Document and entity information
Document and entity information | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | MILLICOM INTERNATIONAL CELLULAR SA |
Entity Central Index Key | 0000912958 |
Document Type | 20-F |
Amendment Flag | false |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 101,739,217 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Document Period End Date | Dec. 31, 2019 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Document Annual Report | true |
Document Transition Report | false |
Consolidated statement of incom
Consolidated statement of income - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Profit or loss [abstract] | |||||
Revenue | $ 4,336 | $ 3,946 | $ 3,936 | ||
Cost of sales | (1,201) | (1,117) | (1,169) | ||
Gross profit | 3,135 | 2,829 | 2,767 | ||
Operating expenses | (1,604) | (1,616) | (1,531) | ||
Depreciation | (825) | (662) | (670) | ||
Amortization | (275) | (140) | (142) | ||
Share of profit in the joint ventures in Guatemala and Honduras | 179 | 154 | [2] | 140 | [2] |
Other operating income (expenses), net | (34) | 75 | 69 | ||
Operating profit | 575 | 640 | 632 | ||
Interest and other financial expenses | (564) | (367) | (389) | ||
Interest and other financial income | 20 | 21 | 16 | ||
Other non-operating (expenses) income, net | 227 | (39) | (2) | ||
Profit (loss) from other joint ventures and associates, net | (40) | (136) | [2] | (85) | [2] |
Profit (loss) before taxes from continuing operations | 218 | 119 | [2] | 172 | [2] |
Charge for taxes, net | (120) | (112) | (162) | ||
Profit (loss) for the year from continuing operations | 97 | 7 | 10 | ||
Profit (loss) from discontinued operations, net of tax | 57 | (33) | 60 | ||
Net profit (loss) for the year | 154 | (26) | [3] | 69 | [3] |
Net profit (loss) for the year Attributable to: | |||||
The owners of Millicom | 149 | (10) | 87 | ||
Non-controlling interests | $ 5 | $ (16) | $ (17) | ||
Basic (US$ per common share): | |||||
— from continuing operations (usd per share) | $ 0.92 | $ 0.23 | $ 0.27 | ||
— from discontinued operations (usd per share) | 0.56 | (0.33) | 0.59 | ||
— total (usd per share) | 1.48 | (0.10) | 0.86 | ||
Diluted (US$ per common share): | |||||
— from continuing operations (usd per share) | 0.92 | 0.23 | 0.27 | ||
— from discontinued operations (usd per share) | 0.56 | (0.33) | 0.59 | ||
—total (usd per share) | $ 1.48 | $ (0.10) | $ 0.86 | ||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||
[3] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Consolidated statement of compr
Consolidated statement of comprehensive income Statement - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [2] | Dec. 31, 2017 | [2] | |
Statement of comprehensive income [abstract] | |||||
Profit (loss) | $ 154 | $ (26) | [1] | $ 69 | [1] |
Other comprehensive income (to be reclassified to statement of income in subsequent periods), net of tax: | |||||
Exchange differences on translating foreign operations | (4) | (81) | 85 | ||
Change in value of cash flow hedges, net of tax effects | (16) | (1) | 4 | ||
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 | 0 | (2) | ||
Total comprehensive income (loss) for the year | 133 | (108) | 158 | ||
Attributable to | |||||
Owners of the Company | 131 | (78) | 173 | ||
Non-controlling interests | 3 | (30) | (15) | ||
Total comprehensive income for the period arises from: | |||||
Continuing operations | 76 | (102) | 105 | ||
Discontinued operations | $ 57 | $ (7) | $ 52 | ||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||
[2] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Consolidated statement of finan
Consolidated statement of financial position - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
NON-CURRENT ASSETS | |||
Intangible assets, net | $ 3,219 | $ 2,346 | [1],[2] |
Property, plant and equipment, net | 2,883 | 3,071 | [1],[2] |
Right of use assets | 977 | 0 | |
Investments in joint ventures | 2,797 | 2,867 | [1],[2] |
Investments in associates | 25 | 169 | [1],[2] |
Contract costs, net | 5 | 4 | [1],[2] |
Deferred tax assets | 200 | 202 | [1],[2] |
Other non-current assets | 104 | 126 | [1],[2] |
TOTAL NON-CURRENT ASSETS | 10,210 | 8,785 | [1],[2] |
CURRENT ASSETS | |||
Inventories | 32 | 39 | [1],[2] |
Trade receivables, net | 371 | 343 | [1],[2] |
Contract assets, net | 41 | 37 | [1],[2] |
Amounts due from non-controlling interests, associates and joint ventures | 29 | 34 | [1],[2] |
Prepayments and accrued income | 156 | 129 | [1],[2] |
Current income tax assets | 119 | 108 | [1],[2] |
Supplier advances for capital expenditure | 22 | 25 | [1],[2] |
Equity investments | 371 | 0 | [1],[2] |
Other current assets | 181 | 124 | [1],[2] |
Restricted cash | 155 | 158 | [1],[2] |
Cash and cash equivalents | 1,164 | 528 | [1],[2],[3] |
TOTAL CURRENT ASSETS | 2,641 | 1,525 | [1],[2] |
Assets held for sale | 5 | 3 | [1],[2] |
TOTAL ASSETS | 12,856 | 10,313 | [1],[2] |
EQUITY | |||
Share capital and premium | 633 | 635 | [1],[2] |
Treasury shares | (51) | (81) | [1],[2] |
Other reserves | (544) | (538) | [1],[2] |
Retained profits | 2,222 | 2,535 | [1],[2] |
Profit (loss) for the year attributable to equity holders | 149 | (10) | [1],[2] |
Equity attributable to owners of the Company | 2,410 | 2,542 | [1],[2] |
Non-controlling interests | 271 | 251 | [1],[2] |
TOTAL EQUITY | 2,680 | 2,792 | [1],[2] |
NON-CURRENT LIABILITIES | |||
Debt and financing | 5,786 | 4,123 | [1],[2] |
Lease liabilities | 967 | 0 | |
Derivative financial instruments | 17 | 0 | [1],[2] |
Amounts due to non-controlling interests, associates and joint ventures | 337 | 135 | [1],[2] |
Provisions and other non-current liabilities | 383 | 351 | [1],[2] |
Deferred tax liabilities | 279 | 236 | [1],[2] |
TOTAL NON-CURRENT LIABILITIES | 7,770 | 4,845 | [1],[2] |
CURRENT LIABILITIES | |||
Debt and financing | 186 | 458 | [1],[2] |
Lease liabilities | 97 | 0 | |
Put option liability | 264 | 239 | [1],[2] |
Derivative financial instruments | 0 | 0 | [1],[2] |
Payables and accruals for capital expenditure | 348 | 335 | [1],[2] |
Other trade payables | 289 | 282 | [1],[2] |
Amounts due to non-controlling interests, associates and joint ventures | 161 | 348 | [1],[2] |
Accrued interest and other expenses | 432 | 381 | [1],[2] |
Current income tax liabilities | 75 | 55 | [1],[2] |
Contract liabilities | 82 | 87 | [1],[2] |
Provisions and other current liabilities | 474 | 492 | [1],[2] |
TOTAL CURRENT LIABILITIES | 2,406 | 2,676 | [1],[2] |
Liabilities directly associated with assets held for sale | 0 | 0 | [1],[2] |
TOTAL LIABILITIES | 10,176 | 7,521 | [1],[2] |
TOTAL EQUITY AND LIABILITIES | $ 12,856 | $ 10,313 | [1],[2] |
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | ||
[3] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Cash flows from operating activities (including discontinued operations) | |||||||
Profit before taxes from continuing operations | $ 218 | $ 119 | [1],[2] | $ 172 | [1],[2] | ||
Profit (loss) before taxes from discontinued operations | 59 | (29) | [1] | 55 | [1] | ||
Profit before taxes | 276 | 91 | [1] | 227 | [1] | ||
Adjustments to reconcile to net cash: | |||||||
(Finance) Lease interest expense | 157 | 91 | [1] | 64 | [1] | ||
Financial interest expense | 408 | 282 | [1] | 352 | [1] | ||
Interest and other financial income | (20) | (21) | [1] | (16) | [1] | ||
Adjustments for non-cash items: | |||||||
Depreciation and amortization | 1,111 | 830 | [1] | 879 | [1] | ||
Share of profit in Guatemala and Honduras joint ventures | (179) | (154) | [1],[2] | (140) | [1],[2] | ||
(Gain) on disposal and impairment of assets, net | (40) | (37) | [1] | (99) | [1] | ||
Share based compensation | 30 | 22 | [1] | 22 | [1] | ||
Transaction costs assumed by Cable Onda | 0 | 30 | [1] | 0 | [1] | ||
Loss from other joint ventures and associates,net | 40 | 136 | [1],[2] | 85 | [1],[2] | ||
Other non-cash non-operating (income) expenses, net | (227) | 40 | [1] | (2) | [1] | ||
Changes in working capital: | |||||||
Decrease (increase) in trade receivables, prepayments and other current assets,net | (119) | (128) | [1] | 5 | [1] | ||
Decrease in inventories | 11 | 2 | [1] | 16 | [1] | ||
Increase (decrease) in trade and other payables, net | (61) | 69 | [1] | (82) | [1] | ||
Changes in contract assets, liabilities and costs, net | (2) | (9) | [1] | 0 | [1] | ||
Total changes in working capital | (172) | (66) | [1] | (61) | [1] | ||
Interest paid on (finance) leases | (141) | (89) | [1] | (84) | [1] | ||
Interest paid on debt and other financing | (344) | (229) | [1] | (288) | [1] | ||
Interest received | 15 | 20 | [1] | 16 | [1] | ||
Taxes (paid) | (114) | (153) | [1] | (132) | [1] | ||
Net cash provided by operating activities | 801 | 792 | [1] | 820 | [1] | ||
Cash flows from (used in) investing activities (including discontinued operations): | |||||||
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | (1,014) | (953) | [1] | (22) | [1] | ||
Proceeds from disposal of subsidiaries and associates, net of cash disposed | 111 | 176 | [1] | 22 | [1] | ||
Purchase of intangible assets and licenses | (171) | (148) | [1] | (133) | [1] | ||
Proceeds from sale of intangible assets | 0 | 0 | [1] | 4 | [1] | ||
Purchase of property, plant and equipment | (736) | (632) | [1] | (650) | [1] | ||
Proceeds from sale of property, plant and equipment | 24 | 154 | [1] | 179 | [1] | ||
Proceeds from disposal of equity investment, net of costs | 25 | 0 | [1] | 0 | [1] | ||
Dividends received from joint ventures | 237 | 243 | [1] | 203 | [1] | ||
Settlement of financial derivative instruments | 0 | (63) | [1] | 0 | [1] | ||
Cash (used in) provided by other investing activities, net | 20 | 24 | [1] | 31 | [1] | ||
Net cash used in investing activities | (1,502) | (1,199) | [1] | (367) | [1] | ||
Cash flows from financing activities (including discontinued operations): | |||||||
Proceeds from debt and other financing | 2,900 | 1,155 | [1] | 996 | [1] | ||
Repayment of debt and other financing | (1,157) | (530) | [1] | (1,176) | [1] | ||
(Finance) Lease capital repayment | (107) | (17) | [1] | (19) | [1] | ||
Advances for, and dividends paid to non-controlling interests | (13) | (2) | [1] | 0 | [1] | ||
Dividends paid to owners of the Company | (268) | (266) | [1] | (265) | [1] | ||
Net cash provided by (used in) financing activities | 1,355 | 341 | [1] | (464) | [1] | ||
Exchange impact on cash and cash equivalents,net | (8) | (33) | [1] | 4 | [1] | ||
Net (decrease) increase in cash and cash equivalents | 645 | (98) | [1] | (8) | [1] | ||
Cash and cash equivalents, beginning balance | [1] | 528 | [3],[4] | 619 | 646 | ||
Effect of cash in disposal group held for sale | (9) | 6 | [1] | (19) | [1] | ||
Cash and cash equivalents, ending balance | $ 1,164 | $ 528 | [1],[3],[4] | $ 619 | [1] | ||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||
[2] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||
[3] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||
[4] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
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 | [3] | Non- controlling interests | |||
Number of shares, beginning of period (in shares) | 101,739 | (1,395) | |||||||||||
Number of shares, beginning of period (in shares) | 101,739 | (1,195) | |||||||||||
Equity, beginning of period at Dec. 31, 2016 | $ 3,368 | $ 3,167 | $ 153 | [1] | $ 485 | $ (123) | $ 3,215 | $ (562) | $ 201 | ||||
Comprehensive income | 158 | [4] | 173 | 86 | 87 | (15) | |||||||
Dividends | [5] | (265) | (265) | (265) | |||||||||
Purchase of treasury shares (in shares) | (32) | ||||||||||||
Purchase of treasury shares | (3) | (3) | $ (3) | ||||||||||
Share-based compensation | [6] | 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) | |||||||
Number of shares, end of period (in shares) at Dec. 31, 2017 | 101,739 | (1,195) | |||||||||||
Equity, end of period at Dec. 31, 2017 | 3,281 | 3,096 | $ 153 | [1] | 484 | $ (106) | 3,035 | (472) | 185 | ||||
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 | (914) | |||||||||||
Comprehensive income | (108) | [4] | (78) | (10) | (68) | (30) | |||||||
Dividends | [5] | (266) | (266) | (266) | |||||||||
Dividends to non controlling interest | (13) | (13) | |||||||||||
Purchase of treasury shares (in shares) | (70) | ||||||||||||
Purchase of treasury shares | (6) | (6) | $ (6) | ||||||||||
Share-based compensation | [6] | 22 | 22 | 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 acquisition of Cable Onda | [7] | 113 | 113 | ||||||||||
Put option reserve | [7] | (239) | (239) | (239) | |||||||||
Number of shares, end of period (in shares) at Dec. 31, 2018 | 101,739 | (914) | |||||||||||
Equity, end of period at Dec. 31, 2018 | 2,792 | [8],[9] | 2,542 | $ 153 | [1] | 482 | $ (81) | 2,525 | (538) | 251 | |||
Number of shares, beginning of period (in shares) | 101,739 | (914) | |||||||||||
Statutory reserves unavailable for distribution | 324 | ||||||||||||
Number of shares, beginning of period (in shares) | 101,739 | (581) | |||||||||||
Comprehensive income | 133 | 131 | 149 | (19) | 3 | ||||||||
Dividends | [5] | (267) | (267) | (267) | |||||||||
Dividends to non controlling interest | (1) | (1) | |||||||||||
Purchase of treasury shares (in shares) | (132) | ||||||||||||
Purchase of treasury shares | (8) | (8) | $ (12) | 4 | |||||||||
Share-based compensation | [6] | 30 | 29 | 29 | 1 | ||||||||
Issuance of shares under share-based payment schemes (in shares) | 465 | ||||||||||||
Issuance of shares under share-based payment schemes | 1 | 1 | (2) | $ 41 | (12) | (25) | |||||||
Effect of restructuring in Tanzania | [10] | 0 | (18) | (27) | 9 | 18 | |||||||
Number of shares, end of period (in shares) at Dec. 31, 2019 | 101,739 | (581) | |||||||||||
Equity, end of period at Dec. 31, 2019 | 2,680 | $ 2,409 | $ 153 | [1] | $ 480 | $ (51) | $ 2,372 | $ (544) | $ 271 | ||||
Number of shares, beginning of period (in shares) | 101,739 | (581) | |||||||||||
Statutory reserves unavailable for distribution | $ 306 | ||||||||||||
[1] | Share capital and share premium – see note C.1. | ||||||||||||
[2] | Retained profits – includes profit for the year attributable to equity holders, of which $306 million (2018: $324 million; 2017: $345 million) are not distributable to equity holders. | ||||||||||||
[3] | Other reserves – see note C.1. | ||||||||||||
[4] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||||||||
[5] | Dividends – see note C.2. | ||||||||||||
[6] | Share-based compensation – see note C.1. | ||||||||||||
[7] | Effect of the acquisition of Cable Onda S.A. See notes A.1.2. and C.7.4. for further details. The consolidated statement of changes in equity at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | ||||||||||||
[8] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||||||||
[9] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | ||||||||||||
[10] | Effect of the restructuring in Tanzania A.1.2. |
Introduction
Introduction | 12 Months Ended |
Dec. 31, 2019 | |
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 November 14, 2019, Millicom's historical principal shareholder, Kinnevik AB, distributed its entire (approximately 37% of Millicom's outstanding shares) shareholding in Millicom to its own shareholders through a share redemption plan. Since that date, Kinnevik is no longer a related party or shareholder in Millicom. On February 24, 2020 , the Board of Directors authorized these consolidated financial statements for issuance. Business activities Millicom operates its mobile businesses in Latin America (Bolivia, Colombia, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Paraguay), and in Africa (Ghana and Tanzania). Millicom operates various cable and fixed line businesses in Latin America (Bolivia, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Paraguay). 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 holds investments in online/e-commerce businesses in several countries in Africa (Jumia), in a tower infrastructure company in Africa (Helios Towers), as well as other small minority investments in other businesses such as micro-insurance (Milvik). 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 (measured at fair value), financial instruments that contain obligations to purchase own equity instruments (measured at the present value of the redemption price), and, up to December 31, 2018 prior to the adoption of IFRS 16 'Leases', 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 or significant influence over a foreign operation, exchange differences that were recorded in equity are recognized in the consolidated statement of income as part of gain or loss on sale or loss of control and/or significant influence. 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, 2019 , 2018 and 2017 and the average rates for the years ended December 31, 2019 , 2018 and 2017 . Exchange Rates to the US Dollar Functional Currency 2019 Year-end Rate 2018 Year-end Rate Change % 2019 Average Rate 2018 Average Rate Change % 2017 Average Rate Bolivia Boliviano (BOB) 6.91 6.91 — % 6.91 6.91 — % 6.91 Chad CFA Franc (XAF) n/a 580 n/a n/a 571 n/a 588 Colombia Peso (COP) 3,277 3,250 0.8 % 3,296 2,973 10.9 % 2,961 Costa Rica Costa Rican Colon (CRC) 576 608 (5.2 )% 588 578 1.8 % 571 El Salvador US dollar n/a n/a n/a n/a n/a n/a n/a Ghana Cedi (GHS) 5.73 4.82 18.9 % 5.33 4.63 15.0 % 4.36 Guatemala Quetzal (GTQ) 7.70 7.74 (0.5 )% 7.71 7.52 2.5 % 7.36 Honduras Lempira (HNL) 24.72 24.42 1.2 % 24.59 23.99 2.5 % 23.58 Luxembourg Euro (EUR) 0.89 0.87 2.5 % 0.89 0.85 5.1 % 0.89 Nicaragua Cordoba (NIO) 33.84 32.33 4.7 % 33.12 31.55 5.0 % 30.05 Panama Balboa (B/.) (i) n/a n/a n/a n/a n/a n/a n/a Paraguay Guarani (PYG) 6,453 5,961 8.3 % 6,232 5,743 8.5 % 5,626 Sweden Krona (SEK) 9.365 8.85 5.8 % 9.43 8.71 8.3 % 8.53 Tanzania Shilling (TZS) 2,299 2,299 — % 2,304 2,274 1.3 % 2,233 United Kingdom Pound (GBP) 0.75 0.78 (3.3 )% 0.78 0.75 4.3 % 0.77 (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.7. The application of IFRS 15 and IFRS 9 had the following impact on the Group financial statements at January 1, 2018: FINANCIAL POSITION 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 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: INCOME STATEMENT 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change Total revenue 3,946 4,023 (77 ) (i) Cost of sales (1,117 ) (1,165 ) 48 (ii) Operating expenses (1,616 ) (1,656 ) 40 (ii) Share of profit in the joint ventures in Guatemala and Honduras 154 152 2 (iii) Tax impact (112 ) (111 ) (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. FINANCIAL POSITION 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change 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 492 574 (82 ) (v) Current income tax liabilities 55 52 3 (vi) Deferred tax liabilities (non-current) 236 229 7 (vi) EQUITY Retained profits and loss for the year 2,525 2,468 57 (vii) Non-controlling interests 251 248 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 following changes to standards effective for annual periods starting on January 1, 2019 have been adopted by the Group: IFRS 16 "Leases"primarily affects the accounting for the Group’s operating leases. The commitments for operating leases are now recognized as right of use assets and lease liabilities for future payments. As a result, on adoption, on January 1, 2019, an additional lease liability of $545 million has been recognized (see note C.4.). The application of the new standard decreased operating expenses by $149 million , respectively, as compared to what our results would have been if we had continued to follow IAS 17 for year ended December 31, 2019 . The impact of the adoption of the leasing standard and the new accounting policies are further explained below. The application of this standard also affects the Group’s depreciation, operating and financial expenses, debt and other financing, and leverage ratios see note C.3.. The change in presentation of operating lease expenses has resulted in a corresponding increase in cash flows derived from operating activities and a decline in cash flows from financing activities. Below you will find further details describing the impact of the adoption of IFRS 16 "Leases" on the Group’s financial statements. The amended accounting policies applied from January 1, 2019 are further disclosed in note E.3.. Explanation and effect of adoption of IFRS 16 The Group adopted 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 . Its application had no significant impact on the Group's retained profits. Comparatives for the 2018 and 2017 financial statements were not restated. On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were 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 was measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the leases recognized in the statement of financial position immediately before the date of initial application. The weighted average incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 12.3% . Each lease commitment was individually discounted using a specific incremental borrowing rate, following a build-up approach including: risk-free rates, industry risk, country risk, credit risk at cash generating unit level, currency risk and commitment’s maturity. For leases previously classified as finance leases Millicom recognized the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of IFRS 16 are only applied after that date. $ millions 2019 Operating lease commitments disclosed as at December 31, 2018 801 (Plus): Non lease components obligations 57 (Less): Short term leases recognized on a straight line basis as an expense (3) (Less): Low value leases recognized on a straight line basis as an expense (2) (Less): Contract included in the lease commitments but with starting date in 2019 and not part of the IFRS 16 opening balances (17) (Plus/Less): Other (9) Gross lease liabilities 828 Discounted using the lessee's incremental borrowing rate at the date of the initial application (283) Incremental lease liabilities recognized at January 1, 2019 545 (Plus): Finance lease liabilities recognized at December 31, 2018 353 Lease liabilities recognized at January 1, 2019 898 Of which are: Current lease liabilities 86 Non-current lease liabilities 812 The application of IFRS 16 affected the following items in the statement of financial position on January 1, 2019: FINANCIAL POSITION As at January 1, 2019 before application Effect of adoption of IFRS 16 As at January 1, 2019 after application Reason for the change ASSETS Property, plant and equipment, net 3,071 (307) 2,764 (i) Right-of-use asset (non-current) NEW — 856 856 (ii) Prepayments 129 (6) 123 (iii) LIABILITIES Lease liabilities (non-current) NEW — 812 812 (iv) Debt and other financing (non-current) 4,123 (337) 3,786 (v) Lease liabilities (current) NEW — 86 86 (iv) Debt and other financing (current) 458 (16) 442 (v) Other current liabilities 492 (2) 490 (vi) (i) Transfer of previously capitalized assets under finance leases to Right-of-Use assets. (ii) Initial recognition of Right-of-Use assets, transfer of previously recognized finance leases and of lease prepayments to the Right-of-Use asset cost at transition. (iii) Transfer of lease prepayments to the Right-of-Use asset cost at transition. (iv) Initial recognition of lease liabilities and transfer of previously recognized finance lease liabilities. (v) Transfer of previously recognized finance lease liabilities to new Lease liabilities accounts. (vi) Reclassification of provisions for onerous contracts to Right-of-Use assets. The application of IFRS 16 has also impacted classifications within the statement of income, statement of cash flows, segment information and EPS for the period starting from January 1, 2019. In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard: ◦ the use of a single discount rate to a portfolio of leases with reasonably similar characteristics ◦ reliance on previous assessments on whether leases are onerous ◦ the accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases ◦ the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application, and ◦ the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease. The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made when applying IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease. The following new or amended standards became applicable for the current reporting period and did not have any significant impact on the Group’s accounting policies or disclosures and did not require retrospective adjustments. ◦ Amendments to IFRS 9 "Financial instruments" on prepayment features with negative compensation. ◦ IFRIC 23 "Uncertainty over Income Tax Treatments" clarifies how the recognition and measurement requirements of IAS 12 Income taxes, are applied where there is uncertainty over income tax treatments. ◦ Amendments to IAS 19 "Employee benefits" on plan amendment, curtailment or settlement. ◦ Amendments to IAS 28 "Investments in associates" on long term interests in associates and joint ventures. ◦ Annual improvements 2015-2017. The following changes to standards, which are not expected to materially affect the Group, will be effective from January 1, 2020 : Amendments to the conceptual framework The IASB has revised its conceptual framework. The Framework is not an IFRS standard and does not override any standard, so nothing will change in the short term.The revised Framework will be used in future standard-setting decisions, but no changes will be made to current IFRS. Preparers might also use the Framework to assist them in developing accounting policies where an issue is not addressed by an IFRS. The Group does not expect these amendments to have a material impact on the consolidated financial statements as such. 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 this amendment to have a material impact on the consolidated financial statements. January 1, 2020 Amendments to IFRS 3 - 'Business Combinations' - definition of a business This amendment revises the definition of a business. According to feedback received by the IASB, application of the current guidance is commonly thought to be too complex, and it results in too many transactions qualifying as business combinations. The Group does not expect this amendment to have a material impact on the consolidated financial statements. These amendments have not yet been endorsed by the EU. January 1, 2020 Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest Rate Benchmark Reform. The IASB has embarked on a two-phase project to consider what, if any, reliefs to give from the effects of IBOR reform. For Phase 1, the IASB has issued amendments to IFRS 9, IAS 39 and IFRS 7 that provide temporary relief from applying specific hedge accounting requirements to hedging relationships directly affected by IBOR reform. The reliefs relate to hedge accounting and have the effect that IBOR reform should not generally cause hedge accounting to terminate. However, any hedge ineffectiveness should continue to be recorded in the income statement. Given the pervasive nature of hedges involving IBOR based contracts, the reliefs will affect companies in all industries. The Group is currently assessing the impact of these amendments on the consolidated financial statements but do not expect it will have a material effect. January 1, 2020 IFRS 17, ‘Insurance contracts’ This standard replaces IFRS 4, which currently permits a wide variety of practices in accounting for insurance contracts. IFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts and investment contracts with discretionary participation features. IFRS 17 will not have an impact on the consolidated financial statements. IFRS 17 has not been yet endorsed by the EU. January 1, 2021 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: • Acquisitions – measurement at fair value of existing and newly identified assets, including the measurement of property, plant and equipment and intangible assets (e.g. particularly the customer lists being sensitive to significant assumptions as disclosed in note A.1.2. ), liabilities, contingent 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. ); • 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, when there is one or several performance obligations and the determination of stand alone selling prices (see note B.1.1. ); • Contingent liabilities – whether or not a provision should be recorded for any potential liabilities (see note G. |
The Millicom Group
The Millicom Group | 12 Months Ended |
Dec. 31, 2019 | |
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 other small minority investments in other businesses such as micro-insurance (Milvik). 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, 2019 December 31, 2018 December 31, 2017 Latin America In % In % In % Telemovil El Salvador S.A. de C.V. El Salvador Mobile, MFS, Cable, DTH 100 100 100 Millicom Cable Costa Rica S.A. Costa Rica Cable, DTH 100 100 100 Telefonica Celular de Bolivia S.A. Bolivia Mobile, DTH, MFS, Cable 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 80 — Telefonica Moviles Panama (ii) Panama Mobile 80 — — Telefonia Cellular de Nicaragua sa (ii) Nicaragua Mobile 100 — — Colombia Móvil S.A. E.S.P. (iii) Colombia Mobile 50-1 share 50-1 share 50-1 share UNE EPM Telecomunicaciones S.A.(iii) Colombia Fixed-line, Internet, PayTV, Mobile 50-1 share 50-1 share 50-1 share Edatel S.A. E.S.P. (iii) Colombia Fixed-line, Internet, PayTV, Cable 50-1 share 50-1 share 50-1 share Africa Sentel GSM S.A.(v) Senegal Mobile, MFS — — 100 MIC Tanzania Public Limited Company (vi) Tanzania Mobile, MFS 98.5 100 100 Millicom Tchad S.A. (v) Chad Mobile, MFS — 100 100 Millicom Rwanda Limited (v) Rwanda Mobile, MFS — — 100 Zanzibar Telecom Limited (vi) Tanzania Mobile, MFS 98.5 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 International Services LLC USA Services Company 100 100 100 Millicom Services UK Ltd (vii) UK Services 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) Companies acquired during the year. See note A.1.2. (iii) Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities. (iv) Merged with Airtel Ghana in October 2017 and classified as discontinued operations for the year then ended (see note E.4.2. ). Merged entity is accounted for as a joint venture as from merger date (see note A.2.2. ). (v) Companies disposed of in 2018 or 2019. See note A.1.3. (vi) Change in ownership percentages as a result of the in-country restructuring . See note A.1.2. (vii) Millicom Services UK Ltd with registered number 08330497 will take advantage of an audit exemption to prepare stand alone financial statements for the year ended December 31, 2019 as set out within section 479A of the Companies Act 2006. 