 7,646 | 8,784 | 7,646 | |||||||
TOTAL ASSETS | 9,464 | 10,316 | 9,464 | $ 9,627 | ||||||
Total non-current liabilities | 4,116 | [1] | 4,841 | 4,116 | [1] | |||||
TOTAL LIABILITIES | 6,183 | [1] | 7,526 | 6,183 | [1] | 6,258 | ||||
Operating profit (loss) | 655 | 645 | [2] | 490 | [2] | |||||
Net profit (loss) for the year | (26) | 69 | [2],[3] | (90) | [2],[3] | |||||
Results for the year | (68) | (6) | 0 | |||||||
Associates [member] | ||||||||||
Disclosure of associates [line items] | ||||||||||
Total current assets | 409 | 473 | 409 | |||||||
Total non-current assets (excluding goodwill) | 766 | 717 | 766 | |||||||
TOTAL ASSETS | 1,176 | 1,190 | 1,176 | |||||||
Current liabilities | 268 | 343 | 268 | |||||||
Total non-current liabilities | 602 | 627 | 602 | |||||||
TOTAL LIABILITIES | 870 | 969 | 870 | |||||||
Net assets | 306 | 221 | 306 | |||||||
Revenue | 511 | 449 | 378 | |||||||
Total operating expenses | (459) | (321) | (302) | |||||||
Operating profit (loss) | (214) | (148) | (167) | |||||||
Net profit (loss) for the year | (327) | (220) | (228) | |||||||
Helios Tower Africa Ltd (HTA) And African Internet Holding GmbH (AIH) [Member] | ||||||||||
Disclosure of associates [line items] | ||||||||||
Investments in associates | 211 | 142 | 211 | |||||||
Share of profit (loss) from other joint ventures and associates, net | $ (66) | $ (34) | $ (39) | |||||||
Helios Towers Africa Ltd (HTA) | ||||||||||
Disclosure of associates [line items] | ||||||||||
Proportion of ownership interest in associate | 22.83% | 22.83% | 22.80% | 28.20% | ||||||
Investments in associates | 149 | $ 105 | $ 149 | |||||||
Africa Internet Holding GmbH (AIH) | ||||||||||
Disclosure of associates [line items] | ||||||||||
Proportion of ownership interest in associate | 10.15% | 10.15% | ||||||||
Investments in associates | 61 | $ 38 | $ 61 | |||||||
West Indian Ocean Cable Company Limited (WIOCC) | ||||||||||
Disclosure of associates [line items] | ||||||||||
Proportion of ownership interest in associate | 9.10% | 9.10% | ||||||||
Investments in associates | 14 | $ 14 | $ 14 | |||||||
MKC Brilliant Holding GmbH (LIH) | ||||||||||
Disclosure of associates [line items] | ||||||||||
Proportion of ownership interest in associate | 35.00% | 35.00% | 35.00% | |||||||
Investments in associates | 0 | $ 0 | $ 0 | |||||||
Milvik AB | ||||||||||
Disclosure of associates [line items] | ||||||||||
Proportion of ownership interest in associate | 12.00% | 20.40% | 12.30% | 12.30% | ||||||
Investments in associates | 16 | $ 13 | $ 16 | |||||||
Aggregated individually immaterial associates [member] | ||||||||||
Disclosure of associates [line items] | ||||||||||
Investments in associates | 30 | 27 | 30 | |||||||
Share of profit (loss) from other joint ventures and associates, net | (2) | (45) | $ (10) | |||||||
Ghana | ||||||||||
Disclosure of associates [line items] | ||||||||||
Total current assets | 60 | 71 | 60 | |||||||
Total non-current assets (excluding goodwill) | 184 | 277 | 184 | |||||||
Current liabilities | 106 | 134 | 106 | |||||||
Total non-current liabilities | 214 | 277 | 214 | |||||||
Revenue | 58 | 187 | ||||||||
Operating profit (loss) | (1) | (100) | ||||||||
Net profit (loss) for the year | (12) | (135) | ||||||||
Results for the year | $ (6) | (68) | (6) | |||||||
Ghana | Associates [member] | ||||||||||
Disclosure of associates [line items] | ||||||||||
Share of profit (loss) of associates and joint ventures accounted for using equity method | $ (136) | $ (85) | $ (49) | |||||||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||||||
[2] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||||||
[3] | Re-presented for discontinued operations (shown in note A.4.). |
The Millicom Group - A.3.2. Acq
The Millicom Group - A.3.2. Acquisitions and disposals of interests in associates (Details) - USD ($) $ in Millions | Dec. 19, 2017 | Dec. 18, 2017 | Apr. 30, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Africa Internet Holding GmbH (AIH) | ||||||||
Disclosure of associates [line items] | ||||||||
Gain (loss) on dilution in investment by associate | $ 43 | |||||||
Dilution in investment in associate percent | 10.00% | |||||||
Proportion of ownership interest in associate | 10.15% | 10.15% | ||||||
Africa Internet Holding GmbH (AIH) | Dilution of interest in associate | ||||||||
Disclosure of associates [line items] | ||||||||
Gain (loss) on dilution in investment by associate | $ 7 | |||||||
Helios Towers Africa Ltd (HTA) | ||||||||
Disclosure of associates [line items] | ||||||||
Gain (loss) on dilution in investment by associate | $ 16 | |||||||
Proportion of ownership interest in associate | 22.83% | 22.83% | 22.80% | 28.20% | ||||
MKC Brilliant Holding GmbH (LIH) | ||||||||
Disclosure of associates [line items] | ||||||||
Proportion of ownership interest in associate | 35.00% | 35.00% | 35.00% | |||||
Impairment loss | $ 48 | $ 40 | ||||||
Gains (losses) on disposal | $ (11) | |||||||
Milvik AB | ||||||||
Disclosure of associates [line items] | ||||||||
Gain (loss) on dilution in investment by associate | $ 11 | |||||||
Proportion of ownership interest in associate | 12.00% | 20.40% | 12.30% | 12.30% | ||||
Contributions to associate by other investors | $ 97 | |||||||
Proceeds from sales of interests in associates | 24 | |||||||
Gains (losses) on disposal | $ 21 |
Performance B.1. Revenue (Detai
Performance B.1. Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 4,074 | $ 4,076 | [1] | $ 4,043 | [1] |
Colombia | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,661 | 1,739 | 1,717 | ||
Paraguay | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 679 | 662 | 623 | ||
Bolivia | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 614 | 555 | 542 | ||
El Salvador | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 405 | 422 | 425 | ||
Tanzania (excluding Zantel) | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 356 | 348 | 347 | ||
Chad | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 128 | 140 | 166 | ||
Costa Rica | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 155 | 153 | 152 | ||
Panama | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 17 | 0 | 0 | ||
Other operations | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 60 | 57 | 71 | ||
Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 3,861 | 3,876 | 3,820 | ||
Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 2,248 | 2,281 | 2,343 | ||
Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,568 | 1,553 | 1,437 | ||
Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 46 | 41 | 39 | ||
Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 213 | $ 200 | $ 223 | ||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Performance B.2. Expenses (Deta
Performance B.2. Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Cost of sales: | |||||
Direct costs of services sold | $ (829) | $ (913) | $ (857) | ||
Cost of telephone, equipment and other accessories | (230) | (219) | (254) | ||
Bad debt and obsolescence costs | (87) | (72) | (63) | ||
Cost of sales | (1,146) | (1,205) | [1] | (1,175) | [1] |
Operating expenses, net | |||||
Marketing expenses | (404) | (463) | (442) | ||
Site and network maintenance costs | (209) | (176) | (160) | ||
Employee related costs (B.4.) | (514) | (451) | (451) | ||
External and other services | (185) | (152) | (218) | ||
Rentals and operating leases | (155) | (155) | (159) | ||
Other operating expenses | (207) | (197) | (196) | ||
Operating expenses, net | (1,674) | (1,593) | [1] | (1,627) | [1] |
Other operating income (expenses), net: | |||||
Income from tower deal transactions | 65 | 63 | 0 | ||
Impairment of intangible assets and property, plant and equipment | (6) | (12) | (6) | ||
Gain (loss) on disposals of intangible assets and property, plant and equipment | 8 | 1 | (8) | ||
Other income (expenses) | 9 | 16 | 0 | ||
Other operating income (expenses), net | $ 76 | $ 68 | [1] | $ (14) | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Performance B.3. Segmental Info
Performance B.3. Segmental Information - Revenue, operating profit (loss), EBITDA, and other (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)region | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |||
Disclosure of operating segments [line items] | |||||
Number of regions | region | 2 | ||||
Revenue | $ 4,074 | $ 4,076 | [1] | $ 4,043 | [1] |
Operating profit | 655 | 645 | [1] | 490 | [1] |
Depreciation and amortization | 830 | 841 | 853 | ||
Share of profit in Guatemala and Honduras joint ventures | (154) | (140) | [1],[2] | (115) | [1],[2] |
Other operating income (expenses), net | (76) | (68) | [1] | 14 | [1] |
EBITDA | 1,254 | 1,278 | 1,241 | ||
EBITDA from discontinued operations | 3 | 73 | 77 | ||
EBITDA incl. discontinued operations | 1,257 | 1,351 | 1,319 | ||
Capex | (708) | (718) | (811) | ||
Changes in working capital and others | (13) | (42) | 26 | ||
Taxes (paid) | (153) | (132) | [2] | (130) | [2] |
Operating Free Cash Flow | 383 | 459 | 404 | ||
Total assets (excluding goodwill) | 10,316 | 9,464 | 9,627 | ||
Total liabilities | 7,526 | 6,183 | [3] | 6,258 | |
Cash received from sales and leaseback transaction | 141 | 167 | 0 | ||
Purchase of spectrum and licenses | 61 | 53 | 39 | ||
Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 2,248 | 2,281 | 2,343 | ||
Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,568 | 1,553 | 1,437 | ||
Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 46 | 41 | 39 | ||
Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3,861 | 3,876 | 3,820 | ||
Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 213 | 200 | 223 | ||
Latin America | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3,548 | ||||
Latin America | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,556 | ||||
Latin America | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 42 | ||||
Latin America | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3,336 | ||||
Africa | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 526 | ||||
Africa | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 12 | ||||
Africa | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3 | ||||
Africa | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 526 | ||||
Operating segments | Latin America | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 5,485 | 5,441 | 5,352 | ||
Operating profit | 995 | 899 | 721 | ||
Depreciation and amortization | 1,133 | 1,174 | 1,173 | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | (51) | (49) | 42 | ||
EBITDA | 2,077 | 2,024 | 1,935 | ||
EBITDA from discontinued operations | 0 | 0 | 0 | ||
EBITDA incl. discontinued operations | 2,077 | 2,024 | 1,935 | ||
Capex | (872) | (855) | (886) | ||
Changes in working capital and others | (42) | (53) | 37 | ||
Taxes (paid) | (264) | (239) | (233) | ||
Operating Free Cash Flow | 899 | 877 | 853 | ||
Total assets (excluding goodwill) | 11,754 | 10,411 | 10,386 | ||
Total liabilities | 6,132 | 5,484 | 5,229 | ||
Operating segments | Latin America | Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3,214 | 3,283 | 3,318 | ||
Operating segments | Latin America | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,808 | 1,755 | 1,611 | ||
Operating segments | Latin America | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 48 | 40 | 37 | ||
Operating segments | Latin America | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 5,069 | 5,078 | 4,966 | ||
Operating segments | Latin America | Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 415 | 363 | 386 | ||
Operating segments | Africa | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 526 | 526 | 565 | ||
Operating profit | 40 | 41 | 43 | ||
Depreciation and amortization | 107 | 110 | 113 | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | (3) | (11) | 2 | ||
EBITDA | 143 | 140 | 158 | ||
EBITDA from discontinued operations | 3 | 73 | 77 | ||
EBITDA incl. discontinued operations | 146 | 213 | 235 | ||
Capex | (59) | (99) | (161) | ||
Changes in working capital and others | 28 | (6) | (2) | ||
Taxes (paid) | (24) | (18) | (33) | ||
Operating Free Cash Flow | 91 | 90 | 39 | ||
Total assets (excluding goodwill) | 839 | 1,482 | 1,406 | ||
Total liabilities | 905 | 1,673 | 1,852 | ||
Operating segments | Africa | Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 510 | 509 | 541 | ||
Operating segments | Africa | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 12 | 12 | 15 | ||
Operating segments | Africa | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3 | 5 | 6 | ||
Operating segments | Africa | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 526 | 524 | 562 | ||
Operating segments | Africa | Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1 | 2 | 2 | ||
Unallocated | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 0 | ||
Operating profit | (47) | (5) | 4 | ||
Depreciation and amortization | 5 | 6 | 7 | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | (2) | 10 | (6) | ||
EBITDA | (44) | 11 | 5 | ||
EBITDA from discontinued operations | 0 | 0 | 0 | ||
EBITDA incl. discontinued operations | (44) | 11 | 5 | ||
Capex | (2) | (1) | (6) | ||
Changes in working capital and others | 13 | (10) | (33) | ||
Taxes (paid) | (6) | 1 | (9) | ||
Operating Free Cash Flow | (39) | 1 | (43) | ||
Total assets (excluding goodwill) | 2,752 | 598 | 1,357 | ||
Total liabilities | 2,953 | 1,465 | 1,997 | ||
Unallocated | Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 0 | ||
Unallocated | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 0 | ||
Unallocated | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 0 | ||
Unallocated | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 0 | ||
Unallocated | Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 0 | ||
Guatemala and Honduras | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (1,937) | (1,892) | (1,875) | ||
Operating profit | (488) | (431) | (394) | ||
Depreciation and amortization | (416) | (450) | (441) | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | (19) | (18) | (24) | ||
EBITDA | (922) | (899) | (859) | ||
EBITDA from discontinued operations | 0 | 0 | 0 | ||
EBITDA incl. discontinued operations | (922) | (899) | (859) | ||
Capex | 225 | 237 | 242 | ||
Changes in working capital and others | (12) | 27 | 24 | ||
Taxes (paid) | 142 | 124 | 145 | ||
Operating Free Cash Flow | (568) | (511) | (448) | ||
Total assets (excluding goodwill) | (5,219) | (5,420) | (5,589) | ||
Total liabilities | (1,814) | (1,961) | (1,942) | ||
Guatemala and Honduras | Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (1,475) | (1,510) | (1,514) | ||
Guatemala and Honduras | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (253) | (213) | (191) | ||
Guatemala and Honduras | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (6) | (4) | (4) | ||
Guatemala and Honduras | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (1,734) | (1,727) | (1,709) | ||
Guatemala and Honduras | Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (203) | (165) | (165) | ||
Eliminations and Transfers | |||||
Disclosure of operating segments [line items] | |||||
Operating profit | 154 | 140 | (115) | ||
Share of profit in Guatemala and Honduras joint ventures | (154) | (140) | (115) | ||
Other operating income (expenses), net | 0 | 0 | 0 | ||
EBITDA | 0 | 0 | 0 | ||
EBITDA from discontinued operations | 0 | 0 | 0 | ||
EBITDA incl. discontinued operations | 0 | 0 | 0 | ||
Capex | 0 | 0 | 0 | ||
Changes in working capital and others | 0 | 0 | 0 | ||
Taxes (paid) | 0 | 0 | 0 | ||
Operating Free Cash Flow | 0 | 0 | 0 | ||
Total assets (excluding goodwill) | 190 | 2,393 | 2,067 | ||