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 changes in non-controlling interests in subsidiaries Scope changes 2019 1. Telefonica CAM Acquisitions On February 20, 2019, MIC S.A., Telefonica Centroamerica and Telefonica S.A. entered into 3 separate share purchase agreements (the “Telefonica CAM Acquisitions”) pursuant to which, subject to the terms and conditions contained therein, Millicom agreed to purchase 100% of the shares of Telefonica Moviles Panama, S.A., a company incorporated under the laws of Panama, from Telefonica Centroamerica (the “Panama Acquisition”), 100% of the shares of Telefonica de Costa Rica TC, S.A., a company incorporated under the laws of Costa Rica, from Telefonica (the “Costa Rica Acquisition”) and 100% of the shares of Telefonia Celular de Nicaragua, S.A., a company incorporated under the laws of Nicaragua, from Telefonica Centroamerica (the “Nicaragua Acquisition”). The Telefonica CAM Acquisitions Share Purchase Agreements contain customary representations and warranties and termination provisions. The consummation of the Costa Rica Acquisition is still subject to regulatory approvals and is expected to close in H1 2020. Acquisition related costs for Nicaragua and Panama acquisitions included in the statement of income under operating expenses were approximately $16 million for the year. The aggregate purchase price for the Telefonica CAM Acquisitions is $1.65 billion , subject to potential purchase price adjustments. a) Nicaragua Acquisition This transaction closed on May 16, 2019 after receipt of the necessary approvals and, since that date, Millicom holds all voting rights into Telefonia Celular de Nicaragua ("Nicaragua") and controls it. On the same day, Millicom paid an original cash consideration of $437 million , provisionally adjusted to $430 million as of December 31, 2019 and still subject to final price adjustment expected in Q1 2020. The purchase consideration also includes potential indemnifications from the sellers ( including potential tax contingencies and litigations). For the purchase accounting, Millicom determined the provisional fair values of Nicaragua's identifiable assets and liabilities based on transaction and relative fair values. The purchase accounting is still provisional at December 31, 2019 , particularly in respect of the final price adjustment and the evaluation of the right-of-use assets and lease liabilities. Management expects to finalize the purchase accounting in Q1 2020. The provisional purchase accounting as at December 31, 2019 is as follows Provisional Fair values (100%) (US$ millions) Intangible assets (excluding goodwill) (i) 131 Property, plant and equipment (ii) 149 Right of use assets (iii) 131 Other non-current assets 2 Current assets (excluding cash) (iv) 23 Trade receivables (v) 17 Cash and cash equivalents 7 Total assets acquired 459 Lease liabilities (iii) 131 Other liabilities (vi) 118 Total liabilities assumed 249 Fair value of assets acquired and liabilities assumed, net 210 Acquisition price 430 Provisional Goodwill 220 (i) Intangible assets not previously recognized at the date of acquisition, are mainly customer lists for an amount of $81 million , with estimated useful lives ranging from 4 to 10 years. In addition, a fair value step-up of $39 million on the spectrum held by Nicaragua has been recognized, with a remaining useful life of 14 years. (ii) A fair value step-up of $39 million has been recognized on property, plant and equipment, mainly on the core network ( $25 million ) and owned land and buildings ( $8 million ). The expected remaining useful lives were estimated at 6 - 7 years on average. (iii) The Group measured the lease liability at the present value of the remaining lease payments (as defined in IFRS 16) as if the acquired lease were a new lease at the acquisition date. The right-of-use assets have been adjusted by $7 million to be measured at the same amount as the lease liabilities. (iv) Current assets include indemnification assets for tax contingencies at fair value for an amount of $11 million - see (v) below. (v) The fair value of trade receivables acquired was $17 million . (vi) Other liabilities include the fair value of certain possible tax contingent liabilities for $1 million and a deferred tax liability of $50 million resulting from the above adjustments The goodwill is currently not expected to be tax deductible, and is attributable to expected synergies and convergence with our legacy fixed business in the country, as well as to the fair value of the assembled work force. For convenience purposes, the acquisition date was set on May 1, 2019 as there were no material transactions from this date to May 16, 2019. From May 1, 2019 to December 31, 2019 , Nicaragua contributed $144 million of revenue and a net profit of $5 million to the Group. If the acquisition had occurred on January 1, 2019 incremental revenue for the year ended December 31, 2019 for the Group would have been $219 million and incremental net loss for that period would have been $16 million , including amortization of assets not previously recognized of $12 million (net of tax). Key assumptions used in fixed assets valuation The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets: Major class of assets Valuation method Key assumption 1 Key assumption 2 Key assumption 3 Spectrum Market approach - Market comparable transactions Discount rate : 14% Terminal growth rate: 2.5% Estimated duration: 14 years Customer lists Income approach - Multi-Period Excess Earnings Method Discount rate: 14-15% Monthly Churn rate: From 1.2% for B2B to 2.9% for B2C EBITDA margin: ~ 36% to 41% Land and buildings Market approach Economic useful life (range): 10-30 years Price per square meter: from $2 to $57 N/A Core network Cost approach Economic useful life (range): 5-27 years Remaining useful life (minimum) : 1.7 years N/A b) Panama Acquisition This transaction closed on August 29, 2019 after receipt of the necessary approvals and, since that date, Cable Onda, which is 80% owned by Millicom, holds all voting rights in Telefonica Moviles Panama, S.A. ("Panama") and controls it. On the same day, Cable Onda paid an original cash consideration of $594 million to acquire 100% of the shares of Panama, subject to a final price adjustment expected in Q1 2020. The purchase consideration also includes potential indemnifications from the sellers ( including potential tax contingencies and litigations). For the purchase accounting, Millicom determined the fair value of Panama's identifiable assets and liabilities based on transaction and relative fair values. The purchase accounting is still provisional at December 31, 2019 , particularly in respect of the evaluation of property, plant and equipment, right-of-use assets and lease liabilities, final price adjustment and their resulting impact on the current valuation of intangible assets. Management expects to finalize the purchase accounting during the first half of 2020. No non-controlling interests are recognized at acquisition date as Cable Onda acquired 100% of the shares of Panama. Though, non-controlling interests are recognized in Panama's results from the date of acquisition. The provisional purchase accounting as at December 31, 2019 is as follows: Provisional Fair values (100%) (US$ millions) Intangible assets (excluding goodwill) (i) 169 Property, plant and equipment 110 Right of use assets 57 Other non-current assets 3 Current assets (excluding cash) 23 Trade receivables (ii) 21 Cash and cash equivalents 10 Total assets acquired 391 Lease liabilities 48 Other debt and financing 74 Other liabilities (iii) 101 Total liabilities assumed 224 Fair value of assets acquired and liabilities assumed, net 167 Acquisition price 594 Provisional Goodwill 426 (i) Intangible assets not previously recognized at the date of acquisition, are mainly customer lists for an amount of $58 million , with estimated useful lives ranging from 3 to 17 years. In addition, a fair value step-up of $3 million on the spectrum held by Panama has been recognized, with a remaining useful life of 17 years. (ii) The fair value of trade receivables acquired was $21 million . (iii) Other liabilities include a deferred tax liability of $15 million resulting from the above adjustments The goodwill is currently not expected to be tax deductible and is attributable to expected synergies and convergence with Cable Onda, as well as to the fair value of the assembled work force. For convenience purposes, the acquisition date was set on September 1, 2019. From September 1, 2019 to December 31, 2019 , Panama contributed $80 million of revenue and a net profit of $6 million to the Group. If Panama had been acquired on January 1, 2019 incremental revenue for the twelve-month period ended December 31, 2019 for the Group would have been $158 million and incremental net profit for that period would have been $1 million , including amortization of assets not previously recognized of $3 million (net of tax). Key assumptions used in fixed assets valuation The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets: Major class of assets Valuation method Key assumption 1 Key assumption 2 Key assumption 3 Spectrum Market approach - Market comparable transactions Discount rate: 9.8% Terminal growth rate: 2.9% Estimated duration: 17 years Customer lists Income approach - Multi-Period Excess Earnings Method Discount rate: 9.8-11% Monthly Churn rate: From 0.4% for B2C postpaid to 3.9% for B2C prepaid EBITDA margin: ~ 35% to 39% 2. Tanzania restructuring In October 2019, with the view of listing the shares of MIC Tanzania Public Limited Company ('MIC Tanzania') on the local stock exchange (see note H), Millicom completed the restructuring of its investments in different operations in the country. Mainly, MIC Tanzania acquired all the shares of Zantel, which was partially held by the Government of Zanzibar ( 15% ). In exchange of the contribution of its 15% shares in Zantel to MIC Tanzania, the Government of Zanzibar received 1.5% of newly issued shares in MIC Tanzania. This restructuring did not result in the Group losing control in Zantel nor MIC Tanzania, and has therefore been recognized as an equity transaction. As a consequence, the Group owners’ equity decreased by a net amount of $18 million as a result of the derecognition of the 15% non-controlling interests in Zantel and the recognition of 1.5% non-controlling interests in MIC Tanzania. 3. Others During the year ended December 31, 2019 , the Group also completed minor additional acquisitions. Scope changes 2018 1. Cable Onda acquisition On October 7, 2018, the Company signed an agreement to acquire a controlling 80% stake in Cable Onda, the largest cable and fixed telecommunications services provider in Panama. The selling shareholders retained a 20% equity stake in the company. The transaction closed on December 13, 2018 after receipt of necessary approvals, for final cash consideration of $956 million . 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 that have been amended as a result of the acquisition of Telefonica Moviles Panama, S.A.. See note C.7.4. for further details on the accounting treatment of these options. 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 exercise has been finalized in December 2019. The main adjustments compared to the provisional fair values relate to the final valuation of the property, plant and equipment for a net increase of $30 million , as well as its related impact on the customer list fair value (a decrease of $20 million ) and deferred tax liabilities (net increase of $3 million ). The remaining adjustments are linked to reassessment of contingent liabilities and corresponding indemnification assets. As a result, goodwill decreased by $8 million as follows: . . Provisional Fair values (100%) Final Fair values (100%) Changes (US$ millions) (US$ millions) (US$ millions) Intangible assets (excluding goodwill) (i) 673 653 (20 ) Property, plant and equipment (ii) 348 378 30 Current assets (excluding cash)(iii) 54 50 (4 ) Cash and cash equivalents 12 12 — Total assets acquired 1,088 1,094 6 Non-current liabilities(iv) 422 425 3 Current liabilities 141 134 (7 ) Total liabilities assumed 563 559 (4 ) Fair value of assets acquired and liabilities assumed, net 525 535 10 Transaction costs assumed by Cable Onda (v) 30 30 — Fair value of non-controlling interest in Cable Onda (20%) 111 113 2 Millicom’s interest in the fair value of Cable Onda (80%) 444 452 8 Acquisition price 956 956 0 Final Goodwill 512 504 (8 ) (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 $350 million , with estimated useful life of 20 years and favorable content contracts for $19 million , with a useful life of 10 years . (ii) A net fair value step-up of $30 million has been recognized on property, plant and equipment, mainly on the core network ( $11 million ). The expected remaining useful lives were estimated at 5 years on average. (iii) Current assets include trade receivables amounting to a fair value of $34 million . (iv) Non-current liabilities include the deferred tax liability of $161 million resulting from the above adjustments. (v) 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 completion of the purchase price allocation did not result in any material impact on the statement of income for the years ended December 31, 2018 and December 31, 2019 , respectively, in respect of values previously recorded in the provisional purchase accounting. 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). Key assumptions used in fixed assets valuation The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets: Major class of assets Valuation method Key assumption 1 Key assumption 2 Key assumption 3 Brands Income approach - Relief-from-Royalty approach Discount rate: 10% Royalty rate: 4.5% Tax rate: 25% Customer lists Income approach - Multi-Period Excess Earnings Method Discount rate: 10% Yearly Churn rate: 5.8% in average EBITDA margin: ~ 48% Property, plant & equipment Cost approach Economic useful life (range): 5-15 years Remaining useful life (minimum): 2-8 years N/A Disposal of subsidiaries and decreases in non-controlling interests of subsidiaries Chad On June 26, 2019, the Group completed the disposal of its operations in Chad for a final cash consideration of $110 million . In accordance with Group practices, the Chad operation has been classified as assets held for sale and discontinued operations as from June 5, 2019 and prior periods restated. On June 26, 2019, Chad was deconsolidated and a gain on disposal of $77 million was recognized (see also note E.4. ). 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 for a final cash consideration of $51 million , including a deferred cash payment due in January 2020 for an amount of $18 million . The transaction also included earn-outs for $7 million that were not recognized by the Group as management does not believe these will be triggered. The sale was 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; results were therefore shown on a single line in the statements of income under ‘Profit (loss) for the year from discontinued operations, net of tax’ (see also note E.4. ). 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. 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. The sale was completed on April 27, 2018 in exchange of a cash consideration of $151 million . (see also note E.4. ) Ghana merger On March 3, 2017, Millicom and Bharti Airtel Limited (Airtel) announced that they had entered into an agreement for Tigo Ghana Limited and Airtel Ghana Limited to combine their operations in Ghana. In accordance with Group practices, Ghana operations’ assets and liabilities were classified as held for sale on September 30, 2017. Ghana’s operations also represented a separate geographical area and did qualify for discontinued operations. The transaction was completed on October 12, 2017 (see also note E.4. ). Other disposals For the years ended December 31, 2019 , 2018 and 2017 , Millicom did not dispose of any other significant investments. Summarized financial information relating to significant subsidiaries with non-controlling interests At December 31, 2019 and 2018 , Millicom’s subsidiaries with material non-controlling interests were the Group’s operations in Colombia and Panama. Balance sheet – non-controlling interests December 31, 2019 2018(i) (US$ millions) Colombia 170 161 Panama 99 105 Others 2 (16 ) Total 271 251 (i) Restated as a result of the finalization of Cable Onda purchase accounting, see note A.1.2. Profit (loss) attributable to non-controlling interests 2019 2018 2017 (US$ millions) Colombia 11 (5 ) (13 ) Panama (6 ) (8 ) — Others — (3 ) (4 ) Total 5 (16 ) (17 ) The summarized financial information for material non-controlling interests in our operations in Colombia and Panama is provided below. This information is based on amounts before inter-company eliminations. Colombia 2019 2018 2017 (US$ millions) Revenue 1,532 1,661 1,739 Total operating expenses (543 ) (667 ) (647 ) Operating profit 164 147 106 Net (loss) for the year 23 (10 ) (25 ) 50% non-controlling interest in net (loss) 11 (5 ) (13 ) Total assets (excluding goodwill) 2,256 1,966 2,193 Total liabilities 1,891 1,620 1,771 Net assets 365 346 422 50% non-controlling interest in net assets 183 173 211 Consolidation adjustments (13 ) (12 ) (15 ) Total non-controlling interest 170 161 197 Dividends and advances paid to non-controlling interest (12 ) (2 ) 0 Net cash from operating activities 363 348 331 Net cash from (used in) investing activities (260 ) (270 ) (209 ) Net cash from (used in) financing activities (67 ) (75 ) (46 ) Exchange impact on cash and cash equivalents, net — (18 ) 3 Net increase in cash and cash equivalents 36 (15 ) 80 Panama 2019 (ii) 2018 (i) (US$ millions) Revenue 475 17 Total operating expenses (148 ) (8 ) Operating profit (15 ) (39 ) Net (loss) for the year (31 ) (39 ) 20% non-controlling interest in net (loss) (6 ) (8 ) Total assets (excluding Millicom's goodwill in Cable Onda) 1,866 1,082 Total liabilities 1,372 556 Net assets 494 526 20% non-controlling interest in net assets 99 105 Consolidation adjustments — — Total non-controlling interest 99 105 Dividends and advances paid to non-controlling interest — — Net cash from operating activities 167 (2 ) Net cash from (used in) investing activities (iii) (693 ) 12 Net cash from (used in) financing activities (iii) 580 (3 ) Exchange impact on cash and cash equivalents, net — — Net increase in cash and cash equivalents 54 7 (i) Cable Onda was acquired on December 13, 2018 and 2018 figures therefore only include results and cash flows from the date of acquisition. (ii) 2019 figures include the full year results and cash flows of Cable Onda, as well as 4 months of Telefonica Panama which was consolidated from September 1, 2019. (iii) In 2019, Cable Onda acquired Telefonica Panama for $594 million (note A.1.2.), financed by issuing a $600 million Senior Notes due 2030 (note C.3.1.) 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, 2019 , the equity accounted net assets of our joint ventures in Guatemala, Honduras and Ghana totaled $3,346 million ( December 31, 2018 : $3,405 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, $142 million ( December 31, 2018 : $133 million ) represent statutory reserves that are unavailable to be distributed to the Group. During the year ended December 31, 2019 , Millicom’s joint ventures paid $237 million ( December 31, 2018 : $243 million ) as dividends or dividend advances to the Company. Our main joint ventures are as follows: Entity Country Activity December 31, 2019 % holding December 31, 2018 % holding Comunicaciones Celulares S.A(i). Guatemala Mobile, MFS 55 55 Navega.com S.A.(i) Guatemala Cable, DTH 55 55 Telefonica Celular S.A(i). Honduras Mobile, MFS 66.7 66.7 Navega S.A. de CV(i) Honduras Cable 66.7 66.7 Bharti Airtel Ghana Holdings B.V. Ghana Mobile, MFS 50 50 (i) Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities must be taken by a supermajority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity method. The carrying values of Millicom’s investments in joint ventures were as follows: Carrying value of investments in joint ventures at December 31 % 2019 2018 (US$ millions) Honduras operations(i) 66.7 708 730 Guatemala operations(i) 55 2,089 2,104 AirtelTigo Ghana operations 50 — 32 Total 2,797 2,867 (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, 2018 2,145 726 96 Adjustments on adoption of IFRS 15 and IFRS 9 (net of tax) 18 5 0 Change in scope — — 0 Results for the year 131 23 (68 ) Capital increase — 3 — Dividends declared during the year (177 ) — — Currency exchange differences (14 ) (26 ) 3 Closing balance at December 31, 2018 2,104 730 32 Accounting policy changes — — — Capital increase — — 5 Results for the year 152 27 (40 ) Utilization of past recognized losses — — (5 ) Dividends declared during the year (170 ) (37 ) — Currency exchange differences 2 (12 ) 8 Closing balance at December 31, 2019 2,089 708 — (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, 2019 and 2018 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 IFRS 9 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, 2019 , 2018 and 2017 of the Guatemala and Honduras operations is as follows. This information is based on amounts before inter-company eliminations. Guatemala 2019 2018 2017 (US$ millions) Revenue 1,434 1,373 1,328 Depreciation and amortization (313 ) (283 ) (295 ) Operating profit(i) 429 387 352 Financial income (expenses), net (66 ) (56 ) (60 ) Profit before taxes 356 309 305 Charge for taxes, net (79 ) (69 ) (74 ) Profit for the year 277 240 230 Net profit for the year attributable to Millicom 152 131 126 Dividends and advances paid to Millicom 209 211 162 Total non-current assets (excluding goodwill) 2,517 2,280 2,406 Total non-current liabilities 1,216 981 1,052 Total current assets 7 |
Performance
Performance | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 2017 (US$ millions) Mobile 2,150 2,126 2,147 Cable and other fixed services 1,928 1,565 1,551 Other 52 43 38 Service revenue 4,130 3,734 3,737 Telephone and equipment and other 206 212 199 Total revenue 4,336 3,946 3,936 Revenue from continuing operations by country or operation (i) 2019 2018 2017 (US$ millions) Colombia 1,532 1,661 1,739 Paraguay 609 679 662 Bolivia 639 614 555 El Salvador 386 405 422 Tanzania 382 399 384 Nicaragua 157 13 13 Costa Rica 153 155 153 Panama 475 17 — Other operations 2 5 7 Total 4,336 3,946 3,936 (i) The revenue figures above are shown after intercompany eliminations. 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. The Group applies the following practical expedients foreseen in IFRS 15: • 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. 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. Significant judgments The determination of the standalone selling price for contracts that involve more than one performance obligation may require significant judgment, such as when the selling price of a good or service is not readily observable. The Group determines the standalone selling price of each performance obligation in the contract in accordance to the prices that the Group would apply when selling the same services and/or telephone and equipment included in the obligation to a similar customer on a standalone basis. When standalone selling price of services and/or telephone and equipment are not directly observable, the Group maximizes the use of external input and uses the expected cost plus margin approach to estimate the standalone selling price. Expenses The cost of sales and operating expenses incurred by the Group can be summarized as follows: Cost of sales 2019 2018 2017 (US$ millions) Direct costs of services sold (878 ) (799 ) (881 ) Cost of telephone, equipment and other accessories (230 ) (229 ) (217 ) Bad debt and obsolescence costs (93 ) (90 ) (71 ) Cost of sales (1,201 ) (1,117 ) (1,169 ) Operating expenses, net 2019 2018 2017 (US$ millions) Marketing expenses (402 ) (391 ) (448 ) Site and network maintenance costs (245 ) (192 ) (178 ) Employee related costs (B.4.) (496 ) (500 ) (434 ) External and other services (204 ) (181 ) (163 ) Rentals and (operating) leases (i) (1 ) (152 ) (151 ) Other operating expenses (257 ) (201 ) (156 ) Operating expenses, net (1,604 ) (1,616 ) (1,531 ) (i) Decrease is due to IFRS 16 application - see further explanations above in "New and amended IFRS accounting standards" section The other operating income and expenses incurred by the Group can be summarized as follows: Other operating income (expenses), net Notes 2019 2018 2017 (US$ millions) Income from tower deal transactions C.3.4. 5 61 63 Impairment of intangible assets and property, plant and equipment E.1., E.2. (8 ) (6 ) (12 ) Gain (loss) on disposals of intangible assets and property, plant and equipment — 7 1 Loss on disposal of equity investments C.7.3. (32 ) — — Other income (expenses) 1 13 17 Other operating income (expenses), net (34 ) 75 69 Accounting for cost of sales and operating expenses Cost of sales Cost of sales is recorded on an accrual basis. Incremental costs of obtaining a contract Incremental costs of obtaining a contract, including dealer commissions, are capitalized as Contract Costs in the statement of financial position and amortized in operating expenses over the expected benefit period, which is based on the average duration of contracts with customer (see practical expedient in note B.1.1. ). Operating leases - until 2018 year-end Operating leases were all leases that did not qualify as finance leases. Operating lease payments were 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. Revenue, operating profit (loss), EBITDA and other segment information for the years ended December 31, 2019 , 2018 and 2017 , were as follows: Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2019 Mobile revenue 3,258 372 — (1,480 ) — 2,150 Cable and other fixed services revenue 2,197 9 — (277 ) — 1,928 Other revenue 60 1 — (8 ) — 52 Service revenue (i) 5,514 382 — (1,766 ) — 4,130 Telephone and equipment and other revenue (i) 449 — — (243 ) — 206 Revenue 5,964 382 — (2,009 ) — 4,336 Operating profit (loss) 1,006 24 (94 ) (540 ) 179 575 Add back: Depreciation and amortization 1,435 99 9 (444 ) — 1,100 Share of profit in joint ventures in Guatemala and Honduras — — — — (179 ) (179 ) Other operating income (expenses), net 2 (2 ) 42 (8 ) — 34 EBITDA (ii) 2,443 122 (43 ) (992 ) — 1,530 EBITDA from discontinued operations — (3 ) — — — (3 ) EBITDA incl discontinued operations 2,443 119 (43 ) (992 ) — 1,527 Capital expenditure (iii) (1,040 ) (58 ) (9 ) 261 — (846 ) Changes in working capital and others (iv) (86 ) 14 (52 ) (18 ) — (143 ) Taxes paid (225 ) (10 ) (8 ) 129 — (114 ) Operating free cash flow (v) 1,093 64 (112 ) (619 ) — 425 Total Assets (vi) 13,821 936 3,715 (5,465 ) (151 ) 12,856 Total Liabilities 8,374 909 3,977 (2,119 ) (965 ) 10,176 Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2018 (viii) Mobile revenue 3,214 388 — (1,475 ) — 2,126 Cable and other fixed services revenue 1,808 10 — (253 ) — 1,565 Other revenue 48 1 — (6 ) — 43 Service revenue (i) 5,069 398 — (1,734 ) — 3,734 Telephone and equipment revenue (i) 415 — — (203 ) — 212 Revenue 5,485 399 — (1,937 ) — 3,946 Operating profit (loss) 995 25 (47 ) (488 ) 154 640 Add back: Depreciation and amortization 1,133 80 5 (416 ) — 803 Share of profit in joint ventures in Guatemala and Honduras — — — — (154 ) (154 ) Other operating income (expenses), net (51 ) (3 ) (2 ) (19 ) — (75 ) EBITDA (ii) 2,077 102 (44 ) (922 ) — 1,213 EBITDA from discontinued operations — 44 — — — 44 EBITDA incl discontinued operations 2,077 146 (44 ) (922 ) — 1,257 Capital expenditure (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) 11,751 839 2,752 (5,219 ) 190 10,313 Total Liabilities 6,127 905 2,953 (1,814 ) (650 ) 7,521 Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2017 (viii) Mobile revenue 3,283 374 — (1,510 ) — 2,147 Cable and other fixed services revenue 1,755 9 — (213 ) — 1,551 Other revenue 40 2 — (4 ) — 38 Service revenue (i) 5,078 385 — (1,727 ) — 3,737 Telephone and equipment revenue (i) 363 1 — (165 ) — 199 Total Revenue 5,441 386 — (1,892 ) — 3,936 Operating profit (loss) 899 28 (5 ) (431 ) 140 632 Add back: Depreciation and amortization 1,174 81 6 (450 ) — 812 Share of profit in joint ventures in Guatemala and Honduras — — — — (140 ) (140 ) Other operating income (expenses), net (49 ) (11 ) 10 (18 ) — (69 ) EBITDA (ii) 2,024 97 12 (898 ) — 1,236 EBITDA from discontinued operations — 115 — — — 115 EBITDA incl discontinued operations 2,024 212 12 (898 ) — 1,351 Capital expenditure (iii) (855 ) (99 ) (1 ) 237 — (718 ) Changes in working capital and others (iv) (53 ) (6 ) (10 ) 27 — (43 ) Taxes paid (239 ) (18 ) 1 124 — (132 ) Operating free cash flow (v) 877 89 2 (511 ) 1 459 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 (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 recurring revenues. The Group derives revenue from the transfer of goods and services over time and at a point in time. Refer to the table below. (ii) EBITDA is operating profit excluding impairment losses, depreciation and amortization and gains/losses on the disposal of fixed assets. EBITDA is used by the management to monitor the segmental performance and for capital management. For the year ended December 31, 2019 , the application of IFRS 16 had a positive impact on EBITDA as compared to what our results would have been if we had continued to follow the IAS 17 standard . (iii) Cash spent for capex excluding spectrum and licenses of $59 million ( 2018 : $61 million ; 2017 : $53 million ) and cash received on tower deals of $22 million ( 2018 : $141 million ; 2017 : $161 million ). (iv) Changes in working capital and others include changes in working capital as stated in the cash flow statement, as well as share-based payments expense and non-cash bonuses. (v) Operating Free Cash Flow is EBITDA less cash capex (excluding spectrum and license costs) less change in working capital, other non-cash items (share-based payment expense and non-cash bonuses) and taxes paid. (vi) Segment assets include goodwill and other intangible assets. (vii) Including eliminations for Guatemala and Honduras as reported in the Latam segment. (viii) Restated as a result of classification of certain of our African operations as discontinued operations (see notes A.4. and E.4. ). Revenue from contracts with customers from continuing operations: Twelve months ended December 31, 2019 Twelve months ended December 31, 2018 $ millions Timing of revenue recognition Latin America Africa Total Group Latin America Africa Total Group Mobile Over time 1,747 261 2,007 1,701 280 1,981 Mobile Financial Services Point in time 31 112 143 37 108 145 Cable and other fixed services Over time 1,919 9 1,928 1,556 10 1,565 Other Over time 51 1 52 42 1 43 Service Revenue 3,748 382 4,130 3,336 398 3,734 Telephone and equipment Point in time 206 — 206 212 — 212 Revenue from contracts with customers 3,954 382 4,336 3,548 399 3,946 People Number of permanent employees 2019 2018 2017 Continuing operations(i) 17,687 16,725 14,134 Joint ventures (Guatemala, Honduras and Ghana) 4,688 4,416 4,326 Discontinued operations — 262 667 Total 22,375 21,403 19,127 (i) Emtelco headcount are excluded from this disclosure and any internal reporting because their costs are classified as direct costs and not employee related costs. Notes 2019 2018 2017 (US$ millions) Wages and salaries (358 ) (346 ) (308 ) Social security (68 ) (60 ) (56 ) Share based compensation B.4.1. (27 ) (21 ) (22 ) Pension and other long-term benefit costs B.4.2. (4 ) (7 ) (8 ) Other employees related costs (39 ) (67 ) (41 ) Total (496 ) (500 ) (434 ) Share-based compensation Millicom shares granted to management and key employees includes share-based compensation in the form of long-term share incentive plans. 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 2019 2018 2017 (US$ millions) 2016 incentive plans — (4 ) (6 ) 2017 incentive plans (7 ) (8 ) (12 ) 2018 incentive plans (8 ) (11 ) — 2019 incentive plans (14 ) — — Total share based compensation (27 ) (21 ) (22 ) Deferred share plan (unchanged since 2014, except for vesting schedule) Until 2018 deferred awards plan, participants were 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 . Beginning with the 2019 plan, while all other guidelines remain the same, shares vest with 30% on January 1 of each of year one and two, and the remaining 40% 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. Performance share plan (issued in 2015) Under this plan, shares granted did vest in full in 2019 , 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. 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). As the TSRs measures are market conditions, 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 this condition is the same share price as the share price for the deferred share plan above. Performance share plan (for plans issued from 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 year one to year three of the plan (“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 year one to year three of the plan. For the performance share plans, 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(s) Risk-free Dividend yield % Share price volatility(i) % Award term (years) Share fair value (in US$) Performance share plan 2019 (Relative TSR) (0.24 ) 3.01 26.58 2.93 49.79 Performance share plan 2018 (Relative TSR) (0.39 ) 3.21 30.27 2.93 57.70 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 2019 plans 2018 plans 2017 plans 2016 plans Performance plan Deferred plan Performance plan Deferred plan Performance plan Deferred plan Performance plan Deferred plan (number of shares) Initial shares granted 257,601 320,840 237,196 262,317 279,807 438,505 200,617 287,316 Additional shares granted(i) — 20,131 — 3,290 2,868 29,406 — — Revision for forfeitures (17,182 ) (9,198 ) (27,494 ) (26,860 ) (40,946 ) (88,437 ) (49,164 ) (78,253 ) Revision for cancellations — — (4,728 ) — — — — — Total before issuances 240,419 331,773 204,974 238,747 241,729 379,474 151,453 209,063 Shares issued in 2017 — — — — — (2,686 ) (1,214 ) (1,733 ) Shares issued in 2018 — — (97 ) (18,747 ) (2,724 ) (99,399 ) (752 ) (43,579 ) Shares issued in 2019 (150 ) (24,294 ) (3,109 ) (54,971 ) (19,143 ) (82,486 ) (149,487 ) (163,751 ) Shares still expected to vest 240,269 307,479 201,768 165,029 219,862 194,903 — — Estimated cost over the vesting period (US$ millions) 11 18 12 14 10 20 8 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, 2019 , the defined benefit obligation liability amounted to $59 million ( 2018 : $60 million ) and payments expected in the plans in future years totals $106 million ( 2018 : $111 million ). The average duration of the defined benefit obligation at December 31, 2019 is 6 years ( 2018 : 7 years). The termination plans apply to employees that joined UNE prior to December 30, 1996. The level of payments depends on the number of years in which the employee has worked before retirement or termination of their contract with UNE. Except for the UNE pension plan described above, there are no other significant defined benefits plans in the Group. Directors and executive management The remuneration of the members of the Board of Directors comprises an annual fee and shares. Director remuneration is proposed by the Nomination Committee and approved by the shareholders at their Annual General Meeting (AGM). Remuneration charge for the Board (gross of withholding tax) 2019 2018 2017 (US$ ’000) Chairperson 366 169 233 Other members of the Board 1,557 774 889 Total (i) 1,923 943 1,122 (i) Cash compensation converted from SEK to USD at exchange rates on payment dates for 2017 and 2018, in 2019 cash compensation was denominated in USD. Share based compensation based on the market value of Millicom shares on the corresponding AGM date ( 2019 : in total 19,483 shares; 2018 : in total 6,591 shares; 2017 : in total 8,731 shares). Net remuneration comprised 73% in shares and 27% in cash (SEK) ( 2018 : 51% in shares and 49% in cash; 2017 : 52% in shares and 48% in cash). Shares beneficially owned by the Directors 2019 2018 (number of shares) Chairperson 5,814 8,554 Other members of the Board 32,279 15,333 Total (i) 38,093 23,887 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 (8 members)(iii) (US$ ’000) 2019 Base salary 1,167 654 3,498 Bonus 1,428 626 2,098 Pension 279 98 798 Other benefits 50 260 1,521 Termination benefits — — 863 Total before share based compensation 2,924 1,639 8,779 Share based compensation(i)(ii) in respect of 2019 LTIP 5,625 1,576 5,965 Total 8,549 3,215 14,743 Remuneration charge for the Executive Team CEO CFO Executive Team (9 members) (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 (US$ ’000) 2017 Base salary 1,000 648 3,822 Bonus 707 455 1,590 Pension 150 97 628.5 Other benefits 64 15 1,192.5 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 (i) See note B.4.1. (ii) Share awards of 102,122 and 135,480 were granted in 2019 under the 2019 LTIPs to the CEO, and Executive Team ( 2018 : 80,264 and 112,472 , respectively; 2017 : 61,724 and 167,371 , 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) 2019 Share ownership (vested from equity plans and otherwise acquired) 190,577 136,306 326,883 Share awards not vested 236,211 334,193 570,404 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 Other non-operating (expenses) income, net Non-operating items mainly comprise changes in fair value of derivatives and the impa |
Capital structure and financing
Capital structure and financing | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 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) 480 482 Total (US$ millions) 633 635 Other equity reserves Legal reserve Equity settled transaction reserve Hedge reserve Currency translation reserve Pension obligation reserve Total (US$ millions) As of January 1, 2017 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 46 — (531 ) (3 ) (472 ) Share based compensation — 22 — — — 22 Issuance of shares –2015, 2016, 2017 LTIPs — (22 ) — — — (22 ) Cash flow hedge reserve movement — — (1 ) — — 1 Currency translation reserved recycled to statement of income — — — — — — Currency translation movement — — — (68 ) — (67 ) As of December 31, 2018 16 47 (1 ) (599 ) (3 ) (538 ) Share based compensation — 29 — — — 29 Issuance of shares –2016, 2017, 2018, 2019 LTIPs — (25 ) — — — (25 ) Cash flow hedge reserve movement — — (16 ) — — (16 ) Currency translation movement — — — (2 ) — (2 ) Effect of restructuring in Tanzania — — — 9 — 9 As of December 31, 2019 16 52 (18 ) (593 ) (2 ) (544 ) 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 2018 or 2019 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. When the Group disposes of or loses control or significant influence over a foreign operation, exchange differences that were recorded in equity are recognized in the consolidated statement of income as part of gain or loss on sale or loss of control and/or significant influence. Dividend distributions On May 2, 2019, a dividend distribution of $2.64 per share from Millicom’s retained profits at December 31, 2018, was approved by the shareholders at the AGM and paid in equal portions in May and November 2019. On May 4, 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. 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, 2019 , $306 million ( December 31, 2018 : $324 million ; December 31, 2017 : $345 million ) of Millicom’s retained profits represent statutory reserves that are unavailable to be distributed to owners of the Company. Debt and financing Debt and financing by type (i) Note 2019 2018 (US$ millions) Debt and financing due after more than one year Bonds C.3.1. 4,067 2,501 Banks C.3.2. 1,805 1,324 Finance leases (ii) C.3.4. — 353 Other financing (iii) 43 113 Total non-current financing 5,915 4,291 Less: portion payable within one year (129 ) (168 ) Total non-current financing due after more than one year 5,786 4,123 Debt and financing due within one year Bonds C.3.1. 46 — Banks C.3.2. 11 289 Total current debt and financing 57 289 Add: portion of non-current debt payable within one year 129 168 Total 186 458 Total debt and financing 5,972 4,580 (i) See note D.1.1 for further details on maturity profile of the Group debt and financing. (ii) Finance lease liabilities were included in Debt and Financing until 31 December 2018, but were reclassified to lease liabilities on January 1, 2019 when adopting the new leasing standard. See above in the "New and amended IFRS accounting standards" and below in notes C.4. and E.4. for further information about the change in accounting policy for leases. (iii) In July 2018, the Company issued a COP 144,054.5 million / $50 million bilateral facility with IIC (Inter-American Development Bank) for a USD indexed to COP Note. The note bears interest at 9.450% p.a.. This COP Note is used as net investment hedge of the net assets of our operations in Colombia. Debt and financing by location 2019 2018 (US$ millions) Millicom International Cellular S.A. (Luxembourg) 2,773 1,770 Colombia 827 1,016 Paraguay 502 504 Bolivia 350 317 Panama 918 261 Tanzania 186 201 Chad — 64 Costa Rica 148 148 El Salvador 268 299 Total debt and financing 5,972 4,580 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 Maturity Interest Rate % 2019 2018 (US$ millions) SEK Variable Rate Notes 1 Luxembourg 2024 STIBOR (i) + 2.350% 211 — USD 6.625% Senior Notes 2 Luxembourg 2026 6.625 % 495 495 USD 6.000% Senior Notes 3 Luxembourg 2025 6.000 % 492 491 USD 6.250% Senior Notes 4 Luxembourg 2029 6.250 % 742 — USD 5.125% Senior Notes 5 Luxembourg 2028 5.125 % 492 493 USD 6.750% Senior Notes 6 Paraguay 2022 6.750 % — 297 USD 5.875% Senior Notes 6 Paraguay 2027 5.875 % 296 — PYG 9.250% Notes 6 Paraguay 2026 9.250 % 2 — PYG 8.750% Notes (tranche A) 6 Paraguay 2024 8.750 % 18 — PYG 9.250% Notes (tranche B) 6 Paraguay 2026 9.250 % 8 — PYG 10.000% Notes (tranche C) 6 Paraguay 2029 10.000 % 10 — PYG 10.000% Notes 6 Paraguay 2029 10.000 % 4 — BOB 4.750% Notes 7 Bolivia 2020 4.750 % 30 59 BOB 4.050% Notes 7 Bolivia 2020 4.050 % 4 7 BOB 4.850% Notes 7 Bolivia 2023 4.850 % 57 71 BOB 3.950% Notes 7 Bolivia 2024 3.950 % 36 43 BOB 4.300% Notes 7 Bolivia 2029 4.300 % 21 23 BOB 4.300% Notes 7 Bolivia 2022 4.300 % 26 30 BOB 4.700% Notes 7 Bolivia 2024 4.700 % 32 35 BOB 5.300% Notes 7 Bolivia 2026 5.300 % 13 13 BOB 5.000% Notes 7 Bolivia 2026 5.000 % 61 0 BOB 4.600% Notes 7 Bolivia 2024 4.600 % 40 0 UNE Bond 1 (tranches A and B) 8 Colombia 2020 CPI + 5.10% 46 46 UNE Bond 2 (tranches A and B) 8 Colombia 2023 CPI + 4.76% 46 46 UNE Bond 3 (tranche A) 8 Colombia 2024 9.350 % 49 49 UNE Bond 3 (tranche B) 8 Colombia 2026 CPI+4.15% 78 78 UNE Bond 3 (tranche C) 8 Colombia 2036 CPI+4.89% 38 39 USD 4.500% Senior Notes 9 Panama 2030 4.500 % 584 — Cable Onda Bonds 5.750% 9 Panama 2025 5.750 % 184 184 Total bond financing 4,113 2,501 (i) STIBOR – Swedish Interbank Offered Rate. (1) SEK Notes On May 15, 2019, MIC S.A. completed its offering of a SEK 2 billion floating rate senior unsecured sustainability bond due 2024. The bond carries a floating coupon of 3-month Stibor+235bps which we swapped with various banks to hedge its interest rate exposure, pursuant to which it will effectively pay fixed-rate coupons in US dollars between 4.990% and 4.880% (see D.1.2. ). The bond has been listed and commenced trading on the Nasdaq Stockholm sustainable bond list on June 12, 2019. Millicom is using the net proceeds of the bond in accordance with the Sustainability Bond Framework which includes both environmental and social investments such as in energy efficiencies, and the expansion of its fixed and mobile networks. Cost of issuance of $2.4 million is amortized over the five year life of the bond (the effective interest rate is 0.200% ) (2) USD 6.625% Senior Notes On October 16, 2018, the MIC S.A. 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 is amortized over the eight -year life of the notes (the effective interest rate is 6.750% ). (3) USD 6.000% Senior Notes On March 17, 2015, MIC S.A. issued a $500 million 6.000% fixed interest rate notes repayable in ten years, to repay the El Salvador 8.000% senior notes and for general corporate purposes. The notes have an effective interest rate of 6.132% . A total amount of $8.6 million of withheld and upfront costs are being amortized over the ten -year life of the bond. On April 8, 2019, the Group obtained consents from the holders of its $500 million 6.000% notes to amend certain provisions of the indenture governing the notes. MIC S.A. paid a cash payment of $1 million (equal to $2.50 per $1,000 principal amount of Notes to holders of the Notes). (4) USD 6.250% Senior Notes On March 25, 2019, MIC S.A. issued $750 million of 6.250% notes due 2029. The notes bear interest at 6.250% p.a., payable semi-annually in arrears on March 25 and September 25 of each year, starting on September 25, 2019. The net proceeds were used to finance, in part, the completed Telefonica CAM Acquisitions (see note A.1.2. ). Costs of issuance of $8.2 million are amortized over the ten -year life of the notes (the effective interest rate is 6.360% ). (5) USD 5.125% Senior Notes On September 20, 2017, MIC S.A. issued a $500 million , ten -year bond due January 2028, with an interest rate of 5.125% . Costs of issuance of $7 million are amortized over the ten year life of the notes (effective interest rate is 5.240% ). (6) PYG Notes In April 2019, Telefónica Celular del Paragua S.A.E. issued $300 million 5.875% senior notes due 2027. The notes bear interest at 5.875% p.a., payable semi-annually in arrears on April 15 and October 15 of each year, starting on October 15, 2019. The net proceeds were used to finance the purchase of the Telecel 6.750% 2022 notes. Costs of issuance of $4 million are amortized over the eight -year life of the notes (the effective interest rate is 6.000% ). In June, 2019, Telefónica Celular del Paraguay S.A.E. issued notes in three series under its PYG 300 billion program as follows: Series A for PYG 115 billion (approximately $18 million ), with a fixed annual interest rate of 8.750% , maturing in June 2024, series B for PYG 50 billion (approximately $8 million ) with a fixed annual interest rate of 9.250% , maturing in May 2026 and series C for PYG 65 billion (approximately $10 million ) with a fixed annual interest rate of 10.000% , maturing in May 2029. On December 27, 2019, under the same program, they issued PYG. 35 billion (Approximately $5.4 million ) in two tranches: (i) PYG 10 billion (approximately $1.5 million ) which bears a fixed annual interest rate of 9.250% and matures on December 30, 2026; and (ii) PYG 25 billion (approximately $3.9 million ) which bears a fixed annual interest rate of 10.000% and matures on December 24, 2029. (7) BOB Notes In May 2012, Telefónica Celular de Bolivia S.A. issued 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 4.750% per annum coupon with interest payable semi-annually in arrears in May and November each year. The effective interest rate is 4.790% . These bonds are listed on the Bolivia Stock Exchange. In November 2015, they issued BOB 696 million (approximately $100 million ) of notes in two series, series A for BOB 104.4 million (approximately $15 million ), with a fixed annual interest rate of 4.050% , maturing in August 2020 and series B for BOB 591.6 million (approximately $85 million ) with a fixed annual interest rate of 4.850% , 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 4.840% . These bonds are listed on the Bolivia Stock Exchange. On August 11, 2016, Telefónica Celular de Bolivia S.A.. 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 3.950% and 4.300% , and will mature in June 2024 and June 2029, respectively. These bonds are listed on the Bolivia Stock Exchange. On October 12, 2017, they placed approximately $80 million of local currency bonds in three tranches, which will mature in 2022, 2024 and 2026 with a 4.300% , 4.700% and 5.300% respectively. These bonds are listed on the Bolivia Stock Exchange. On July 3, 2019 they issued two bonds one for BOB 420 million (approximately $61 million ) with a 5.000% coupon maturing on August 2026 and another one for BOB 280 million (approximately $40 million ) with a 4.600% coupon maturing on August 2024. Interest payments is semiannual and both bonds are listed on the Bolivia Stock Exchange. (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 had variable interest, based on CPI, in Colombian peso and paid in Colombian peso. Tranche B bears variable interest, based on CPI, 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 9.350% , while tranche B and C bear variable interest, based on CPI, (respective margins of CPI + 4.150% and CPI + 4.890% ), 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 local bonds in Panama for a total amount of $185 million . These bonds are listed on the Panama Stock Exchange and bear a fixed annual interest of 5.750% and are due on August 4, 2025. The bonds were assumed by Millicom as part of the acquisition of Cable Onda. See note A.1.2. for further details on the acquisition. On November 1, 2019, Cable Onda issued $600 million aggregate principal amount of 4.500% senior notes due 2030 payable in U.S. dollars, registered with the Superintendencia del Mercado de Valores de Panamá and listed on the Luxembourg Stock Exchange and on the Panamá Stock Exchange. The Notes bear interest from November 1, 2019 at a rate of 4.500% per annum, payable on January 30, 2020 for the first payment and thereafter semiannually in arrears on each interest payment date. The proceeds were used to fund the Panama Acquisition and to refinance certain local financing. Costs of issuance of $16 million , which include an original issue discount (OID) is amortized over the ten -year life of the notes (the effective interest rate is 4.690% ). Bank and Development Financial Institution financing Note Country Maturity range Interest rate 2019 2018 (US$ millions) Fixed rate loans PYG Long-term loans 1 Paraguay 2020-2026 Fixed 166 180 USD - Long-term loans 2 Panama 2024 Fixed 150 24 BOB Long-term loans 3 Bolivia 2023-2025 Fixed 31 20 Variable rate loans USD Long-term loans 4 Costa Rica 2023 Variable 148 148 USD Long-term loans Chad 2019 Variable — 1 USD Long-term loans 5 Tanzania 2020-2025 Variable 171 90 TZS Long-term loans 5 Tanzania 2025 Variable 14 — USD Short-term loans 8 Luxembourg 2019 Variable — 250 USD Long-term loans 8 Luxembourg 2024 Libor + 3.00% 298 — COP Long-term loans 6 Colombia 2025-2030 Variable 274 277 USD Long-term loans 6 Colombia 2024 Variable 295 298 USD Credit Facility / Senior Unsecured Term Loan Facility 7 El Salvador 2021-2023 Variable 268 274 Other Long-term loans Various Various — 51 Total Bank and Development Financial Institution financing 1,817 1,613 1. Paraguay In October 2015, Telefónica Celular del Paraguay S.A.E. entered into a five -year loan facility with Banco Itau for PGY 257,700 million (approximately $40 million ) which bears a fixed annual interest rate. The final maturity of the loan is on September 10, 2020. On July 4, 2017, Telefónica Celular del Paraguay S.A.E executed a five -year loan agreement with the IPS (Instituto de Prevision Social) and the Inter-American Development Bank, who acts as a guarantor, for a total amount of PYG $367,000 million (approximately $66 million ). The loan, denominated in PYG with the final maturity in 2022. The guarantee under this facility is counter-guaranteed by MICSA. In July 2018, Telefónica Celular del Paraguay S.A.E. executed a seven -year loan with Regional Bank for PYG 115,000 million (approximately $18 million with a final maturity in 2025. On January 2, 2019, Telefónica Celular del Paraguay S.A.E. obtained a seven -year loan from BBVA Bank for PYG 177,000 million which is due on November, 26, 2025. On September 25, 2019, Telefónica Celular del Paraguay S.A.E. executed an amended and restated agreement with Banco Continental S.A.E.C.A., to consolidate three existing loans, for a PYG 370,000 million (approximately $57 million ). The new loan has a maturity of 7 years. 2. Panama On August 27, 2019, Cable Onda S.A entered into two credit agreements, one with Banco Nacional de Panama S.A , for $75 million which bears a fixed interest and has a 5 year duration and another one with the Bank of Nova Scotia (Sucursal Panama) for $75 million with a fixed interest and a five year duration to finance and refinance working capital and capital expenditures. 3. Bolivia In June 2018, Telefónica Celular de Bolivia S.A.. entered into a two tranche loan agreement with Banco BISA S.A for BOB 69.6 million (approximately $10 million ) each, with a fixed interest rate. The loans have a term of 7 years. In November 19, they executed a new loan with Banco de Crédito de Bolivia S.A for Bs. 78,000,000 (approximately $11 million ), with semiannual payments and a fixed interest rate. The loan has a term of 4 years. 4. Costa Rica In April 2018, Millicom Cable Costa Rica S.A. entered into a $150 million variable rate syndicated loan with Citibank as agent. 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 . 5. Tanzania On June 4, 2019, MIC Tanzania Public Limited Company entered into a syndicated loan facility agreement with the Standard Bank of South Africa acting as an agent and a consortium of banks acting as the original lenders, for $174.75 million (tranche A) and TZS 103,000 million (tranche B - approximately $45 million ) which bears variable interests: for Tranche A Libor plus a margin and for Trance B T-Bill rate plus a margin. The facility agreement has an all asset debenture securing the whole amount, as well as a pledge over the shares of the immediate holding company of the borrower. The Facility was amended and restated on December 12, 2019 and has a maturity of 66 months. It is a stand-alone facility with an all asset debenture and a pledge on the shares of the immediate holding company of the borrower. .Margin and balance between USD and TSZ tranches may vary depending on the syndication demands. 6. Colombia In December 20, 2019, our operation in Colombia executed an amendment to the $300 million loan between Colombia Móvil S.A. E.S.P. as borrower and UNE EPM Telecomunicaciones S.A., as guarantor with a consortium of banks to extend the maturity for 5 years (now due on December 20, 2024) and lower the applicable margin. 7. EL Salvador On April 15, 2016, Telemovil El Salvador, S.A. de C.V. executed a senior unsecured term loan facility up to $50 million maturing in April 2021 and bearing variable interest per annum, which was restated and amended as of May 30, 2017, for a second tranche of $50 million . This facility is guaranteed by MICSA.. Later on, in January 2018, Telemovil El Salvador entered into a second amended and restated agreement with Scotiabank for a third tranche of $50 million with variable rate and with a 5 -year bullet repayment, also guaranteed by MICSA. In addition, they executed an interest rate swap with Scotiabank to fix interest rates for up to $100 million of the outstanding debt. On June 3, 2016, Telemovil El Salvador, S.A. de C.V. executed a $30 million credit facility with Citibank N.A., for general corporate purposes maturing in June 2021 and bearing variable interest rate per annum. The facility is guaranteed by MICSA.. In March 2018, Telemovil El Salvador executed a $100 million credit facility with DNB at a variable rate facility with DNB and Nordea with a 5 -year bullet repayment.The facility is guaranteed by MICSA.. 8. Luxembourg On April 24, 2019, MICSA. entered into a $300 million term facility agreement arranged by DNB Bank ASA, Sweden Branch and Nordea Bank Abp, Filial i Sverige. This facility has a variable interest rate and is fully drawn as at December 31, 2019 and is due on April 2024. 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, 2019 2018 2017 (US$ millions) Interest expense on bonds and bank financing (348 ) (234 ) (246 ) Interest expense on (finance) leases (157 ) (91 ) (65 ) Early redemption charges (10 ) (4 ) (43 ) Others (47 ) (37 ) (35 ) Total interest and other financial expenses (564 ) (367 ) (389 ) Finance leases - until December 31, 2018 As at December 31, 2018, Millicom’s finance leases mainly consisted of long-term lease of tower space from tower companies or competitors on which Millicom locates its network equipment. Finance lease liabilities were included in Debt and Financing until December 31, 2018, but were reclassified to lease liabilities on January 1, 2019 in the process of adopting the new lease standard: IFRS 16. See above in the "New and amended IFRS accounting standards" and notes C.4. and E.4. for further information. Finance lease liabilities Under IAS 17, leases which transferred substantially all risks and benefits incidental to ownership of the leased item to the lessee were capitalized at the inception of the lease. The amount capitalized was the lower of the fair value of the asset or the present value of the minimum lease payments. Lease payments were 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 were recorded as interest expenses in the statement of income. The sale and leaseback of towers and related site operating leases and service contracts were 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 were concluded, the portions of assets that will not be leased back by Millicom were classified as assets held for sale as completion of their sale was highly probable. Asset retirement obligations related to the towers were classified as liabilities directly associated with assets held for sale. On transfer to the tower companies, the portion of the towers leased back were accounted for as operating leases or finance leases according to the criteria set out above. The portion of towers being leased back represented the dedicated part of each tower on which Millicom’s equipment was located and was derived from the average technical capacity of the towers. Rights to use the land on which the towers were located were accounted for as operating leases, and costs of services for the towers were recorded as operating expenses. The gain on disposal was recognized upfront for the portion of towers that is not leased back, and was deferred and recognized over the term of the lease for the portion leased back. Finance lease liabilities at December 31, 2018 Country Maturity 2018 (US$ millions) Lease of tower space Tanzania 2029/2030 112 Lease of tower space Colombia Movil 2032 83 Lease of poles Colombia (UNE) 2032 99 Lease of tower space Paraguay 2030 27 Lease of tower space El Salvador 2026 26 Other finance lease liabilities various various 6 Total finance lease liabilities 353 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. Total gain on sale recognized in 2019 was $5 million ( 2018 : $61 million , 2017 : $63 million ) and c ash received from these sales were $22 million , $141 million and $161 million , respectively. Guarantees and pledged assets Guarantees Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the best estimate of the expenditure required to settle the present obligation at the reporting date and the amount recognized, less cumulative amortization. Liabilities to which guarantees are related are recorded in the consolidated statement of financial position under Debt and financing, and liabilities covered by supplier guarantees are recorded under Trade payables or Debt and financing, depending on the underlying terms and conditions. Maturity of guarantees At December 31, 2019 At December 31, 2018 Terms Outstanding exposure(i) Maximum exposure(ii) Outstanding exposure(i) Maximum exposure(ii) (US$ millions) 0-1 year 29 29 133 133 1-3 years 134 134 281 281 3-5 years 300 300 212 212 Total 464 464 626 626 (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 As at December 31, 2019 , 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 was $464 million ( December 31, 2018 : $626 million ). Assets pledged by the Group over these debts and financings amounted to $1 million at December 31, 2019 ( December 31, 2018 : $2 million ). The remainder represented primarily guarantees issued by Millicom S.A. to guarantee financings raised by other Group operating entities. In addition to the above, on June 4, 2019, MIC Tanzania Public Limited Company entered into a loan facility agreement which was further amended and restated in December 12, 2019, with the Standard Bank of South Africa acting as an agent and a consortium of banks acting as the original lenders. The facility agreement, maturing in 2025, has an all asset debenture securing the whole amount, as well as a pledge over the shares of the immediate holding company of the borrower. Covenants Millicom’s financing |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2019 | |
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 combination of up to 75/25% 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.7. On December 31, 2019 and 2018 fair value of derivatives held by the Group can be summarized as follows: 2019 2018 (US$ millions) Derivatives Cash flow hedge derivatives (17 ) — Net derivative asset (liability) (17 ) — 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 that more than 75% of the debt be at fixed rate. 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, 2019 , approximately 76% 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 ( 2018 : 68% ). Fixed and floating rate debt Financing at December 31, 2019 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 118 117 118 332 431 3,428 4,543 Weighted average nominal interest rate 6.32 % 5.46 % 5.01 % 7.24 % 5.44 % 5.81 % 5.86 % Floating rate financing 68 38 27 185 654 457 1,429 Weighted average nominal interest rate 2.97 % 1.77 % 1.41 % 3.25 % 4.26 % 0.96 % 1.52 % Total 186 155 145 517 1,085 3,884 5,972 Weighted average nominal interest rate 5.10 % 4.55 % 4.34 % 5.81 % 4.73 % 5.24 % 4.82 % 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 3,116 Weighted average nominal interest rate 6.35 % 6.59 % 6.64 % 6.61 % 4.10 % 6.47 % 6.34 % Floating rate financing 318 175 266 133 263 309 1,465 Weighted average nominal interest rate 10.28 % 5.89 % 2.73 % 0.49 % 4.41 % 1.13 % 1.98 % Total 458 337 403 570 468 2,345 4,580 Weighted average nominal interest rate 9.08 % 6.23 % 4.06 % 5.18 % 4.28 % 5.76 % 4.95 % A 100 basis point fall or rise in market interest rates for all currencies in which the Group had borrowings at December 31, 2019 would increase or reduce profit before tax from continuing operations for the year by approximately $14 million ( 2018 : $15 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. Currency and interest rate swap contracts MIC S.A. entered into swap contracts in order to hedge the foreign currency and interest rate risks in relation to the SEK 2 billion (~ $211 million ) senior unsecured sustainability bond issued in May 2019 (note C.3.1.). These swaps are accounted for as cash flow hedges as the timing and amounts of the cash flows under the swap agreements match the cash flows under the SEK bond. Their maturity date is May 2024. The hedging relationship is highly effective and related fluctuations are recorded through other comprehensive income. At December 31, 2019 , the fair values of the swaps amount to a liability of $0.2 million . Our operations in El Salvador and Costa Rica also entered into several swap agreements in order to hedge foreign currency and interest rate risks on certain long term debts. These swaps are accounted for as cash flow hedges and related fair value changes are recorded through other comprehensive income. At December 31, 2019 , the fair values of these swaps amount to liabilities of $17 million . Interest rate and currency swaps are measured with reference to Level 2 of the fair value hierarchy There are no other derivative financial instruments with a significant fair value at December 31, 2019 . Foreign currency risks The Group is exposed to foreign exchange risk arising from various currency exposures in the countries in which it operates. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. Millicom seeks to reduce its foreign currency exposure through a policy of matching, as far as possible, assets and liabilities denominated in foreign currencies, or entering into agreements that limit the risk of exposure to currency fluctuations against the US dollar reporting currency. In some cases, Millicom may also borrow in US dollars where it is either commercially more advantageous for joint ventures and subsidiaries to incur debt obligations in US dollars or where US dollar denominated borrowing is the only funding source available to a joint venture or subsidiary. In these circumstances, Millicom accepts the remaining currency risk associated with financing its joint ventures and subsidiaries, principally because of the relatively high cost of forward cover, when available, in the currencies in which the Group operates. Debt denominated in US dollars and other currencies Debt denomination at December 31 2019 2018 (US$ millions) Debt denominated in US dollars 3,535 2,572 Debt denominated in currencies of the following countries Colombia 531 718 Chad — 62 Tanzania 14 112 Bolivia 350 306 Paraguay 206 207 El Salvador(i) 268 299 Panama(i) 918 261 Luxembourg (COP denominated) 43 43 Costa Rica 107 — Total debt denominated in other currencies 2,437 2,008 Total debt 5,972 4,580 (i) El Salvador's official unit of currency is the U.S. dollar, while Panama uses the U.S. dollar as legal tender. Our local debt in both countries is therefore denominated in U.S. dollars but presented as local currency (LCY). At December 31, 2019 , 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 $17 million ( 2018 : $53 million ) . 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 26% of its gross financing ( 2018 : 34% ), bonds 58% ( 2018 : 54% ), Development Finance Institutions 1% ( 2018 : 4% ) and leases 15% ( 2018 : 8% ). Maturity profile of net financial liabilities at December 31, 2019 Less than 1 year 1 to 5 years >5yrs Total (US$ millions) Total debt and financing (186 ) (1,902 ) (3,884 ) (5,972 ) Lease liability (97 ) (490 ) (476 ) (1,063 ) Cash and equivalents 1,164 — — 1,164 Pledged deposits (related to back borrowings) 1 — — 1 Refundable deposit — — — — Derivative financial instruments (17 ) — — (17 ) Net cash (debt) including derivatives related to debt 865 (2,392 ) (4,361 ) (5,888 ) Future interest commitments related to debt and financing (308 ) (1,088 ) (106 ) (1,502 ) Future interest commitments related to leases (157 ) (476 ) (295 ) (928 ) Trade payables (excluding accruals) (510 ) — — (510 ) Other financial liabilities (including accruals) (1,052 ) (337 ) — (1,388 ) Derivative instruments (17 ) — — (17 ) Put option liability (264 ) — — (264 ) Trade receivables 371 — — 371 Other financial assets 602 104 — 707 Net financial liabilities (469 ) (4,189 ) (4,762 ) (9,420 ) Maturity profile of net financial liabilities at December 31, 2018 Less than 1 year 1 to 5 years >5yrs Total (US$ millions) Total debt and financing(i) (458 ) (1,778 ) (2,345 ) (4,580 ) Cash and equivalents 528 — — 528 Pledged deposits (related to back borrowings) 2 — — 2 Net cash (debt) including derivatives related to debt 72 (1,778 ) (2,345 ) (4,051 ) Future interest commitments related to debt and financing (248 ) (786 ) (77 ) (1,111 ) Trade payables (excluding accruals) (478 ) — — (478 ) Other financial liabilities (including accruals) (1,212 ) (135 ) — (1,347 ) Put option liability (239 ) — — (239 ) Trade receivables 343 — — 343 Other financial assets 181 126 — 306 Net financial liabilities (1,582 ) (2,573 ) (2,422 ) (6,577 ) (i) As at December 31, 2018 , Debt and financing included finance lease liabilities of $353 million . As at December 31, 2019 , and as a result of the application of IFRS 16, these are now shown in a separate line under Lease liabilities. Capital management The primary objective of the Group’s capital management is to ensure a strong credit rating and solid capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure with reference to local economic conditions and imposed restrictions such as debt covenants. To maintain or adjust its capital structure, the Group may make dividend payments to shareholders, return capital to shareholders through share repurchases or issue new shares. At December 31, 2019 , Millicom is rated at one notch below investment grade by the independent rating agencies Moody’s (Ba1 negative) and Fitch (BB+ stable). The Group primarily monitors capital using net financial obligations to EBITDA. The Group reviews its gearing ratio (net financial obligations divided by total capital plus net financial obligations) periodically. Net financial obligations includes interest bearing debt and lease liabilities, less cash and cash equivalents (included restricted cash) and pledged and time deposits related to bank borrowings. Capital represents equity attributable to the equity holders of the parent. Net financial obligations to EBITDA Note 2019 2018 (US$ millions) Net financial obligations (i) C.6. 5,870 4,051 EBITDA B.3. 1,530 1,213 Net financial obligations to EBITDA (ii) 3.84 3.34 (i) As at December 31, 2018 , Net financial obligations included finance lease liabilities of $353 million . As at December 31, 2019 , Net financial obligations also include Lease liabilities recognized under IFRS 16. (ii) Ratio is above 3x on an IFRS basis. However, covenants are calculated on proportionate net financial obligations/EBITDA, including Guatemala and Honduras, which show results below 3x. Gearing ratio Note 2019 2018 (US$ millions) Net financial obligations (i) C.6. 5,870 4,051 Equity C.1. 2,410 2,542 Net financial obligations and equity 8,280 6,593 Gearing ratio 0.71 0.61 (i) Same comment as (i) in the table above . |
Long-term assets
Long-term assets | 12 Months Ended |
Dec. 31, 2019 | |
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 lists 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 lists 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 lists over their estimated useful lives. The estimated useful lives for trademarks and customer lists are based on specific characteristics of the market in which they exist. Trademarks and customer lists 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. An IRU of network infrastructure (cables or fiber) is accounted for as a right of use asset (see E.3. ), while capacity IRU (wavelength) is accounted for as an intangible asset. 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 related to assets 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 On May 20, 2019 the Group renewed 10MHz of the 1900 MHz spectrum in Colombia for a period of 10 years for an amount of $47 million (payable in five installments from June 2019 to February 2023) and an obligation to build 45 sites during the 20 -month period following the renewal (approximately $20 million cost, that will be capitalized once the sites are built). In December 2019, the company substituted its coverage obligation by agreeing to pay the corresponding amount of $20 million in cash in 6 installments between January to June 2020. As a result, Management recognized an addition to spectrum assets and a liability for $20 million . On July 9, 2019, the Tanzania Communications Regulatory Authority ('TCRA') issued a notice to cancel the license of Telesis, a subsidiary of Millicom in Tanzania that shared its 4G spectrum with Tigo and Zantel operations in the country. The net carrying value of the Telesis' license amounting to $8 million has therefore been impaired during Q3 2019. As a consequence and in order to continue providing 4G services in the country, our operation in Tanzania had to purchase spectrum in the 800MHz band from the TCRA for a period of 15 years and for an amount of $12 million . In December 2019, Millicom's wholly-owned subsidiary Telemovil El Salvador S.A. de C.V. ('Telemovil') acquired spectrum in 50Mhz AWS band and paid an advance of $14 million . On January 8, 2020, Telemovil made a final payment of $20 million and started operating the spectrum. In December 2019, Tigo Colombia participated in an auction launched by the Ministerio de Tecnologias de la Informacion y las Comunicaciones (MINTIC), and acquired licenses granting the right to use a total of 40 MHz in the 700 MHz band. The 20 -year license will expire in 2040. As a result of this auction,Tigo Colombia has strengthened its spectrum position, which also includes 55 MHz in the 1900 band and 30 MHz of AWS. Tigo Colombia agreed to a total notional consideration of COP $2.45 billion (equivalent to approximately US $736 million ), of which approximately 45% is to be met by coverage obligations implemented by 2025. The remaining 55% is payable in cash with an initial payment of approximately US $39 million to be made in Q1 2020, with the remainder payable in 12 annual installments beginning in 2026 and ending in 2037. The final permission to operate in 700 MHz will be given in February 2020 . Movements in intangible assets in 2019 Goodwill Licenses Customer Lists IRUs Trademark Other (i) Total (US$ millions) Opening balance, net 1,069 318 371 89 282 218 2,346 Change in scope 650 139 141 10 — 20 959 Additions — 101 — — — 101 202 Amortization charge — (55 ) (37 ) (14 ) (99 ) (67 ) (272 ) Impairment — (8 ) — — — — (8 ) Disposals, net — — — — — — — Transfers — (5 ) — 23 — 15 33 Transfer to/from held for sale (see note E.3) — (18 ) — — — (3 ) (21 ) Exchange rate movements (7 ) (8 ) (1 ) — — (4 ) (21 ) Closing balance, net 1,711 465 473 107 183 279 3,219 Cost or valuation 1,711 922 691 214 325 806 4,670 Accumulated amortization and impairment — (458 ) (218 ) (107 ) (142 ) (527 ) (1,451 ) Net 1,711 465 473 107 183 279 3,219 Movements in intangible assets in 2018 Goodwill Licenses Customer Lists IRUs Trademark Other (i) Total (US$ millions) Opening balance, net 599 324 33 105 10 194 1,265 Change in scope 504 — 350 — 280 23 1,157 Additions — 66 — 2 — 91 158 Amortization charge — (48 ) (11 ) (14 ) (8 ) (65 ) (145 ) Impairment (6 ) — — — — — (6 ) Disposals, net — — — — — — — Transfers — — — 1 — (16 ) (15 ) Transfer to/from held for sale (iii) — (12 ) — — — — (12 ) Exchange rate movements (28 ) (12 ) (1 ) (5 ) — (9 ) (55 ) Closing balance, net 1,069 318 371 89 282 218 2,346 Cost or valuation 1,069 646 561 176 325 646 3,423 Accumulated amortization and impairment — (328 ) (190 ) (87 ) (43 ) (428 ) (1,077 ) Net 1,069 318 371 89 282 218 2,346 (i) Other includes mainly software costs Cash used for the purchase of intangible assets Cash used for intangible asset additions 2019 2018 2017 (US$ millions) Additions 202 158 130 Change in accruals and payables for intangibles (32 ) (10 ) 3 Cash used for additions 171 148 133 Goodwill Allocation of Goodwill to cash generating units (CGUs), net of exchange rate movements and after impairment 2019 2018 (US$ millions) Panama (see note A.1.2.)(i) 930 504 El Salvador 194 194 Costa Rica 123 116 Paraguay 50 54 Colombia 181 183 Tanzania (see note E.1.6.) 12 12 Nicaragua (see note A.1.2) 217 4 Other 3 3 Total 1,711 1,069 (i) Restated as a result of the finalization of the Cable Onda purchase accounting. (note A.1.2. ). 