Total liabilities | $ (650) | $ (478) | $ (877) | ||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||
[3] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Performance B.3. Segmental In_2
Performance B.3. Segmental Information - Revenue from contracts with customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 4,074 | $ 4,076 | [1] | $ 4,043 | [1] |
Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 3,861 | 3,876 | 3,820 | ||
Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 2,248 | 2,281 | 2,343 | ||
Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,568 | 1,553 | 1,437 | ||
Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 46 | 41 | 39 | ||
Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 213 | $ 200 | $ 223 | ||
Latin America | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 3,548 | ||||
Latin America | Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 3,336 | ||||
Latin America | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,556 | ||||
Latin America | Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 42 | ||||
Africa | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 526 | ||||
Africa | Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 526 | ||||
Africa | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 12 | ||||
Africa | Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 3 | ||||
Over time | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 2,102 | ||||
Over time | Latin America | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,701 | ||||
Over time | Africa | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 401 | ||||
Point in time | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 147 | ||||
Point in time | Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 213 | ||||
Point in time | Latin America | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 37 | ||||
Point in time | Latin America | Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 212 | ||||
Point in time | Africa | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 109 | ||||
Point in time | Africa | Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 1 | ||||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Performance B.4. People (Detail
Performance B.4. People (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($)employee | |
Number of permanent employees: | |||
Continuing operations | employee | 16,987 | 14,404 | 13,211 |
Joint ventures (Guatemala, Honduras and Ghana – for 2018 and 2017) | employee | 4,416 | 4,326 | 4,023 |
Discontinued operations | employee | 0 | 397 | 751 |
Total | employee | 21,403 | 19,127 | 17,985 |
Classes of employee benefits expense: | |||
Wages and salaries | $ (356) | $ (320) | $ (290) |
Social security | (61) | (57) | (67) |
Share based compensation | (21) | (22) | (14) |
Pension and other long-term benefit costs | (7) | (8) | (6) |
Other employee related costs | (70) | (45) | (74) |
Total | $ (514) | $ (451) | $ (451) |
Performance B.4.1. Share-based
Performance B.4.1. Share-based compensation - Narrative (Details) | Apr. 01, 2015shares | Dec. 31, 2018 | Dec. 31, 2015planshares | Dec. 31, 2016plan | Dec. 31, 2014plan |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of plans | plan | 4 | 2 | 2 | ||
Deferred share plans | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 3 years | ||||
Deferred share plans | Tranche One | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 16.50% | ||||
Deferred share plans | Tranche Two | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 16.50% | ||||
Deferred share plans | Tranche Three | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 67.00% | ||||
2015 CEO Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of shares granted (in shares) | 77,344 | ||||
2015 Performance Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Fulfillment expectation | 100.00% | ||||
2015 Performance Plan | Tranche One | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 62.50% | ||||
2015 Performance Plan | Tranche Two | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 37.50% | ||||
2015 Executive Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 3 years | ||||
Fulfillment expectation | 100.00% | ||||
2015 Executive Plan - CEO | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of shares granted (in shares) | 26,664 | ||||
Shares in entity held by entity executive | 3,333 | ||||
2015 Executive Plan - CFO | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of shares granted (in shares) | 14,000 | ||||
Shares in entity held by entity executive | 2,000 | ||||
2017 Performance Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 3 years | ||||
2017 Performance Plan | Tranche One | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 25.00% | ||||
2017 Performance Plan | Tranche Two | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 25.00% | ||||
2017 Performance Plan | Tranche Three | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 50.00% | ||||
2016 Performance Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 3 years | ||||
2016 Performance Plan | Tranche One | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 25.00% | ||||
2016 Performance Plan | Tranche Two | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 25.00% | ||||
2016 Performance Plan | Tranche Three | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 50.00% | ||||
2018 Performance Plan | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 3 years | ||||
2018 Performance Plan | Tranche One | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 25.00% | ||||
2018 Performance Plan | Tranche Two | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 25.00% | ||||
2018 Performance Plan | Tranche Three | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting percentage | 50.00% |
Performance B.4.1. Share-base_2
Performance B.4.1. Share-based compensation - Cost of share based compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | $ (21) | $ (22) | $ (14) |
2014 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | 0 | 0 | (1) |
2015 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | 0 | (3) | (3) |
2016 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | (4) | (6) | (10) |
2017 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | (8) | (12) | 0 |
2018 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | $ (11) | $ 0 | $ 0 |
Performance B.4.1. Share-base_3
Performance B.4.1. Share-based compensation - Assumptions (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)year | |
Performance share plan 2018 (Relative TSR) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.39%) |
Dividend yield % | 3.21% |
Share price volatility % | 30.27% |
Award term (years) | year | 2.93 |
Share fair value (in US$) | $ | $ 57.70 |
Performance share plan 2017 (Relative TSR) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.40%) |
Dividend yield % | 3.80% |
Share price volatility % | 22.50% |
Award term (years) | year | 2.92 |
Share fair value (in US$) | $ | $ 27.06 |
Performance share plan 2017 (Absolute TSR) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.40%) |
Dividend yield % | 3.80% |
Share price volatility % | 22.50% |
Award term (years) | year | 2.92 |
Share fair value (in US$) | $ | $ 29.16 |
Performance share plan 2016 (Relative TSR) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.65%) |
Dividend yield % | 3.49% |
Share price volatility % | 30.00% |
Award term (years) | year | 2.61 |
Share fair value (in US$) | $ | $ 43.35 |
Performance share plan 2016 (Absolute TSR) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.65%) |
Dividend yield % | 3.49% |
Share price volatility % | 30.00% |
Award term (years) | year | 2.61 |
Share fair value (in US$) | $ | $ 45.94 |
Performance share plan 2015 (Absolute TSR) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.32%) |
Dividend yield % | 2.78% |
Share price volatility % | 23.00% |
Award term (years) | year | 2.57 |
Share fair value (in US$) | $ | $ 32.87 |
Executive share plan 2015 – Component A | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.32%) |
Share price volatility % | 23.00% |
Award term (years) | year | 2.57 |
Share fair value (in US$) | $ | $ 53.74 |
Executive share plan 2015 – Component B | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.32%) |
Share price volatility % | 23.00% |
Award term (years) | year | 2.57 |
Share fair value (in US$) | $ | $ 29.53 |
Performance B.4.1. Share-base_4
Performance B.4.1. Share-based compensation - Plan awards and shares expected to vest (Details) $ in Millions | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | |||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017shares | Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Shares issued (in shares) | (207,092) | (136,047) | |||||
Shares still expected to vest (in shares) | 512,211 | 447,391 | 512,211 | 512,211 | 512,211 | ||
2018 Performance Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 237,196 | ||||||
Additional shares granted (in shares) | 0 | ||||||
Revision for forfeitures (in shares) | (13,531) | ||||||
Revision for cancellations (in shares) | (4,728) | ||||||
Total before issuances (in shares) | 218,927 | ||||||
Shares issued (in shares) | (97) | ||||||
Shares still expected to vest (in shares) | 218,830 | 218,830 | 218,830 | 218,830 | |||
Estimated cost over the vesting period (US$ millions) | $ | $ 12 | $ 12 | $ 12 | $ 12 | |||
2018 Deferred Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 262,317 | ||||||
Additional shares granted (in shares) | 3,290 | ||||||
Revision for forfeitures (in shares) | (18,086) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 247,521 | ||||||
Shares issued (in shares) | (18,747) | ||||||
Shares still expected to vest (in shares) | 228,774 | 228,774 | 228,774 | 228,774 | |||
Estimated cost over the vesting period (US$ millions) | $ | $ 14 | $ 14 | $ 14 | $ 14 | |||
2017 Performance Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 279,807 | ||||||
Additional shares granted (in shares) | 2,868 | ||||||
Revision for forfeitures (in shares) | (34,556) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 248,119 | ||||||
Shares issued (in shares) | (2,724) | 0 | |||||
Shares still expected to vest (in shares) | 245,395 | 245,395 | 245,395 | 245,395 | |||
Estimated cost over the vesting period (US$ millions) | $ | $ 9 | $ 9 | $ 9 | $ 9 | |||
2017 Deferred Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 438,505 | ||||||
Additional shares granted (in shares) | 29,406 | ||||||
Revision for forfeitures (in shares) | (74,325) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 393,586 | ||||||
Shares issued (in shares) | (99,399) | (2,686) | |||||
Shares still expected to vest (in shares) | 291,501 | 291,501 | 291,501 | 291,501 | |||
Estimated cost over the vesting period (US$ millions) | $ | $ 20 | $ 20 | $ 20 | $ 20 | |||
2016 Performance Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 200,617 | ||||||
Additional shares granted (in shares) | 0 | ||||||
Revision for forfeitures (in shares) | (49,164) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 151,453 | ||||||
Shares issued (in shares) | (2,050) | (752) | (1,214) | ||||
Shares still expected to vest (in shares) | 147,437 | 147,437 | 147,437 | 147,437 | |||
Estimated cost over the vesting period (US$ millions) | $ | $ 8 | $ 8 | $ 8 | $ 8 | |||
2016 Deferred Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 287,316 | ||||||
Additional shares granted (in shares) | 0 | ||||||
Revision for forfeitures (in shares) | (77,924) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 209,392 | ||||||
Shares issued (in shares) | (46,039) | (43,579) | (1,733) | ||||
Shares still expected to vest (in shares) | 118,041 | 118,041 | 118,041 | 118,041 | |||
Estimated cost over the vesting period (US$ millions) | $ | $ 12 | $ 12 | $ 12 | $ 12 | |||
2015 Deferred Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 237,620 | ||||||
Additional shares granted (in shares) | 0 | ||||||
Revision for forfeitures (in shares) | (68,121) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 169,499 | ||||||
Shares issued (in shares) | (100,630) | (30,124) | (38,745) | ||||
Estimated cost over the vesting period (US$ millions) | $ | $ 12 | 12 | 12 | $ 12 | |||
2015 CEO Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 77,344 | ||||||
Additional shares granted (in shares) | 3,537 | ||||||
Revision for forfeitures (in shares) | 0 | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 80,881 | ||||||
Shares issued (in shares) | (26,961) | (28,139) | (25,781) | ||||
Estimated cost over the vesting period (US$ millions) | $ | $ 6 | 6 | 6 | $ 6 | |||
2015 Executive Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 40,664 | ||||||
Additional shares granted (in shares) | 0 | ||||||
Revision for forfeitures (in shares) | 0 | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 40,664 | ||||||
Shares issued (in shares) | (19,022) | 0 | 0 | ||||
Performance conditions | (21,642) | ||||||
Estimated cost over the vesting period (US$ millions) | $ | $ 2 | 2 | 2 | $ 2 | |||
2015 Performance Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 98,137 | ||||||
Additional shares granted (in shares) | 0 | ||||||
Revision for forfeitures (in shares) | (37,452) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 60,685 | ||||||
Shares issued (in shares) | (27,619) | (357) | (771) | ||||
Performance conditions | (31,938) | ||||||
Estimated cost over the vesting period (US$ millions) | $ | $ 4 | $ 4 | $ 4 | $ 4 |
Performance B.4.2. Pension and
Performance B.4.2. Pension and other long-term employee benefit plans (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)year | Dec. 31, 2017USD ($)year | |
Long-Service Plans | ||
Disclosure of defined benefit plans [line items] | ||
Requisite service period | 5 years | |
Termination Plans | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability | $ 60 | $ 66 |
Estimate of contributions expected to be paid to plan in future years | $ 111 | $ 87 |
Weighted average duration of defined benefit obligation | year | 7 | 7 |
Bottom of range | Long-Service Plans | ||
Disclosure of defined benefit plans [line items] | ||
Requisite service period, additional bonus | 5 years | |
Top of range | Long-Service Plans | ||
Disclosure of defined benefit plans [line items] | ||
Requisite service period, additional bonus | 40 years |
Performance B.4.3. Directors an
Performance B.4.3. Directors and executive (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Employee Benefits Expense [Line Items] | |||
Remuneration charge for the Board (gross of withholding tax) | $ 943 | $ 1,122 | $ 1,143 |
Remuneration expense, percent cash | shares | 6,591 | 8,731 | 8,002 |
Remuneration expense, percent shares | 51.00% | 52.00% | 50.00% |
Renumeration charge, shares (in shares) | 49.00% | 48.00% | 50.00% |
Shares beneficially owned by the Directors | shares | 23,887 | 27,067 | |
Classes of employee benefits expense: | |||
Base salary | $ 356,000 | $ 320,000 | $ 290,000 |
Pension | 7,000 | 8,000 | 6,000 |
Other benefits | 70,000 | 45,000 | 74,000 |
Share based compensation | 21,000 | 22,000 | 14,000 |
Employee benefits expense | $ 514,000 | $ 451,000 | 451,000 |
Shares awards vested (in shares) | shares | 207,092 | 136,047 | |
Shares not yet vested (in shares) | shares | 512,211 | 447,391 | |
Chairperson | |||
Employee Benefits Expense [Line Items] | |||
Remuneration charge for the Board (gross of withholding tax) | $ 169 | $ 233 | 243 |
Shares beneficially owned by the Directors | shares | 8,554 | 7,000 | |
Other members of the Board | |||
Employee Benefits Expense [Line Items] | |||