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, 2019 Goodwill was tested for impairment by assessing the recoverable amount against the carrying amount of the CGU based on discounted cash flows. The recoverable amounts are based on value-in-use. The value-in-use is determined based on the method of discounted cash flows. The cash flow projections used (operating profit margins, income tax, working capital, capex and license renewal cost) are extracted from business plans approved by management and presented to 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. When value-in-use results are lower than the carrying values of the CGUs, management determines the recoverable amount by using the fair value less cost of disposal (FVLCD) of the CGUs. FVLCD is usually determined by using recent offers received from third parties (Level 1). For the year ended December 31, 2019, management concluded no impairment should be recorded in the Group consolidated financial statements. Impairment testing at December 31, 2018 For the year ended December 31, 2018 , management concluded that our previously independent 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 the CGU to reduce the carrying amount of this operation 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. Key assumptions used in value in use calculations The process of preparing the cash flow projections considers the current market condition of each CGU, analyzing the macroeconomic, competitive, regulatory and technological environments, as well as the growth opportunities of the CGUs. Therefore, a growth target is defined for each CGU, based on the appropriate allocation of operating resources and the capital investments required to achieve the target. The foregoing forecasts could differ from the results obtained through time; however, the Company prepares its estimates based on the current situation of each of the CGUs. Relevance of budgets used for the impairment test is also reviewed annually, management performing regressive analysis between actual figures and budget/5YP used for previous year impairment test. The cash flow projections for all CGUs is most sensitive to the following key assumptions: • EBITDA margin is determined by dividing EBITDA by total revenues. • CAPEX intensity is determined by dividing CAPEX by total revenues. • Gross Domestic Product (“GDP”) less inflation rates are used as perpetual growth rate. • Weighted average cost of capital (“WACC”) is used to discount the projected cash flows. The most significant estimates used for the 2019 and 2018 impairment test are shown below: CGU Average EBITDA margin (%) (i) Average CAPEX intensity (%) (i) Perpetual growth rate (%) WACC rate after tax (%) 2019 2018 2019 2018 2019 2018 2019 2018 Bolivia 42.0 43.1 18.4 17.0 1.5 3.0 10.7 10.2 Chad (see note A.1.3) n/a 26.7 n/a 15.9 n/a 2.6 n/a 14.8 Colombia 34.1 32.1 17.7 19.3 1.9 2.9 8.6 8.9 Costa Rica 36.3 41.2 23.3 19.9 1.9 3.1 10.1 10.2 El Salvador 33.4 42.2 15.2 15.7 0.8 1.6 10.7 11.7 Nicaragua (see note A.1.2) 33.7 41.0 16.2 49.6 2.0 3.6 10.9 10.1 Panamá (see note A.1.2) 42.6 n/a 14.8 n/a 1.5 n/a 8.3 n/a Paraguay 46.9 50.4 16.0 17.3 1.6 3.0 9.0 9.8 Tanzania 31.2 37.1 12.2 18.5 1.5 4.6 14.4 14.4 (i) Average is computed over the period covered by the plan (5 years) Sensitivity analysis to changes in assumptions Management performed a sensitivity analysis on key assumptions within the test. The following maximum increases or decreases, expressed in percentage points, were considered for all CGUs: Reasonable changes in key assumptions (%) Financial variables WACC rates +/-1 Perpetual growth rates +/-1 Operating variables EBITDA margin +/-2 CAPEX intensity +/-1 The sensitivity analysis shows a comfortable headroom between the recoverable amounts and the carrying values for all CGUs at December 31, 2019 , except of our Nicaragua CGU. In respect of Nicaragua CGU, taken individually, the below changes in key assumptions would trigger a potential impairment, which would mainly be due to the under-performance of our legacy fixed business in the country as well as the current political and economic turmoil: Sensitivity analysis Potential impairment In % US$ millions Financial variables WACC rate +1 32 Perpetual growth rate -1 18 Operating variables EBITDA margin -2 1 Combining changes in variables WACC rate and Perpetual growth rate +1 and -1 63 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 2019 Network Equipment (ii) Land and Buildings Construction in Progress Other(i) Total (US$ millions) Opening balance, net 2,455 175 284 156 3,071 Change in scope 190 44 14 7 255 Change in accounting policy (307 ) — — (1 ) (307 ) Additions 87 4 612 16 719 Impairments/reversal of impairment, net — — — 1 1 Disposals, net (8 ) (1 ) (6 ) (3 ) (19 ) Depreciation charge (588 ) (13 ) — (110 ) (711 ) Asset retirement obligations 14 5 — — 19 Transfers 444 4 (537 ) 64 (24 ) Transfer from/(to) assets held for sale (see note E.4) (61 ) (14 ) (7 ) (5 ) (88 ) Exchange rate movements (25 ) (2 ) (5 ) (1 ) (34 ) Closing balance, net 2,201 202 355 125 2,883 Cost or valuation 6,644 360 355 476 7,834 Accumulated amortization and impairment (4,443 ) (158 ) — (351 ) (4,952 ) Net at December 31, 2019 2,201 202 355 125 2,883 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 (iii) 253 41 32 60 386 Additions 62 1 626 7 696 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 2,455 175 284 156 3,071 Cost or valuation 6,663 270 284 573 7,790 Accumulated amortization and impairment (4,207 ) (95 ) — (417 ) (4,719 ) Net at December 31, 2018 2,455 175 284 156 3,071 (i) Other mainly includes office equipment and motor vehicles. (ii) As a result of the application of IFRS 16 finance leases were reclassified to lease liabilities on January 1, 2019. See above in the "New and amended IFRS accounting standards" and notes C.4. and E.4. for further information. The net carrying amount of network equipment under finance leases at December 31, 2018 were $307 million . (iii) Restated after finalization of the Cable Onda purchase accounting. See note A.1.2. Borrowing costs capitalized for the years ended December 31, 2019 , 2018 and 2017 were not significant. Cash used for the purchase of tangible assets Cash used for property, plant and equipment additions 2019 2018 2017 (US$ millions) Additions 719 698 824 Change in advances to suppliers 1 2 (8 ) Change in accruals and payables for property, plant and equipment 17 (25 ) 26 Finance leases(i) (1 ) (43 ) (192 ) Cash used for additions 736 632 650 (i) As a result of the application of IFRS 16 finance leases were reclassified to lease liabilities on January 1, 2019. See above in the "New and amended IFRS accounting standards" and notes C.4. and E.4. for further information. Right of use assets (as from January 1, 2019 after the application of IFRS 16) Right-of-use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability • any lease payments made at or before the commencement date less any lease incentives received • any initial direct costs, and • restoration costs Refer to note C.4. for further details on lease accounting policies. Movements in right of use assets in 2019 Right-of-use assets Land and buildings Sites rental Tower rental Other network equipment Capacity Other Total (US$ millions) Opening balance, net 154 67 623 9 — 4 856 Change in scope — 43 121 1 12 — 177 Additions 25 4 67 1 2 1 102 Modifications 6 (2 ) 7 — — — 11 Impairments (1 ) — — — — — (1 ) Disposals (4 ) (4 ) (1 ) — — — (10 ) Depreciation (35 ) (16 ) (86 ) (2 ) — (2 ) (141 ) Transfers — — 1 — — — 1 Transfers to/from assets held for sale (1 ) (5 ) (3 ) — — — (9 ) Exchange rate movements — (2 ) (7 ) — — — (10 ) Closing balance, net 145 87 720 8 14 3 977 Cost of valuation 177 103 900 11 16 8 1,216 Accumulated depreciation and impairment (32 ) (16 ) (180 ) (3 ) (2 ) (5 ) (238 ) Net at December 31, 2019 145 87 720 8 14 3 977 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, 2019 and 2018 : As at December 31, 2019 2018 (US$ millions) Assets and liabilities reclassified as held for sale ($ millions) Towers Paraguay (see note E.4.1.) — 2 Towers Colombia (see note E.4.1.) 2 — Towers El Salvador (see note E.4.1.) 1 1 Towers Zantel 1 — Other — — Total assets of held for sale 5 3 Towers Paraguay — — Total liabilities directly associated with assets held for sale — — Net assets held for sale / book value 5 3 Chad As mentioned in note A.1.3. , on June 26, 2019, the Group completed the disposal of its operations in Chad for a cash consideration of $110 million . On the same date, Chad was deconsolidated and a gain on disposal of $77 million , net of costs of disposal of $4 million , was recognized. Foreign currency exchange losses accumulated in equity of $8 million have also been recycled in the statement of income accordingly. The resulting net gain of $70 million has been recognized under ‘Profit (loss) for the period from discontinued operations, net of tax’. The operating net loss of the operation for the period from January 1, 2019 to June 26, 2019 was $5 million . The assets and liabilities deconsolidated on the date of the disposal were as follows: Assets and liabilities held for sale ($ millions) June 26, 2019 Intangible assets, net 18 Property, plant and equipment, net 89 Right of use assets 9 Other non-current assets 8 Current assets 34 Cash and cash equivalents 9 Total assets of disposal group held for sale 168 Non-current financial liabilities 8 Current liabilities 131 Total liabilities of disposal group held for sale 140 Net assets held for sale at book value 28 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. The sale was completed on April 27, 2018 in exchange of a final cash consideration of $151 million . The operations in Senegal were deconsolidated from that date resulting in a net gain on disposal of $6 million , including the recycling of foreign currency exchange losses accumulated in equity since the creation of the local operations. This gain has been recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. The assets and liabilities were transferred to assets held for sale in relation to our operations in Senegal as at February 7, 2017 and therefore classified as held for sale as at December 31, 2017. The table below shows the assets and liabilities deconsolidated at the date of the disposal: April 27, 2018 Assets and liabilities held for sale (US$ 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 / 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.for a final cash consideration of $51 million , including a deferred cash payment due in January 2020 for an amount of $18 million . The transaction also included earn-outs for $7 million that were not recognized by the Group. The sale was completed on January 31, 2018. On that day, 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 $32 million was recognized in 2018 corresponding to the recycling of foreign currency exchange losses accumulated in equity since the creation of the local operation. This loss has been recognized under ‘Profit (loss) for the year from discontinued operations, net of tax’. The table below shows the assets and liabilities deconsolidated at the date of the disposal: January 31, 2018 Assets and liabilities reclassified as |
Other assets and liabilities
Other assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other assets and liabilities | Other assets and liabilities Trade receivables Millicom’s trade receivables mainly comprise interconnect receivables from other operators, postpaid mobile and residential cable subscribers, as well as B2B customers. The nominal value of receivables adjusted for impairment approximates the fair value of trade receivables. 2019 2018 (US$ millions) Gross trade receivables 636 592 Less: provisions for expected credit losses (265 ) (249 ) Trade receivables, net 371 343 Aging of trade receivables Neither past due nor impaired Past due (net of impairments) 30–90 days >90 days Total (US$ millions) 2019: Telecom operators 23 9 8 40 Own customers 177 63 29 270 Others 40 15 5 60 Total 241 88 43 371 2018: Telecom operators 17 9 14 39 Own customers 158 69 19 246 Others 36 17 5 58 Total 210 95 37 343 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 2019 2018 (US$ millions) Telephone and equipment 18 26 SIM cards 3 4 IRUs 3 3 Other 9 6 Inventory at December 31, 32 39 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, 2019 , is recognized in Trade payables for an amount of $40 million ( 2018 : $26 million ). Current and non-current provisions and other liabilities Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, risks specific to the liability. Where discounting is used, increases in the provision due to the passage of time are recognized as interest expenses. Current provisions and other liabilities Current 2019 2018 (US$ millions) Deferred revenue 77 85 Customer deposits 14 15 Current legal provisions 36 27 Tax payables 74 68 Customer and MFS distributor cash balances 141 147 Withholding tax on payments to third parties 15 17 Other provisions 3 7 Other current liabilities(i) 113 126 Total 474 492 (i) Includes 36 million (2018: 36 million ) of tax risk liabilities not related to income tax. Non-current provisions and other liabilities Non-current 2019 2018 (US$ millions) Non-current legal provisions 18 8 Long-term portion of asset retirement obligations 96 77 Long-term portion of deferred income on tower sale and leasebacks recognized under IAS 17 68 85 Long-term employment obligations 71 68 Accruals and payables in respect of spectrum and license acquisitions 61 41 Other non-current liabilities 68 71 Total 383 351 Assets and liabilities related to contract with customers Contract assets, net 2019 2018 (US$ millions) Long-term portion 6 3 Short-term portion 37 35 Less: provisions for expected credit losses (2 ) (1 ) Total 41 37 Contract liabilities 2019 2018 (US$ millions) Long-term portion 1 1 Short-term portion 81 86 Total 82 87 The Group recognized revenue for $87 million in 2019 ( 2018 : $45 million ) 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, 2019 is $61 million ( $60 million is expected to be recognized as revenue in the 2020 financial year and the remaining $1 million in the 2021 financial year or later) (i). (i) This amount does not consider contracts that have an original expected duration of one year or less, neither contracts in which consideration from a customer corresponds to the value of the entity’s performance obligation to the customer (i.e. billing corresponds to accounting revenue). Contract costs, net (i) 2019 2018 (US$ millions) Net at January 1 4 4 Contract costs capitalized 7 4 Amortisation of contract costs (6 ) (4 ) Net at December 31 5 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, 2019 | |
Additional information [abstract] | |
Additional disclosure items | Additional disclosure items Fees to auditors 2019 2018 2017 (US$ millions) Audit fees 6.8 6.7 4.7 Audit related fees 1.3 0.4 0.3 Tax fees 0.1 0.2 0.2 Other fees 0.6 0.6 0.7 Total 8.8 7.7 5.9 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, 2019 , the Company and its subsidiaries had fixed commitments to purchase network equipment, land and buildings, other fixed assets and intangible assets of $122 million of which $102 million are due within one year ( December 31, 2018 : $88 million of which $71 million were due within one year). The Group’s share of commitments from the joint ventures is, respectively $52 million and $51 million . ( December 31, 2018 : $66 million of which $56 million were due within one year). Lease commitments - until December 31, 2018 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. From January 1, 2019, the Group has recognized right of use assets for these leases, except for short term or low value leases. See above in the "New and amended IFRS accounting standards", note C.4.and E.3. for further information. 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 2018 was $152 million –see note B.2. Annual operating lease commitments from continuing operations 2018 (i) (US$ millions) Within one year 127 Between one and five years 412 After five years 262 Total 801 (i) The Group’s share in joint ventures operating lease commitments in 2018 amount to $312 million and are excluded from the table above. Finance leases Finance leases, which transfer substantially all risks and benefits incidental to ownership of the leased item to the lessee, are capitalized at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Where a finance lease results from a sale and leaseback transaction, any excess of sales proceeds over the carrying amount of the assets is deferred and amortized over the lease term. Capitalized leased assets are depreciated over the shorter of the estimated useful lives of the assets, or the lease term if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term. Finance leases mainly comprise lease of tower space in El Salvador, Paraguay, Tanzania and Colombia (see note C.3.4. ), lease of poles in Colombia and tower sharing in other countries. Other financial leases mainly consist of lease agreements relating to vehicles and IT equipment. Annual minimum finance lease commitments from continuing operations 2018 (i) (US$ millions) Within one year 99 Between one and five years 400 After five years 415 Total 914 (i) The Group’s share in joint ventures finance lease commitments in 2018 amounted to $1 million and are excluded from the table above. The corresponding finance lease liabilities at December 31, 2018, were $353 million . Interest expense on finance lease liabilities amounted to $91 million for the year 2018. 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, 2019 , the total exposure for claims and litigation risks against Millicom and its subsidiaries is $204 million ( December 31, 2018 : $683 million ). The decrease is mainly due to Colombia where some significant cases were closed or became time barred during the year. The Group's share of the comparable exposure for joint ventures is $4 million ( December 31, 2018 : $5 million ). As at December 31, 2019 , $30 million has been provided by its subsidiaries for these risks in the consolidated statement of financial position ( December 31, 2018 : $22 million ). The Group’s share of provisions made by the joint ventures was $3 million ( December 31, 2018 : $4 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. Ongoing investigation by the International Commission Against Impunity in Guatemala (CICIG) Between 2017 and 2019, the CICIG and Guatemalan prosecutors have pursued investigations that have included the country’s telecommunications sector and Comcel, our Guatemalan joint venture. On September 3, 2019, the CICIG’s activities in Guatemala were discontinued, after the Guatemalan government did not renew the CICIG’s mandate, and it is unclear whether the investigations will continue. As at December 31, 2019 , Management is not 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, 2019 . Other At December 31, 2019 , 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, and applies significant judgment, in identifying uncertainties over income tax treatments. Management 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, 2019 , the tax risks exposure of the Group's subsidiaries is estimated at $300 million , for which provisions of $50 million have been recorded in tax liabilities; representing the probable amount of eventual claims and required payments related to those risks ( 2018 : $226 million of which provisions of $44 million were recorded). The Groups' share of comparable tax exposure and provisions in its joint ventures amounts to $49 million ( 2018 : $29 million ) and $4 million ( 2018 : $2 million ), respectively. Non-cash investing and financing activities Non-cash investing and financing activities from continuing operations Note 2019 2018 2017 (US$ millions) Investing activities Acquisition of property, plant and equipment, including (finance) leases E.2.2. 17 (65 ) (174 ) Asset retirement obligations E.2.2. 19 15 (20 ) Acquisition of subsidiaries, joint ventures and associates, net of cash acquired A.1.2. — 30 — Financing activities (Finance) Leases C.3.4. 1 (43 ) 192 Share based compensation B.4.1. 27 21 22 Related party balances and transactions The Group’s significant related parties are: • Kinnevik AB (Kinnevik) and subsidiaries, Millicom’s previous principal shareholder - until November 14, 2019, date on which Millicom SDRs were paid out to the shareholders of Kinnevik (see 'Introduction' note); • Helios Towers Africa Ltd (HTA), in which Millicom held a direct or indirect equity interest - until October 15, 2019, date on which Millicom lost significant influence on HTA and started accounting for its investments at fair value under IFRS 9 (see note A.3.1. and C.7.3. • 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 Until November 14, 2019, Kinnevik was Millicom's principal shareholder, owning approximately 37% of Millicom (December 31, 2018 : 37% ). Kinnevik is a Swedish holding company with interests in the telecommunications, media, publishing, paper and financial services industries. During 2019 , 2018 and 2017 , Kinnevik did not purchase any Millicom shares. There were no significant loans made by Millicom to or for the benefit of Kinnevik or Kinnevik controlled entities. During 2019 , 2018 and 2017 , 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. 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 E.4.). As mentioned above, Helios Towers ceased to be a related party to the Group from October 15, 2019. 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, and indirectly 20% of Telefonica Moviles Panama, S.A., which has been acquired by Cable Onda in August 2019. 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.). Transactions and balances with Cable Onda Partners companies are disclosed under 'Other' in the tables below. Expenses from transactions with related parties 2019 2018 2017 (US$ millions) Purchases of goods and services from Miffin (209 ) (173 ) (181 ) Purchases of goods and services from EPM (42 ) (40 ) (36 ) Lease of towers and related services from HTA(i) (146 ) (28 ) (28 ) Other expenses (15 ) (3 ) (4 ) Total (412 ) (244 ) (250 ) (i) HTA ceased to be a related party on October 15, 2019. See note C.7.3. for further details. Income and gains from transactions with related parties 2019 2018 2017 (US$ millions) Sale of goods and services to Miffin 306 284 277 Sale of goods and services to EPM 13 17 18 Other revenue 3 2 1 Total 322 303 295 As at December 31, the Company had the following balances with related parties: Year ended December 31 2019 2018 (US$ millions) Non-current and current liabilities Payables to Guatemala joint venture(i) 361 315 Payables to Honduras joint venture(ii) 133 143 Payables to EPM 37 14 Other accounts payable — 9 Sub-total 531 482 (Finance) Lease liabilities to HTA (iii) — 99 Total 531 580 (i) Shareholder loans bearing interest. Out of the amount above, $337 million are due over more than one year. (ii) Amount payable mainly consist of dividend advances for which dividends are expected to be declared later in 2020 and/or shareholder loans. (iii) HTA ceased to be a related party on October 15, 2019. See note C.7.3. for further details. . Year ended December 31 2019 2018 (US$ millions) Non-current and current assets Receivables from EPM 3 5 Receivables from Guatemala and Honduras joint ventures 23 20 Advance payments to Helios Towers Tanzania(ii) — 6 Receivables from Panama — — Receivable from AirtelTigo Ghana (i) 43 41 Other accounts receivable 4 1 Total 73 73 (i) Disclosed under Other non-current assets in the statement of financial position. See note A.2.2. (ii) Helios Towers ceased to be to be a related party on October 15, 2019. |
IPO - Millicom's operations in
IPO - Millicom's operations in Tanzania | 12 Months Ended |
Dec. 31, 2019 | |
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. In December 2019, the Group filed the draft prospectus with the Tanzania Capital Market and Securities Authority with the view to initiate the listing process in H1 2020. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events Pivot in shareholder remuneration On February 24, 2020, Millicom’s Board approved to the Annual General Meeting of the shareholders a share buyback program to repurchase at least $500 million over the next three years . The current shareholder authorization, which expires on May 5, 2020, allows for the repurchase of up to 5% of the outstanding share capital. In addition, the Board approved to the Annual General Meeting of the shareholders a dividend distribution of $1.00 per share to be paid in 2020. The Annual General Meeting to vote on these matters is scheduled for May 5, 2020. On February 25, 2020, Millicom announced a three year $500 million share repurchase plan and on February 28, 2020 it initiated the first phase of this program comprising the purchase of not more than 350,000 shares and not more than a maximum total amount of SEK 107 million (approximately $11 million ). The purpose of the repurchase program is to reduce Millicom's share capital, or to use the repurchased shares for meeting obligations arising under Millicom´s employee share based incentive programs. The repurchase program may take place during the period between February 28, 2020 and May 5, 2020. Payment for the shares will be made in cash. Paraguay bond On January 28, 2020, Millicom’s wholly-owned subsidiary Telefónica Celular del Paraguay S.A.E ("Telecel"), closed a $250 million re-tap to its senior unsecured notes due 2027, representing an additional issuance of Telecel's outstanding $300 million 5.875% senior notes due 2027 issued on April 5, 2019. The new notes will be treated as a single class with the initial notes, and they were priced at 106.375 for an implied yield to maturity of 4.817% . |
Introduction (Policies)
Introduction (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Description of accounting policy for foreign currency translation | Foreign currency Financial information in these financial statements are shown in the US dollar presentation currency of the Group and rounded to the nearest million (US$ 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 or significant influence over a foreign operation, exchange differences that were recorded in equity are recognized in the consolidated statement of income as part of gain or loss on sale or loss of control and/or significant influence. 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 | 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. |
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 IFRS 9 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 | Classification of 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 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. The Group applies the following practical expedients foreseen in IFRS 15: • 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. 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. Significant judgments The determination of the standalone selling price for contracts that involve more than one performance obligation may require significant judgment, such as when the selling price of a good or service is not readily observable. The Group determines the standalone selling price of each performance obligation in the contract in accordance to the prices that the Group would apply when selling the same services and/or telephone and equipment included in the obligation to a similar customer on a standalone basis. When standalone selling price of services and/or telephone and equipment are not directly observable, the Group maximizes the use of external input and uses the expected cost plus margin approach to estimate the standalone selling price. |
Description of accounting policy for expenses | Cost of sales Cost of sales is recorded on an accrual basis. Incremental costs of obtaining a contract Incremental costs of obtaining a contract, including dealer commissions, are capitalized as Contract Costs in the statement of financial position and amortized in operating expenses over the expected benefit period, which is based on the average duration of contracts with customer (see practical expedient in note B.1.1. ). Operating leases - until 2018 year-end Operating leases were all leases that did not qualify as finance leases. Operating lease payments were 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. |
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 | 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, 2019 , the defined benefit obligation liability amounted to $59 million ( 2018 : $60 million ) and payments expected in the plans in future years totals $106 million ( 2018 : $111 million ). The average duration of the defined benefit obligation at December 31, 2019 is 6 years ( 2018 : 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. |
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 lists 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 lists 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 lists over their estimated useful lives. The estimated useful lives for trademarks and customer lists are based on specific characteristics of the market in which they exist. Trademarks and customer lists 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 related to assets 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. 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 | Operating leases - until 2018 year-end Operating leases were all leases that did not qualify as finance leases. Operating lease payments were recognized as expenses in the consolidated statement of income on a straight-line basis over the lease term. Right-of-use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability • any lease payments made at or before the commencement date less any lease incentives received • any initial direct costs, and • restoration costs |
Description of accounting policy for income tax | Current tax assets and liabilities 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, and applies significant judgment, in identifying uncertainties over income tax treatments. Management 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, 2019 | |
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, 2019 , 2018 and 2017 and the average rates for the years ended December 31, 2019 , 2018 and 2017 . Exchange Rates to the US Dollar Functional Currency 2019 Year-end Rate 2018 Year-end Rate Change % 2019 Average Rate 2018 Average Rate Change % 2017 Average Rate Bolivia Boliviano (BOB) 6.91 6.91 — % 6.91 6.91 — % 6.91 Chad CFA Franc (XAF) n/a 580 n/a n/a 571 n/a 588 Colombia Peso (COP) 3,277 3,250 0.8 % 3,296 2,973 10.9 % 2,961 Costa Rica Costa Rican Colon (CRC) 576 608 (5.2 )% 588 578 1.8 % 571 El Salvador US dollar n/a n/a n/a n/a n/a n/a n/a Ghana Cedi (GHS) 5.73 4.82 18.9 % 5.33 4.63 15.0 % 4.36 Guatemala Quetzal (GTQ) 7.70 7.74 (0.5 )% 7.71 7.52 2.5 % 7.36 Honduras Lempira (HNL) 24.72 24.42 1.2 % 24.59 23.99 2.5 % 23.58 Luxembourg Euro (EUR) 0.89 0.87 2.5 % 0.89 0.85 5.1 % 0.89 Nicaragua Cordoba (NIO) 33.84 32.33 4.7 % 33.12 31.55 5.0 % 30.05 Panama Balboa (B/.) (i) n/a n/a n/a n/a n/a n/a n/a Paraguay Guarani (PYG) 6,453 5,961 8.3 % 6,232 5,743 8.5 % 5,626 Sweden Krona (SEK) 9.365 8.85 5.8 % 9.43 8.71 8.3 % 8.53 Tanzania Shilling (TZS) 2,299 2,299 — % 2,304 2,274 1.3 % 2,233 United Kingdom Pound (GBP) 0.75 0.78 (3.3 )% 0.78 0.75 4.3 % 0.77 (i) the balboa is tied to the United States dollar at an exchange rate of 1:1. |
Effects of implementation of new IFRS | The application of IFRS 15 and IFRS 9 had the following impact on the Group financial statements at January 1, 2018: FINANCIAL POSITION 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 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 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: INCOME STATEMENT 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change Total revenue 3,946 4,023 (77 ) (i) Cost of sales (1,117 ) (1,165 ) 48 (ii) Operating expenses (1,616 ) (1,656 ) 40 (ii) Share of profit in the joint ventures in Guatemala and Honduras 154 152 2 (iii) Tax impact (112 ) (111 ) (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. FINANCIAL POSITION 2018 As reported Without adoption of IFRS 15 Effect of Change Higher/(Lower) Reason for the change 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 492 574 (82 ) (v) Current income tax liabilities 55 52 3 (vi) Deferred tax liabilities (non-current) 236 229 7 (vi) EQUITY Retained profits and loss for the year 2,525 2,468 57 (vii) Non-controlling interests 251 248 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 16 affected the following items in the statement of financial position on January 1, 2019: FINANCIAL POSITION As at January 1, 2019 before application Effect of adoption of IFRS 16 As at January 1, 2019 after application Reason for the change ASSETS Property, plant and equipment, net 3,071 (307) 2,764 (i) Right-of-use asset (non-current) NEW — 856 856 (ii) Prepayments 129 (6) 123 (iii) LIABILITIES Lease liabilities (non-current) NEW — 812 812 (iv) Debt and other financing (non-current) 4,123 (337) 3,786 (v) Lease liabilities (current) NEW — 86 86 (iv) Debt and other financing (current) 458 (16) 442 (v) Other current liabilities 492 (2) 490 (vi) (i) Transfer of previously capitalized assets under finance leases to Right-of-Use assets. (ii) Initial recognition of Right-of-Use assets, transfer of previously recognized finance leases and of lease prepayments to the Right-of-Use asset cost at transition. (iii) Transfer of lease prepayments to the Right-of-Use asset cost at transition. (iv) Initial recognition of lease liabilities and transfer of previously recognized finance lease liabilities. (v) Transfer of previously recognized finance lease liabilities to new Lease liabilities accounts. (vi) Reclassification of provisions for onerous contracts to Right-of-Use assets. For leases previously classified as finance leases Millicom recognized the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of IFRS 16 are only applied after that date. $ millions 2019 Operating lease commitments disclosed as at December 31, 2018 801 (Plus): Non lease components obligations 57 (Less): Short term leases recognized on a straight line basis as an expense (3) (Less): Low value leases recognized on a straight line basis as an expense (2) (Less): Contract included in the lease commitments but with starting date in 2019 and not part of the IFRS 16 opening balances (17) (Plus/Less): Other (9) Gross lease liabilities 828 Discounted using the lessee's incremental borrowing rate at the date of the initial application (283) Incremental lease liabilities recognized at January 1, 2019 545 (Plus): Finance lease liabilities recognized at December 31, 2018 353 Lease liabilities recognized at January 1, 2019 898 Of which are: Current lease liabilities 86 Non-current lease liabilities 812 |
The Millicom Group (Tables)
The Millicom Group (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