Remuneration charge for the Board (gross of withholding tax) | $ 774 | $ 889 | 900 |
Shares beneficially owned by the Directors | shares | 15,333 | 20,067 | |
CEO | |||
Classes of employee benefits expense: | |||
Base salary | $ 1,112 | $ 1,000 | 1,000 |
Bonus | 1,492 | 707 | 660 |
Pension | 247 | 150 | 150 |
Other benefits | 66 | 64 | 48 |
Termination benefits | 0 | ||
Total before share based compensation | 2,918 | 1,921 | 1,858 |
Share based compensation | 5,027 | 2,783 | 2,660 |
Employee benefits expense | $ 7,945 | $ 4,704 | $ 4,518 |
Number of shares granted (in shares) | 80,264 | 61,724 | 49,171 |
Shares awards vested (in shares) | shares | 122,310 | 80,159 | |
Shares not yet vested (in shares) | shares | 172,485 | 148,324 | |
CFO | |||
Classes of employee benefits expense: | |||
Base salary | $ 673 | $ 648 | $ 599 |
Bonus | 557 | 455 | 450 |
Pension | 101 | 97 | 82 |
Other benefits | 63 | 15 | 18 |
Termination benefits | 0 | ||
Total before share based compensation | 1,393 | 1,215 | 1,149 |
Share based compensation | 1,567 | 1,492 | 1,481 |
Employee benefits expense | 2,960 | 2,707 | 2,630 |
Executive team (9 members) | |||
Classes of employee benefits expense: | |||
Base salary | 3,930 | 3,822 | 3,797 |
Bonus | 2,445 | 1,590 | 1,411 |
Pension | 962 | 629 | 513 |
Other benefits | 805 | 1,193 | 720 |
Termination benefits | 301 | ||
Total before share based compensation | 8,444 | 7,233 | 6,441 |
Share based compensation | 4,957 | 5,202 | 4,031 |
Employee benefits expense | $ 13,401 | $ 12,435 | $ 10,472 |
Number of shares granted (in shares) | 112,472 | 167,371 | 104,573 |
Shares awards vested (in shares) | shares | 84,782 | 55,888 | |
Shares not yet vested (in shares) | shares | 339,726 | 299,067 |
Performance B.5. Other non-oper
Performance B.5. Other non-operating (expenses) income, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | |||
Change in fair value of derivatives (see note D.1.2.) | $ (1) | $ (22) | $ 3 |
Exchange gain (loss), net | (41) | 18 | 25 |
Other non-operating income (expenses), net | 2 | 0 | (9) |
Total | $ (40) | $ (4) | $ 20 |
Performance B.6.1 Income tax ex
Performance B.6.1 Income tax expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income tax (charge) credit | |||||
Withholding tax | $ (64) | $ (74) | $ (44) | ||
Other income tax relating to the current year | (86) | (85) | (74) | ||
Current tax expense (income) | (150) | (159) | (118) | ||
Adjustments in respect of prior years | 1 | (12) | (26) | ||
Current tax expense (income) and adjustments | (149) | (171) | (144) | ||
Deferred tax (charge) credit | |||||
Origination and reversal of temporary differences | 32 | 15 | 45 | ||
Effect of change in tax rates | (10) | 19 | 1 | ||
Tax income (expense) before valuation allowances | 22 | 34 | 46 | ||
Effect of valuation allowances | (8) | (30) | (88) | ||
Deferred tax expense (income) | 14 | 4 | (42) | ||
Adjustments in respect of prior years | 19 | 9 | 7 | ||
Deferred tax expense (income) and adjustments | 33 | 13 | (35) | ||
Income Tax Calculation: | |||||
Profit before tax | 129 | 176 | 109 | ||
Tax at the weighted average statutory rate | (5) | (12) | 9 | ||
Effect of: | |||||
Items taxed at a different rate | 7 | (11) | 13 | ||
Change in tax rates on deferred tax balances | (10) | 19 | 1 | ||
Expenditure not deductible and income not taxable | (59) | (66) | (65) | ||
Unrelieved withholding tax | (64) | (73) | (43) | ||
Accounting for associates and joint ventures | 5 | 17 | 29 | ||
Movement in deferred tax on unremitted earnings | (2) | 1 | (16) | ||
Unrecognized deferred tax assets | (8) | (31) | (105) | ||
Recognition of previously unrecognized deferred tax assets | 0 | 1 | 17 | ||
Adjustments in respect of prior years | 20 | (3) | (19) | ||
Total tax (charge) credit | $ (116) | $ (158) | [1] | $ (179) | [1] |
Weighted average statutory tax rate | 3.90% | 6.82% | (8.26%) | ||
Effective tax rate | 89.90% | 89.77% | 164.22% | ||
Discontinued operations | |||||
Income Tax Calculation: | |||||
Profit before tax | $ (39) | $ 51 | $ (26) | ||
Tax at the weighted average statutory rate | 4 | (10) | 6 | ||
Effect of: | |||||
Items taxed at a different rate | 0 | 0 | 0 | ||
Change in tax rates on deferred tax balances | 0 | 0 | 0 | ||
Expenditure not deductible and income not taxable | (2) | 7 | 8 | ||
Unrelieved withholding tax | 0 | 0 | 0 | ||
Accounting for associates and joint ventures | 0 | 0 | 0 | ||
Movement in deferred tax on unremitted earnings | 0 | 0 | 0 | ||
Unrecognized deferred tax assets | (2) | (10) | (15) | ||
Recognition of previously unrecognized deferred tax assets | 0 | 13 | 0 | ||
Adjustments in respect of prior years | 0 | 0 | 7 | ||
Total tax (charge) credit | 0 | 0 | 6 | ||
Aggregate continuing and discontinued operations [member] | |||||
Income Tax Calculation: | |||||
Profit before tax | 90 | 227 | 83 | ||
Tax at the weighted average statutory rate | (1) | (22) | 15 | ||
Effect of: | |||||
Items taxed at a different rate | 7 | (11) | 13 | ||
Change in tax rates on deferred tax balances | (10) | 19 | 1 | ||
Expenditure not deductible and income not taxable | (61) | (59) | (57) | ||
Unrelieved withholding tax | (64) | (73) | (43) | ||
Accounting for associates and joint ventures | 5 | 17 | 29 | ||
Movement in deferred tax on unremitted earnings | (2) | 1 | (16) | ||
Unrecognized deferred tax assets | (10) | (41) | (120) | ||
Recognition of previously unrecognized deferred tax assets | 0 | 14 | 17 | ||
Adjustments in respect of prior years | 20 | (3) | (12) | ||
Total tax (charge) credit | $ (116) | $ (158) | $ (173) | ||
Weighted average statutory tax rate | 1.10% | 9.69% | (17.90%) | ||
Effective tax rate | 128.90% | 69.60% | 207.10% | ||
Bottom of range | |||||
Effect of: | |||||
Weighted average statutory tax rate | 10.00% | 10.00% | 10.00% | ||
Top of range | |||||
Effect of: | |||||
Weighted average statutory tax rate | 40.00% | 40.00% | 40.00% | ||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Performance B.6.3 Deferred tax
Performance B.6.3 Deferred tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | $ 124 | $ 109 | |||
(Charge)/credit to statement of income | 33 | 13 | |||
Change in scope | (181) | ||||
Accounting policy changes | 4 | ||||
Exchange differences | (11) | 2 | |||
End of period | (31) | 124 | |||
Deferred tax assets | 202 | 180 | $ 191 | ||
Deferred tax liabilities | (233) | (56) | [1] | $ (62) | |
Deductible temporary differences | 5,112 | 5,074 | |||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 584 | 842 | $ 873 | ||
Unrecognized tax losses | 4,886 | 4,844 | 4,501 | ||
Deferred tax assets, intragroup dividends | 34 | 32 | 32 | ||
Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | (52) | (39) | |||
Deferred tax liabilities | 52 | 39 | |||
Fixed assets | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | 32 | (23) | |||
(Charge)/credit to statement of income | (18) | 53 | |||
Change in scope | (190) | ||||
Accounting policy changes | 0 | ||||
Exchange differences | 0 | 2 | |||
End of period | (176) | 32 | |||
Deductible temporary differences | 92 | 68 | |||
Fixed assets | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 76 | 88 | |||
Deferred tax liabilities | (252) | (56) | |||
Unused tax losses | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | 52 | 113 | |||
(Charge)/credit to statement of income | (3) | (61) | |||
Change in scope | 0 | ||||
Accounting policy changes | 0 | ||||
Exchange differences | (5) | 0 | |||
End of period | 44 | 52 | |||
Deductible temporary differences | 4,886 | 4,844 | |||
Unused tax losses | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 44 | 52 | |||
Deferred tax liabilities | 0 | 0 | |||
Unremitted earnings | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | (32) | (32) | |||
(Charge)/credit to statement of income | (2) | 1 | |||
Change in scope | 0 | ||||
Accounting policy changes | 0 | ||||
Exchange differences | 0 | (1) | |||
End of period | (34) | (32) | |||
Unremitted earnings | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 0 | 0 | |||
Deferred tax liabilities | (34) | (32) | |||
Other | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | 72 | 51 | |||
(Charge)/credit to statement of income | 56 | 20 | |||
Change in scope | 9 | ||||
Accounting policy changes | 4 | ||||
Exchange differences | (6) | 1 | |||
End of period | 135 | 72 | |||
Deductible temporary differences | 134 | 162 | |||
Other | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 134 | 79 | |||
Deferred tax liabilities | 1 | (7) | |||
Less than 1 year | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | 0 | 39 | 27 | ||
1 to 5 years | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | 3 | 494 | 493 | ||
After five years | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | 493 | 0 | 0 | ||
No expiry | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | $ 4,390 | $ 4,311 | $ 3,981 | ||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Performance B.7. Earnings Per S
Performance B.7. Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Earnings (loss) per common share for profit (loss) attributable to the owners of the Company: | |||||
Net profit/(loss) attributable to equity holders from continuing operations | $ 29 | $ 36 | $ (12) | ||
Net profit/(loss) attributable to equity holders from discontinued operations | (39) | 51 | (20) | ||
Net profit/(loss) attributable to all equity holders to determine the basic earnings (loss) per share | $ (10) | $ 86 | [1] | $ (32) | [1] |
Weighted average ordinary shares and adjusted weighted average ordinary shares [abstract] | |||||
Weighted average number of ordinary shares (excluding treasury shares) for basic earnings per share) (in shares) | 100,793 | 100,384 | 100,337 | ||
Potential incremental shares as a result of share options (in shares) | 0 | 0 | 0 | ||
Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution (in shares) | 100,793 | 100,384 | 100,337 | ||
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Capital structure and financi_3
Capital structure and financing - C.1. Share capital and other equity reserves (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | ||||||
Number of shares authorised | 133,333,200 | 133,333,200 | ||||
Number of shares issued and fully paid | 101,739,217 | 101,739,217 | ||||
Par value per share | $ 1.5 | $ 1.5 | ||||
Share capital | $ 153 | $ 153 | ||||
Share premium | 482 | 484 | ||||
Share capital and premium | 635 | 637 | [1] | |||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | [1] | (472) | ||||
Share based compensation | [2] | 22 | 22 | $ 14 | ||
Issuance of shares | 2 | 1 | 4 | |||
Remeasurements of post-employment benefit obligations | 0 | (2) | [3] | (2) | [3] | |
Cash flow hedge reserve movement | (1) | 4 | [3] | (3) | [3] | |
Currency translation movement | (81) | 85 | [3] | (14) | [3] | |
Other equity reserves | (538) | (472) | [1] | |||
Legal reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | 16 | 16 | 16 | |||
Other equity reserves | 16 | 16 | 16 | |||
Equity settled transaction reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | 47 | 43 | 46 | |||
Share based compensation | 22 | 22 | 14 | |||
Issuance of shares | (22) | (18) | (17) | |||
Other equity reserves | 47 | 47 | 43 | |||
Hedge reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | 0 | (4) | (1) | |||
Cash flow hedge reserve movement | 4 | (3) | ||||
Other equity reserves | 0 | 0 | (4) | |||
Currency translation reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | (531) | (616) | (593) | |||
Currency translation movement | (68) | 85 | (23) | |||
Other equity reserves | (599) | (531) | (616) | |||
Pension obligation reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | (3) | (1) | 1 | |||
Remeasurements of post-employment benefit obligations | (2) | (2) | ||||
Other equity reserves | (3) | (3) | (1) | |||
Other reserves | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | (472) | (562) | (531) | |||
Share based compensation | [2] | 22 | 22 | 14 | ||
Issuance of shares | (22) | (18) | (17) | |||
Remeasurements of post-employment benefit obligations | (2) | (2) | ||||
Cash flow hedge reserve movement | 4 | (3) | ||||
Currency translation movement | (68) | 85 | (23) | |||
Other equity reserves | $ (538) | $ (472) | $ (562) | |||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||
[2] | Share-based compensation – see note C.1. | |||||
[3] | Re-presented for discontinued operations (shown in note A.4.). |
Capital structure and financi_4
Capital structure and financing - C.2. Dividend distributions (Details) - USD ($) $ / shares in Units, $ in Millions | May 17, 2018 | May 04, 2017 | May 17, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | ||||||
Dividends recognised as distributions | $ 2.64 | $ 2.64 | $ 2.64 | |||
Statutory reserves unavailable for distribution | $ 324 | $ 345 | $ 321 |
Capital structure and financi_5
Capital structure and financing - C.3. Debt and financing (Details) $ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2018COP ($) | Dec. 31, 2017USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | $ 4,291 | $ 3,742 | |||
Less: portion payable within one year | (168) | (142) | |||
Debt and financing – non-current | 4,123 | 3,600 | [1] | ||
Total non-current financing due after more than one year | 289 | 43 | |||
Debt and financing – current | 458 | 185 | [1] | ||
Borrowings | 4,580 | 3,785 | |||
Millicom International Cellular S.A. (Luxembourg) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 1,770 | 1,255 | |||
Colombia | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 1,016 | 1,130 | |||
Paraguay | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 504 | 488 | |||
Bolivia | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 317 | 352 | |||
Panama | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 261 | 0 | |||
Tanzania (excluding Zantel) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 201 | 217 | |||
Rwanda | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 0 | 50 | |||
Chad | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 64 | 70 | |||
Costa Rica | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 148 | 76 | |||
El Salvador | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 299 | 147 | |||
Bilateral Facility With IIC [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings face amount | $ 50 | $ 144,054.5 | |||
Borrowings, interest rate | 9.45% | 9.45% | |||
Bonds | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | 2,501 | 2,147 | |||
Total non-current financing due after more than one year | 0 | 0 | |||
Banks | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | 1,324 | 1,158 | |||
Total non-current financing due after more than one year | 289 | 40 | |||
Finance lease liabilities | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | 353 | 362 | |||
Total non-current financing due after more than one year | 0 | 3 | |||
Other Borrowings | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | 113 | 74 | |||
Total non-current financing due after more than one year | $ 0 | $ 0 | |||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Capital structure and financi_6
Capital structure and financing - C.3.1. Bond financing (Details) | Oct. 16, 2018USD ($) | Oct. 15, 2017USD ($) | Sep. 20, 2017USD ($) | Mar. 11, 2015USD ($) | Dec. 07, 2012USD ($) | Aug. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2016USD ($) | May 31, 2012USD ($) | May 31, 2012BOB (Bs.) | May 31, 2011USD ($) | Mar. 31, 2010USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | [1] | Oct. 12, 2017USD ($) | Aug. 11, 2016USD ($) | Aug. 11, 2016BOB (Bs.) | May 31, 2016COP ($) | Nov. 30, 2015USD ($) | Nov. 30, 2015BOB (Bs.) | Aug. 04, 2015USD ($) | May 31, 2011COP ($) | Mar. 31, 2010COP ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 2,501,000,000 | $ 2,147,000,000 | |||||||||||||||||||||||||
Proceeds from debt and other financing | 1,155,000,000 | 996,000,000 | [1] | $ 713,000,000 | |||||||||||||||||||||||
SEK Senior Unsecured Variable Rate Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 0 | 243,000,000 | |||||||||||||||||||||||||
Extinguishment of debt | $ 227,000,000 | ||||||||||||||||||||||||||
Early redemption fees | 3,000,000 | ||||||||||||||||||||||||||
Write-off of unamortized costs | $ 1,000,000 | ||||||||||||||||||||||||||
SEK Senior Unsecured Variable Rate Notes | Stockholm Inter Bank Offered Rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Adjustment to interest rate basis | 3.30% | ||||||||||||||||||||||||||
USD 6.625% Senior Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 495,000,000 | 0 | |||||||||||||||||||||||||
Borrowings face amount | $ 500,000,000 | ||||||||||||||||||||||||||
Borrowing costs capitalised | $ 6,000,000 | ||||||||||||||||||||||||||
Borrowings term | 8 years | ||||||||||||||||||||||||||
USD 6.625% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 6.625% | 6.625% | |||||||||||||||||||||||||
USD 6.625% Senior Notes | Effective interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 6.75% | ||||||||||||||||||||||||||
USD 6% Senior Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 491,000,000 | 496,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 500,000,000 | ||||||||||||||||||||||||||
Borrowing costs capitalised | $ 8,600,000 | ||||||||||||||||||||||||||
Borrowings term | 10 years | ||||||||||||||||||||||||||
Issuance percentage | 100.00% | ||||||||||||||||||||||||||
USD 6% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 6.00% | 6.00% | |||||||||||||||||||||||||
USD 6% Senior Notes | Effective interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 6.132% | ||||||||||||||||||||||||||
USD 6.625% Senior Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 0 | 0 | |||||||||||||||||||||||||
Extinguishment of debt | $ 473,000,000 | $ 186,000,000 | $ 142,000,000 | ||||||||||||||||||||||||
Early redemption fees | $ 22,000,000 | 8,000,000 | |||||||||||||||||||||||||
Write-off of unamortized costs | $ 6,000,000 | $ 2,000,000 | |||||||||||||||||||||||||
USD 6.625% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 6.625% | ||||||||||||||||||||||||||
USD 5.125% Senior Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 493,000,000 | 494,000,000 | |||||||||||||||||||||||||
Borrowings face amount | 500,000,000 | ||||||||||||||||||||||||||
Borrowing costs capitalised | $ 7,000,000 | ||||||||||||||||||||||||||
Borrowings amortization period | 7 years | ||||||||||||||||||||||||||
Borrowings term | 10 years | ||||||||||||||||||||||||||
Issuance percentage | 100.00% | ||||||||||||||||||||||||||
USD 5.125% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 5.125% | 5.125% | |||||||||||||||||||||||||
USD 5.125% Senior Notes | Effective interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 5.24% | ||||||||||||||||||||||||||
USD 6.75% Senior Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 297,000,000 | 296,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 300,000,000 | ||||||||||||||||||||||||||
Borrowings, interest rate | 6.75% | ||||||||||||||||||||||||||
Issuance percentage | 100.00% | ||||||||||||||||||||||||||
Proceeds from debt and other financing | $ 293,000,000 | ||||||||||||||||||||||||||
Payments for debt issue costs | $ 7,000,000 | ||||||||||||||||||||||||||
USD 6.75% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 6.75% | 6.75% | |||||||||||||||||||||||||
USD 6.75% Senior Notes | Effective interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 7.12% | ||||||||||||||||||||||||||
BOB 4.75% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 59,000,000 | 86,000,000 | |||||||||||||||||||||||||
Borrowings face amount | Bs. | Bs. 1,360,000,000.00 | ||||||||||||||||||||||||||
Proceeds from debt and other financing | $ 191,000,000 | 1,320,000,000 | |||||||||||||||||||||||||
Payments for debt issue costs | Bs. | Bs. 5,000,000 | ||||||||||||||||||||||||||
BOB 4.75% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.75% | 4.75% | |||||||||||||||||||||||||
BOB 4.75% Notes | Effective interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.79% | ||||||||||||||||||||||||||
BOB Notes Issued November 2015 | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings face amount | $ 100,000,000 | Bs. 696,000,000 | |||||||||||||||||||||||||
Borrowings premium | Bs. | Bs. 4,590,000 | ||||||||||||||||||||||||||
BOB Notes Issued November 2015 | Effective interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.84% | 4.84% | |||||||||||||||||||||||||
BOB 4.05% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 7,000,000 | 11,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 15,000,000 | Bs. 104,400,000 | |||||||||||||||||||||||||
BOB 4.05% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.05% | 4.05% | 4.05% | ||||||||||||||||||||||||
BOB 4.85% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 71,000,000 | 85,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 85,000,000 | Bs. 591,600,000 | |||||||||||||||||||||||||
BOB 4.85% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.85% | 4.85% | 4.85% | ||||||||||||||||||||||||
BOB 4.85% Notes | Weighted average | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.55% | 4.55% | |||||||||||||||||||||||||
BOB Notes Issued April 2016 | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings face amount | Bs. | Bs. 522,000,000 | ||||||||||||||||||||||||||
BOB 3.95% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 43,000,000 | 50,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 50,000,000 | ||||||||||||||||||||||||||
BOB 3.95% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 3.95% | 3.95% | 3.95% | ||||||||||||||||||||||||
BOB 4.30% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 23,000,000 | 25,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 25,000,000 | ||||||||||||||||||||||||||
BOB 4.30% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.30% | 4.30% | 4.30% | ||||||||||||||||||||||||
BOB Notes Issued October 2017 | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings face amount | $ 80,000,000 | ||||||||||||||||||||||||||
BOB Notes Issued October 2017 | Weighted average | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.66% | ||||||||||||||||||||||||||
BOB 4.30% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 30,000,000 | 30,000,000 | |||||||||||||||||||||||||
BOB 4.30% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.30% | ||||||||||||||||||||||||||
BOB 4.70% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 35,000,000 | 35,000,000 | |||||||||||||||||||||||||
BOB 4.70% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 4.70% | ||||||||||||||||||||||||||
BOB 5.30% Notes | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 13,000,000 | 13,000,000 | |||||||||||||||||||||||||
BOB 5.30% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 5.30% | ||||||||||||||||||||||||||
UNE Bond 1 (tranches A and B) | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 46,000,000 | 50,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 126,000,000 | $ 300,000,000,000 | |||||||||||||||||||||||||
UNE Bond 1 (tranches A and B) | Consumer Price Index | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Adjustment to interest rate basis | 5.10% | ||||||||||||||||||||||||||
UNE Bond 1 - Tranche A | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings term | 5 years | ||||||||||||||||||||||||||
UNE Bond 1 - Tranche B | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings term | 10 years | ||||||||||||||||||||||||||
UNE Bond 2 (tranches A and B) | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 46,000,000 | 50,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 126,000,000 | $ 300,000,000,000 | |||||||||||||||||||||||||
UNE Bond 2 (tranches A and B) | Consumer Price Index | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.76% | ||||||||||||||||||||||||||
UNE Bond 2 - Tranche A | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings term | 5 years | ||||||||||||||||||||||||||
UNE Bond 2 - Tranche B | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings term | 12 years | ||||||||||||||||||||||||||
UNE Bond 3 | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Extinguishment of debt | $ 150,000,000,000 | ||||||||||||||||||||||||||
Borrowings face amount | 176,000,000 | $ 540,000,000,000 | |||||||||||||||||||||||||
UNE Bond 3 (tranche A) | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 49,000,000 | 54,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 52,000,000 | ||||||||||||||||||||||||||
Borrowings, interest rate | 9.35% | 9.35% | |||||||||||||||||||||||||
UNE Bond 3 (tranche A) | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 9.35% | ||||||||||||||||||||||||||
UNE Bond 3 (tranche B) | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 78,000,000 | 85,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 83,000,000 | ||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.15% | 4.15% | |||||||||||||||||||||||||
UNE Bond 3 (tranche B) | Consumer Price Index | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.15% | ||||||||||||||||||||||||||
UNE Bond 3 (tranche C) | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 39,000,000 | 43,000,000 | |||||||||||||||||||||||||
Borrowings face amount | $ 41,000,000 | ||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.89% | 4.89% | |||||||||||||||||||||||||
UNE Bond 3 (tranche C) | Consumer Price Index | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.89% | ||||||||||||||||||||||||||
Cable Onda Bonds | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Bonds issued | $ 184,000,000 | $ 0 | |||||||||||||||||||||||||
Borrowings face amount | $ 185,000,000 | ||||||||||||||||||||||||||
Borrowings, interest rate | 5.75% | ||||||||||||||||||||||||||
Cable Onda Bonds | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 5.75% | ||||||||||||||||||||||||||
El Salvador 8% Notes | Fixed interest rate | |||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||
Borrowings, interest rate | 8.00% | ||||||||||||||||||||||||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Capital structure and financi_7
Capital structure and financing - C.3.2. Bank and Development Financial Institution financing (Details) | Jul. 04, 2017USD ($) | Jan. 30, 2017USD ($) | Apr. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | [1] | Apr. 30, 3018USD ($) | Oct. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jul. 04, 2017PYG (₲) | Jun. 30, 2017USD ($)payment | May 30, 2017USD ($) | Jul. 31, 2016USD ($) | Apr. 15, 2016USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | $ 1,613,000,000 | $ 1,198,000,000 | ||||||||||||||||
Repayments of borrowings, classified as financing activities | 546,000,000 | 1,195,000,000 | [1] | $ 821,000,000 | ||||||||||||||
PYG Long-Term Loan, 9% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 90,000,000 | 106,000,000 | ||||||||||||||||
PYG Long-Term Loan, 10.10% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 61,000,000 | 65,000,000 | ||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||
Borrowings face amount | $ 66,000,000 | ₲ 367,000,000,000 | ||||||||||||||||
PYG Long-Term Loan, 10.25% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 9,000,000 | 0 | ||||||||||||||||
PYG Long-Term Loan, 8.90% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 19,000,000 | 0 | ||||||||||||||||
USD Long-Term Loan, 4.00% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 15,000,000 | 0 | ||||||||||||||||
USD Long-Term Loan, 3.80% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 9,000,000 | 0 | ||||||||||||||||
BOB Long-Term Loan, 4.30% -1 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 10,000,000 | 0 | ||||||||||||||||
BOB Long-Term Loan, 4.30% - 2 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 10,000,000 | 0 | ||||||||||||||||
USD Long-Term Loans, Costa Rica | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 148,000,000 | 76,000,000 | ||||||||||||||||
Borrowings face amount | $ 150,000,000 | |||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 72,000,000 | |||||||||||||||||
USD Long-Term Loans, Chad | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 1,000,000 | 3,000,000 | ||||||||||||||||
USD Long-Term Loans, Rwanda | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 0 | 40,000,000 | ||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 40,000,000 | |||||||||||||||||
USD Long-Term Loans, Tanzania (Zantel) | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 90,000,000 | 96,000,000 | ||||||||||||||||
USD Short-Term Loans, Luxembourg | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 250,000,000 | 0 | ||||||||||||||||
MIC S.A. Bridge Facility | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 250,000,000 | |||||||||||||||||
Maximum borrowing capacity | 250,000,000 | $ 1,000,000,000 | ||||||||||||||||
MIC S.A. Revolving Credit Facility | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||
Maximum borrowing capacity | $ 600,000,000 | |||||||||||||||||
MIC S.A. Term Loan Facility | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings face amount | $ 50,000,000 | |||||||||||||||||
COP Long-Term Loans, Colombia | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 277,000,000 | 363,000,000 | ||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 34,000,000 | |||||||||||||||||
USD Long-Term Loans, Colombia | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 298,000,000 | 297,000,000 | ||||||||||||||||
Borrowings face amount | $ 300,000,000 | |||||||||||||||||
Number of payments | payment | 3 | |||||||||||||||||
Periodic payments | $ 100,000,000 | |||||||||||||||||
USD Senior Unsecured Term Loan Facility | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 50,000,000 | 50,000,000 | ||||||||||||||||
Borrowings face amount | $ 50,000,000 | $ 50,000,000 | ||||||||||||||||
USD Credit Facility, El Salvador Due 2021 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 24,000,000 | 29,000,000 | ||||||||||||||||
Borrowings face amount | $ 30,000,000 | |||||||||||||||||
USD Credit Facility, El Salvador Due 2022 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 50,000,000 | 50,000,000 | ||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||
Borrowings face amount | $ 50,000,000 | |||||||||||||||||
USD Credit Facility, El Salvador, Due 2023 - 1 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 100,000,000 | 0 | ||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||
Borrowings face amount | $ 100,000,000 | |||||||||||||||||
USD Credit Facility, El Salvador, Due 2023 - 2 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | 50,000,000 | 0 | ||||||||||||||||
Borrowings face amount | 50,000,000 | |||||||||||||||||
Other Long-Term Loans | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loans received | $ 51,000,000 | $ 25,000,000 | ||||||||||||||||
Floating interest rate | USD Long-Term Loans, Costa Rica | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 3.50% | |||||||||||||||||
Floating interest rate | USD Long-Term Loans, Chad | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 4.00% | |||||||||||||||||
Floating interest rate | USD Long-Term Loans, Rwanda | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 2.90% | |||||||||||||||||
Floating interest rate | USD Long-Term Loans, Tanzania (Zantel) | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 3.75% | |||||||||||||||||