Disclosure of main subsidiaries | Our main subsidiaries are as follows: Entity Country Activity December 31, 2019 December 31, 2018 December 31, 2017 Latin America In % In % In % Telemovil El Salvador S.A. de C.V. El Salvador Mobile, MFS, Cable, DTH 100 100 100 Millicom Cable Costa Rica S.A. Costa Rica Cable, DTH 100 100 100 Telefonica Celular de Bolivia S.A. Bolivia Mobile, DTH, MFS, Cable 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 80 — Telefonica Moviles Panama (ii) Panama Mobile 80 — — Telefonia Cellular de Nicaragua sa (ii) Nicaragua Mobile 100 — — Colombia Móvil S.A. E.S.P. (iii) Colombia Mobile 50-1 share 50-1 share 50-1 share UNE EPM Telecomunicaciones S.A.(iii) Colombia Fixed-line, Internet, PayTV, Mobile 50-1 share 50-1 share 50-1 share Edatel S.A. E.S.P. (iii) Colombia Fixed-line, Internet, PayTV, Cable 50-1 share 50-1 share 50-1 share Africa Sentel GSM S.A.(v) Senegal Mobile, MFS — — 100 MIC Tanzania Public Limited Company (vi) Tanzania Mobile, MFS 98.5 100 100 Millicom Tchad S.A. (v) Chad Mobile, MFS — 100 100 Millicom Rwanda Limited (v) Rwanda Mobile, MFS — — 100 Zanzibar Telecom Limited (vi) Tanzania Mobile, MFS 98.5 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 International Services LLC USA Services Company 100 100 100 Millicom Services UK Ltd (vii) UK Services 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) Companies acquired during the year. See note A.1.2. (iii) Fully consolidated as Millicom has the majority of voting shares to direct the relevant activities. (iv) Merged with Airtel Ghana in October 2017 and classified as discontinued operations for the year then ended (see note E.4.2. ). Merged entity is accounted for as a joint venture as from merger date (see note A.2.2. ). (v) Companies disposed of in 2018 or 2019. See note A.1.3. (vi) Change in ownership percentages as a result of the in-country restructuring . See note A.1.2. (vii) Millicom Services UK Ltd with registered number 08330497 will take advantage of an audit exemption to prepare stand alone financial statements for the year ended December 31, 2019 as set out within section 479A of the Companies Act 2006. Balance sheet – non-controlling interests December 31, 2019 2018(i) (US$ millions) Colombia 170 161 Panama 99 105 Others 2 (16 ) Total 271 251 (i) Restated as a result of the finalization of Cable Onda purchase accounting, see note A.1.2. Profit (loss) attributable to non-controlling interests 2019 2018 2017 (US$ millions) Colombia 11 (5 ) (13 ) Panama (6 ) (8 ) — Others — (3 ) (4 ) Total 5 (16 ) (17 ) The summarized financial information for material non-controlling interests in our operations in Colombia and Panama is provided below. This information is based on amounts before inter-company eliminations. Colombia 2019 2018 2017 (US$ millions) Revenue 1,532 1,661 1,739 Total operating expenses (543 ) (667 ) (647 ) Operating profit 164 147 106 Net (loss) for the year 23 (10 ) (25 ) 50% non-controlling interest in net (loss) 11 (5 ) (13 ) Total assets (excluding goodwill) 2,256 1,966 2,193 Total liabilities 1,891 1,620 1,771 Net assets 365 346 422 50% non-controlling interest in net assets 183 173 211 Consolidation adjustments (13 ) (12 ) (15 ) Total non-controlling interest 170 161 197 Dividends and advances paid to non-controlling interest (12 ) (2 ) 0 Net cash from operating activities 363 348 331 Net cash from (used in) investing activities (260 ) (270 ) (209 ) Net cash from (used in) financing activities (67 ) (75 ) (46 ) Exchange impact on cash and cash equivalents, net — (18 ) 3 Net increase in cash and cash equivalents 36 (15 ) 80 Panama 2019 (ii) 2018 (i) (US$ millions) Revenue 475 17 Total operating expenses (148 ) (8 ) Operating profit (15 ) (39 ) Net (loss) for the year (31 ) (39 ) 20% non-controlling interest in net (loss) (6 ) (8 ) Total assets (excluding Millicom's goodwill in Cable Onda) 1,866 1,082 Total liabilities 1,372 556 Net assets 494 526 20% non-controlling interest in net assets 99 105 Consolidation adjustments — — Total non-controlling interest 99 105 Dividends and advances paid to non-controlling interest — — Net cash from operating activities 167 (2 ) Net cash from (used in) investing activities (iii) (693 ) 12 Net cash from (used in) financing activities (iii) 580 (3 ) Exchange impact on cash and cash equivalents, net — — Net increase in cash and cash equivalents 54 7 (i) Cable Onda was acquired on December 13, 2018 and 2018 figures therefore only include results and cash flows from the date of acquisition. (ii) 2019 figures include the full year results and cash flows of Cable Onda, as well as 4 months of Telefonica Panama which was consolidated from September 1, 2019. (iii) In 2019, Cable Onda acquired Telefonica Panama for $594 million (note A.1.2.), financed by issuing a $600 million Senior Notes due 2030 (note C.3.1.) |
Disclosure of business combination | As a result, goodwill decreased by $8 million as follows: . . Provisional Fair values (100%) Final Fair values (100%) Changes (US$ millions) (US$ millions) (US$ millions) Intangible assets (excluding goodwill) (i) 673 653 (20 ) Property, plant and equipment (ii) 348 378 30 Current assets (excluding cash)(iii) 54 50 (4 ) Cash and cash equivalents 12 12 — Total assets acquired 1,088 1,094 6 Non-current liabilities(iv) 422 425 3 Current liabilities 141 134 (7 ) Total liabilities assumed 563 559 (4 ) Fair value of assets acquired and liabilities assumed, net 525 535 10 Transaction costs assumed by Cable Onda (v) 30 30 — Fair value of non-controlling interest in Cable Onda (20%) 111 113 2 Millicom’s interest in the fair value of Cable Onda (80%) 444 452 8 Acquisition price 956 956 0 Final Goodwill 512 504 (8 ) (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 $350 million , with estimated useful life of 20 years and favorable content contracts for $19 million , with a useful life of 10 years . (ii) A net fair value step-up of $30 million has been recognized on property, plant and equipment, mainly on the core network ( $11 million ). The expected remaining useful lives were estimated at 5 years on average. (iii) Current assets include trade receivables amounting to a fair value of $34 million . (iv) Non-current liabilities include the deferred tax liability of $161 million resulting from the above adjustments. (v) 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 $11 million , have been recorded under operating expenses in the statement of income of the year. The provisional purchase accounting as at December 31, 2019 is as follows: Provisional Fair values (100%) (US$ millions) Intangible assets (excluding goodwill) (i) 169 Property, plant and equipment 110 Right of use assets 57 Other non-current assets 3 Current assets (excluding cash) 23 Trade receivables (ii) 21 Cash and cash equivalents 10 Total assets acquired 391 Lease liabilities 48 Other debt and financing 74 Other liabilities (iii) 101 Total liabilities assumed 224 Fair value of assets acquired and liabilities assumed, net 167 Acquisition price 594 Provisional Goodwill 426 (i) Intangible assets not previously recognized at the date of acquisition, are mainly customer lists for an amount of $58 million , with estimated useful lives ranging from 3 to 17 years. In addition, a fair value step-up of $3 million on the spectrum held by Panama has been recognized, with a remaining useful life of 17 years. (ii) The fair value of trade receivables acquired was $21 million . (iii) Other liabilities include a deferred tax liability of $15 million resulting from the above adjustments The provisional purchase accounting as at December 31, 2019 is as follows Provisional Fair values (100%) (US$ millions) Intangible assets (excluding goodwill) (i) 131 Property, plant and equipment (ii) 149 Right of use assets (iii) 131 Other non-current assets 2 Current assets (excluding cash) (iv) 23 Trade receivables (v) 17 Cash and cash equivalents 7 Total assets acquired 459 Lease liabilities (iii) 131 Other liabilities (vi) 118 Total liabilities assumed 249 Fair value of assets acquired and liabilities assumed, net 210 Acquisition price 430 Provisional Goodwill 220 (i) Intangible assets not previously recognized at the date of acquisition, are mainly customer lists for an amount of $81 million , with estimated useful lives ranging from 4 to 10 years. In addition, a fair value step-up of $39 million on the spectrum held by Nicaragua has been recognized, with a remaining useful life of 14 years. (ii) A fair value step-up of $39 million has been recognized on property, plant and equipment, mainly on the core network ( $25 million ) and owned land and buildings ( $8 million ). The expected remaining useful lives were estimated at 6 - 7 years on average. (iii) The Group measured the lease liability at the present value of the remaining lease payments (as defined in IFRS 16) as if the acquired lease were a new lease at the acquisition date. The right-of-use assets have been adjusted by $7 million to be measured at the same amount as the lease liabilities. (iv) Current assets include indemnification assets for tax contingencies at fair value for an amount of $11 million - see (v) below. (v) The fair value of trade receivables acquired was $17 million . (vi) Other liabilities include the fair value of certain possible tax contingent liabilities for $1 million and a deferred tax liability of $50 million resulting from the above adjustments |
Disclosure of valuation methods and key estimates | The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets: Major class of assets Valuation method Key assumption 1 Key assumption 2 Key assumption 3 Spectrum Market approach - Market comparable transactions Discount rate: 9.8% Terminal growth rate: 2.9% Estimated duration: 17 years Customer lists Income approach - Multi-Period Excess Earnings Method Discount rate: 9.8-11% Monthly Churn rate: From 0.4% for B2C postpaid to 3.9% for B2C prepaid EBITDA margin: ~ 35% to 39% The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets: Major class of assets Valuation method Key assumption 1 Key assumption 2 Key assumption 3 Spectrum Market approach - Market comparable transactions Discount rate : 14% Terminal growth rate: 2.5% Estimated duration: 14 years Customer lists Income approach - Multi-Period Excess Earnings Method Discount rate: 14-15% Monthly Churn rate: From 1.2% for B2B to 2.9% for B2C EBITDA margin: ~ 36% to 41% Land and buildings Market approach Economic useful life (range): 10-30 years Price per square meter: from $2 to $57 N/A Core network Cost approach Economic useful life (range): 5-27 years Remaining useful life (minimum) : 1.7 years N/A The following valuation methods and key estimates were used for the valuation of the main classes of fixed assets: Major class of assets Valuation method Key assumption 1 Key assumption 2 Key assumption 3 Brands Income approach - Relief-from-Royalty approach Discount rate: 10% Royalty rate: 4.5% Tax rate: 25% Customer lists Income approach - Multi-Period Excess Earnings Method Discount rate: 10% Yearly Churn rate: 5.8% in average EBITDA margin: ~ 48% Property, plant & equipment Cost approach Economic useful life (range): 5-15 years Remaining useful life (minimum): 2-8 years N/A |
Disclosure of interests in joint ventures | Our main joint ventures are as follows: Entity Country Activity December 31, 2019 % holding December 31, 2018 % holding Comunicaciones Celulares S.A(i). Guatemala Mobile, MFS 55 55 Navega.com S.A.(i) Guatemala Cable, DTH 55 55 Telefonica Celular S.A(i). Honduras Mobile, MFS 66.7 66.7 Navega S.A. de CV(i) Honduras Cable 66.7 66.7 Bharti Airtel Ghana Holdings B.V. Ghana Mobile, MFS 50 50 (i) Millicom owns more than 50% of the shares in these entities and has the right to nominate a majority of the directors of each of these entities. However, key decisions over the relevant activities must be taken by a supermajority vote. This effectively gives either shareholder the ability to veto any decision and therefore neither shareholder has sole control over the entity. Therefore, the operations of these joint ventures are accounted for under the equity method. The carrying values of Millicom’s investments in joint ventures were as follows: Carrying value of investments in joint ventures at December 31 % 2019 2018 (US$ millions) Honduras operations(i) 66.7 708 730 Guatemala operations(i) 55 2,089 2,104 AirtelTigo Ghana operations 50 — 32 Total 2,797 2,867 (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, 2018 2,145 726 96 Adjustments on adoption of IFRS 15 and IFRS 9 (net of tax) 18 5 0 Change in scope — — 0 Results for the year 131 23 (68 ) Capital increase — 3 — Dividends declared during the year (177 ) — — Currency exchange differences (14 ) (26 ) 3 Closing balance at December 31, 2018 2,104 730 32 Accounting policy changes — — — Capital increase — — 5 Results for the year 152 27 (40 ) Utilization of past recognized losses — — (5 ) Dividends declared during the year (170 ) (37 ) — Currency exchange differences 2 (12 ) 8 Closing balance at December 31, 2019 2,089 708 — (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, 2019 , 2018 and 2017 of the Guatemala and Honduras operations is as follows. This information is based on amounts before inter-company eliminations. Guatemala 2019 2018 2017 (US$ millions) Revenue 1,434 1,373 1,328 Depreciation and amortization (313 ) (283 ) (295 ) Operating profit(i) 429 387 352 Financial income (expenses), net (66 ) (56 ) (60 ) Profit before taxes 356 309 305 Charge for taxes, net (79 ) (69 ) (74 ) Profit for the year 277 240 230 Net profit for the year attributable to Millicom 152 131 126 Dividends and advances paid to Millicom 209 211 162 Total non-current assets (excluding goodwill) 2,517 2,280 2,406 Total non-current liabilities 1,216 981 1,052 Total current assets 717 718 756 Total current liabilities 251 221 220 Total net assets 1,767 1,796 1,890 Group's share in % 55 % 55 % 55 % Group's share in USD millions 972 988 1,040 Goodwill and consolidation adjustments 1,117 1,116 1,106 Carrying value of investment in joint venture 2,089 2,104 2,145 Cash and cash equivalents 189 217 303 Debt and financing – non-current 1,152 928 995 Debt and financing – current 21 — — Net cash from operating activities 588 545 498 Net cash from (used in) investing activities (205 ) (173 ) (171 ) Net cash from (used in) financing activities (412 ) (455 ) (315 ) Exchange impact on cash and cash equivalents, net 1 (3 ) 2 Net increase in cash and cash equivalents (28 ) (86 ) 14 (i) In 2017, operating profit included a provision for impairment of $10 million on the fixed assets related to video surveillance contracts with the Civil National Police. Guatemala financing In 2014, Intertrust SPV (Cayman) Limited, acting as trustee of the Comcel Trust, a trust established and consolidated by Comcel for the purposes of the transaction, issued $800 million 6.875% Senior Notes to refinance existing local and MIC S.A. corporate debt. The bond was issued at 98.233% of the principal and has an effective interest rate of 7.168% . The bond is guaranteed by Comcel and listed on the Luxembourg Stock Exchange. Honduras 2019 2018 2017 (US$ millions) Revenue 594 586 585 Depreciation and amortization (132 ) (133 ) (156 ) Operating profit 102 91 70 Financial income (expenses), net (37 ) (29 ) (27 ) Profit before taxes 60 52 41 Charge for taxes, net (21 ) (18 ) (18 ) Profit for the year 39 34 23 Net profit for the year attributable to Millicom 27 23 15 Dividends and advances paid to Millicom 28 32 40 Total non-current assets (excluding goodwill) 516 506 576 Total non-current liabilities 469 386 407 Total current assets 312 304 208 Total current liabilities 183 226 282 Total net assets 176 198 95 Group's share in % 66.7 % 66.7 % 66.7 % Group's share in USD millions 117 132 63 Goodwill and consolidation adjustments 591 598 663 Carrying value of investment in joint venture 708 730 726 Cash and cash equivalents 40 25 16 Debt and financing – non-current 384 298 308 Debt and financing – current 39 85 80 Net cash from operating activities 169 147 152 Net cash from (used in) investing activities (77 ) (87 ) (74 ) Net cash from (used in) financing activities (77 ) (50 ) (74 ) Net (decrease) increase in cash and cash equivalents 15 9 3 AirtelTigo Ghana 2019 2018 2017 (US$ millions) (US$ millions) (US$ millions) Revenue 142 187 58 Depreciation and amortization (69 ) (110 ) (11 ) Operating loss (72 ) (100 ) (1 ) Financial income (expenses), net (77 ) (42 ) (10 ) Loss before taxes (123 ) (135 ) (12 ) Charge for taxes, net — — — Loss for the period (123 ) (135 ) (12 ) Net loss for the period attributable to Millicom (40 ) (68 ) (6 ) Dividends and advances paid to Millicom — — — Total non-current assets (excluding goodwill) 168 277 184 Total non-current liabilities 245 277 214 Total current assets 42 71 60 Total current liabilities 187 134 106 Total net assets (223 ) (63 ) (76 ) Group's share in % 50 % 50 % 50 % Group's share in USD millions (111 ) (31 ) (38 ) Goodwill and consolidation adjustments 90 63 134 Unrecognised losses (22 ) 0 0 Carrying value of investment in joint venture — 32 96 Cash and cash equivalents 5 19 15 Debt and financing – non-current 245 276 145 Debt and financing – current 27 17 — Net cash from operating activities (5 ) (19 ) 13 Net cash from (used in) investing activities — (8 ) — Net cash from (used in) financing activities (6 ) 42 (3 ) Net increase in cash and cash equivalents (11 ) 15 10 |
Disclosure of interests in associates | The Group’s associates are as follows: December 31, 2019 December 31, 2018 Entity Country Activity(ies) % holding % holding Africa Helios Towers Africa Ltd (HTA)(i) Mauritius Holding of Tower infrastructure company — 22.83 Africa Internet Holding GmbH (AIH)(i) Germany Online marketplace, retail and services — 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 11.4 12.3 (i) See note C.7.3. . At December 31, 2019 and 2018 , the carrying value of Millicom’s main associates was as follows: Carrying value of investments in associates at December 31 2019 2018 (US$ millions) African Internet Holding GmbH (AIH) — 38 Helios Tower Africa Ltd (HTA) — 105 Milvik AB 11 13 West Indian Ocean Cable Company Limited (WIOCC) 14 14 Total 25 169 |
Disclosure of summarised financial information of associates | The summarized financial information for the Group’s main material associates is provided below. Summary of statement of financial position of associates at December 31, 2018 (i) Total current assets 473 Total non-current assets 717 Total assets 1,190 Total current liabilities 343 Total non-current liabilities 627 Total liabilities 969 Total net assets 221 Millicom’s carrying value of its investment in HTA and AIH 142 Millicom’s carrying value of its investment in other associates 27 Millicom’s carrying value of its investment in associates 169 (i) The summarized financial information in 2018 includes HTA and AIH. For 2019, Millicom does not disclose such information as its remaining associates are immaterial to the Group. Profit (loss) from other joint ventures and associates In 2019, the loss shown under this caption in the statement of income mainly relates to the net losses recognised by our joint venture in Ghana. For further details refer to note A.2. . 2018 (i) 2017 (i) Revenue 511 449 Operating expenses (459 ) (321 ) Operating profit (loss) (214 ) (148 ) Net loss for the year (327 ) (220 ) Millicom’s share of results from HTA and AIH (66 ) (34 ) Millicom’s share of results from other associates (2 ) (45 ) 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 ) (i) The summarized financial information in 2018 and 2017 includes HTA and AIH. For 2019, Millicom does not disclose such information as its remaining associates are immaterial to the Group. |
Performance (Tables)
Performance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of revenue | Revenue from continuing operations by category 2019 2018 2017 (US$ millions) Mobile 2,150 2,126 2,147 Cable and other fixed services 1,928 1,565 1,551 Other 52 43 38 Service revenue 4,130 3,734 3,737 Telephone and equipment and other 206 212 199 Total revenue 4,336 3,946 3,936 Revenue from continuing operations by country or operation (i) 2019 2018 2017 (US$ millions) Colombia 1,532 1,661 1,739 Paraguay 609 679 662 Bolivia 639 614 555 El Salvador 386 405 422 Tanzania 382 399 384 Nicaragua 157 13 13 Costa Rica 153 155 153 Panama 475 17 — Other operations 2 5 7 Total 4,336 3,946 3,936 (i) The revenue figures above are shown after intercompany eliminations. Revenue from contracts with customers from continuing operations: Twelve months ended December 31, 2019 Twelve months ended December 31, 2018 $ millions Timing of revenue recognition Latin America Africa Total Group Latin America Africa Total Group Mobile Over time 1,747 261 2,007 1,701 280 1,981 Mobile Financial Services Point in time 31 112 143 37 108 145 Cable and other fixed services Over time 1,919 9 1,928 1,556 10 1,565 Other Over time 51 1 52 42 1 43 Service Revenue 3,748 382 4,130 3,336 398 3,734 Telephone and equipment Point in time 206 — 206 212 — 212 Revenue from contracts with customers 3,954 382 4,336 3,548 399 3,946 |
Disclosure of cost of sales | The cost of sales and operating expenses incurred by the Group can be summarized as follows: Cost of sales 2019 2018 2017 (US$ millions) Direct costs of services sold (878 ) (799 ) (881 ) Cost of telephone, equipment and other accessories (230 ) (229 ) (217 ) Bad debt and obsolescence costs (93 ) (90 ) (71 ) Cost of sales (1,201 ) (1,117 ) (1,169 ) |
Disclosure of operating expenses | Operating expenses, net 2019 2018 2017 (US$ millions) Marketing expenses (402 ) (391 ) (448 ) Site and network maintenance costs (245 ) (192 ) (178 ) Employee related costs (B.4.) (496 ) (500 ) (434 ) External and other services (204 ) (181 ) (163 ) Rentals and (operating) leases (i) (1 ) (152 ) (151 ) Other operating expenses (257 ) (201 ) (156 ) Operating expenses, net (1,604 ) (1,616 ) (1,531 ) (i) Decrease is due to IFRS 16 application - see further explanations above in "New and amended IFRS accounting standards" section |
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 2019 2018 2017 (US$ millions) Income from tower deal transactions C.3.4. 5 61 63 Impairment of intangible assets and property, plant and equipment E.1., E.2. (8 ) (6 ) (12 ) Gain (loss) on disposals of intangible assets and property, plant and equipment — 7 1 Loss on disposal of equity investments C.7.3. (32 ) — — Other income (expenses) 1 13 17 Other operating income (expenses), net (34 ) 75 69 |
Disclosure of operating segments | Revenue, operating profit (loss), EBITDA and other segment information for the years ended December 31, 2019 , 2018 and 2017 , were as follows: Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2019 Mobile revenue 3,258 372 — (1,480 ) — 2,150 Cable and other fixed services revenue 2,197 9 — (277 ) — 1,928 Other revenue 60 1 — (8 ) — 52 Service revenue (i) 5,514 382 — (1,766 ) — 4,130 Telephone and equipment and other revenue (i) 449 — — (243 ) — 206 Revenue 5,964 382 — (2,009 ) — 4,336 Operating profit (loss) 1,006 24 (94 ) (540 ) 179 575 Add back: Depreciation and amortization 1,435 99 9 (444 ) — 1,100 Share of profit in joint ventures in Guatemala and Honduras — — — — (179 ) (179 ) Other operating income (expenses), net 2 (2 ) 42 (8 ) — 34 EBITDA (ii) 2,443 122 (43 ) (992 ) — 1,530 EBITDA from discontinued operations — (3 ) — — — (3 ) EBITDA incl discontinued operations 2,443 119 (43 ) (992 ) — 1,527 Capital expenditure (iii) (1,040 ) (58 ) (9 ) 261 — (846 ) Changes in working capital and others (iv) (86 ) 14 (52 ) (18 ) — (143 ) Taxes paid (225 ) (10 ) (8 ) 129 — (114 ) Operating free cash flow (v) 1,093 64 (112 ) (619 ) — 425 Total Assets (vi) 13,821 936 3,715 (5,465 ) (151 ) 12,856 Total Liabilities 8,374 909 3,977 (2,119 ) (965 ) 10,176 Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2018 (viii) Mobile revenue 3,214 388 — (1,475 ) — 2,126 Cable and other fixed services revenue 1,808 10 — (253 ) — 1,565 Other revenue 48 1 — (6 ) — 43 Service revenue (i) 5,069 398 — (1,734 ) — 3,734 Telephone and equipment revenue (i) 415 — — (203 ) — 212 Revenue 5,485 399 — (1,937 ) — 3,946 Operating profit (loss) 995 25 (47 ) (488 ) 154 640 Add back: Depreciation and amortization 1,133 80 5 (416 ) — 803 Share of profit in joint ventures in Guatemala and Honduras — — — — (154 ) (154 ) Other operating income (expenses), net (51 ) (3 ) (2 ) (19 ) — (75 ) EBITDA (ii) 2,077 102 (44 ) (922 ) — 1,213 EBITDA from discontinued operations — 44 — — — 44 EBITDA incl discontinued operations 2,077 146 (44 ) (922 ) — 1,257 Capital expenditure (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) 11,751 839 2,752 (5,219 ) 190 10,313 Total Liabilities 6,127 905 2,953 (1,814 ) (650 ) 7,521 Latin America Africa Unallocated Guatemala and Honduras(vii) Eliminations and Total (US$ millions) Year ended December 31, 2017 (viii) Mobile revenue 3,283 374 — (1,510 ) — 2,147 Cable and other fixed services revenue 1,755 9 — (213 ) — 1,551 Other revenue 40 2 — (4 ) — 38 Service revenue (i) 5,078 385 — (1,727 ) — 3,737 Telephone and equipment revenue (i) 363 1 — (165 ) — 199 Total Revenue 5,441 386 — (1,892 ) — 3,936 Operating profit (loss) 899 28 (5 ) (431 ) 140 632 Add back: Depreciation and amortization 1,174 81 6 (450 ) — 812 Share of profit in joint ventures in Guatemala and Honduras — — — — (140 ) (140 ) Other operating income (expenses), net (49 ) (11 ) 10 (18 ) — (69 ) EBITDA (ii) 2,024 97 12 (898 ) — 1,236 EBITDA from discontinued operations — 115 — — — 115 EBITDA incl discontinued operations 2,024 212 12 (898 ) — 1,351 Capital expenditure (iii) (855 ) (99 ) (1 ) 237 — (718 ) Changes in working capital and others (iv) (53 ) (6 ) (10 ) 27 — (43 ) Taxes paid (239 ) (18 ) 1 124 — (132 ) Operating free cash flow (v) 877 89 2 (511 ) 1 459 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 (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 recurring revenues. The Group derives revenue from the transfer of goods and services over time and at a point in time. Refer to the table below. (ii) EBITDA is operating profit excluding impairment losses, depreciation and amortization and gains/losses on the disposal of fixed assets. EBITDA is used by the management to monitor the segmental performance and for capital management. For the year ended December 31, 2019 , the application of IFRS 16 had a positive impact on EBITDA as compared to what our results would have been if we had continued to follow the IAS 17 standard . (iii) Cash spent for capex excluding spectrum and licenses of $59 million ( 2018 : $61 million ; 2017 : $53 million ) and cash received on tower deals of $22 million ( 2018 : $141 million ; 2017 : $161 million ). (iv) Changes in working capital and others include changes in working capital as stated in the cash flow statement, as well as share-based payments expense and non-cash bonuses. (v) Operating Free Cash Flow is EBITDA less cash capex (excluding spectrum and license costs) less change in working capital, other non-cash items (share-based payment expense and non-cash bonuses) and taxes paid. (vi) Segment assets include goodwill and other intangible assets. (vii) Including eliminations for Guatemala and Honduras as reported in the Latam segment. (viii) Restated as a result of classification of certain of our African operations as discontinued operations (see notes A.4. and E.4. ). |
Disclosure of number of permanent employees | Number of permanent employees 2019 2018 2017 Continuing operations(i) 17,687 16,725 14,134 Joint ventures (Guatemala, Honduras and Ghana) 4,688 4,416 4,326 Discontinued operations — 262 667 Total 22,375 21,403 19,127 (i) Emtelco headcount are excluded from this disclosure and any internal reporting because their costs are classified as direct costs and not employee related costs. |
Disclosure of employee related costs | Notes 2019 2018 2017 (US$ millions) Wages and salaries (358 ) (346 ) (308 ) Social security (68 ) (60 ) (56 ) Share based compensation B.4.1. (27 ) (21 ) (22 ) Pension and other long-term benefit costs B.4.2. (4 ) (7 ) (8 ) Other employees related costs (39 ) (67 ) (41 ) Total (496 ) (500 ) (434 ) |
Disclosure of cost of share-based compensation | Cost of share based compensation 2019 2018 2017 (US$ millions) 2016 incentive plans — (4 ) (6 ) 2017 incentive plans (7 ) (8 ) (12 ) 2018 incentive plans (8 ) (11 ) — 2019 incentive plans (14 ) — — Total share based compensation (27 ) (21 ) (22 ) |
Disclosure of assumptions and fair value of the shares under the TSR portion | Assumptions and fair value of the shares under the TSR portion(s) Risk-free Dividend yield % Share price volatility(i) % Award term (years) Share fair value (in US$) Performance share plan 2019 (Relative TSR) (0.24 ) 3.01 26.58 2.93 49.79 Performance share plan 2018 (Relative TSR) (0.39 ) 3.21 30.27 2.93 57.70 Performance share plan 2017 (Relative TSR) (0.40 ) 3.80 22.50 2.92 27.06 Performance share plan 2017 (Absolute TSR) (0.40 ) 3.80 22.50 2.92 29.16 Performance share plan 2016 (Relative TSR) (0.65 ) 3.49 30.00 2.61 43.35 Performance share plan 2016 (Absolute TSR) (0.65 ) 3.49 30.00 2.61 45.94 Performance share plan 2015 (Absolute TSR) (0.32 ) 2.78 23.00 2.57 32.87 Executive share plan 2015 – Component A (0.32 ) N/A 23.00 2.57 53.74 Executive share plan 2015 – Component B (0.32 ) N/A 23.00 2.57 29.53 (i) Historical volatility retained was determined on the basis of a three-year historic average. |
Disclosure of plan awards and shares expected to vest | Plan awards and shares expected to vest 2019 plans 2018 plans 2017 plans 2016 plans Performance plan Deferred plan Performance plan Deferred plan Performance plan Deferred plan Performance plan Deferred plan (number of shares) Initial shares granted 257,601 320,840 237,196 262,317 279,807 438,505 200,617 287,316 Additional shares granted(i) — 20,131 — 3,290 2,868 29,406 — — Revision for forfeitures (17,182 ) (9,198 ) (27,494 ) (26,860 ) (40,946 ) (88,437 ) (49,164 ) (78,253 ) Revision for cancellations — — (4,728 ) — — — — — Total before issuances 240,419 331,773 204,974 238,747 241,729 379,474 151,453 209,063 Shares issued in 2017 — — — — — (2,686 ) (1,214 ) (1,733 ) Shares issued in 2018 — — (97 ) (18,747 ) (2,724 ) (99,399 ) (752 ) (43,579 ) Shares issued in 2019 (150 ) (24,294 ) (3,109 ) (54,971 ) (19,143 ) (82,486 ) (149,487 ) (163,751 ) Shares still expected to vest 240,269 307,479 201,768 165,029 219,862 194,903 — — Estimated cost over the vesting period (US$ millions) 11 18 12 14 10 20 8 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) 2019 2018 2017 (US$ ’000) Chairperson 366 169 233 Other members of the Board 1,557 774 889 Total (i) 1,923 943 1,122 (i) Cash compensation converted from SEK to USD at exchange rates on payment dates for 2017 and 2018, in 2019 cash compensation was denominated in USD. Share based compensation based on the market value of Millicom shares on the corresponding AGM date ( 2019 : in total 19,483 shares; 2018 : in total 6,591 shares; 2017 : in total 8,731 shares). Net remuneration comprised 73% in shares and 27% in cash (SEK) ( 2018 : 51% in shares and 49% in cash; 2017 : 52% in shares and 48% in cash). |
Disclosure of shares beneficially owned by directors | Shares beneficially owned by the Directors 2019 2018 (number of shares) Chairperson 5,814 8,554 Other members of the Board 32,279 15,333 Total (i) 38,093 23,887 |
Disclosure of executive team renumeration charge | Remuneration charge for the Executive Team CEO CFO Executive Team (8 members)(iii) (US$ ’000) 2019 Base salary 1,167 654 3,498 Bonus 1,428 626 2,098 Pension 279 98 798 Other benefits 50 260 1,521 Termination benefits — — 863 Total before share based compensation 2,924 1,639 8,779 Share based compensation(i)(ii) in respect of 2019 LTIP 5,625 1,576 5,965 Total 8,549 3,215 14,743 Remuneration charge for the Executive Team CEO CFO Executive Team (9 members) (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 (US$ ’000) 2017 Base salary 1,000 648 3,822 Bonus 707 455 1,590 Pension 150 97 628.5 Other benefits 64 15 1,192.5 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 (i) See note B.4.1. (ii) Share awards of 102,122 and 135,480 were granted in 2019 under the 2019 LTIPs to the CEO, and Executive Team ( 2018 : 80,264 and 112,472 , respectively; 2017 : 61,724 and 167,371 , respectively). (iii) Other Executives’ compensation includes Daniel Loria, former CHRO and Rodrigo Diehl, EVP Strategy. |
Disclosure of vested and unvested share awards beneficially granted to the Executive team | CEO Executive team Total (number of shares) 2019 Share ownership (vested from equity plans and otherwise acquired) 190,577 136,306 326,883 Share awards not vested 236,211 334,193 570,404 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 |
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, 2019 2018 2017 (US$ millions) Change in fair value of derivatives (see note C.7.2.) — (1 ) (22 ) Change in fair value in investment in Jumia (C.7.3.) (38 ) — — Change in fair value in investment in HT (C.7.3.) 312 — — Change in value of put option liability (C.7.4.) (25 ) — — Exchange gains (losses), net (32 ) (40 ) 21 Other non-operating income (expenses), net 10 2 — Total 227 (39 ) (2 ) |
Disclosure of income tax charge | Income tax charge 2019 2018 2017 (US$ millions) Income tax (charge) credit Withholding tax (56 ) (64 ) (74 ) Other income tax relating to the current year (88 ) (82 ) (81 ) Adjustments in respect of prior years (7 ) 1 (21 ) Total (151 ) (145 ) (176 ) Deferred tax (charge) credit Origination and reversal of temporary differences 58 32 15 Effect of change in tax rates (8 ) (10 ) 19 Tax income (expense) before valuation allowances 50 22 34 Effect of valuation allowances (9 ) (8 ) (28 ) Total 41 14 6 Adjustments in respect of prior years (10 ) 19 8 31 33 14 Tax (charge) credit on continuing operations (120 ) (112 ) (162 ) Tax (charge) credit on discontinuing operations (2 ) (4 ) 4 Total tax (charge) credit (122 ) (116 ) (158 ) |
Disclosure of income tax calculation | Income tax calculation 2019 2018 2017 Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total (US$ millions) Profit before tax 218 59 277 119 (29 ) 90 171 56 227 Tax at the weighted average statutory rate (37 ) (11 ) (48 ) (1 ) — (1 ) (10 ) (12 ) (22 ) Effect of: Items taxed at a different rate (1 ) — (1 ) 7 — 7 (11 ) — (11 ) Change in tax rates on deferred tax balances (8 ) — (8 ) (10 ) — (10 ) 19 — 19 Expenditure not deductible and income not taxable (37 ) 9 (28 ) (59 ) (2 ) (61 ) (64 ) 5 (59 ) Unrelieved withholding tax (56 ) — (56 ) (64 ) — (64 ) (73 ) — (73 ) Accounting for associates and joint ventures 36 — 36 5 — 5 17 — 17 Movement in deferred tax on unremitted earnings 9 — 9 (2 ) — (2 ) 1 — 1 Unrecognized deferred tax assets (20 ) — (20 ) (8 ) (2 ) (10 ) (29 ) (12 ) (41 ) Recognition of previously unrecognized deferred tax assets 11 — 11 — — — 1 13 14 Adjustments in respect of prior years (17 ) — (17 ) 20 — 20 (13 ) 10 (3 ) Total tax (charge) credit (120 ) (2 ) (122 ) (112 ) (4 ) (116 ) (162 ) 4 (158 ) Weighted average statutory tax rate 17.0 % 17.3 % 0.8 % 1.1 % 5.8 % 9.7 % Effective tax rate 55.0 % 44.0 % 94.1 % 128.9 % 94.7 % 69.6 % |
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, 2017 32 52 (32 ) 72 — 124 (Charge)/credit to income statement (18 ) (3 ) (2 ) 56 — 33 Change in scope (192 ) — — 8 — (184 ) Accounting policy changes — — — 4 — 4 Exchange differences — (5 ) — (6 ) — (11 ) Balance at December 31, 2018 (178 ) 44 (34 ) 134 — (34 ) Deferred tax assets 76 44 — 134 (52 ) 202 Deferred tax liabilities (254 ) — (34 ) — 52 (236 ) Balance at December 31, 2018 (178 ) 44 (34 ) 134 — (34 ) (Charge)/credit to income statement 41 (15 ) 8 (3 ) — 31 Change in scope (82 ) 5 — 4 — (73 ) Transfers to assets held for sale — — — (3 ) — (3 ) Exchange differences 2 — — (2 ) — — Balance at December 31, 2019 (217 ) 34 (26 ) 130 — (79 ) Deferred tax assets 84 34 — 134 (52 ) 200 Deferred tax liabilities (301 ) — (26 ) (4 ) 52 (279 ) Balance at December 31, 2019 (217 ) 34 (26 ) 130 — (79 ) Deferred tax assets have not been recognized in respect of the following deductible temporary differences: Fixed assets Unused tax losses Other Total (US$ millions) At December 31, 2019 92 4,705 126 4,923 At December 31, 2018 92 4,886 134 5,112 |