Floating interest rate | USD Short-Term Loans, Luxembourg | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 1.50% | |||||||||||||||||
Fixed interest rate | PYG Long-Term Loan, 9% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 9.00% | |||||||||||||||||
Fixed interest rate | PYG Long-Term Loan, 10.10% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 10.10% | 10.10% | 10.10% | |||||||||||||||
Fixed interest rate | PYG Long-Term Loan, 10.25% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 10.25% | |||||||||||||||||
Fixed interest rate | PYG Long-Term Loan, 8.90% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 8.90% | |||||||||||||||||
Fixed interest rate | USD Long-Term Loan, 4.00% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 4.00% | |||||||||||||||||
Fixed interest rate | USD Long-Term Loan, 3.80% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 3.80% | |||||||||||||||||
Fixed interest rate | BOB Long-Term Loan, 4.30% -1 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 4.30% | |||||||||||||||||
Fixed interest rate | BOB Long-Term Loan, 4.30% - 2 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Borrowings, interest rate | 4.30% | |||||||||||||||||
LIBOR | USD Short-Term Loans, Luxembourg | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 1.50% | |||||||||||||||||
LIBOR | MIC S.A. Term Loan Facility | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 2.25% | |||||||||||||||||
LIBOR | USD Long-Term Loans, Colombia | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 2.50% | 2.50% | ||||||||||||||||
LIBOR | USD Senior Unsecured Term Loan Facility | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 3.00% | 3.00% | 3.00% | |||||||||||||||
LIBOR | USD Credit Facility, El Salvador Due 2021 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 2.25% | 2.25% | ||||||||||||||||
LIBOR | USD Credit Facility, El Salvador Due 2022 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 3.15% | |||||||||||||||||
LIBOR | USD Credit Facility, El Salvador, Due 2023 - 1 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 2.55% | |||||||||||||||||
LIBOR | USD Credit Facility, El Salvador, Due 2023 - 2 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 3.00% | |||||||||||||||||
IBR | COP Long-Term Loans, Colombia | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Adjustment to interest rate basis | 4.10% | |||||||||||||||||
Interest rate and currency swap | USD Long-Term Loans, Costa Rica | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Derivative notional amount | $ 35,000,000 | |||||||||||||||||
Interest rate swap | USD Long-Term Loans, Costa Rica | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Derivative notional amount | $ 35,000,000 | |||||||||||||||||
Interest rate swap | USD Credit Facility, El Salvador, Due 2023 - 1 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Derivative notional amount | $ 100,000,000 | |||||||||||||||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Capital structure and financi_8
Capital structure and financing - C.3.3. Interest and other financial expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Interest and other financial expenses: | |||||
Interest expense on bonds and bank financing | $ (234) | $ (246) | $ (262) | ||
Interest expense on finance leases | (92) | (65) | (48) | ||
Early redemption charges | (4) | (43) | (25) | ||
Others | (41) | (41) | (36) | ||
Total interest and other financial expenses | $ 371 | $ 396 | [1] | $ 372 | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Capital structure and financi_9
Capital structure and financing - C.3.4. Finance leases (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)tower | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Cash received from sales and leaseback transaction | $ 141 | $ 167 | $ 0 |
Finance lease liabilities | 353 | 365 | |
Income from tower deal transactions | 65 | 63 | $ 0 |
Tanzania (excluding Zantel) | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Finance lease liabilities | $ 112 | 121 | |
Colombia | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Number of units in agreement | tower | 1,207 | ||
Cumulative number of units transferred | tower | 902 | ||
Agreement price | $ 147 | ||
Cash received from sales and leaseback transaction | 26 | 86 | |
Income from tower deal transactions | $ 13 | 37 | |
Paraguay | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Number of units in agreement | tower | 1,410 | ||
Cumulative number of units transferred | tower | 1,276 | ||
Agreement price | $ 125 | ||
Cash received from sales and leaseback transaction | 41 | 75 | |
Finance lease liabilities | 27 | 21 | |
Income from tower deal transactions | $ 19 | 26 | |
El Salvador | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Number of units in agreement | tower | 811 | ||
Cumulative number of units transferred | tower | 496 | ||
Agreement price | $ 145 | ||
Cash received from sales and leaseback transaction | 73 | 0 | |
Finance lease liabilities | 26 | 20 | |
Income from tower deal transactions | 33 | 0 | |
Other Geographical Areas | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Finance lease liabilities | 6 | 17 | |
Movil | Colombia | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Finance lease liabilities | 83 | 87 | |
UNE EPM Telecommunicaciones SA | Colombia | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Finance lease liabilities | $ 99 | $ 100 |
Capital structure and financ_10
Capital structure and financing - C.3.5.Guarantees and pledged assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of contingent liabilities [line items] | ||
Borrowings secured by assets, deposits or guarantees | $ 626 | $ 671 |
Pledged deposits (related to bank borrowings) | 2 | 1 |
Contingent liability for guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 626 | 671 |
Maximum exposure to contingent liabilities | 626 | 671 |
1 year | Contingent liability for guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 133 | 159 |
Maximum exposure to contingent liabilities | 133 | 159 |
Later than one year and not later than three years | Contingent liability for guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 281 | 368 |
Maximum exposure to contingent liabilities | 281 | 368 |
Later than three years and not later than five years | Contingent liability for guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 212 | 144 |
Maximum exposure to contingent liabilities | $ 212 | $ 144 |
Capital structure and financ_11
Capital structure and financing - C.4. Cash and deposits (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | [1] | |
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 528,000,000 | $ 619,000,000 | [1] | $ 646,000,000 | $ 769,000,000 | ||
Restricted cash | 158,000,000 | 145,000,000 | |||||
Non-current financial assets pledged as collateral for contingent liabilities | 0 | 0 | |||||
Current financial assets pledged as collateral for contingent liabilities | 2,000,000 | 1,000,000 | |||||
US Dollar | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 229,000,000 | 302,000,000 | |||||
Total debt denominated in other currencies | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 299,000,000 | 317,000,000 | |||||
Mobile Financial Services [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Restricted cash | 155,000,000 | 143,000,000 | |||||
Other Banks [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Restricted cash | $ 3,000,000 | $ 2,000,000 | |||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Capital structure and financ_12
Capital structure and financing - C.5. Net debt, table 1 (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | ||
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||||||
Debt | $ 4,580 | $ 3,785 | |||||
Cash and cash equivalents | (528) | (619) | [1] | $ (646) | [1] | $ (769) | |
Pledged deposits | (2) | (1) | |||||
Time deposits related to bank borrowings | 0 | 0 | |||||
Net debt at the end of the year | 4,051 | 3,164 | $ 3,250 | ||||
Add (less) derivatives related to debt (SEK currency swap) | 0 | 56 | |||||
Net debt including derivatives related to debt | 4,051 | 3,220 | |||||
Restricted cash | $ 158 | $ 145 | |||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Capital structure and financ_13
Capital structure and financing - C.5. Net debt, table 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in liabilities arising from financing activities [abstract] | |||
Additions, liabilities arising form financing activities | $ (43) | $ 192 | $ 1 |
Interest accretion, liabilities arising form financing activities | 11 | 7 | |
Transfers, liabilities arising form financing activities | (9) | 9 | |
Other non-cash movements, liabilities arising form financing activities | (19) | (101) | |
Changes In Net Debt [Abstract] | |||
Net debt | 3,164 | 3,250 | |
Additions/acquisitions, net debt | 44 | 220 | |
Cash flows, net debt | 676 | (209) | |
Scope changes, net debt | 260 | ||
Foreign exchange movements, net debt | (72) | 28 | |
Transfers (to)/from assets held for sale, net debt | (4) | (42) | |
Net debt | 4,051 | 3,164 | 3,250 |
Bond and bank debt and financing | |||
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities, beginning of period | 3,420 | 3,606 | |
Cash flows, liabilities arising form financing activities | 621 | (177) | |
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | 3 | ||
Scope changes, liabilities arising form financing activities | 267 | ||
Interest accretion, liabilities arising form financing activities | 11 | 8 | |
Foreign exchange movements, liabilities arising form financing activities | (84) | 34 | |
Transfers (to)/from assets held for sale, liabilities arising form financing activities | 9 | (49) | |
Transfers, liabilities arising form financing activities | 3 | 10 | |
Other non-cash movements, liabilities arising form financing activities | (19) | (14) | |
Liabilities arising from financing activities, end of period | 4,227 | 3,420 | 3,606 |
Finance lease liabilities | |||
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities, beginning of period | 365 | 295 | |
Cash flows, liabilities arising form financing activities | (17) | (22) | |
Additions, liabilities arising form financing activities | 44 | ||
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | 195 | ||
Interest accretion, liabilities arising form financing activities | (1) | ||
Foreign exchange movements, liabilities arising form financing activities | (21) | (2) | |
Transfers (to)/from assets held for sale, liabilities arising form financing activities | (8) | (13) | |
Transfers, liabilities arising form financing activities | (11) | 0 | |
Other non-cash movements, liabilities arising form financing activities | (86) | ||
Liabilities arising from financing activities, end of period | 353 | 365 | 295 |
Cash and cash equivalents | |||
Assets For Calculation Of Net Debt [Abstract] | |||
Assets, beginning of period | 619 | 646 | |
Cash flows, assets | (72) | 10 | |
Additions/acquisitions, assets | (22) | ||
Scope Changes, assets | 7 | ||
Foreign exchange movements, assets | (33) | 4 | |
Transfers (to)/from assets held for sale. assets | 6 | (19) | |
Assets, end of period | 528 | 619 | 646 |
Other | |||
Assets For Calculation Of Net Debt [Abstract] | |||
Assets, beginning of period | 2 | 4 | |
Cash flows, assets | (1) | ||
Foreign exchange movements, assets | 0 | ||
Transfers (to)/from assets held for sale. assets | (2) | ||
Assets, end of period | $ 2 | $ 2 | $ 4 |
Capital structure and financ_14
Capital structure and financing - C.6. Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | $ 1,470 | $ 1,553 |
Current financial assets | 1,344 | 1,440 |
Non-current financial assets | 126 | 113 |
Financial assets at amortised cost | Derivative financial instruments | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 0 | 0 |
Financial assets at amortised cost | Other non-current assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 87 | 73 |
Financial assets at amortised cost | Trade receivables, net | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 343 | 386 |
Financial assets at amortised cost | Amounts due from non-controlling interests, associates and joint venture partners | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 73 | 77 |
Financial assets at amortised cost | Prepayments and accrued income | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 129 | 145 |
Financial assets at amortised cost | Supplier advances for capital expenditures | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 25 | 18 |
Financial assets at amortised cost | Other current assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 127 | 90 |
Financial assets at amortised cost | Restricted cash | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 158 | 145 |
Financial assets at amortised cost | Cash and cash equivalents | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 528 | 619 |
Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 6,704 | 5,577 |
Current financial liabilities | 2,335 | 1,753 |
Non-current financial liabilities | 4,370 | 3,824 |
Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 6,542 | 5,763 |
Current financial liabilities | 2,335 | 1,753 |
Non-current financial liabilities | 4,207 | 4,010 |
Debt and financing | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 4,580 | 3,785 |
Debt and financing | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 4,418 | 3,971 |
Trade payables | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 282 | 288 |
Trade payables | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 282 | 288 |
Payables and accruals for capital expenditure | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 335 | 304 |
Payables and accruals for capital expenditure | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 335 | 304 |
Derivative financial instruments | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 0 | 56 |
Derivative financial instruments | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 0 | 56 |
Put option liability | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 239 | 0 |
Put option liability | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 239 | 0 |
Amounts due to non-controlling interests, associates and joint venture partners | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 483 | 420 |
Amounts due to non-controlling interests, associates and joint venture partners | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 483 | 420 |
Accrued interest and other expenses | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 383 | 353 |
Accrued interest and other expenses | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 383 | 353 |
Other liabilities | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 402 | 371 |
Other liabilities | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | $ 402 | $ 371 |
Capital structure and financ_15
Capital structure and financing - C.6.3. Call and put options (Details) - USD ($) $ in Millions | Dec. 13, 2018 | Oct. 07, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Add (less) derivatives related to debt (SEK currency swap) | $ 0 | $ 56 | ||
Cable Onda S.A | ||||
Disclosure of detailed information about business combination [line items] | ||||
Percentage ownership help by non-controlling interest | 20.00% | 20.00% | ||
Vesting period of put option | 42 months | |||
Add (less) derivatives related to debt (SEK currency swap) | $ 239 | |||
Vesting period of call option | 42 months | |||
Threshold for ownership percentage of counterparty to make call option exercisable | 10.00% | |||
Interest rate on call option | 10.00% |
Financial risk management - D.
Financial risk management - D. Financial risk management (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments [Abstract] | ||
Target percent debt in local currency | 40.00% | |
Target percent of debt fixed rate | 70.00% | |
Target percent of debt floating rate | 30.00% | |
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial liabilities | $ 0 | $ (56) |
Cash flow hedges | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial liabilities | $ 0 | $ (56) |
Financial risk management - D.1
Financial risk management - D.1. Interest rate risk (Details) - Interest rate risk | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed interest rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of debt | 70.00% | |
Concentration percentage | 68.00% | 65.00% |
Floating interest rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of debt | 30.00% |
Financial risk management - D_2
Financial risk management - D.1.1. Fixed and floating rate debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 4,580 | $ 3,785 |
Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 4,580 | 3,785 |
Reasonably possible change in risk variable, percent | 1.00% | |
Reasonably possible change in risk variable, impact on profit before tax | $ 15 | 13 |
1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 458 | 185 |
1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 337 | 500 |
2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 403 | 347 |
3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 569 | 431 |
4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 468 | 584 |
Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 2,345 | $ 1,738 |
Weighted average | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.95% | 5.94% |
Weighted average | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 9.08% | 5.61% |
Weighted average | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 6.23% | 4.68% |
Weighted average | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.06% | 8.35% |
Weighted average | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 5.18% | 11.65% |
Weighted average | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.28% | 5.88% |
Weighted average | Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 5.76% | 6.52% |
Fixed interest rate | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 3,115 | $ 2,462 |
Fixed interest rate | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 140 | 87 |
Fixed interest rate | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 162 | 365 |
Fixed interest rate | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 137 | 141 |
Fixed interest rate | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 436 | 104 |
Fixed interest rate | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 204 | 396 |
Fixed interest rate | Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 2,036 | $ 1,369 |
Fixed interest rate | Weighted average | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 6.34% | 7.48% |
Fixed interest rate | Weighted average | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 6.35% | 7.17% |
Fixed interest rate | Weighted average | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 6.59% | 5.52% |
Fixed interest rate | Weighted average | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 6.64% | 8.28% |
Fixed interest rate | Weighted average | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 6.61% | 9.92% |
Fixed interest rate | Weighted average | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.10% | 7.73% |
Fixed interest rate | Weighted average | Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 6.47% | 7.68% |
Floating interest rate | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 1,465 | $ 1,323 |
Floating interest rate | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 319 | 98 |
Floating interest rate | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 175 | 134 |
Floating interest rate | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 266 | 206 |
Floating interest rate | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 133 | 327 |
Floating interest rate | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 263 | 188 |
Floating interest rate | Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 309 | $ 370 |
Floating interest rate | Weighted average | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 1.98% | 3.06% |
Floating interest rate | Weighted average | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 10.28% | 4.24% |
Floating interest rate | Weighted average | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 5.89% | 2.37% |
Floating interest rate | Weighted average | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 2.73% | 8.40% |
Floating interest rate | Weighted average | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 0.49% | 12.20% |
Floating interest rate | Weighted average | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.41% | 1.98% |
Floating interest rate | Weighted average | Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 1.13% | 2.25% |
Financial risk management - D_3
Financial risk management - D.1.2. Interest rate swap contracts (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2018 | Jun. 30, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Cash payment for settlement of derivative | $ 63 | $ 0 | [1] | $ 0 | [1] | ||
Loss on change in fair value of derivative | $ 1 | 22 | $ (3) | ||||
Interest rate swap | Interest rate risk | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Derivative term | 7 years | ||||||
Derivative notional amount | $ 134 | ||||||
Loss on change in fair value of derivative | 22 | ||||||
Interest rate swap | Luxembourg (SEK denominated) | Interest rate risk | |||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||
Cash payment for settlement of derivative | $ 63 | $ 10 | |||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Financial risk management - D.2
Financial risk management - D.2.1. Debt denominated in US Dollars and other currencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 4,580 | $ 3,785 |
Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, percent | 10.00% | |
Debt | $ 4,580 | 3,785 |
Reasonably possible increase in risk variable, impact on profit before tax | 53 | 104 |
Reasonably possible decrease in risk variable, impact on profit before tax | (53) | (104) |
US Dollar | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 3,132 | 1,983 |
Total debt denominated in other currencies | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 1,448 | 1,802 |
Colombia | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 718 | 834 |
Chad | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 62 | 61 |
Tanzania | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 112 | 121 |
Bolivia | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 306 | 337 |
Paraguay | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 207 | 191 |
Luxembourg (SEK denominated) | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 43 | 243 |
Other | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 0 | $ 15 |
Financial risk management - D.5
Financial risk management - D.5. Liquidity risk (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | [1] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | $ (4,580) | $ (3,785) | ||||||
Cash and cash equivalents | 528 | 619 | [1] | $ 646 | $ 769 | |||
Pledged deposits (related to bank borrowings) | 2 | 1 | ||||||
Derivative financial liabilities | 0 | (56) | ||||||
Net cash (debt) including derivatives related to debt | (4,051) | (3,220) | ||||||
Trade payables (excluding accruals) | (26) | (25) | ||||||
Put Option liability | (239) | 0 | [2] | |||||
Trade receivables | 343 | $ 339 | 386 | |||||
Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (4,580) | (3,785) | ||||||
Cash and cash equivalents | 528 | 619 | ||||||
Pledged deposits (related to bank borrowings) | 2 | 1 | ||||||
Derivative financial liabilities | 0 | (56) | ||||||
Net cash (debt) including derivatives related to debt | (4,051) | (3,220) | ||||||
Future interest commitments | (1,111) | (1,108) | ||||||
Trade payables (excluding accruals) | (478) | (427) | ||||||
Other financial liabilities (including accruals) | (1,352) | (1,218) | ||||||
Put Option liability | (239) | |||||||
Trade receivables | 343 | 386 | ||||||
Other financial assets | 310 | 257 | ||||||
Net financial liabilities | (6,578) | (5,330) | ||||||
Liquidity risk | Less than 1 year | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (458) | (185) | ||||||
Cash and cash equivalents | 528 | 619 | ||||||
Pledged deposits (related to bank borrowings) | 2 | 1 | ||||||
Derivative financial liabilities | 0 | (56) | ||||||
Net cash (debt) including derivatives related to debt | 72 | 380 | ||||||
Future interest commitments | (248) | (255) | ||||||
Trade payables (excluding accruals) | (478) | (427) | ||||||
Other financial liabilities (including accruals) | (1,217) | (1,094) | ||||||
Put Option liability | (239) | |||||||
Trade receivables | 343 | 386 | ||||||
Other financial assets | 184 | 144 | ||||||
Net financial liabilities | (1,583) | (866) | ||||||
Liquidity risk | 1 to 5 years | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (1,778) | (1,862) | ||||||
Cash and cash equivalents | 0 | 0 | ||||||
Pledged deposits (related to bank borrowings) | 0 | 0 | ||||||
Derivative financial liabilities | 0 | 0 | ||||||
Net cash (debt) including derivatives related to debt | (1,778) | (1,862) | ||||||
Future interest commitments | (786) | (785) | ||||||
Trade payables (excluding accruals) | 0 | 0 | ||||||
Other financial liabilities (including accruals) | (135) | (124) | ||||||
Put Option liability | 0 | |||||||
Trade receivables | 0 | 0 | ||||||
Other financial assets | 126 | 113 | ||||||
Net financial liabilities | (2,573) | (2,658) | ||||||
Liquidity risk | Greater than 5 years | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (2,345) | (1,738) | ||||||
Cash and cash equivalents | 0 | 0 | ||||||
Pledged deposits (related to bank borrowings) | 0 | 0 | ||||||
Derivative financial liabilities | 0 | 0 | ||||||
Net cash (debt) including derivatives related to debt | (2,345) | (1,738) | ||||||
Future interest commitments | (77) | (68) | ||||||
Trade payables (excluding accruals) | 0 | 0 | ||||||
Other financial liabilities (including accruals) | 0 | 0 | ||||||
Put Option liability | 0 | |||||||
Trade receivables | 0 | 0 | ||||||
Other financial assets | 0 | 0 | ||||||
Net financial liabilities | $ (2,422) | $ (1,806) | ||||||
Commercial Banks | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 34.00% | 30.00% | ||||||
Bonds | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 54.00% | 57.00% | ||||||
Development Finance Institutions | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 4.00% | 3.00% | ||||||
Finance lease liabilities | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 8.00% | 10.00% | ||||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | |||||||
[2] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Financial risk management - D.6
Financial risk management - D.6. Capital management (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financial Instruments [Abstract] | ||||
Net debt | $ 4,051 | $ 3,164 | $ 3,250 | |
EBITDA | $ 1,254 | $ 1,278 | ||
Net debt to EBITDA (i) | 323.00% | 248.00% | ||
Equity | $ 2,542 | $ 3,096 | [1] | |
Net debt and equity | $ 6,593 | $ 6,260 | ||
Gearing ratio | 61.00% | 51.00% | ||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Long-term assets - E.1.1. Accou
Long-term assets - E.1.1. Accounting for intangible assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |
Period for which item is expensed (less than) | 1 year |
New fiber cable | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 15 years |
Bottom of range | Trademarks | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 1 year |
Bottom of range | Customer lists | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 4 years |
Bottom of range | IRUs | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 12 years |
Top of range | Trademarks | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 15 years |
Top of range | Customer lists | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 20 years |
Top of range | IRUs | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible assets useful lives | 15 years |
Long-term assets - E.1.3. Movem
Long-term assets - E.1.3. Movement in intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | $ 1,265 | $ 1,359 |
Change in scope | 1,185 | 20 |
Additions | 158 | 130 |
Amortization charge | (144) | (153) |
Impairment | (6) | (15) |
Disposals, net | 0 | (1) |
Transfers | (16) | (19) |
Transfers to/from assets held for sale | (12) | (64) |
Exchange rate movements | (55) | 9 |
Closing balance, net | 2,374 | 1,265 |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 599 | 615 |
Change in scope | 512 | 3 |
Additions | 0 | 0 |
Amortization charge | 0 | |
Impairment | (6) | (7) |
Disposals, net | 0 | 0 |
Transfers | 0 | (2) |
Transfers to/from assets held for sale | 0 | (8) |
Exchange rate movements | (28) | (1) |
Closing balance, net | 1,077 | 599 |
Licenses | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 324 | 380 |
Change in scope | 0 | 0 |
Additions | 66 | 40 |
Amortization charge | (48) | (49) |
Impairment | 0 | (8) |
Disposals, net | 0 | 0 |
Transfers | 0 | 3 |
Transfers to/from assets held for sale | (12) | (50) |
Exchange rate movements | (12) | 7 |
Closing balance, net | 318 | 324 |
Customer lists | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 33 | 32 |
Change in scope | 370 | 15 |
Additions | 0 | 0 |
Amortization charge | (11) | (15) |
Impairment | 0 | 0 |
Disposals, net | 0 | 0 |
Transfers | 0 | 0 |
Transfers to/from assets held for sale | 0 | (1) |
Exchange rate movements | (1) | 1 |
Closing balance, net | 391 | 33 |
IRUs | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 105 | 114 |
Change in scope | 0 | 0 |
Additions | 2 | (2) |
Amortization charge | (14) | (14) |
Impairment | 0 | 0 |
Disposals, net | 0 | 0 |
Transfers | 0 | 8 |
Transfers to/from assets held for sale | 0 | 0 |
Exchange rate movements | (5) | 0 |
Closing balance, net | 89 | 105 |
Trademarks | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 10 | 18 |
Change in scope | 280 | 0 |
Additions | 0 | 0 |
Amortization charge | (8) | (8) |
Impairment | 0 | 0 |
Disposals, net | 0 | 0 |
Transfers | 0 | 0 |
Transfers to/from assets held for sale | 0 | 0 |
Exchange rate movements | 0 | 0 |
Closing balance, net | 282 | 10 |
Other | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 194 | 200 |
Change in scope | 23 | 1 |
Additions | 91 | 92 |
Amortization charge | (65) | (67) |
Impairment | 0 | 0 |
Disposals, net | 0 | (1) |
Transfers | (16) | (28) |
Transfers to/from assets held for sale | 0 | (5) |
Exchange rate movements | (9) | 2 |
Closing balance, net | 218 | 194 |