Disclosure of unrecognized loss carryforwards | Unrecognized tax losses carryforward related to continuing operations expire as follows: 2019 2018 2017 (US$ millions) Expiry: Within one year 1 0 39 Within one to five years 2 3 494 After five years 493 493 — No expiry 4,209 4,390 4,311 Total 4,705 4,886 4,844 |
Disclosure of earnings per share | Net profit/(loss) used in the earnings (loss) per share computation 2019 2018 2017 (US$ millions) Basic and Diluted Net profit (loss) attributable to equity holders from continuing operations 93 23 28 Net profit (loss) attributable to equity holders from discontinuing operations 57 (33 ) 59 Net profit attributable to all equity holders to determine the basic earnings (loss) per share 149 (10 ) 87 Weighted average number of shares in the earnings (loss) per share computation 2019 2018 2017 (thousands of shares) Weighted average number of ordinary shares (excluding treasury shares) for basic earnings (loss) per share 101,144 100,793 100,384 Potential incremental shares as a result of share options — — Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution 101,144 100,793 100,384 |
Capital structure and financi_2
Capital structure and financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |
Disclosure of share capital, share premium | Share capital, share premium 2019 2018 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) 480 482 Total (US$ millions) 633 635 |
Disclosure of other equity reserves | Other equity reserves Legal reserve Equity settled transaction reserve Hedge reserve Currency translation reserve Pension obligation reserve Total (US$ millions) As of January 1, 2017 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 46 — (531 ) (3 ) (472 ) Share based compensation — 22 — — — 22 Issuance of shares –2015, 2016, 2017 LTIPs — (22 ) — — — (22 ) Cash flow hedge reserve movement — — (1 ) — — 1 Currency translation reserved recycled to statement of income — — — — — — Currency translation movement — — — (68 ) — (67 ) As of December 31, 2018 16 47 (1 ) (599 ) (3 ) (538 ) Share based compensation — 29 — — — 29 Issuance of shares –2016, 2017, 2018, 2019 LTIPs — (25 ) — — — (25 ) Cash flow hedge reserve movement — — (16 ) — — (16 ) Currency translation movement — — — (2 ) — (2 ) Effect of restructuring in Tanzania — — — 9 — 9 As of December 31, 2019 16 52 (18 ) (593 ) (2 ) (544 ) |
Disclosure of detailed information about borrowings | Debt and financing by type (i) Note 2019 2018 (US$ millions) Debt and financing due after more than one year Bonds C.3.1. 4,067 2,501 Banks C.3.2. 1,805 1,324 Finance leases (ii) C.3.4. — 353 Other financing (iii) 43 113 Total non-current financing 5,915 4,291 Less: portion payable within one year (129 ) (168 ) Total non-current financing due after more than one year 5,786 4,123 Debt and financing due within one year Bonds C.3.1. 46 — Banks C.3.2. 11 289 Total current debt and financing 57 289 Add: portion of non-current debt payable within one year 129 168 Total 186 458 Total debt and financing 5,972 4,580 (i) See note D.1.1 for further details on maturity profile of the Group debt and financing. (ii) Finance lease liabilities were included in Debt and Financing until 31 December 2018, but were reclassified to lease liabilities on January 1, 2019 when adopting the new leasing standard. See above in the "New and amended IFRS accounting standards" and below in notes C.4. and E.4. for further information about the change in accounting policy for leases. (iii) In July 2018, the Company issued a COP 144,054.5 million / $50 million bilateral facility with IIC (Inter-American Development Bank) for a USD indexed to COP Note. The note bears interest at 9.450% p.a.. This COP Note is used as net investment hedge of the net assets of our operations in Colombia. Debt and financing by location 2019 2018 (US$ millions) Millicom International Cellular S.A. (Luxembourg) 2,773 1,770 Colombia 827 1,016 Paraguay 502 504 Bolivia 350 317 Panama 918 261 Tanzania 186 201 Chad — 64 Costa Rica 148 148 El Salvador 268 299 Total debt and financing 5,972 4,580 Bond financing Note Country Maturity Interest Rate % 2019 2018 (US$ millions) SEK Variable Rate Notes 1 Luxembourg 2024 STIBOR (i) + 2.350% 211 — USD 6.625% Senior Notes 2 Luxembourg 2026 6.625 % 495 495 USD 6.000% Senior Notes 3 Luxembourg 2025 6.000 % 492 491 USD 6.250% Senior Notes 4 Luxembourg 2029 6.250 % 742 — USD 5.125% Senior Notes 5 Luxembourg 2028 5.125 % 492 493 USD 6.750% Senior Notes 6 Paraguay 2022 6.750 % — 297 USD 5.875% Senior Notes 6 Paraguay 2027 5.875 % 296 — PYG 9.250% Notes 6 Paraguay 2026 9.250 % 2 — PYG 8.750% Notes (tranche A) 6 Paraguay 2024 8.750 % 18 — PYG 9.250% Notes (tranche B) 6 Paraguay 2026 9.250 % 8 — PYG 10.000% Notes (tranche C) 6 Paraguay 2029 10.000 % 10 — PYG 10.000% Notes 6 Paraguay 2029 10.000 % 4 — BOB 4.750% Notes 7 Bolivia 2020 4.750 % 30 59 BOB 4.050% Notes 7 Bolivia 2020 4.050 % 4 7 BOB 4.850% Notes 7 Bolivia 2023 4.850 % 57 71 BOB 3.950% Notes 7 Bolivia 2024 3.950 % 36 43 BOB 4.300% Notes 7 Bolivia 2029 4.300 % 21 23 BOB 4.300% Notes 7 Bolivia 2022 4.300 % 26 30 BOB 4.700% Notes 7 Bolivia 2024 4.700 % 32 35 BOB 5.300% Notes 7 Bolivia 2026 5.300 % 13 13 BOB 5.000% Notes 7 Bolivia 2026 5.000 % 61 0 BOB 4.600% Notes 7 Bolivia 2024 4.600 % 40 0 UNE Bond 1 (tranches A and B) 8 Colombia 2020 CPI + 5.10% 46 46 UNE Bond 2 (tranches A and B) 8 Colombia 2023 CPI + 4.76% 46 46 UNE Bond 3 (tranche A) 8 Colombia 2024 9.350 % 49 49 UNE Bond 3 (tranche B) 8 Colombia 2026 CPI+4.15% 78 78 UNE Bond 3 (tranche C) 8 Colombia 2036 CPI+4.89% 38 39 USD 4.500% Senior Notes 9 Panama 2030 4.500 % 584 — Cable Onda Bonds 5.750% 9 Panama 2025 5.750 % 184 184 Total bond financing 4,113 2,501 (i) STIBOR – Swedish Interbank Offered Rate. Bank and Development Financial Institution financing Note Country Maturity range Interest rate 2019 2018 (US$ millions) Fixed rate loans PYG Long-term loans 1 Paraguay 2020-2026 Fixed 166 180 USD - Long-term loans 2 Panama 2024 Fixed 150 24 BOB Long-term loans 3 Bolivia 2023-2025 Fixed 31 20 Variable rate loans USD Long-term loans 4 Costa Rica 2023 Variable 148 148 USD Long-term loans Chad 2019 Variable — 1 USD Long-term loans 5 Tanzania 2020-2025 Variable 171 90 TZS Long-term loans 5 Tanzania 2025 Variable 14 — USD Short-term loans 8 Luxembourg 2019 Variable — 250 USD Long-term loans 8 Luxembourg 2024 Libor + 3.00% 298 — COP Long-term loans 6 Colombia 2025-2030 Variable 274 277 USD Long-term loans 6 Colombia 2024 Variable 295 298 USD Credit Facility / Senior Unsecured Term Loan Facility 7 El Salvador 2021-2023 Variable 268 274 Other Long-term loans Various Various — 51 Total Bank and Development Financial Institution financing 1,817 1,613 |
Disclosure of interest and other financial expenses | Interest and other financial expenses The Group’s interest and other financial expenses comprised the following: Year ended December 31, 2019 2018 2017 (US$ millions) Interest expense on bonds and bank financing (348 ) (234 ) (246 ) Interest expense on (finance) leases (157 ) (91 ) (65 ) Early redemption charges (10 ) (4 ) (43 ) Others (47 ) (37 ) (35 ) Total interest and other financial expenses (564 ) (367 ) (389 ) |
Disclosure of contingent liabilities | Maturity of guarantees At December 31, 2019 At December 31, 2018 Terms Outstanding exposure(i) Maximum exposure(ii) Outstanding exposure(i) Maximum exposure(ii) (US$ millions) 0-1 year 29 29 133 133 1-3 years 134 134 281 281 3-5 years 300 300 212 212 Total 464 464 626 626 (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. |
Disclosure of leases | The expenses relating to payments not included in the measurement of the lease liability are disclosed in operating expenses (note B.3.) and are as follows: 2019 (US$ millions) Expense relating to short-term leases (included in cost of sales and operating expenses) (5 ) As a result of the adoption of IFRS 16 'Leases', and as of December 31, 2019 (see above in the "New and amended IFRS accounting standards") lease liabilities are presented in the statement of financial position as follows: December 31, 2019 (US$ millions) Current 97 Non Current 967 Total Lease liability 1,063 |
Disclosure of finance lease liabilities | Finance lease liabilities at December 31, 2018 Country Maturity 2018 (US$ millions) Lease of tower space Tanzania 2029/2030 112 Lease of tower space Colombia Movil 2032 83 Lease of poles Colombia (UNE) 2032 99 Lease of tower space Paraguay 2030 27 Lease of tower space El Salvador 2026 26 Other finance lease liabilities various various 6 Total finance lease liabilities 353 |
Schedule of cash and cash equivalents | 2019 2018 (US$ millions) Cash and cash equivalents in USD 834 229 Cash and cash equivalents in other currencies 330 299 Total cash and cash equivalents 1,164 528 |
Schedule of restricted cash | 2019 2018 (US$ millions) Mobile Financial Services 150 155 Others 5 3 Restricted cash 155 158 |
Disclosure of net debt | Net financial obligations (i) 2019 2018 (US$ millions) Total debt and financing (i) 5,972 4,580 Lease liabilities (i) 1,063 — Gross financial obligations 7,036 4,580 Less: Cash and cash equivalents (1,164 ) (528 ) Pledged deposits (1 ) (2 ) Time deposits related to bank borrowings (1 ) — Net financial obligations at the end of the year 5,870 4,051 Add (less) derivatives related to debt (note D.1.2.) (17 ) — Net financial obligations including derivatives related to debt 5,853 4,051 (i) As at December 31, 2018 , Debt and financing included finance lease liabilities of $353 million . As at December 31, 2019 , and as a result of the application of IFRS 16, these are now shown in a separate line under Lease liabilities. Assets Liabilities from financing activities Cash and cash equivalents Other Bond and bank debt and financing Finance lease liabilities(i) Lease liabilities(i) Total Net financial obligations as at January 1, 2018 619 2 3,420 365 — 3,164 Cash flows (72 ) — 621 (17 ) — 676 Scope Changes 7 — 267 — — 260 Additions/ acquisitions — — — 44 — 44 Interest accretion — — 11 — — 11 Foreign exchange movements (33 ) — (84 ) (21 ) — (72 ) Transfers to/from assets held for sale 6 — 9 (8 ) — (4 ) Transfers — — 3 (11 ) — (9 ) Other non-cash movements — — (19 ) — — (19 ) Net financial obligations as at December 31, 2018 528 2 4,227 353 — 4,051 Cash flows 638 — 1,743 — (107 ) 998 Scope changes 16 — 74 — 178 236 Recognition / Remeasurement — — — — 109 109 Change in accounting policy — — — — 545 545 Interest accretion — — 8 — — 8 Foreign exchange movements (8 ) — (16 ) — (6 ) (14 ) Transfers to/from assets held for sale (9 ) — (53 ) — (8 ) (52 ) Transfers — — 3 (353 ) 353 3 Other non-cash movements — — (14 ) — — (14 ) Net financial obligations as at December 31, 2019 1,164 2 5,972 — 1,063 5,870 (i) As from January 1, 2019 and as a result of the application of IFRS 16, finance leases are now shown under lease liabilities. |
Disclosure of fair value measurement of assets | Fair values of financial instruments at December 31, Carrying value Fair value(i) Note 2019 2018 (ii) (iii) 2019 2018 (ii) (iii) (US$ millions) Financial assets Derivative financial instruments — — — — Other non-current assets 66 87 66 87 Trade receivables, net 371 343 371 343 Amounts due from non-controlling interests, associates and joint venture partners G.5. 68 73 68 73 Prepayments and accrued income 156 129 156 129 Supplier advances for capital expenditures 22 25 22 25 Equity Investment 371 — 371 — Other current assets 181 124 181 124 Restricted cash C.5.2. 155 158 155 158 Cash and cash equivalents C.5.1. 1,164 528 1,164 528 Total financial assets 2,554 1,467 2,554 1,467 Current 2,449 1,341 2,449 1,341 Non-current 104 126 104 126 Financial liabilities Debt and financing(i) C.3. 5,972 4,580 6,229 4,418 Lease liabilities 1,063 — 1,063 — Trade payables 289 282 289 282 Payables and accruals for capital expenditure 348 335 348 335 Derivative financial instruments 17 — 17 (1 ) Put option liability C.7.4. 264 239 264 239 Amounts due to non-controlling interests, associates and joint venture partners G.5. 498 483 498 483 Accrued interest and other expenses 432 381 432 381 Other liabilities 399 399 399 399 Total financial liabilities 9,282 6,698 9,538 6,536 Current 2,045 2,330 2,045 2,329 Non-current 7,237 4,370 7,493 4,208 (i) Fair values are measured with reference to Level 1 (for listed bonds) or 2. (ii) As at December 31, 2018 , Debt and financing included finance lease liabilities of $353 million . As at December 31, 2019 , and as a result of the application of IFRS 16, these are now shown in a separate line under Lease liabilities. (iii) The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2. ). |
Disclosure of fair value measurement of liabilities | Carrying value Fair value(i) Note 2019 2018 (ii) (iii) 2019 2018 (ii) (iii) (US$ millions) Financial assets Derivative financial instruments — — — — Other non-current assets 66 87 66 87 Trade receivables, net 371 343 371 343 Amounts due from non-controlling interests, associates and joint venture partners G.5. 68 73 68 73 Prepayments and accrued income 156 129 156 129 Supplier advances for capital expenditures 22 25 22 25 Equity Investment 371 — 371 — Other current assets 181 124 181 124 Restricted cash C.5.2. 155 158 155 158 Cash and cash equivalents C.5.1. 1,164 528 1,164 528 Total financial assets 2,554 1,467 2,554 1,467 Current 2,449 1,341 2,449 1,341 Non-current 104 126 104 126 Financial liabilities Debt and financing(i) C.3. 5,972 4,580 6,229 4,418 Lease liabilities 1,063 — 1,063 — Trade payables 289 282 289 282 Payables and accruals for capital expenditure 348 335 348 335 Derivative financial instruments 17 — 17 (1 ) Put option liability C.7.4. 264 239 264 239 Amounts due to non-controlling interests, associates and joint venture partners G.5. 498 483 498 483 Accrued interest and other expenses 432 381 432 381 Other liabilities 399 399 399 399 Total financial liabilities 9,282 6,698 9,538 6,536 Current 2,045 2,330 2,045 2,329 Non-current 7,237 4,370 7,493 4,208 (i) Fair values are measured with reference to Level 1 (for listed bonds) or 2. (ii) As at December 31, 2018 , Debt and financing included finance lease liabilities of $353 million . As at December 31, 2019 , and as a result of the application of IFRS 16, these are now shown in a separate line under Lease liabilities. (iii) The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2. ). |
Disclosure of investments in equity instruments | As at December 31, 2019 , Millicom has the following investments in equity instruments: 2019 2018 (US$ millions) Investment in Jumia 32 — Investment in HT 338 — Equity investment - total 371 — |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information derivatives | On December 31, 2019 and 2018 fair value of derivatives held by the Group can be summarized as follows: 2019 2018 (US$ millions) Derivatives Cash flow hedge derivatives (17 ) — Net derivative asset (liability) (17 ) — |
Disclosure of nature and extent of risks arising from financial instruments | Financing at December 31, 2019 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 118 117 118 332 431 3,428 4,543 Weighted average nominal interest rate 6.32 % 5.46 % 5.01 % 7.24 % 5.44 % 5.81 % 5.86 % Floating rate financing 68 38 27 185 654 457 1,429 Weighted average nominal interest rate 2.97 % 1.77 % 1.41 % 3.25 % 4.26 % 0.96 % 1.52 % Total 186 155 145 517 1,085 3,884 5,972 Weighted average nominal interest rate 5.10 % 4.55 % 4.34 % 5.81 % 4.73 % 5.24 % 4.82 % 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 3,116 Weighted average nominal interest rate 6.35 % 6.59 % 6.64 % 6.61 % 4.10 % 6.47 % 6.34 % Floating rate financing 318 175 266 133 263 309 1,465 Weighted average nominal interest rate 10.28 % 5.89 % 2.73 % 0.49 % 4.41 % 1.13 % 1.98 % Total 458 337 403 570 468 2,345 4,580 Weighted average nominal interest rate 9.08 % 6.23 % 4.06 % 5.18 % 4.28 % 5.76 % 4.95 % Debt denomination at December 31 2019 2018 (US$ millions) Debt denominated in US dollars 3,535 2,572 Debt denominated in currencies of the following countries Colombia 531 718 Chad — 62 Tanzania 14 112 Bolivia 350 306 Paraguay 206 207 El Salvador(i) 268 299 Panama(i) 918 261 Luxembourg (COP denominated) 43 43 Costa Rica 107 — Total debt denominated in other currencies 2,437 2,008 Total debt 5,972 4,580 (i) El Salvador's official unit of currency is the U.S. dollar, while Panama uses the U.S. dollar as legal tender. Our local debt in both countries is therefore denominated in U.S. dollars but presented as local currency (LCY). |
Disclosure of maturity analysis for derivative financial liabilities | Maturity profile of net financial liabilities at December 31, 2019 Less than 1 year 1 to 5 years >5yrs Total (US$ millions) Total debt and financing (186 ) (1,902 ) (3,884 ) (5,972 ) Lease liability (97 ) (490 ) (476 ) (1,063 ) Cash and equivalents 1,164 — — 1,164 Pledged deposits (related to back borrowings) 1 — — 1 Refundable deposit — — — — Derivative financial instruments (17 ) — — (17 ) Net cash (debt) including derivatives related to debt 865 (2,392 ) (4,361 ) (5,888 ) Future interest commitments related to debt and financing (308 ) (1,088 ) (106 ) (1,502 ) Future interest commitments related to leases (157 ) (476 ) (295 ) (928 ) Trade payables (excluding accruals) (510 ) — — (510 ) Other financial liabilities (including accruals) (1,052 ) (337 ) — (1,388 ) Derivative instruments (17 ) — — (17 ) Put option liability (264 ) — — (264 ) Trade receivables 371 — — 371 Other financial assets 602 104 — 707 Net financial liabilities (469 ) (4,189 ) (4,762 ) (9,420 ) Maturity profile of net financial liabilities at December 31, 2018 Less than 1 year 1 to 5 years >5yrs Total (US$ millions) Total debt and financing(i) (458 ) (1,778 ) (2,345 ) (4,580 ) Cash and equivalents 528 — — 528 Pledged deposits (related to back borrowings) 2 — — 2 Net cash (debt) including derivatives related to debt 72 (1,778 ) (2,345 ) (4,051 ) Future interest commitments related to debt and financing (248 ) (786 ) (77 ) (1,111 ) Trade payables (excluding accruals) (478 ) — — (478 ) Other financial liabilities (including accruals) (1,212 ) (135 ) — (1,347 ) Put option liability (239 ) — — (239 ) Trade receivables 343 — — 343 Other financial assets 181 126 — 306 Net financial liabilities (1,582 ) (2,573 ) (2,422 ) (6,577 ) (i) As at December 31, 2018 , Debt and financing included finance lease liabilities of $353 million . As at December 31, 2019 , and as a result of the application of IFRS 16, these are now shown in a separate line under Lease liabilities. |
Disclosure of maturity analysis for non-derivative financial liabilities | Maturity profile of net financial liabilities at December 31, 2019 Less than 1 year 1 to 5 years >5yrs Total (US$ millions) Total debt and financing (186 ) (1,902 ) (3,884 ) (5,972 ) Lease liability (97 ) (490 ) (476 ) (1,063 ) Cash and equivalents 1,164 — — 1,164 Pledged deposits (related to back borrowings) 1 — — 1 Refundable deposit — — — — Derivative financial instruments (17 ) — — (17 ) Net cash (debt) including derivatives related to debt 865 (2,392 ) (4,361 ) (5,888 ) Future interest commitments related to debt and financing (308 ) (1,088 ) (106 ) (1,502 ) Future interest commitments related to leases (157 ) (476 ) (295 ) (928 ) Trade payables (excluding accruals) (510 ) — — (510 ) Other financial liabilities (including accruals) (1,052 ) (337 ) — (1,388 ) Derivative instruments (17 ) — — (17 ) Put option liability (264 ) — — (264 ) Trade receivables 371 — — 371 Other financial assets 602 104 — 707 Net financial liabilities (469 ) (4,189 ) (4,762 ) (9,420 ) Maturity profile of net financial liabilities at December 31, 2018 Less than 1 year 1 to 5 years >5yrs Total (US$ millions) Total debt and financing(i) (458 ) (1,778 ) (2,345 ) (4,580 ) Cash and equivalents 528 — — 528 Pledged deposits (related to back borrowings) 2 — — 2 Net cash (debt) including derivatives related to debt 72 (1,778 ) (2,345 ) (4,051 ) Future interest commitments related to debt and financing (248 ) (786 ) (77 ) (1,111 ) Trade payables (excluding accruals) (478 ) — — (478 ) Other financial liabilities (including accruals) (1,212 ) (135 ) — (1,347 ) Put option liability (239 ) — — (239 ) Trade receivables 343 — — 343 Other financial assets 181 126 — 306 Net financial liabilities (1,582 ) (2,573 ) (2,422 ) (6,577 ) (i) As at December 31, 2018 , Debt and financing included finance lease liabilities of $353 million . As at December 31, 2019 , and as a result of the application of IFRS 16, these are now shown in a separate line under Lease liabilities. |
Disclosure of detailed information about managing capital | Net financial obligations to EBITDA Note 2019 2018 (US$ millions) Net financial obligations (i) C.6. 5,870 4,051 EBITDA B.3. 1,530 1,213 Net financial obligations to EBITDA (ii) 3.84 3.34 (i) As at December 31, 2018 , Net financial obligations included finance lease liabilities of $353 million . As at December 31, 2019 , Net financial obligations also include Lease liabilities recognized under IFRS 16. (ii) Ratio is above 3x on an IFRS basis. However, covenants are calculated on proportionate net financial obligations/EBITDA, including Guatemala and Honduras, which show results below 3x. Gearing ratio Note 2019 2018 (US$ millions) Net financial obligations (i) C.6. 5,870 4,051 Equity C.1. 2,410 2,542 Net financial obligations and equity 8,280 6,593 Gearing ratio 0.71 0.61 (i) Same comment as (i) in the table above . |
Long-term assets (Tables)
Long-term assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 Goodwill Licenses Customer Lists IRUs Trademark Other (i) Total (US$ millions) Opening balance, net 1,069 318 371 89 282 218 2,346 Change in scope 650 139 141 10 — 20 959 Additions — 101 — — — 101 202 Amortization charge — (55 ) (37 ) (14 ) (99 ) (67 ) (272 ) Impairment — (8 ) — — — — (8 ) Disposals, net — — — — — — — Transfers — (5 ) — 23 — 15 33 Transfer to/from held for sale (see note E.3) — (18 ) — — — (3 ) (21 ) Exchange rate movements (7 ) (8 ) (1 ) — — (4 ) (21 ) Closing balance, net 1,711 465 473 107 183 279 3,219 Cost or valuation 1,711 922 691 214 325 806 4,670 Accumulated amortization and impairment — (458 ) (218 ) (107 ) (142 ) (527 ) (1,451 ) Net 1,711 465 473 107 183 279 3,219 Movements in intangible assets in 2018 Goodwill Licenses Customer Lists IRUs Trademark Other (i) Total (US$ millions) Opening balance, net 599 324 33 105 10 194 1,265 Change in scope 504 — 350 — 280 23 1,157 Additions — 66 — 2 — 91 158 Amortization charge — (48 ) (11 ) (14 ) (8 ) (65 ) (145 ) Impairment (6 ) — — — — — (6 ) Disposals, net — — — — — — — Transfers — — — 1 — (16 ) (15 ) Transfer to/from held for sale (iii) — (12 ) — — — — (12 ) Exchange rate movements (28 ) (12 ) (1 ) (5 ) — (9 ) (55 ) Closing balance, net 1,069 318 371 89 282 218 2,346 Cost or valuation 1,069 646 561 176 325 646 3,423 Accumulated amortization and impairment — (328 ) (190 ) (87 ) (43 ) (428 ) (1,077 ) Net 1,069 318 371 89 282 218 2,346 (i) Other includes mainly software costs |
Cash used for purchases of long-term assets | Cash used for intangible asset additions 2019 2018 2017 (US$ millions) Additions 202 158 130 Change in accruals and payables for intangibles (32 ) (10 ) 3 Cash used for additions 171 148 133 Cash used for property, plant and equipment additions 2019 2018 2017 (US$ millions) Additions 719 698 824 Change in advances to suppliers 1 2 (8 ) Change in accruals and payables for property, plant and equipment 17 (25 ) 26 Finance leases(i) (1 ) (43 ) (192 ) Cash used for additions 736 632 650 (i) As a result of the application of IFRS 16 finance leases were reclassified to lease liabilities on January 1, 2019. See above in the "New and amended IFRS accounting standards" and notes C.4. and E.4. for further information. |
Allocation of goodwill to cash generating units | Allocation of Goodwill to cash generating units (CGUs), net of exchange rate movements and after impairment 2019 2018 (US$ millions) Panama (see note A.1.2.)(i) 930 504 El Salvador 194 194 Costa Rica 123 116 Paraguay 50 54 Colombia 181 183 Tanzania (see note E.1.6.) 12 12 Nicaragua (see note A.1.2) 217 4 Other 3 3 Total 1,711 1,069 The most significant estimates used for the 2019 and 2018 impairment test are shown below: CGU Average EBITDA margin (%) (i) Average CAPEX intensity (%) (i) Perpetual growth rate (%) WACC rate after tax (%) 2019 2018 2019 2018 2019 2018 2019 2018 Bolivia 42.0 43.1 18.4 17.0 1.5 3.0 10.7 10.2 Chad (see note A.1.3) n/a 26.7 n/a 15.9 n/a 2.6 n/a 14.8 Colombia 34.1 32.1 17.7 19.3 1.9 2.9 8.6 8.9 Costa Rica 36.3 41.2 23.3 19.9 1.9 3.1 10.1 10.2 El Salvador 33.4 42.2 15.2 15.7 0.8 1.6 10.7 11.7 Nicaragua (see note A.1.2) 33.7 41.0 16.2 49.6 2.0 3.6 10.9 10.1 Panamá (see note A.1.2) 42.6 n/a 14.8 n/a 1.5 n/a 8.3 n/a Paraguay 46.9 50.4 16.0 17.3 1.6 3.0 9.0 9.8 Tanzania 31.2 37.1 12.2 18.5 1.5 4.6 14.4 14.4 (i) Average is computed over the period covered by the plan (5 years) Management performed a sensitivity analysis on key assumptions within the test. The following maximum increases or decreases, expressed in percentage points, were considered for all CGUs: Reasonable changes in key assumptions (%) Financial variables WACC rates +/-1 Perpetual growth rates +/-1 Operating variables EBITDA margin +/-2 CAPEX intensity +/-1 In respect of Nicaragua CGU, taken individually, the below changes in key assumptions would trigger a potential impairment, which would mainly be due to the under-performance of our legacy fixed business in the country as well as the current political and economic turmoil: Sensitivity analysis Potential impairment In % US$ millions Financial variables WACC rate +1 32 Perpetual growth rate -1 18 Operating variables EBITDA margin -2 1 Combining changes in variables WACC rate and Perpetual growth rate +1 and -1 63 |
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 2019 Network Equipment (ii) Land and Buildings Construction in Progress Other(i) Total (US$ millions) Opening balance, net 2,455 175 284 156 3,071 Change in scope 190 44 14 7 255 Change in accounting policy (307 ) — — (1 ) (307 ) Additions 87 4 612 16 719 Impairments/reversal of impairment, net — — — 1 1 Disposals, net (8 ) (1 ) (6 ) (3 ) (19 ) Depreciation charge (588 ) (13 ) — (110 ) (711 ) Asset retirement obligations 14 5 — — 19 Transfers 444 4 (537 ) 64 (24 ) Transfer from/(to) assets held for sale (see note E.4) (61 ) (14 ) (7 ) (5 ) (88 ) Exchange rate movements (25 ) (2 ) (5 ) (1 ) (34 ) Closing balance, net 2,201 202 355 125 2,883 Cost or valuation 6,644 360 355 476 7,834 Accumulated amortization and impairment (4,443 ) (158 ) — (351 ) (4,952 ) Net at December 31, 2019 2,201 202 355 125 2,883 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 (iii) 253 41 32 60 386 Additions 62 1 626 7 696 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 2,455 175 284 156 3,071 Cost or valuation 6,663 270 284 573 7,790 Accumulated amortization and impairment (4,207 ) (95 ) — (417 ) (4,719 ) Net at December 31, 2018 2,455 175 284 156 3,071 (i) Other mainly includes office equipment and motor vehicles. (ii) As a result of the application of IFRS 16 finance leases were reclassified to lease liabilities on January 1, 2019. See above in the "New and amended IFRS accounting standards" and notes C.4. and E.4. for further information. The net carrying amount of network equipment under finance leases at December 31, 2018 were $307 million . (iii) Restated after finalization of the Cable Onda purchase accounting. See note A.1.2. |
Disclosure of movement in right of use assets | Right-of-use assets Land and buildings Sites rental Tower rental Other network equipment Capacity Other Total (US$ millions) Opening balance, net 154 67 623 9 — 4 856 Change in scope — 43 121 1 12 — 177 Additions 25 4 67 1 2 1 102 Modifications 6 (2 ) 7 — — — 11 Impairments (1 ) — — — — — (1 ) Disposals (4 ) (4 ) (1 ) — — — (10 ) Depreciation (35 ) (16 ) (86 ) (2 ) — (2 ) (141 ) Transfers — — 1 — — — 1 Transfers to/from assets held for sale (1 ) (5 ) (3 ) — — — (9 ) Exchange rate movements — (2 ) (7 ) — — — (10 ) Closing balance, net 145 87 720 8 14 3 977 Cost of valuation 177 103 900 11 16 8 1,216 Accumulated depreciation and impairment (32 ) (16 ) (180 ) (3 ) (2 ) (5 ) (238 ) Net at December 31, 2019 145 87 720 8 14 3 977 |
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, 2019 and 2018 : As at December 31, 2019 2018 (US$ millions) Assets and liabilities reclassified as held for sale ($ millions) Towers Paraguay (see note E.4.1.) — 2 Towers Colombia (see note E.4.1.) 2 — Towers El Salvador (see note E.4.1.) 1 1 Towers Zantel 1 — Other — — Total assets of held for sale 5 3 Towers Paraguay — — Total liabilities directly associated with assets held for sale — — Net assets held for sale / book value 5 3 |
Schedule of assets and liabilities disposed of | The table below shows the assets and liabilities deconsolidated at the date of the disposal: April 27, 2018 Assets and liabilities held for sale (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 / book value 146 The table below shows the assets and liabilities deconsolidated at the date of the disposal: January 31, 2018 Assets and liabilities reclassified as held for sale (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 / book value 46 The assets and liabilities deconsolidated on the date of the disposal were as follows: Assets and liabilities held for sale ($ millions) June 26, 2019 Intangible assets, net 18 Property, plant and equipment, net 89 Right of use assets 9 Other non-current assets 8 Current assets 34 Cash and cash equivalents 9 Total assets of disposal group held for sale 168 Non-current financial liabilities 8 Current liabilities 131 Total liabilities of disposal group held for sale 140 Net assets held for sale at book value 28 |
Schedule of discontinued operations | Results from discontinued operations Year ended December 31, 2019 2018 2017 (US$ millions) Revenue 50 189 440 Cost of sales (14 ) (51 ) (130 ) Operating expenses (29 ) (83 ) (188 ) Other expenses linked to the disposal of discontinued operations (10 ) (10 ) (7 ) Depreciation and amortization (11 ) (27 ) (67 ) Other operating income (expenses), net — (9 ) (4 ) Gain/(loss) on disposal of discontinued operations 74 (29 ) 38 Operating profit (loss) 61 (21 ) 81 Interest income (expense), net (2 ) (6 ) (28 ) Other non-operating (expenses) income, net — (2 ) 4 Profit (loss) before taxes 59 (29 ) 56 Credit (charge) for taxes, net (2 ) (4 ) 4 Net Profit/(loss) from discontinuing operations 57 (33 ) 60 Cash flows from discontinued operations Year ended December 31, 2019 2018 2017 (US$ millions) Cash from (used in) operating activities, net (8 ) (38 ) (1 ) Cash from (used in) investing activities, net 5 8 (25 ) Cash from (used in) financing activities, net 7 11 8 |
Other assets and liabilities (T
Other assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of trade receivables | 2019 2018 (US$ millions) Gross trade receivables 636 592 Less: provisions for expected credit losses (265 ) (249 ) Trade receivables, net 371 343 |
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) 2019: Telecom operators 23 9 8 40 Own customers 177 63 29 270 Others 40 15 5 60 Total 241 88 43 371 2018: Telecom operators 17 9 14 39 Own customers 158 69 19 246 Others 36 17 5 58 Total 210 95 37 343 |
Inventories | Inventories 2019 2018 (US$ millions) Telephone and equipment 18 26 SIM cards 3 4 IRUs 3 3 Other 9 6 Inventory at December 31, 32 39 |
Provisions and other liabilities | Current 2019 2018 (US$ millions) Deferred revenue 77 85 Customer deposits 14 15 Current legal provisions 36 27 Tax payables 74 68 Customer and MFS distributor cash balances 141 147 Withholding tax on payments to third parties 15 17 Other provisions 3 7 Other current liabilities(i) 113 126 Total 474 492 (i) Includes 36 million (2018: 36 million ) of tax risk liabilities not related to income tax. Non-current 2019 2018 (US$ millions) Non-current legal provisions 18 8 Long-term portion of asset retirement obligations 96 77 Long-term portion of deferred income on tower sale and leasebacks recognized under IAS 17 68 85 Long-term employment obligations 71 68 Accruals and payables in respect of spectrum and license acquisitions 61 41 Other non-current liabilities 68 71 Total 383 351 |
Contract assets | Contract costs, net (i) 2019 2018 (US$ millions) Net at January 1 4 4 Contract costs capitalized 7 4 Amortisation of contract costs (6 ) (4 ) Net at December 31 5 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 2019 2018 (US$ millions) Long-term portion 6 3 Short-term portion 37 35 Less: provisions for expected credit losses (2 ) (1 ) Total 41 37 |
Contract liabilities | Contract liabilities 2019 2018 (US$ millions) Long-term portion 1 1 Short-term portion 81 86 Total 82 87 |
Additional disclosure items (Ta
Additional disclosure items (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Additional information [abstract] | |
Disclosure of fees to auditors | 2019 2018 2017 (US$ millions) Audit fees 6.8 6.7 4.7 Audit related fees 1.3 0.4 0.3 Tax fees 0.1 0.2 0.2 Other fees 0.6 0.6 0.7 Total 8.8 7.7 5.9 |
Disclosure of annual minimum finance lease commitments from continuing operations | Annual operating lease commitments from continuing operations 2018 (i) (US$ millions) Within one year 127 Between one and five years 412 After five years 262 Total 801 (i) The Group’s share in joint ventures operating lease commitments in 2018 amount to $312 million and are excluded from the table above. Annual minimum finance lease commitments from continuing operations 2018 (i) (US$ millions) Within one year 99 Between one and five years 400 After five years 415 Total 914 (i) The Group’s share in joint ventures finance lease commitments in 2018 amounted to $1 million and are excluded from the table above. |
Non-cash investing and financing activities from continuing operations | Non-cash investing and financing activities from continuing operations Note 2019 2018 2017 (US$ millions) Investing activities Acquisition of property, plant and equipment, including (finance) leases E.2.2. 17 (65 ) (174 ) Asset retirement obligations E.2.2. 19 15 (20 ) Acquisition of subsidiaries, joint ventures and associates, net of cash acquired A.1.2. — 30 — Financing activities (Finance) Leases C.3.4. 1 (43 ) 192 Share based compensation B.4.1. 27 21 22 |
Disclosure of transactions between related parties | Income and gains from transactions with related parties 2019 2018 2017 (US$ millions) Sale of goods and services to Miffin 306 284 277 Sale of goods and services to EPM 13 17 18 Other revenue 3 2 1 Total 322 303 295 Transactions and balances with Cable Onda Partners companies are disclosed under 'Other' in the tables below. Expenses from transactions with related parties 2019 2018 2017 (US$ millions) Purchases of goods and services from Miffin (209 ) (173 ) (181 ) Purchases of goods and services from EPM (42 ) (40 ) (36 ) Lease of towers and related services from HTA(i) (146 ) (28 ) (28 ) Other expenses (15 ) (3 ) (4 ) Total (412 ) (244 ) (250 ) (i) HTA ceased to be a related party on October 15, 2019. See note C.7.3. for further details. Year ended December 31 2019 2018 (US$ millions) Non-current and current assets Receivables from EPM 3 5 Receivables from Guatemala and Honduras joint ventures 23 20 Advance payments to Helios Towers Tanzania(ii) — 6 Receivables from Panama — — Receivable from AirtelTigo Ghana (i) 43 41 Other accounts receivable 4 1 Total 73 73 (i) Disclosed under Other non-current assets in the statement of financial position. See note A.2.2. (ii) Helios Towers ceased to be to be a related party on October 15, 2019. As at December 31, the Company had the following balances with related parties: Year ended December 31 2019 2018 (US$ millions) Non-current and current liabilities Payables to Guatemala joint venture(i) 361 315 Payables to Honduras joint venture(ii) 133 143 Payables to EPM 37 14 Other accounts payable — 9 Sub-total 531 482 (Finance) Lease liabilities to HTA (iii) — 99 Total 531 580 (i) Shareholder loans bearing interest. Out of the amount above, $337 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 2020 and/or shareholder loans. (iii) HTA ceased to be a related party on October 15, 2019. See note C.7.3. for further details. |
Introduction - Foreign exchange
Introduction - Foreign exchange rates (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Bolivia | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 6.91 | 6.91 | |
Change in closing foreign exchange rate | 0 | ||
Average foreign exchange rate | 6.91 | 6.91 | 6.91 |
Change in average foreign exchange rate | 0 | ||
Chad | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 580 | ||
Average foreign exchange rate | 571 | 588 | |
Colombia | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 3,277 | 3,250 | |
Change in closing foreign exchange rate | 0.008 | ||
Average foreign exchange rate | 3,296 | 2,973 | 2,961 |
Change in average foreign exchange rate | 0.109 | ||
Costa Rica, Colones | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 576 | 608 | |
Change in closing foreign exchange rate | (0.052) | ||
Average foreign exchange rate | 588 | 578 | 571 |
Change in average foreign exchange rate | 0.018 | ||
Ghanaian cedi | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 5.73 | 4.82 | |
Change in closing foreign exchange rate | 0.189 | ||
Average foreign exchange rate | 5.33 | 4.63 | 4.36 |
Change in average foreign exchange rate | 0.150 | ||
Guatemala, Quetzales | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 7.70 | 7.74 | |
Change in closing foreign exchange rate | (0.005) | ||
Average foreign exchange rate | 7.71 | 7.52 | 7.36 |
Change in average foreign exchange rate | 0.025 | ||
Honduras, Lempiras | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 24.72 | 24.42 | |
Change in closing foreign exchange rate | 0.012 | ||
Average foreign exchange rate | 24.59 | 23.99 | 23.58 |
Change in average foreign exchange rate | 0.025 | ||
Euro Member Countries, Euro | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 0.89 | 0.87 | |
Change in closing foreign exchange rate | 0.025 | ||
Average foreign exchange rate | 0.89 | 0.85 | 0.89 |
Change in average foreign exchange rate | 0.051 | ||
Nicaragua, Cordobas | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 33.84 | 32.33 | |
Change in closing foreign exchange rate | 0.047 | ||
Average foreign exchange rate | 33.12 | 31.55 | 30.05 |
Change in average foreign exchange rate | 0.050 | ||
Paraguay | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 6,453 | 5,961 | |
Change in closing foreign exchange rate | 0.083 | ||
Average foreign exchange rate | 6,232 | 5,743 | 5,626 |
Change in average foreign exchange rate | 0.085 | ||
Sweden, Kronor | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 9.365 | 8.85 | |
Change in closing foreign exchange rate | 0.058 | ||
Average foreign exchange rate | 9.43 | 8.71 | 8.53 |
Change in average foreign exchange rate | 0.083 | ||
Tanzania | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 2,299 | 2,299 | |
Change in closing foreign exchange rate | 0 | ||
Average foreign exchange rate | 2,304 | 2,274 | 2,233 |
Change in average foreign exchange rate | 0.013 | ||
United Kingdom, Pounds | |||
Foreign Exchange Rate [Line Items] | |||
Closing foreign exchange rate | 0.75 | 0.78 | |
Change in closing foreign exchange rate | (0.033) | ||
Average foreign exchange rate | 0.78 | 0.75 | 0.77 |
Change in average foreign exchange rate | 0.043 |
Introduction - Initial applicat
Introduction - Initial application of standards (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 14, 2019 | Jan. 01, 2018 | ||
Disclosure of initial application of standards or interpretations [line items] | ||||||||
Weighted average lessee's incremental borrowing rate applied to lease liabilities | 12.30% | |||||||
Operating lease commitments disclosed as at December 31, 2018 | $ 801 | |||||||
(Plus): Finance lease liabilities recognized at December 31, 2018 | 353 | |||||||
Lease liabilities | $ 1,063 | |||||||
Lease liabilities | 97 | 0 | ||||||
Non-current lease liabilities | 967 | 0 | ||||||
ASSETS | ||||||||
Property, plant and equipment, net | 2,883 | 3,071 | [1],[2] | $ 2,880 | ||||
Right of use assets | 977 | 0 | ||||||
Prepayments | 129 | |||||||
Investments in joint ventures | 2,797 | 2,867 | [1],[2] | 2,966 | $ 2,989 | |||
Contract costs, net | 5 | 4 | [1],[2] | 0 | 4 | |||
Deferred tax assets | 200 | 202 | [1],[2] | 180 | 191 | |||
Other non-current assets | 104 | 126 | [1],[2] | 113 | 113 | |||
Trade receivables, net | 371 | 343 | [1],[2] | 386 | 339 | |||
Contract assets, net | 41 | 37 | [1],[2] | 0 | 28 | |||
LIABILITIES | ||||||||
Debt and financing – non-current | 5,786 | 4,123 | [1],[2] | |||||
Debt and financing – current | 186 | 458 | [1],[2] | |||||
Other current liabilities | 492 | |||||||
Contract liabilities | 82 | 87 | [1],[2] | 0 | 51 | |||
Provisions and other current liabilities | 474 | 492 | [1],[2] | 425 | 379 | |||
Current income tax liabilities | 75 | 55 | [1],[2] | |||||
Deferred tax liabilities | 279 | 236 | [1],[2] | 56 | 62 | |||
EQUITY | ||||||||
Retained profits and loss for the year | 2,525 | 3,035 | 3,045 | |||||
Non-controlling interests | 271 | 251 | [1],[2] | 185 | 181 | |||
Revenue | 4,336 | 3,946 | [3] | 3,936 | [3] | |||
Cost of sales | (1,201) | (1,117) | [3] | (1,169) | [3] | |||
Operating expenses | (1,604) | (1,616) | [3] | (1,531) | [3] | |||
Share of profit in the joint ventures in Guatemala and Honduras | 179 | 154 | [3],[4] | 140 | [3],[4] | |||
Charge for taxes, net | $ (120) | (112) | [3] | $ (162) | [3] | |||
IFRS 16 | ||||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||||
Operating lease commitments disclosed as at December 31, 2018 | $ 801 | |||||||
(Plus): Non lease components obligations | 57 | |||||||
(Less): Short term leases recognized on a straight line basis as an expense | (3) | |||||||
(Less): Low value leases recognized on a straight line basis as an expense | (2) | |||||||
(Less): Contract included in the lease commitments but with starting date in 2019 and not part of the IFRS 16 opening balances | (17) | |||||||
(Plus/Less): Other | (9) | |||||||
Gross lease liabilities | 828 | |||||||
Discounted using the lessee's incremental borrowing rate at the date of the initial application | (283) | |||||||
Operating Lease Liabilities | 545 | |||||||
(Plus): Finance lease liabilities recognized at December 31, 2018 | 353 | |||||||
Lease liabilities | 898 | |||||||
Lease liabilities | 86 | |||||||
Non-current lease liabilities | 812 | |||||||
ASSETS | ||||||||
Property, plant and equipment, net | 2,764 | |||||||
Right of use assets | 856 | |||||||
Prepayments | 123 | |||||||
LIABILITIES | ||||||||
Debt and financing – non-current | 3,786 | |||||||
Debt and financing – current | 442 | |||||||
Other current liabilities | 490 | |||||||
EQUITY | ||||||||
Operating expenses | 149 | |||||||
Increase (decrease) due to application of IFRS 16 | ||||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||||
Lease liabilities | 86 | |||||||
Non-current lease liabilities | 812 | |||||||
ASSETS | ||||||||
Property, plant and equipment, net | (307) | |||||||
Right of use assets | 856 | 856 | ||||||
Prepayments | (6) | |||||||
LIABILITIES | ||||||||
Debt and financing – non-current | (337) | |||||||
Debt and financing – current | (16) | |||||||
Other current liabilities | $ (2) | |||||||
Increase (decrease) due to application of IFRS 15 | ||||||||
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 the joint ventures in Guatemala and Honduras | 2 | |||||||
Charge for taxes, net | (1) | |||||||
Calculated Under Guidance in Effect Prior to Adoption of IFRS 15 | ||||||||
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 | 574 | |||||||
Current income tax liabilities | 52 | |||||||
Deferred tax liabilities | 229 | |||||||
EQUITY | ||||||||
Retained profits and loss for the year | 2,468 | |||||||
Non-controlling interests | 248 | |||||||
Revenue | 4,023 | |||||||
Cost of sales | (1,165) | |||||||
Operating expenses | (1,656) | |||||||
Share of profit in the joint ventures in Guatemala and Honduras | 152 | |||||||
Charge for taxes, net | $ (111) | |||||||
IFRS 15 | ||||||||
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 | ||||||||
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) | |||||||
Bottom of range | ||||||||
EQUITY | ||||||||
Subscription period | 12 months | |||||||
Top of range | ||||||||
EQUITY | ||||||||
Subscription period | 36 months | |||||||
Principal shareholder | Kinnevik | ||||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||||
Shareholder ownership percentage | 37.00% | 37.00% | ||||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | |||||||
[3] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | |||||||
[4] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
The Millicom Group - A.1. Subsi
The Millicom Group - A.1. Subsidiaries (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 07, 2018 | |
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% | |
Millicom 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% | 80.00% | 0.00% | |
Percentage of controlling interest acquired | 80.00% | |||
Telefonica Moviles Panama | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 80.00% | 0.00% | 0.00% | |
Telefonia Cellular de Nicaragua sa | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 100.00% | 0.00% | 0.00% | |
Colombia Movil S.A. E.S.P. | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 50.00% | 50.00% | 50.00% | |
UNE EPM Telecommunicaciones SA | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 50.00% | 50.00% | 50.00% | |
Edatel S.A. E.S.P. | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 50.00% | 50.00% | 50.00% | |
Millicom Ghana Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 0.00% | 0.00% | 0.00% | |
Sentel GSM S.A. | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 0.00% | 0.00% | 100.00% | |
MIC Tanzania Public Limited Company | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 98.50% | 100.00% | 100.00% | |
Millicom Tchad S.A. | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 0.00% | 100.00% | 100.00% | |
Millicom Rwanda Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 0.00% | 0.00% | 100.00% | |
Zanzibar Telecom Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Proportion of ownership interest in subsidiary | 98.50% | 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 Services UK Ltd | ||||
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 and changes in non-controlling interests in subsidiaries (Details) | Aug. 29, 2019USD ($) | Dec. 13, 2018USD ($) | Oct. 07, 2018USD ($) | Oct. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 16, 2019USD ($) | Feb. 20, 2019USD ($) | ||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Non-controlling interests | $ 5,000,000 | $ (16,000,000) | [1] | $ (17,000,000) | [1] | ||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Changes in cash and cash equivalents | 645,000,000 | (98,000,000) | [2] | $ (8,000,000) | [2] | ||||||||||
Telefonica CAM Acquisitions | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 16,000,000 | ||||||||||||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | |||||||||||||||
Acquisition price | $ 1,650,000,000 | ||||||||||||||
Telefonica Moviles Panama | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Percentage of controlling interest acquired | 100.00% | 100.00% | |||||||||||||
Cash consideration | $ 594,000,000 | ||||||||||||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | |||||||||||||||
Intangible assets (excluding goodwill), net | $ 169,000,000 | $ 169,000,000 | 169,000,000 | ||||||||||||
Property, plant and equipment, net | 110,000,000 | 110,000,000 | 110,000,000 | ||||||||||||
Right of use assets | 57,000,000 | 57,000,000 | 57,000,000 | ||||||||||||
Other non-current assets | 3,000,000 | 3,000,000 | 3,000,000 | ||||||||||||
Current assets (excluding cash) | 23,000,000 | 23,000,000 | 23,000,000 | ||||||||||||
Trade receivables | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | |||||||||||
Cash and cash equivalents | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||
Total assets acquired | 391,000,000 | 391,000,000 | 391,000,000 | ||||||||||||
Lease liabilities | 48,000,000 | 48,000,000 | 48,000,000 | ||||||||||||
Other debt and financing | 74,000,000 | 74,000,000 | 74,000,000 | ||||||||||||
Other liabilities | 101,000,000 | 101,000,000 | 101,000,000 | ||||||||||||
Fair value of assets acquired and liabilities assumed, net | 224,000,000 | 224,000,000 | 224,000,000 | ||||||||||||
Fair value of assets acquired and liabilities assumed, net | 167,000,000 | 167,000,000 | 167,000,000 | ||||||||||||
Acquisition price | 594,000,000 | 594,000,000 | 594,000,000 | ||||||||||||
Provisional Goodwill | 426,000,000 | 426,000,000 | 426,000,000 | ||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Deferred tax liabilities | $ 15,000,000 | ||||||||||||||
Revenue of acquiree since acquisition date | 80,000,000 | ||||||||||||||
Net profit (loss) of acquiree since acquisition date | 6,000,000 | ||||||||||||||
Revenue of combined entity as if combination occurred at beginning of period | 158,000,000 | ||||||||||||||
Net profit (loss) of combined entity as if combination occurred at beginning of period | 1,000,000 | ||||||||||||||
Amortisation of combined entity | 3,000,000 | ||||||||||||||
Telefonica Moviles Panama | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 17 years | ||||||||||||||
Fair value step-up on spectrum | $ 3,000,000 | ||||||||||||||
Telefonica Moviles Panama | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets not previously recognized at the date of acquisition | $ 58,000,000 | ||||||||||||||
Cable Onda S.A | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 11,000,000 | ||||||||||||||
Proportion of ownership interest in subsidiary | 80.00% | ||||||||||||||
Enterprise value of acquired entity | $ 1,460,000,000 | ||||||||||||||
Percentage ownership held by non-controlling interest | 20.00% | 20.00% | |||||||||||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | |||||||||||||||
Intangible assets (excluding goodwill), net | 673,000,000 | $ 653,000,000 | $ 653,000,000 | 653,000,000 | |||||||||||
Property, plant and equipment, net | 348,000,000 | 378,000,000 | 378,000,000 | 378,000,000 | |||||||||||
Current assets (excluding cash) | 54,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||
Cash and cash equivalents | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | |||||||||||
Total assets acquired | 1,088,000,000 | 1,094,000,000 | 1,094,000,000 | 1,094,000,000 | |||||||||||
Non-current liabilities | 422,000,000 | 425,000,000 | 425,000,000 | 425,000,000 | |||||||||||
Current liabilities | 141,000,000 | 134,000,000 | 134,000,000 | 134,000,000 | |||||||||||
Fair value of assets acquired and liabilities assumed, net | 563,000,000 | 559,000,000 | 559,000,000 | 559,000,000 | |||||||||||
Transaction costs assumed by Cable Onda | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | |||||||||||
Fair value of non-controlling interest in Cable Onda (20%) | 111,000,000 | 113,000,000 | 113,000,000 | 113,000,000 | |||||||||||
Millicom’s interest in the fair value of Cable Onda (80%) | 444,000,000 | 452,000,000 | 452,000,000 | 452,000,000 | |||||||||||
Fair value of assets acquired and liabilities assumed, net | 525,000,000 | 535,000,000 | 535,000,000 | 535,000,000 | |||||||||||
Acquisition price | 956,000,000 | 956,000,000 | 956,000,000 | 956,000,000 | |||||||||||
Provisional Goodwill | 512,000,000 | 504,000,000 | 504,000,000 | 504,000,000 | |||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Changes in intangible assets (excluding goodwill) | (20,000,000) | ||||||||||||||
Changes in cash and cash equivalents | 0 | ||||||||||||||
Changes in property, plant and equipment | 30,000,000 | ||||||||||||||
Changes in current assets (excluding cash) | (4,000,000) | ||||||||||||||
Changes in total assets acquired | 6,000,000 | ||||||||||||||
Changes in non-current liabilities | 3,000,000 | ||||||||||||||
Changes in current liabilities | (7,000,000) | ||||||||||||||
Changes in total liabilities assumed | (4,000,000) | ||||||||||||||
Changes in fair value of assets acquired and liabilities assumed, net | 10,000,000 | ||||||||||||||
Changes in transactions costs assumed | 0 | ||||||||||||||
Changes fair value of non-controlling interest | 2,000,000 | ||||||||||||||
Changes in Millicom's interest in fair value of acquiree | 8,000,000 | ||||||||||||||
Changes in acquisition price | 0 | ||||||||||||||
Changes in final goodwill | $ (8,000,000) | ||||||||||||||
Fair value step-up of property, plant and equipment | $ 30,000,000 | ||||||||||||||
Useful life measured as period of time, property, plant and equipment | 5 years | ||||||||||||||
Deferred tax liabilities | $ 161,000,000 | ||||||||||||||
Fair value of acquired receivables | 34,000,000 | ||||||||||||||
Revenue of acquiree since acquisition date | 17,000,000 | ||||||||||||||
Net profit (loss) of acquiree since acquisition date | $ (7,000,000) | ||||||||||||||
Revenue of combined entity as if combination occurred at beginning of period | 403,000,000 | ||||||||||||||
Net profit (loss) of combined entity as if combination occurred at beginning of period | (59,000,000) | ||||||||||||||
Amortisation of combined entity | $ 85,000,000 | ||||||||||||||
Cable Onda S.A | Brand names | |||||||||||||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | |||||||||||||||
Intangible assets (excluding goodwill), net | $ 280,000,000 | ||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
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 | $ 350,000,000 | ||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
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 | $ 19,000,000 | ||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 10 years | ||||||||||||||
Telefonica de Costa Rica TC, S.A. | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Percentage of controlling interest acquired | 100.00% | ||||||||||||||
Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Percentage of controlling interest acquired | 100.00% | ||||||||||||||
Cash consideration | $ 437,000,000 | ||||||||||||||
Cash consideration, provisionally adjusted | 430,000,000 | 430,000,000 | 430,000,000 | ||||||||||||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | |||||||||||||||
Intangible assets (excluding goodwill), net | 131,000,000 | 131,000,000 | 131,000,000 | ||||||||||||
Property, plant and equipment, net | 149,000,000 | 149,000,000 | 149,000,000 | ||||||||||||
Right of use assets | 131,000,000 | 131,000,000 | 131,000,000 | ||||||||||||
Other non-current assets | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||
Current assets (excluding cash) | 23,000,000 | 23,000,000 | 23,000,000 | ||||||||||||
Trade receivables | 17,000,000 | 17,000,000 | 17,000,000 | ||||||||||||
Cash and cash equivalents | 7,000,000 | 7,000,000 | 7,000,000 | ||||||||||||
Total assets acquired | 459,000,000 | 459,000,000 | 459,000,000 | ||||||||||||
Lease liabilities | 131,000,000 | 131,000,000 | 131,000,000 | ||||||||||||
Other liabilities | 118,000,000 | 118,000,000 | 118,000,000 | ||||||||||||
Fair value of assets acquired and liabilities assumed, net | 249,000,000 | 249,000,000 | 249,000,000 | ||||||||||||
Fair value of assets acquired and liabilities assumed, net | 210,000,000 | 210,000,000 | 210,000,000 | ||||||||||||
Acquisition price | 430,000,000 | 430,000,000 | 430,000,000 | ||||||||||||
Provisional Goodwill | 220,000,000 | 220,000,000 | 220,000,000 | ||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Fair value step-up of property, plant and equipment | 39,000,000 | 39,000,000 | 39,000,000 | ||||||||||||
Right-of-use assets adjusted | 7,000,000 | 7,000,000 | 7,000,000 | ||||||||||||
Indemnification assets for tax contingencies | 11,000,000 | 11,000,000 | 11,000,000 | ||||||||||||
Tax contingent liabilities | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||
Deferred tax liabilities | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Revenue of acquiree since acquisition date | 144,000,000 | ||||||||||||||
Net profit (loss) of acquiree since acquisition date | 5,000,000 | ||||||||||||||
Revenue of combined entity as if combination occurred at beginning of period | 219,000,000 | ||||||||||||||
Net profit (loss) of combined entity as if combination occurred at beginning of period | (16,000,000) | ||||||||||||||
Amortisation of combined entity | $ 12,000,000 | ||||||||||||||
Telefonia Celular de Nicaragua, S.A. | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 14 years | ||||||||||||||
Fair value step-up on spectrum | 39,000,000 | 39,000,000 | $ 39,000,000 | ||||||||||||
Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets not previously recognized at the date of acquisition | 81,000,000 | 81,000,000 | $ 81,000,000 | ||||||||||||
Bottom of range | Brand names | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 1 year | ||||||||||||||
Bottom of range | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 4 years | ||||||||||||||
Bottom of range | Telefonica Moviles Panama | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 3 years | ||||||||||||||
Bottom of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Useful life measured as period of time, property, plant and equipment | 6 years | ||||||||||||||
Bottom of range | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 4 years | ||||||||||||||
Top of range | Brand names | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 15 years | ||||||||||||||
Top of range | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 20 years | ||||||||||||||
Top of range | Telefonica Moviles Panama | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 17 years | ||||||||||||||
Top of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Useful life measured as period of time, property, plant and equipment | 7 years | ||||||||||||||
Top of range | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Intangible assets useful lives | 10 years | ||||||||||||||
Land and Buildings | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Fair value step-up of property, plant and equipment | 8,000,000 | 8,000,000 | $ 8,000,000 | ||||||||||||
Core Network | Cable Onda S.A | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Fair value step-up of property, plant and equipment | $ 11,000,000 | ||||||||||||||
Core Network | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Fair value step-up of property, plant and equipment | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | ||||||||||||
Income approach - Relief-from-Royalty approach | Discount rate | Cable Onda S.A | Brand names | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.10 | 0.10 | 0.10 | ||||||||||||
Market approach - Market comparable transactions | Telefonica Moviles Panama | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, estimated duration | 17 years | ||||||||||||||
Market approach - Market comparable transactions | Telefonia Celular de Nicaragua, S.A. | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, estimated duration | 14 years | ||||||||||||||
Market approach - Market comparable transactions | Discount rate | Telefonica Moviles Panama | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.098 | 0.098 | 0.098 | ||||||||||||
Market approach - Market comparable transactions | Discount rate | Telefonia Celular de Nicaragua, S.A. | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.14 | 0.14 | 0.14 | ||||||||||||
Market approach - Market comparable transactions | Terminal Growth Rate, Measurement Input | Telefonica Moviles Panama | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.029 | 0.029 | 0.029 | ||||||||||||
Market approach - Market comparable transactions | Terminal Growth Rate, Measurement Input | Telefonia Celular de Nicaragua, S.A. | Spectrum | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 2.500 | 2.500 | 2.500 | ||||||||||||
Market approach - Market comparable transactions | Royalty Rate, Measurement Input | Cable Onda S.A | Brand names | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.045 | 0.045 | 0.045 | ||||||||||||
Market approach - Market comparable transactions | Tax Rate, Measurement Input | Cable Onda S.A | Brand names | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.25 | 0.25 | 0.25 | ||||||||||||
Market approach - Market comparable transactions | EBITDA Margin, Measurement Input | Cable Onda S.A | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.48 | 0.48 | 0.48 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Discount rate | Cable Onda S.A | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.10 | 0.10 | 0.10 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Discount rate | Bottom of range | Telefonica Moviles Panama | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.098 | 0.098 | 0.098 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Discount rate | Bottom of range | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.14 | 0.14 | 0.14 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Discount rate | Top of range | Telefonica Moviles Panama | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.11 | 0.11 | 0.11 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Discount rate | Top of range | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.15 | 0.15 | 0.15 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Monthly Churn Rate, B2B, Measurement Input | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.012 | 0.012 | 0.012 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Monthly Churn Rate, B2C, Measurement Input | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.029 | 0.029 | 0.029 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Monthly Churn Rate, Postpaid, Measurement Input | Bottom of range | Telefonica Moviles Panama | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.004 | 0.004 | 0.004 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Monthly Churn Rate, B2B, Measurement Input | Cable Onda S.A | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.058 | 0.058 | 0.058 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | EBITDA Margin, Measurement Input | Bottom of range | Telefonica Moviles Panama | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.35 | 0.35 | 0.35 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | EBITDA Margin, Measurement Input | Bottom of range | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.36 | 0.36 | 0.36 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | EBITDA Margin, Measurement Input | Top of range | Telefonica Moviles Panama | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.39 | 0.39 | 0.39 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | EBITDA Margin, Measurement Input | Top of range | Telefonia Celular de Nicaragua, S.A. | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.41 | 0.41 | 0.41 | ||||||||||||
Income approach - Multi-Period Excess Earnings Method | Monthly Churn Rate, Prepaid, Measurement Input | Top of range | Telefonica Moviles Panama | Customer Lists | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable input, assets | 0.039 | 0.039 | 0.039 | ||||||||||||
Market approach | Useful Life, Measurement Input | Land and Buildings | Bottom of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 10 years | ||||||||||||||
Market approach | Useful Life, Measurement Input | Land and Buildings | Top of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 30 years | ||||||||||||||
Market approach | Land and Buildings, Price per Square Meter, Measurement Input | Land and Buildings | Bottom of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, price per square meter | $ 2 | $ 2 | $ 2 | ||||||||||||
Market approach | Land and Buildings, Price per Square Meter, Measurement Input | Land and Buildings | Top of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, price per square meter | $ 57 | $ 57 | $ 57 | ||||||||||||
Cost approach | Useful Life, Measurement Input | Property, Plant and Equipment | Bottom of range | Cable Onda S.A | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 5 years | ||||||||||||||
Cost approach | Useful Life, Measurement Input | Property, Plant and Equipment | Top of range | Cable Onda S.A | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 15 years | ||||||||||||||
Cost approach | Useful Life, Measurement Input | Core Network | Bottom of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 5 years | ||||||||||||||
Cost approach | Useful Life, Measurement Input | Core Network | Top of range | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 27 years | ||||||||||||||
Cost approach | Remaining Useful Life, Measurement Input | Property, Plant and Equipment | Bottom of range | Cable Onda S.A | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 2 years | ||||||||||||||
Cost approach | Remaining Useful Life, Measurement Input | Property, Plant and Equipment | Top of range | Cable Onda S.A | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, duration | 8 years | ||||||||||||||
Cost approach | Remaining Useful Life, Measurement Input | Core Network | Telefonia Celular de Nicaragua, S.A. | |||||||||||||||
Amounts Recognised as of Final Fair Value Date for Each Major Class of Assets Acquired and Liabilities Assumed [Abstract] | |||||||||||||||
Significant unobservable inputs, assets, estimated duration | 1 year 8 months 12 days | ||||||||||||||
MIC Tanzania | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Equity decrease by net amount | $ 18,000,000 | ||||||||||||||
Percentage ownership held by non-controlling interest | (15.00%) | ||||||||||||||
MIC Tanzania | Government of Zanzibar | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Percentage of controlling interest acquired | 1.50% | ||||||||||||||
Proportion of ownership interest in subsidiary | 15.00% | ||||||||||||||
Cable Onda S.A | |||||||||||||||
Disclosure of detailed information about business combination [line items] | |||||||||||||||
Percentage of controlling interest acquired | 80.00% | ||||||||||||||
Cash consideration | $ 956,000,000 | ||||||||||||||
Proportion of ownership interest in subsidiary | 80.00% | 80.00% | 0.00% | ||||||||||||
Percentage ownership held by non-controlling interest | 20.00% | 20.00% | |||||||||||||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||||||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
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) - USD ($) $ in Millions | Jun. 26, 2019 | Apr. 27, 2018 | Dec. 31, 2018 | Dec. 19, 2017 |
Discontinued Operations - Chad | ||||
Disclosure of subsidiaries [line items] | ||||
Cash consideration for disposal of operations | $ 110 | |||
Gain (loss) on disposal of discontinued operations | $ 77 | |||
Discontinued Operations - Rwanda | ||||
Disclosure of subsidiaries [line items] | ||||
Gain (loss) on disposal of discontinued operations | $ (32) | |||
Consideration for disposal of operations | $ 51 | |||
Deferred cash payment due | 18 | |||
Earn-outs not recognized | $ 7 | |||
Discontinued Operations - Senegal | ||||
Disclosure of subsidiaries [line items] | ||||
Cash consideration for disposal of operations | $ 151 | |||
Gain (loss) on disposal of discontinued operations | $ 6 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 01, 2019 | Jan. 01, 2018 | |||
Disclosure of subsidiaries [line items] | |||||||
Operating profit (loss) | $ 575 | $ 640 | [1] | $ 632 | [1] | ||
Net (loss) for the year | 154 | (26) | [1],[2] | 69 | [1],[2] | ||
Non-controlling interest in net (loss) | 5 | (16) | [1] | (17) | [1] | ||
Total assets (excluding goodwill) | 12,856 | 10,313 | [3],[4] | 9,464 | |||
Total liabilities | 10,176 | 7,521 | [3],[4] | 6,183 | |||
Non-controlling interests | 271 | 251 | [3],[4] | 185 | $ 181 | ||
Net cash from operating activities | 801 | 792 | [5] | 820 | [5] | ||
Net cash from (used in) investing activities | (1,502) | (1,199) | [5] | (367) | [5] | ||
Net cash from (used in) financing activities | 1,355 | 341 | [5] | (464) | [5] | ||
Exchange impact on cash and cash equivalents,net | (8) | (33) | [5] | 4 | [5] | ||
Net (decrease) increase in cash and cash equivalents | 645 | (98) | [5] | (8) | [5] | ||
Colombia | |||||||
Disclosure of subsidiaries [line items] | |||||||
Revenue | 1,532 | 1,661 | 1,739 | ||||
Total operating expenses | (543) | (667) | (647) | ||||
Operating profit (loss) | 164 | 147 | 106 | ||||
Net (loss) for the year | 23 | (10) | (25) | ||||
Non-controlling interest in net (loss) | 11 | (5) | (13) | ||||
Total assets (excluding goodwill) | 2,256 | 1,966 | 2,193 | ||||
Total liabilities | 1,891 | 1,620 | 1,771 | ||||
Net assets | 365 | 346 | 422 | ||||
Non-controlling interests | 170 | 161 | 197 | ||||
Dividends and advances paid to non-controlling interest | (12) | (2) | 0 | ||||
Net cash from operating activities | 363 | 348 | 331 | ||||
Net cash from (used in) investing activities | (260) | (270) | (209) | ||||
Net cash from (used in) financing activities | (67) | (75) | (46) | ||||
Exchange impact on cash and cash equivalents,net | 0 | (18) | 3 | ||||
Net (decrease) increase in cash and cash equivalents | 36 | (15) | 80 | ||||
Panama | |||||||
Disclosure of subsidiaries [line items] | |||||||
Revenue | 475 | 17 | |||||
Total operating expenses | (148) | (8) | |||||
Operating profit (loss) | (15) | (39) | |||||
Net (loss) for the year | (31) | (39) | |||||
Non-controlling interest in net (loss) | (6) | (8) | 0 | ||||
Total assets (excluding goodwill) | 1,866 | 1,082 | |||||
Total liabilities | 1,372 | 556 | |||||
Net assets | 494 | 526 | |||||
Non-controlling interests | 99 | 105 | |||||
Dividends and advances paid to non-controlling interest | 0 | 0 | |||||
Net cash from operating activities | 167 | (2) | |||||
Net cash from (used in) investing activities | (693) | 12 | |||||
Net cash from (used in) financing activities | 580 | (3) | |||||
Exchange impact on cash and cash equivalents,net | 0 | 0 | |||||
Net (decrease) increase in cash and cash equivalents | 54 | 7 | |||||
Other | |||||||
Disclosure of subsidiaries [line items] | |||||||
Non-controlling interest in net (loss) | 0 | (3) | (4) | ||||
Non-controlling interests | 2 | (16) | |||||
Before Consolidation Adjustments | Colombia | |||||||
Disclosure of subsidiaries [line items] | |||||||
Non-controlling interests | 183 | 173 | 211 | ||||
Before Consolidation Adjustments | Panama | |||||||