Cost or valuation | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 2,288 | |
Closing balance, net | 3,451 | 2,288 |
Cost or valuation | Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 599 | |
Closing balance, net | 1,077 | 599 |
Cost or valuation | Licenses | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 650 | |
Closing balance, net | 646 | 650 |
Cost or valuation | Customer lists | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 225 | |
Closing balance, net | 581 | 225 |
Cost or valuation | IRUs | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 181 | |
Closing balance, net | 176 | 181 |
Cost or valuation | Trademarks | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 49 | |
Closing balance, net | 325 | 49 |
Cost or valuation | Other | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 584 | |
Closing balance, net | 646 | 584 |
Accumulated amortization and impairment | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | (1,022) | |
Closing balance, net | (1,077) | (1,022) |
Accumulated amortization and impairment | Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | 0 | |
Closing balance, net | 0 | 0 |
Accumulated amortization and impairment | Licenses | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | (327) | |
Closing balance, net | (328) | (327) |
Accumulated amortization and impairment | Customer lists | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | (192) | |
Closing balance, net | (190) | (192) |
Accumulated amortization and impairment | IRUs | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | (76) | |
Closing balance, net | (87) | (76) |
Accumulated amortization and impairment | Trademarks | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | (39) | |
Closing balance, net | (43) | (39) |
Accumulated amortization and impairment | Other | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Opening balance, net | (389) | |
Closing balance, net | $ (428) | $ (389) |
Long-term assets - E.1.4. Cash
Long-term assets - E.1.4. Cash used for the purchase of intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | ||
Subclassifications of assets, liabilities and equities [abstract] | |||||
Additions | $ 158 | $ 130 | |||
Change in accruals and payables for intangibles | (10) | 3 | |||
Cash used for additions | $ 148 | $ 133 | [1] | $ 143 | |
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Long-term assets - E.1.5. Goodw
Long-term assets - E.1.5. Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of information for cash-generating units [line items] | ||
Goodwill | $ 1,077 | $ 599 |
Panama | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 512 | 0 |
El Salvador | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 194 | 194 |
Costa Rica | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 116 | 123 |
Paraguay | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 54 | 57 |
Colombia | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 183 | 199 |
Tanzania (Zantel) | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 4 | 10 |
Other | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | $ 15 | $ 16 |
Long-term assets - E.1.6. Impai
Long-term assets - E.1.6. Impairment testing of goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for cash-generating units [line items] | ||
Impairment loss recognised in profit or loss, goodwill | $ 15 | |
Bottom of range | ||
Disclosure of information for cash-generating units [line items] | ||
Growth rate used to extrapolate cash flow projections | 1.60% | 1.10% |
Top of range | ||
Disclosure of information for cash-generating units [line items] | ||
Growth rate used to extrapolate cash flow projections | 4.80% | 3.80% |
Bolivia | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 10.20% | 11.20% |
Chad | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 14.80% | 15.80% |
Colombia | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 8.90% | 9.90% |
Costa Rica | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 10.20% | 11.90% |
El Salvador | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 11.70% | 13.20% |
Paraguay | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 9.80% | 10.20% |
Rwanda | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 14.70% | |
Tanzania (Zantel) | ||
Disclosure of information for cash-generating units [line items] | ||
Impairment loss recognised in profit or loss, goodwill | $ 6 | |
Discount rate applied to cash flow projections | 14.40% | 14.60% |
Long-term assets - E.2.1. Accou
Long-term assets - E.2.1. Accounting for property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 40 years |
Bottom of range | Networks (including civil works) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 5 years |
Bottom of range | Other | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 2 years |
Top of range | Networks (including civil works) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 15 years |
Top of range | Other | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 7 years |
Long-term assets - E.2.2. Movem
Long-term assets - E.2.2. Movements in tangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | $ 2,880 | $ 3,057 |
Change in scope (see note A.1.2.) | 354 | 3 |
Additions | 698 | 824 |
Impairments/reversal of impairment,net | 1 | (8) |
Disposals, net | (29) | (114) |
Depreciation charge | (685) | (725) |
Asset retirement obligations | 15 | 20 |
Transfers | 6 | 19 |
Transfers from/(to) assets held for sale | (52) | (211) |
Exchange rate movements | (147) | 15 |
Closing balance, net | 3,041 | 2,880 |
Cost or valuation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 7,038 | |
Closing balance, net | 7,747 | 7,038 |
Accumulated amortization and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | (4,158) | |
Closing balance, net | (4,706) | (4,158) |
Networks (including civil works) | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 2,399 | 2,525 |
Change in scope (see note A.1.2.) | 276 | 2 |
Additions | 63 | 201 |
Impairments/reversal of impairment,net | 1 | (6) |
Disposals, net | (24) | (115) |
Depreciation charge | (631) | (663) |
Asset retirement obligations | 14 | 18 |
Transfers | 551 | 613 |
Transfers from/(to) assets held for sale | (45) | (184) |
Exchange rate movements | (124) | 9 |
Closing balance, net | 2,480 | 2,399 |
Recognised finance lease as assets | 307 | 329 |
Networks (including civil works) | Cost or valuation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 6,164 | |
Closing balance, net | 6,802 | 6,164 |
Networks (including civil works) | Accumulated amortization and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | (3,764) | |
Closing balance, net | (4,322) | (3,764) |
Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 147 | 147 |
Change in scope (see note A.1.2.) | 46 | 1 |
Additions | 1 | 0 |
Impairments/reversal of impairment,net | 0 | 0 |
Disposals, net | (2) | 0 |
Depreciation charge | (11) | (9) |
Asset retirement obligations | 1 | 2 |
Transfers | 9 | 7 |
Transfers from/(to) assets held for sale | (3) | (3) |
Exchange rate movements | (8) | 2 |
Closing balance, net | 181 | 147 |
Land and buildings | Cost or valuation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 191 | |
Closing balance, net | 252 | 191 |
Land and buildings | Accumulated amortization and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | (44) | |
Closing balance, net | (71) | (44) |
Construction in progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 206 | 250 |
Change in scope (see note A.1.2.) | 32 | 0 |
Additions | 626 | 616 |
Impairments/reversal of impairment,net | 0 | 1 |
Disposals, net | (2) | 3 |
Depreciation charge | 0 | 0 |
Asset retirement obligations | 0 | 0 |
Transfers | (568) | (650) |
Transfers from/(to) assets held for sale | (2) | (16) |
Exchange rate movements | (8) | 3 |
Closing balance, net | 284 | 206 |
Construction in progress | Cost or valuation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 206 | |
Closing balance, net | 284 | 206 |
Construction in progress | Accumulated amortization and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 0 | |
Closing balance, net | 0 | 0 |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 128 | 135 |
Change in scope (see note A.1.2.) | 0 | 0 |
Additions | 7 | 7 |
Impairments/reversal of impairment,net | 0 | (2) |
Disposals, net | 0 | (1) |
Depreciation charge | (43) | (53) |
Asset retirement obligations | 0 | 0 |
Transfers | 14 | 48 |
Transfers from/(to) assets held for sale | (2) | (8) |
Exchange rate movements | (7) | 1 |
Closing balance, net | 97 | 128 |
Other | Cost or valuation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | 477 | |
Closing balance, net | 409 | 477 |
Other | Accumulated amortization and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening balance, net | (349) | |
Closing balance, net | $ (312) | $ (349) |
Long-term assets - E.2.3. Cash
Long-term assets - E.2.3. Cash used for the purchase of tangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Subclassifications of assets, liabilities and equities [abstract] | |||||
Additions | $ 698 | $ 824 | $ 683 | ||
Change in advances to suppliers | 2 | (8) | (16) | ||
Change in accruals and payables for property, plant and equipment | (25) | 26 | 51 | ||
Finance leases | (43) | (192) | 1 | ||
Cash used for additions | $ 632 | $ 650 | [1] | $ 719 | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Long-term assets - E.3.2. Milli
Long-term assets - E.3.2. Millicom's assets held for sale (Details) $ in Millions | Apr. 27, 2018USD ($) | Jan. 31, 2018USD ($) | Dec. 19, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 12, 2017USD ($) | ||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Cash and cash equivalents | $ 6 | $ (19) | [1] | $ 0 | [1] | ||||
Total liabilities directly associated with assets held for sale | 0 | 79 | [2] | ||||||
Discontinued operations [Abstract] | |||||||||
Cost of sales | (1,146) | (1,205) | [3] | (1,175) | [3] | ||||
Operating expenses | (1,674) | (1,593) | [3] | (1,627) | [3] | ||||
Depreciation and amortization | (830) | (841) | (853) | ||||||
Other operating income (expenses), net | 76 | 68 | [3] | (14) | [3] | ||||
Operating profit | 655 | 645 | [3] | 490 | [3] | ||||
Other non-operating (expenses) income, net | (40) | (4) | 20 | ||||||
Profit before taxes from continuing operations | 129 | 176 | [1],[3] | 109 | [1],[3] | ||||
Net profit (loss) from discontinued operations | (39) | 51 | [3] | (20) | [3] | ||||
Cash flows from discontinued operations [abstract] | |||||||||
Depreciation expense catch-up | 11 | ||||||||
Assets and liabilities reclassified as held for sale | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Total assets of held for sale | 3 | 233 | |||||||
Total liabilities directly associated with assets held for sale | 0 | 79 | |||||||
Net assets held for sale / book value | 3 | 154 | |||||||
Senegal operations | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Intangible assets, net | $ 40 | ||||||||
Property, plant and equipment, net | 126 | ||||||||
Other non-current assets | 2 | ||||||||
Current assets | 56 | ||||||||
Cash and cash equivalents | 3 | ||||||||
Total assets of held for sale | 227 | 0 | 223 | ||||||
Non-current financial liabilities | 8 | ||||||||
Current liabilities | 73 | ||||||||
Total liabilities directly associated with assets held for sale | 81 | 0 | 77 | ||||||
Net assets held for sale / book value | 146 | ||||||||
Towers Paraguay | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Total assets of held for sale | 2 | 7 | |||||||
Total liabilities directly associated with assets held for sale | 0 | 2 | |||||||
Towers Colombia | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Total assets of held for sale | 0 | 1 | |||||||
Towers El Salvador | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Total assets of held for sale | 1 | 0 | |||||||
Other | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Total assets of held for sale | 0 | 2 | |||||||
Ghana | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Intangible assets, net | $ 12 | ||||||||
Property, plant and equipment, net | 77 | ||||||||
Current assets | 29 | ||||||||
Cash and cash equivalents | 8 | ||||||||
Total assets of held for sale | 126 | ||||||||
Non-current financial liabilities | 51 | ||||||||
Current liabilities | 50 | ||||||||
Total liabilities directly associated with assets held for sale | 102 | ||||||||
Net assets held for sale / book value | $ 24 | ||||||||
Rwanda | |||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | |||||||||
Intangible assets, net | $ 12 | ||||||||
Property, plant and equipment, net | 53 | ||||||||
Other non-current assets | 4 | ||||||||
Current assets | 14 | ||||||||
Cash and cash equivalents | 2 | ||||||||
Total assets of held for sale | 85 | ||||||||
Non-current financial liabilities | 11 | ||||||||
Current liabilities | 28 | ||||||||
Total liabilities directly associated with assets held for sale | 40 | ||||||||
Net assets held for sale / book value | 46 | ||||||||
Total consideration multiple | 6 | ||||||||
Consideration payable term | 2 years | ||||||||
Discontinued operations | |||||||||
Discontinued operations [Abstract] | |||||||||
Revenue | 62 | 299 | 371 | ||||||
Cost of sales | (23) | (95) | (119) | ||||||
Operating expenses | (26) | (131) | (174) | ||||||
Depreciation and amortization | 0 | (37) | (79) | ||||||
Other operating income (expenses), net | (10) | (4) | (6) | ||||||
Gain (loss) on disposal of discontinued operations | (29) | 39 | 32 | ||||||
Other expenses linked to the disposal of discontinued operations | (10) | (7) | (19) | ||||||
Operating profit | (36) | 64 | 6 | ||||||
Interest income (expense), net | (3) | (20) | (23) | ||||||
Other non-operating (expenses) income, net | 0 | 6 | (10) | ||||||
Profit before taxes from continuing operations | (39) | 51 | (26) | ||||||
Credit (charge) for taxes, net | 0 | 0 | 6 | ||||||
Net profit (loss) from discontinued operations | (39) | 51 | (20) | ||||||
Cash flows from discontinued operations [abstract] | |||||||||
Cash from (used in) operating activities, net | (4) | 26 | 10 | ||||||
Cash from (used in) investing activities, net | (6) | (33) | (53) | ||||||
Cash from (used in) financing activities, net | $ 0 | $ (22) | $ 18 | ||||||
Discontinued Operations - Senegal | |||||||||
Discontinued operations [Abstract] | |||||||||
Gain (loss) on disposal of discontinued operations | $ 6 | ||||||||
Discontinued Operations - Rwanda | |||||||||
Discontinued operations [Abstract] | |||||||||
Gain (loss) on disposal of discontinued operations | $ (32) | ||||||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.3.2.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||||||
[2] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. | ||||||||
[3] | Re-presented for discontinued operations (shown in note A.4.). Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Other assets and liabilities F.
Other assets and liabilities F.1. Trade receivables (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | $ 343 | $ 339 | $ 386 |
Neither past due nor impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 210 | 259 | |
Gross | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 592 | 597 | |
Provisions | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | (249) | (211) | |
30–90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 95 | 83 | |
Greater than 90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 37 | 43 | |
Telecom operators | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 39 | 49 | |
Telecom operators | Neither past due nor impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 17 | 29 | |
Telecom operators | 30–90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 9 | 16 | |
Telecom operators | Greater than 90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 14 | 4 | |
Own customers | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 246 | 273 | |
Own customers | Neither past due nor impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 158 | 186 | |
Own customers | 30–90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 69 | 52 | |
Own customers | Greater than 90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 19 | 34 | |
Others | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 58 | 64 | |
Others | Neither past due nor impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 36 | 43 | |
Others | 30–90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | 17 | 16 | |
Others | Greater than 90 days | Past due (net of impairments) | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Trade receivables, net | $ 5 | $ 5 |
Other assets and liabilities _2
Other assets and liabilities F.2. Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Telephone and equipment | $ 26 | $ 28 |
SIM cards | 4 | 6 |
IRUs | 3 | 3 |
Other | 6 | 9 |
Inventory | $ 39 | $ 45 |
Other assets and liabilities _3
Other assets and liabilities F.3. Trade Payables (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | $ 26 | $ 25 |
Other assets and liabilities _4
Other assets and liabilities F.4.1 Current provisions and other liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Deferred revenue | $ 85 | $ 86 | ||
Customer deposits | 15 | 13 | ||
Current legal provisions | 27 | 24 | ||
Tax payables | 68 | 57 | ||
Customer and MFS distributor cash balances | 147 | 144 | ||
Withholding tax on payments to third parties | 17 | 17 | ||
Other provisions | 7 | 1 | ||
Other current liabilities | 128 | 83 | ||
Total | 494 | $ 379 | $ 425 | [1] |
Provision for tax risk not related to income tax | $ 38 | |||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Other assets and liabilities _5
Other assets and liabilities F.4.2. Non-current provisions and other liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Non-current legal provisions | $ 8 | $ 15 | |
Long-term portion of asset retirement obligations | 77 | 69 | |
Long-term portion of deferred income on tower sale and leasebacks | 85 | 73 | |
Long-term employment obligations | 68 | 76 | |
Accruals and payables in respect of spectrum and license acquisitions | 41 | 31 | |
Other non-current liabilities | 71 | 70 | |
Non-current provisions | $ 351 | $ 335 | [1] |
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Other assets and liabilities _6
Other assets and liabilities F.5. Assets and liabilities related to contract with customers (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Contract Assets [Line Items] | ||||
Contract assets, net | $ 37 | $ 28 | $ 0 | |
Contract liabilities [abstract] | ||||
Short-term portion | 87 | $ 51 | $ 0 | [1] |
Revenue that was included in contract liability balance at beginning of period | 45 | |||
Transaction price allocated to remaining performance obligations | 42 | |||
Contract costs, net, beginning of period | 4 | |||
Contract costs capitalized | 4 | |||
Amortisation, assets recognised from costs incurred to obtain or fulfil contracts with customers | (4) | |||
Contract costs, net, end of period | 4 | |||
Gross Carrying Amount, Non-current | ||||
Contract Assets [Line Items] | ||||
Contract assets, net | 3 | |||
Gross Carrying Amount, Current | ||||
Contract Assets [Line Items] | ||||
Contract assets, net | 35 | |||
Provisions | ||||
Contract Assets [Line Items] | ||||
Contract assets, net | (1) | |||
Current contract liabilities | ||||
Contract liabilities [abstract] | ||||
Long-term portion | 1 | |||
Short-term portion | 86 | |||
Total | 87 | |||
2,021 | ||||
Contract liabilities [abstract] | ||||
Transaction price allocated to remaining performance obligations | 41 | |||
2,020 | ||||
Contract liabilities [abstract] | ||||
Transaction price allocated to remaining performance obligations | $ 1 | |||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
Additional disclosure items G.1
Additional disclosure items G.1 Fees to auditors (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Auditor's remuneration [abstract] | |||
Audit fees | $ 6.7 | $ 4.7 | $ 4.3 |
Audit related fees | 0.4 | 0.3 | 0.3 |
Tax fees | 0.2 | 0.2 | 0.2 |
Other fees | 0.6 | 0.7 | 1.8 |
Total | $ 7.7 | $ 5.9 | $ 6.6 |
Additional disclosure items G.2
Additional disclosure items G.2.1. Capital commitments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Capital Commitments [Line Items] | ||
Capital commitments | $ 154 | $ 194 |
1 year | ||
Capital Commitments [Line Items] | ||
Capital commitments | 126 | 182 |
Joint ventures | ||
Capital Commitments [Line Items] | ||
Capital commitments | 66 | 25 |
Joint ventures | 1 year | ||
Capital Commitments [Line Items] | ||
Capital commitments | $ 56 | $ 23 |
Additional disclosure items G_2
Additional disclosure items G.2.2. Lease commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum operating lease payments recognised as expense | $ 155 | $ 155 | $ 159 |
Minimum lease payments payable under non-cancellable operating lease | 800 | 759 | |
Minimum finance lease payments payable | 914 | 978 | |
Finance lease liabilities | 353 | 365 | |
Interest expense on finance leases | 92 | 65 | 48 |
1 year | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum lease payments payable under non-cancellable operating lease | 127 | 130 | |
Minimum finance lease payments payable | 99 | 97 | |
1 to 5 years | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum lease payments payable under non-cancellable operating lease | 412 | 372 | |
Minimum finance lease payments payable | 400 | 404 | |
Greater than 5 years | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum lease payments payable under non-cancellable operating lease | 262 | 258 | |
Minimum finance lease payments payable | 415 | 477 | |
Joint ventures | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum lease payments payable under non-cancellable operating lease | 312 | 194 | $ 210 |
Minimum finance lease payments payable | $ 1 | $ 5 |
Additional disclosure items G.3
Additional disclosure items G.3.1. Litigation and legal risks (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of contingent liabilities [line items] | ||
Legal proceedings provision | $ 26 | $ 29 |
Joint ventures | ||
Disclosure of contingent liabilities [line items] | ||
Legal proceedings provision | 4 | 2 |
Legal proceedings contingent liability | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 687 | 438 |
Legal proceedings contingent liability | Joint ventures | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | $ 5 | $ 5 |
Additional disclosure items G_3
Additional disclosure items G.3.2. Tax related risks and uncertain tax position (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of other provisions [line items] | ||
Uncertain tax positions, remote risk | 20.00% | |
Uncertain tax positions, probable risk | 50.00% | |
Provision for taxes other than income tax | ||
Disclosure of other provisions [line items] | ||
Other provisions | $ 47 | $ 53 |
Tax contingent liability | ||
Disclosure of other provisions [line items] | ||
Estimated financial effect of contingent liabilities | 254 | 313 |
Joint ventures | Provision for taxes other than income tax | ||
Disclosure of other provisions [line items] | ||
Other provisions | 2 | 2 |
Joint ventures | Tax contingent liability | ||
Disclosure of other provisions [line items] | ||
Estimated financial effect of contingent liabilities | $ 29 | $ 38 |
Bottom of range | ||
Disclosure of other provisions [line items] | ||
Uncertain tax positions, possible risk | 21.00% | |
Top of range | ||
Disclosure of other provisions [line items] | ||
Uncertain tax positions, possible risk | 49.00% |
Additional disclosure items G.4
Additional disclosure items G.4. Non-cash investing and financing activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional information [abstract] | |||
Acquisition of property, plant and equipment, including finance leases | $ (66,000) | $ (174,000) | $ 34,000 |
Asset retirement obligations | 15,000 | (20,000) | (17,000) |
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | 30,000 | 0 | 0 |
Finance leases | (43,000) | 192,000 | 1,000 |
Share based compensation | $ 22,387 | $ 22,000 | $ 14,000 |
Additional disclosure items G.5
Additional disclosure items G.5. Related party balances and transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Expenses from transactions with related parties | ||||
Other expenses | $ (3) | $ (4) | $ (9) | |
Total | (244) | (250) | (233) | |
Income and gains from transactions with related parties | ||||
Other revenue | 2 | 1 | 10 | |
Total | 303 | 295 | 289 | |
LIABILITIES | ||||
Sub-total | 482 | 421 | ||
Total | 580 | 529 | ||
Amounts due to non-controlling interests, associates and joint ventures | 135 | 124 | [1] | |
Amounts receivable | 73 | 77 | ||
Joint ventures where entity is venturer | ||||
LIABILITIES | ||||
Amounts receivable | 20 | 25 | ||
Other related parties | ||||
LIABILITIES | ||||
Sub-total | 9 | 10 | ||
Amounts receivable | $ 1 | $ 1 | ||
Kinnevik | Principal shareholder | ||||
Disclosure of transactions between related parties [line items] | ||||
Shareholder Ownership Percentage | 37.00% | 37.00% | ||
Miffin | ||||
Expenses from transactions with related parties | ||||
Purchases of goods and services | (167) | |||
Income and gains from transactions with related parties | ||||
Sale of goods and services | 261 | |||
Miffin | Entities with joint control or significant influence over entity | ||||
Expenses from transactions with related parties | ||||
Purchases of goods and services | $ (173) | $ (181) | ||
Income and gains from transactions with related parties | ||||
Sale of goods and services | 284 | 277 | ||
Guatemala joint ventures | Joint ventures where entity is venturer | ||||
LIABILITIES | ||||
Sub-total | 315 | 273 | ||
Amounts due to non-controlling interests, associates and joint ventures | 135 | |||
Honduras joint ventures | Joint ventures where entity is venturer | ||||
LIABILITIES | ||||
Sub-total | 143 | 135 | ||
EPM | ||||
Expenses from transactions with related parties | ||||
Purchases of goods and services | (22) | |||
Income and gains from transactions with related parties | ||||
Sale of goods and services | 18 | |||
EPM | Entities with joint control or significant influence over entity | ||||
LIABILITIES | ||||
Sub-total | 14 | 3 | ||
Amounts receivable | 5 | 3 | ||
EPM | Joint ventures where entity is venturer | ||||
Expenses from transactions with related parties | ||||
Purchases of goods and services | (40) | (36) | ||
Income and gains from transactions with related parties | ||||
Sale of goods and services | 17 | 18 | ||
Helios Towers Africa Ltd (HTA) | ||||
Expenses from transactions with related parties | ||||
Lease of towers and related services from HTA | (28) | (28) | $ (35) | |
LIABILITIES | ||||
Finance lease liabilities to tower companies(iii) | 99 | 108 | ||
Amounts receivable | 6 | 8 | ||
Ghana | ||||
LIABILITIES | ||||
Amounts receivable | $ 41 | $ 40 | ||
Colombia | EPM | ||||
Disclosure of transactions between related parties [line items] | ||||
Percentage ownership help by non-controlling interest | 50.00% | |||
Cable Onda S.A | ||||
Disclosure of transactions between related parties [line items] | ||||
Percentage ownership help by non-controlling interest | 20.00% | |||
[1] | Not restated for the application of IFRS 15 and 9, as the Group elected the modified retrospective approach for both standards. |
IPO - Millicom's operations i_2
IPO - Millicom's operations in Tanzania (Details) | 1 Months Ended |
Jun. 30, 2016 | |
Tigo Tanzania [Member] | |
Disclosure of classes of share capital [line items] | |
Percentage of Outstanding Capital Required to be Sold in Public Offering | 25.00% |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 07, 2019 | Feb. 20, 2019 |
Dividend | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Dividends proposed (per share) | $ 2.64 | |
Major business combination | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Acquisition price | $ 1,650 |
Uncategorized Items - tigo-2018
Label | Element | Value | [1] |
Cumulative Adjustment Arising From Change In Measurement Attribute, Initial Application Of IFRS Standard | tigo_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | $ 5,000,000 | |
Non-controlling interests [member] | |||
Cumulative Adjustment Arising From Change In Measurement Attribute, Initial Application Of IFRS Standard | tigo_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | (4,000,000) | |
Retained earnings [member] | |||
Cumulative Adjustment Arising From Change In Measurement Attribute, Initial Application Of IFRS Standard | tigo_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | 10,000,000 | [2] |
Equity attributable to owners of parent [member] | |||
Cumulative Adjustment Arising From Change In Measurement Attribute, Initial Application Of IFRS Standard | tigo_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | $ 10,000,000 | |
[1] | See below for details about changes in accounting policies. | ||
[2] | Retained profits – includes profit for the year attributable to equity holders, of which $324 million (2017: $345 million; 2016: $321 million) are not distributable to equity holders. |