Disclosure of subsidiaries [line items] | |||||||
Non-controlling interests | 99 | 105 | |||||
Consolidation adjustments | Colombia | |||||||
Disclosure of subsidiaries [line items] | |||||||
Non-controlling interests | (13) | (12) | $ (15) | ||||
Consolidation adjustments | Panama | |||||||
Disclosure of subsidiaries [line items] | |||||||
Non-controlling interests | 0 | $ 0 | |||||
Telefonica Moviles Panama | |||||||
Disclosure of subsidiaries [line items] | |||||||
Consideration transferred, acquisition-date fair value | 594 | ||||||
Cable Onda 4.5% Senior Notes Due 2030 | |||||||
Disclosure of subsidiaries [line items] | |||||||
Notional amount | $ 600 | $ 600 | |||||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||
[2] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||
[3] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||
[4] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | ||||||
[5] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
The Millicom Group - A.2. Joint
The Millicom Group - A.2. Joint Ventures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of joint ventures [line items] | |||
Statutory reserves unavailable for distribution | $ 306 | $ 324 | $ 345 |
Increase (Decrease) Joint Ventures [Roll Forward] | |||
Investments in joint ventures | 2,867 | ||
Results for the year | (68) | (6) | |
Investments in joint ventures | 2,797 | 2,867 | |
Joint ventures | |||
Disclosure of joint ventures [line items] | |||
Total net assets | 3,346 | 3,405 | |
Statutory reserves unavailable for distribution | 142 | 133 | |
Dividends and advances paid to Millicom | 237 | 243 | |
Guatemala joint ventures | |||
Disclosure of joint ventures [line items] | |||
Total net assets | $ 1,767 | $ 1,796 | $ 1,890 |
Proportion of ownership interest in joint venture | 55.00% | 55.00% | 55.00% |
Dividends and advances paid to Millicom | $ 209 | $ 211 | $ 162 |
Increase (Decrease) Joint Ventures [Roll Forward] | |||
Investments in joint ventures | 2,104 | 2,145 | |
Accounting policy changes | 0 | 18 | |
Change in scope | 0 | ||
Results for the year | 152 | 131 | 126 |
Capital increase | 0 | 0 | |
Utilization of past recognized losses | 0 | ||
Dividends declared during the year | (170) | (177) | |
Currency exchange differences | 2 | (14) | |
Investments in joint ventures | $ 2,089 | $ 2,104 | 2,145 |
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] | |||
Total net assets | $ 176 | $ 198 | $ 95 |
Proportion of ownership interest in joint venture | 66.70% | 66.70% | 66.70% |
Dividends and advances paid to Millicom | $ 28 | $ 32 | $ 40 |
Increase (Decrease) Joint Ventures [Roll Forward] | |||
Investments in joint ventures | 730 | 726 | |
Accounting policy changes | 0 | 5 | |
Change in scope | 0 | ||
Results for the year | 27 | 23 | 15 |
Capital increase | 0 | 3 | |
Utilization of past recognized losses | 0 | ||
Dividends declared during the year | (37) | 0 | |
Currency exchange differences | (12) | (26) | |
Investments in joint ventures | $ 708 | $ 730 | 726 |
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 joint ventures | |||
Disclosure of joint ventures [line items] | |||
Proportion of ownership interest in joint venture | 50.00% | ||
Increase (Decrease) Joint Ventures [Roll Forward] | |||
Investments in joint ventures | $ 32 | ||
Investments in joint ventures | 0 | $ 32 | |
Ghana | |||
Disclosure of joint ventures [line items] | |||
Total net assets | $ (223) | $ (63) | $ (76) |
Proportion of ownership interest in joint venture | 50.00% | 50.00% | 50.00% |
Dividends and advances paid to Millicom | $ 0 | $ 0 | $ 0 |
Increase (Decrease) Joint Ventures [Roll Forward] | |||
Investments in joint ventures | 32 | 96 | |
Accounting policy changes | 0 | 0 | |
Change in scope | 0 | ||
Results for the year | (40) | (68) | (6) |
Capital increase | 5 | 0 | |
Utilization of past recognized losses | (5) | ||
Dividends declared during the year | 0 | 0 | |
Currency exchange differences | 8 | 3 | |
Investments in joint ventures | $ 0 | $ 32 | $ 96 |
Bharti Airtel Ghana Holdings B.V. | |||
Disclosure of joint ventures [line items] | |||
Proportion of ownership interest in joint venture | 50.00% | 50.00% |
The Millicom Group - A.2.2. Mat
The Millicom Group - A.2.2. Material Joint Ventures - Guatemala and Honduras (Details) - USD ($) | Sep. 19, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | [2] | Dec. 31, 2014 | ||
Disclosure of joint ventures [line items] | ||||||||||
Depreciation and amortization | $ (1,100,000,000) | $ (803,000,000) | $ (812,000,000) | |||||||
Operating profit (loss) | 575,000,000 | 640,000,000 | [1] | 632,000,000 | [1] | |||||
Profit before taxes from continuing operations | 218,000,000 | 119,000,000 | [1],[2] | 172,000,000 | [1],[2] | |||||
Charge for taxes, net | (120,000,000) | (112,000,000) | [1] | (162,000,000) | [1] | |||||
Net profit (loss) for the year | 154,000,000 | (26,000,000) | [1],[3] | 69,000,000 | [1],[3] | |||||
Share of profit in joint ventures | (68,000,000) | (6,000,000) | ||||||||
Total non-current assets (excluding goodwill) | 10,210,000,000 | 8,785,000,000 | [4],[5] | |||||||
Total non-current liabilities | 7,770,000,000 | 4,845,000,000 | [4],[5] | |||||||
Carrying value of investment in joint venture | 2,797,000,000 | 2,867,000,000 | [4],[5] | 2,966,000,000 | $ 2,989,000,000 | |||||
Cash and cash equivalents | 1,164,000,000 | 528,000,000 | [2],[4],[5] | 619,000,000 | [2] | $ 646,000,000 | ||||
Debt and financing – non-current | 5,786,000,000 | 4,123,000,000 | [4],[5] | |||||||
Debt and financing – current | 186,000,000 | 458,000,000 | [4],[5] | |||||||
Net cash from operating activities | 801,000,000 | 792,000,000 | [2] | 820,000,000 | [2] | |||||
Net cash from (used in) investing activities | (1,502,000,000) | (1,199,000,000) | [2] | (367,000,000) | [2] | |||||
Net cash from (used in) financing activities | 1,355,000,000 | 341,000,000 | [2] | (464,000,000) | [2] | |||||
Exchange impact on cash and cash equivalents,net | (8,000,000) | (33,000,000) | [2] | 4,000,000 | [2] | |||||
Net (decrease) increase in cash and cash equivalents | 645,000,000 | (98,000,000) | [2] | (8,000,000) | [2] | |||||
Impairments/reversal of impairment, net | 1,000,000 | 1,000,000 | ||||||||
Guatemala joint ventures | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Revenue | 1,434,000,000 | 1,373,000,000 | 1,328,000,000 | |||||||
Depreciation and amortization | (313,000,000) | (283,000,000) | (295,000,000) | |||||||
Operating profit (loss) | 429,000,000 | 387,000,000 | 352,000,000 | |||||||
Financial income (expenses), net | (66,000,000) | (56,000,000) | (60,000,000) | |||||||
Profit before taxes from continuing operations | 356,000,000 | 309,000,000 | 305,000,000 | |||||||
Charge for taxes, net | (79,000,000) | (69,000,000) | (74,000,000) | |||||||
Net profit (loss) for the year | 277,000,000 | 240,000,000 | 230,000,000 | |||||||
Share of profit in joint ventures | 152,000,000 | 131,000,000 | 126,000,000 | |||||||
Dividends and advances paid to Millicom | 209,000,000 | 211,000,000 | 162,000,000 | |||||||
Total non-current assets (excluding goodwill) | 2,517,000,000 | 2,280,000,000 | 2,406,000,000 | |||||||
Total non-current liabilities | 1,216,000,000 | 981,000,000 | 1,052,000,000 | |||||||
Total current assets | 717,000,000 | 718,000,000 | 756,000,000 | |||||||
Current liabilities | 251,000,000 | 221,000,000 | 220,000,000 | |||||||
Total net assets | $ 1,767,000,000 | $ 1,796,000,000 | $ 1,890,000,000 | |||||||
Group's share in % | 55.00% | 55.00% | 55.00% | |||||||
Group's share in USD millions | $ 972,000,000 | $ 988,000,000 | $ 1,040,000,000 | |||||||
Goodwill and consolidation adjustments | 1,117,000,000 | 1,116,000,000 | 1,106,000,000 | |||||||
Carrying value of investment in joint venture | 2,089,000,000 | 2,104,000,000 | 2,145,000,000 | |||||||
Cash and cash equivalents | 189,000,000 | 217,000,000 | 303,000,000 | |||||||
Debt and financing – non-current | 1,152,000,000 | 928,000,000 | 995,000,000 | |||||||
Debt and financing – current | 21,000,000 | 0 | 0 | |||||||
Net cash from operating activities | 588,000,000 | 545,000,000 | 498,000,000 | |||||||
Net cash from (used in) investing activities | (205,000,000) | (173,000,000) | (171,000,000) | |||||||
Net cash from (used in) financing activities | (412,000,000) | (455,000,000) | (315,000,000) | |||||||
Exchange impact on cash and cash equivalents,net | 1,000,000 | (3,000,000) | 2,000,000 | |||||||
Net (decrease) increase in cash and cash equivalents | (28,000,000) | (86,000,000) | 14,000,000 | |||||||
Impairments/reversal of impairment, net | 10,000,000 | |||||||||
Honduras joint ventures | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Revenue | 594,000,000 | 586,000,000 | 585,000,000 | |||||||
Depreciation and amortization | (132,000,000) | (133,000,000) | (156,000,000) | |||||||
Operating profit (loss) | 102,000,000 | 91,000,000 | 70,000,000 | |||||||
Financial income (expenses), net | (37,000,000) | (29,000,000) | (27,000,000) | |||||||
Profit before taxes from continuing operations | 60,000,000 | 52,000,000 | 41,000,000 | |||||||
Charge for taxes, net | (21,000,000) | (18,000,000) | (18,000,000) | |||||||
Net profit (loss) for the year | 39,000,000 | 34,000,000 | 23,000,000 | |||||||
Share of profit in joint ventures | 27,000,000 | 23,000,000 | 15,000,000 | |||||||
Dividends and advances paid to Millicom | 28,000,000 | 32,000,000 | 40,000,000 | |||||||
Total non-current assets (excluding goodwill) | 516,000,000 | 506,000,000 | 576,000,000 | |||||||
Total non-current liabilities | 469,000,000 | 386,000,000 | 407,000,000 | |||||||
Total current assets | 312,000,000 | 304,000,000 | 208,000,000 | |||||||
Current liabilities | 183,000,000 | 226,000,000 | 282,000,000 | |||||||
Total net assets | $ 176,000,000 | $ 198,000,000 | $ 95,000,000 | |||||||
Group's share in % | 66.70% | 66.70% | 66.70% | |||||||
Group's share in USD millions | $ 117,000,000 | $ 132,000,000 | $ 63,000,000 | |||||||
Goodwill and consolidation adjustments | 591,000,000 | 598,000,000 | 663,000,000 | |||||||
Carrying value of investment in joint venture | 708,000,000 | 730,000,000 | 726,000,000 | |||||||
Cash and cash equivalents | 40,000,000 | 25,000,000 | 16,000,000 | |||||||
Debt and financing – non-current | 384,000,000 | 298,000,000 | 308,000,000 | |||||||
Debt and financing – current | 39,000,000 | 85,000,000 | 80,000,000 | |||||||
Net cash from operating activities | 169,000,000 | 147,000,000 | 152,000,000 | |||||||
Net cash from (used in) investing activities | (77,000,000) | (87,000,000) | (74,000,000) | |||||||
Net cash from (used in) financing activities | (77,000,000) | (50,000,000) | (74,000,000) | |||||||
Net (decrease) increase in cash and cash equivalents | $ 15,000,000 | $ 9,000,000 | $ 3,000,000 | |||||||
6.875% Senior Notes | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 800,000,000 | |||||||||
Issuance price | 98.233% | |||||||||
Telefonica Celular, S.A. de C.V. Credit Agreement | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 185,000,000 | |||||||||
Borrowings term | 10 years | |||||||||
Telefonica Celular, S.A. de C.V. Credit Agreement, Tranche A | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 100,000,000 | |||||||||
Telefonica Celular, S.A. de C.V. Credit Agreement, Tranche B | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | 60,000,000 | |||||||||
Telefonica Celular, S.A. de C.V. Credit Agreement, Tranche C | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | 25,000,000 | |||||||||
Navega S.A. de C.V. | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 20,000,000 | |||||||||
Borrowings term | 10 years | |||||||||
Scotiabank Facility March 27, 2015 | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 250,000,000 | |||||||||
Banco Industrial S.A. Credit Agreement | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 90,000,000 | |||||||||
Fixed interest rate | 6.875% Senior Notes | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Borrowings, interest rate | 6.875% | |||||||||
Effective interest rate | 6.875% Senior Notes | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Borrowings, interest rate | 7.168% | |||||||||
LIBOR | Telefonica Celular, S.A. de C.V. Credit Agreement | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Adjustment to interest rate basis | 3.80% | |||||||||
LIBOR | Navega S.A. de C.V. | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Adjustment to interest rate basis | 3.80% | |||||||||
Floor | Telefonica Celular, S.A. de C.V. Credit Agreement | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Borrowings, interest rate | 5.25% | |||||||||
Floor | Navega S.A. de C.V. | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Borrowings, interest rate | 5.25% | |||||||||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | |||||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | |||||||||
[3] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | |||||||||
[4] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||||||||
[5] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | [2] | ||
Financial Results Of Joint Venture [Abstract] | |||||||||
Depreciation and amortization | $ (1,100) | $ (803) | $ (812) | ||||||
Operating profit (loss) | 575 | 640 | [1] | 632 | [1] | ||||
Profit before taxes from continuing operations | 218 | 119 | [1],[2] | 172 | [1],[2] | ||||
Charge for taxes, net | (120) | (112) | [1] | (162) | [1] | ||||
Net profit (loss) for the year | 154 | (26) | [1],[3] | 69 | [1],[3] | ||||
Share of profit in joint ventures | (68) | (6) | |||||||
Total non-current assets (excluding goodwill) | 10,210 | 8,785 | [4],[5] | ||||||
Total non-current liabilities | 7,770 | 4,845 | [4],[5] | ||||||
Carrying value of investment in joint venture | 2,797 | 2,867 | [4],[5] | 2,966 | $ 2,989 | ||||
Cash and cash equivalents | 1,164 | 528 | [2],[4],[5] | 619 | [2] | $ 646 | |||
Debt and financing – non-current | 5,786 | 4,123 | [4],[5] | ||||||
Debt and financing – current | 186 | 458 | [4],[5] | ||||||
Net cash from operating activities | 801 | 792 | [2] | 820 | [2] | ||||
Net cash from (used in) investing activities | (1,502) | (1,199) | [2] | (367) | [2] | ||||
Net cash from (used in) financing activities | 1,355 | 341 | [2] | (464) | [2] | ||||
Increase (decrease) in cash and cash equivalents | $ 645 | (98) | [2] | (8) | [2] | ||||
Ghana | |||||||||
Disclosure of joint ventures [line items] | |||||||||
Government purchase option, percentage | 25.00% | ||||||||
Government purchase option, period | 2 years | ||||||||
Non-current receivables due from joint ventures | $ 40 | ||||||||
Investments in associates | 102 | ||||||||
Gain (loss) attributable to recycling of foreign currency exchange | (79) | ||||||||
Financial Results Of Joint Venture [Abstract] | |||||||||
Revenue | $ 142 | 187 | 58 | ||||||
Depreciation and amortization | (69) | (110) | (11) | ||||||
Operating profit (loss) | (72) | (100) | (1) | ||||||
Financial income (expenses), net | (77) | (42) | (10) | ||||||
Profit before taxes from continuing operations | (123) | (135) | (12) | ||||||
Charge for taxes, net | 0 | 0 | 0 | ||||||
Net profit (loss) for the year | (123) | (135) | (12) | ||||||
Share of profit in joint ventures | (40) | (68) | (6) | ||||||
Dividends and advances paid to Millicom | 0 | 0 | 0 | ||||||
Total non-current assets (excluding goodwill) | 168 | 277 | 184 | ||||||
Total non-current liabilities | 245 | 277 | 214 | ||||||
Total current assets | 42 | 71 | 60 | ||||||
Current liabilities | 187 | 134 | 106 | ||||||
Total net assets | $ (223) | $ (63) | $ (76) | ||||||
Group's share in % | 50.00% | 50.00% | 50.00% | ||||||
Group's share in USD millions | $ (111) | $ (31) | $ (38) | ||||||
Goodwill and consolidation adjustments | 90 | 63 | 134 | ||||||
Unrecognised losses | (22) | 0 | 0 | ||||||
Carrying value of investment in joint venture | 0 | 32 | 96 | ||||||
Cash and cash equivalents | 5 | 19 | 15 | ||||||
Debt and financing – non-current | 245 | 276 | 145 | ||||||
Debt and financing – current | 27 | 17 | 0 | ||||||
Net cash from operating activities | (5) | (19) | 13 | ||||||
Net cash from (used in) investing activities | 0 | (8) | 0 | ||||||
Net cash from (used in) financing activities | (6) | 42 | (3) | ||||||
Increase (decrease) in cash and cash equivalents | $ (11) | $ 15 | $ 10 | ||||||
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.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||||
[3] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||||
[4] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||||
[5] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
The Millicom Group - A.2.3 Impa
The Millicom Group - A.2.3 Impairment of Investments in Joint Ventures (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Guatemala joint ventures | ||
Disclosure of joint ventures [line items] | ||
Discount rate applied to cash flow projections | 9.50% | 11.00% |
Honduras joint ventures | ||
Disclosure of joint ventures [line items] | ||
Discount rate applied to cash flow projections | 9.70% | 10.30% |
Ghana | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 3.80% | |
Discount rate applied to cash flow projections | 14.40% | |
Bottom of range | Guatemala and Honduras Joint Ventures | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 1.10% | 3.20% |
Top of range | Guatemala and Honduras Joint Ventures | ||
Disclosure of joint ventures [line items] | ||
Growth rate used to extrapolate cash flow projections | 1.20% | 3.00% |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of associates [line items] | |||||||
Investments in associates | $ 25 | $ 169 | [1],[2] | ||||
Total non-current assets (excluding goodwill) | 10,210 | 8,785 | [1],[2] | ||||
TOTAL ASSETS | 12,856 | 10,313 | [1],[2] | $ 9,464 | |||
Total non-current liabilities | 7,770 | 4,845 | [1],[2] | ||||
TOTAL LIABILITIES | 10,176 | 7,521 | [1],[2] | 6,183 | |||
Operating profit (loss) | 575 | 640 | [3] | 632 | [3] | ||
Net (loss) for the year | $ 154 | (26) | [3],[4] | 69 | [3],[4] | ||
Results for the year | (68) | (6) | |||||
Associates [member] | |||||||
Disclosure of associates [line items] | |||||||
Total current assets | 473 | ||||||
Total non-current assets (excluding goodwill) | 717 | ||||||
TOTAL ASSETS | 1,190 | ||||||
Current liabilities | 343 | ||||||
Total non-current liabilities | 627 | ||||||
TOTAL LIABILITIES | 969 | ||||||
Net assets | 221 | ||||||
Revenue | 511 | 449 | |||||
Total operating expenses | (459) | (321) | |||||
Operating profit (loss) | (214) | (148) | |||||
Net (loss) for the year | (327) | (220) | |||||
Helios Tower Africa Ltd (HTA) And African Internet Holding GmbH (AIH) [Member] | |||||||
Disclosure of associates [line items] | |||||||
Investments in associates | 142 | ||||||
Share of profit (loss) from other joint ventures and associates, net | $ (66) | $ (34) | |||||
Helios Towers Africa Ltd (HTA) | |||||||
Disclosure of associates [line items] | |||||||
Proportion of ownership interest in associate | 0.00% | 22.83% | |||||
Investments in associates | $ 0 | $ 105 | |||||
Africa Internet Holding GmbH (AIH) | |||||||
Disclosure of associates [line items] | |||||||
Proportion of ownership interest in associate | 0.00% | 10.15% | |||||
Investments in associates | $ 0 | $ 38 | |||||
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 | |||||
MKC Brilliant Holding GmbH (LIH) | |||||||
Disclosure of associates [line items] | |||||||
Proportion of ownership interest in associate | 35.00% | 35.00% | 35.00% | ||||
Milvik AB | |||||||
Disclosure of associates [line items] | |||||||
Proportion of ownership interest in associate | 12.00% | 20.40% | 11.40% | 12.30% | |||
Investments in associates | $ 11 | $ 13 | |||||
Aggregated other associates | |||||||
Disclosure of associates [line items] | |||||||
Investments in associates | 27 | ||||||
Share of profit (loss) from other joint ventures and associates, net | (2) | $ (45) | |||||
Ghana | |||||||
Disclosure of associates [line items] | |||||||
Total current assets | 42 | 71 | 60 | ||||
Total non-current assets (excluding goodwill) | 168 | 277 | 184 | ||||
Current liabilities | 187 | 134 | 106 | ||||
Total non-current liabilities | 245 | 277 | 214 | ||||
Net assets | (223) | (63) | (76) | ||||
Revenue | 142 | 187 | 58 | ||||
Operating profit (loss) | (72) | (100) | (1) | ||||
Net (loss) for the year | (123) | (135) | (12) | ||||
Results for the year | $ (40) | (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) | |||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | ||||||
[3] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||
[4] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of associates [line items] | ||||||
Gains (losses) on disposal | $ (32) | $ 0 | $ 0 | |||
Milvik AB | ||||||
Disclosure of associates [line items] | ||||||
Proportion of ownership interest in associate | 12.00% | 20.40% | 11.40% | 12.30% | ||
Contributions to associate by other investors | $ 97 | |||||
Proceeds from sales of interests in associates | 24 | |||||
Gain (loss) on dilution in investment by associate | 21 | |||||
Gains (losses) on disposal | $ 11 | |||||
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 |
Performance B.1. Revenue (Detai
Performance B.1. Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 4,336 | $ 3,946 | [1] | $ 3,936 | [1] |
Colombia | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,532 | 1,661 | 1,739 | ||
Paraguay | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 609 | 679 | 662 | ||
Bolivia | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 639 | 614 | 555 | ||
El Salvador | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 386 | 405 | 422 | ||
Tanzania | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 382 | 399 | 384 | ||
Nicaragua | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 157 | 13 | 13 | ||
Costa Rica | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 153 | 155 | 153 | ||
Panama | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 475 | 17 | 0 | ||
Other operations | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 2 | 5 | 7 | ||
Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 4,130 | 3,734 | 3,737 | ||
Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 2,150 | 2,126 | 2,147 | ||
Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,928 | 1,565 | 1,551 | ||
Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 52 | 43 | 38 | ||
Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 206 | 212 | 199 | ||
Total revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 4,336 | $ 3,946 | $ 3,936 | ||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Performance B.2. Expenses (Deta
Performance B.2. Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Cost of sales: | |||||
Direct costs of services sold | $ (878) | $ (799) | $ (881) | ||
Cost of telephone, equipment and other accessories | (230) | (229) | (217) | ||
Bad debt and obsolescence costs | (93) | (90) | (71) | ||
Cost of sales | (1,201) | (1,117) | [1] | (1,169) | [1] |
Operating expenses, net | |||||
Marketing expenses | (402) | (391) | (448) | ||
Site and network maintenance costs | (245) | (192) | (178) | ||
Employee related costs | (496) | (500) | (434) | ||
External and other services | (204) | (181) | (163) | ||
Rentals and (operating) leases | (1) | (152) | (151) | ||
Other operating expenses | (257) | (201) | (156) | ||
Operating expenses, net | (1,604) | (1,616) | [1] | (1,531) | [1] |
Other operating income (expenses), net: | |||||
Income from tower deal transactions | 5 | 61 | 63 | ||
Impairment of intangible assets and property, plant and equipment | (8) | (6) | (12) | ||
Gain (loss) on disposals of intangible assets and property, plant and equipment | 0 | 7 | 1 | ||
Loss on disposal of equity investments | (32) | 0 | 0 | ||
Other income (expenses) | 1 | 13 | 17 | ||
Other operating income (expenses), net | $ (34) | $ 75 | [1] | $ 69 | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
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, 2019USD ($)region | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |||
Disclosure of operating segments [line items] | |||||
Number of regions | region | 2 | ||||
Revenue | $ 4,336 | $ 3,946 | [1] | $ 3,936 | [1] |
Operating profit (loss) | 575 | 640 | [1] | 632 | [1] |
Depreciation and amortization | 1,100 | 803 | 812 | ||
Share of profit in Guatemala and Honduras joint ventures | (179) | (154) | [1],[2] | (140) | [1],[2] |
Other operating income (expenses), net | 34 | (75) | [1] | (69) | [1] |
EBITDA | 1,530 | 1,213 | 1,236 | ||
EBITDA from discontinued operations | (3) | 44 | 115 | ||
EBITDA incl discontinued operations | 1,527 | 1,257 | 1,351 | ||
Capital expenditure | (846) | (708) | (718) | ||
Changes in working capital and others | (143) | (13) | (43) | ||
Taxes paid | (114) | (153) | [2] | (132) | [2] |
Operating free cash flow | 425 | 383 | 459 | ||
Total assets (excluding goodwill) | 12,856 | 10,313 | [3],[4] | 9,464 | |
Total liabilities | 10,176 | 7,521 | [3],[4] | 6,183 | |
Purchase of spectrum and licenses | 59 | 61 | 53 | ||
Income from tower deal transactions | 22 | 141 | 161 | ||
Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 2,150 | 2,126 | 2,147 | ||
Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,928 | 1,565 | 1,551 | ||
Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 52 | 43 | 38 | ||
Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 4,130 | 3,734 | 3,737 | ||
Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 206 | 212 | 199 | ||
Latin America | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3,954 | 3,548 | |||
Latin America | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3,748 | 3,336 | |||
Africa | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 382 | 399 | |||
Africa | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 382 | 398 | |||
Operating segments | Latin America | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 5,964 | 5,485 | 5,441 | ||
Operating profit (loss) | 1,006 | 995 | 899 | ||
Depreciation and amortization | 1,435 | 1,133 | 1,174 | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | 2 | (51) | (49) | ||
EBITDA | 2,443 | 2,077 | 2,024 | ||
EBITDA from discontinued operations | 0 | 0 | 0 | ||
EBITDA incl discontinued operations | 2,443 | 2,077 | 2,024 | ||
Capital expenditure | (1,040) | (872) | (855) | ||
Changes in working capital and others | (86) | (42) | (53) | ||
Taxes paid | (225) | (264) | (239) | ||
Operating free cash flow | 1,093 | 899 | 877 | ||
Total assets (excluding goodwill) | 13,821 | 11,751 | 10,411 | ||
Total liabilities | 8,374 | 6,127 | 5,484 | ||
Operating segments | Latin America | Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 3,258 | 3,214 | 3,283 | ||
Operating segments | Latin America | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 2,197 | 1,808 | 1,755 | ||
Operating segments | Latin America | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 60 | 48 | 40 | ||
Operating segments | Latin America | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 5,514 | 5,069 | 5,078 | ||
Operating segments | Latin America | Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 449 | 415 | 363 | ||
Operating segments | Africa | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 382 | 399 | 386 | ||
Operating profit (loss) | 24 | 25 | 28 | ||
Depreciation and amortization | 99 | 80 | 81 | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | (2) | (3) | (11) | ||
EBITDA | 122 | 102 | 97 | ||
EBITDA from discontinued operations | (3) | 44 | 115 | ||
EBITDA incl discontinued operations | 119 | 146 | 212 | ||
Capital expenditure | (58) | (59) | (99) | ||
Changes in working capital and others | 14 | 28 | (6) | ||
Taxes paid | (10) | (24) | (18) | ||
Operating free cash flow | 64 | 91 | 89 | ||
Total assets (excluding goodwill) | 936 | 839 | 1,482 | ||
Total liabilities | 909 | 905 | 1,673 | ||
Operating segments | Africa | Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 372 | 388 | 374 | ||
Operating segments | Africa | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 9 | 10 | 9 | ||
Operating segments | Africa | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1 | 1 | 2 | ||
Operating segments | Africa | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 382 | 398 | 385 | ||
Operating segments | Africa | Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 1 | ||
Unallocated | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 0 | 0 | 0 | ||
Operating profit (loss) | (94) | (47) | (5) | ||
Depreciation and amortization | 9 | 5 | 6 | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | 42 | (2) | 10 | ||
EBITDA | (43) | (44) | 12 | ||
EBITDA from discontinued operations | 0 | 0 | 0 | ||
EBITDA incl discontinued operations | (43) | (44) | 12 | ||
Capital expenditure | (9) | (2) | (1) | ||
Changes in working capital and others | (52) | 13 | (10) | ||
Taxes paid | (8) | (6) | 1 | ||
Operating free cash flow | (112) | (39) | 2 | ||
Total assets (excluding goodwill) | 3,715 | 2,752 | 598 | ||
Total liabilities | 3,977 | 2,953 | 1,465 | ||
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 | (2,009) | (1,937) | (1,892) | ||
Operating profit (loss) | (540) | (488) | (431) | ||
Depreciation and amortization | (444) | (416) | (450) | ||
Share of profit in Guatemala and Honduras joint ventures | 0 | 0 | 0 | ||
Other operating income (expenses), net | (8) | (19) | (18) | ||
EBITDA | (992) | (922) | (898) | ||
EBITDA from discontinued operations | 0 | 0 | 0 | ||
EBITDA incl discontinued operations | (992) | (922) | (898) | ||
Capital expenditure | 261 | 225 | 237 | ||
Changes in working capital and others | (18) | (12) | 27 | ||
Taxes paid | 129 | 142 | 124 | ||
Operating free cash flow | (619) | (568) | (511) | ||
Total assets (excluding goodwill) | (5,465) | (5,219) | (5,420) | ||
Total liabilities | (2,119) | (1,814) | (1,961) | ||
Guatemala and Honduras | Mobile | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (1,480) | (1,475) | (1,510) | ||
Guatemala and Honduras | Cable and other fixed services | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (277) | (253) | (213) | ||
Guatemala and Honduras | Other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (8) | (6) | (4) | ||
Guatemala and Honduras | Service revenue | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (1,766) | (1,734) | (1,727) | ||
Guatemala and Honduras | Telephone and equipment and other | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (243) | (203) | (165) | ||
Eliminations and Transfers | |||||
Disclosure of operating segments [line items] | |||||
Operating profit (loss) | 179 | 154 | 140 | ||
Share of profit in Guatemala and Honduras joint ventures | (179) | (154) | (140) | ||
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 | ||
Capital expenditure | 0 | 0 | 0 | ||
Changes in working capital and others | 0 | 0 | 0 | ||
Taxes paid | 0 | 0 | 0 | ||
Operating free cash flow | 0 | 0 | 1 | ||
Total assets (excluding goodwill) | (151) | 190 | 2,393 | ||
Total liabilities | $ (965) | $ (650) | $ (478) | ||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||
[3] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||
[4] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 4,336 | $ 3,946 | [1] | $ 3,936 | [1] |
Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 2,150 | 2,126 | 2,147 | ||
Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,928 | 1,565 | 1,551 | ||
Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 52 | 43 | 38 | ||
Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 4,130 | 3,734 | 3,737 | ||
Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 206 | 212 | $ 199 | ||
Latin America | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 3,954 | 3,548 | |||
Latin America | Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 3,748 | 3,336 | |||
Africa | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 382 | 399 | |||
Africa | Service revenue | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 382 | 398 | |||
Over time | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 2,007 | 1,981 | |||
Over time | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,928 | 1,565 | |||
Over time | Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 52 | 43 | |||
Over time | Latin America | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,747 | 1,701 | |||
Over time | Latin America | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1,919 | 1,556 | |||
Over time | Latin America | Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 51 | 42 | |||
Over time | Africa | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 261 | 280 | |||
Over time | Africa | Cable and other fixed services | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 9 | 10 | |||
Over time | Africa | Other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 1 | 1 | |||
Point in time | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 143 | 145 | |||
Point in time | Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 206 | 212 | |||
Point in time | Latin America | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 31 | 37 | |||
Point in time | Latin America | Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 206 | 212 | |||
Point in time | Africa | Mobile | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | 112 | 108 | |||
Point in time | Africa | Telephone and equipment and other | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Revenue | $ 0 | $ 0 | |||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Performance B.4. People (Detail
Performance B.4. People (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($)employee | |
Number of permanent employees: | |||
Continuing operations (employees) | employee | 17,687 | 16,725 | 14,134 |
Joint ventures (Guatemala, Honduras and Ghana) (employees) | employee | 4,688 | 4,416 | 4,326 |
Discontinued operations (employees) | employee | 0 | 262 | 667 |
Total (employees) | employee | 22,375 | 21,403 | 19,127 |
Classes of employee benefits expense: | |||
Wages and salaries | $ (358) | $ (346) | $ (308) |
Social security | (68) | (60) | (56) |
Share based compensation | (27) | (21) | (22) |
Pension and other long-term benefit costs | (4) | (7) | (8) |
Other employees related costs | (39) | (67) | (41) |
Total | $ (496) | $ (500) | $ (434) |
Performance B.4.1. Share-based
Performance B.4.1. Share-based compensation - Narrative (Details) - plan | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of plans | 2 | ||
Deferred share plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | 3 years | 3 years | |
Deferred share plans | Tranche One | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting percentage | 30.00% | 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 | 40.00% | 67.00% | |
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% | ||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | $ (27) | $ (21) | $ (22) |
2016 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | 0 | (4) | (6) |
2017 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | (7) | (8) | (12) |
2018 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | (8) | (11) | 0 |
2019 incentive plans | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Cost of share based compensation | $ (14) | $ 0 | $ 0 |
Performance B.4.1. Share-base_3
Performance B.4.1. Share-based compensation - Assumptions (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)year | |
Performance share plan 2019 (Relative TSR) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Risk-free rate % | (0.24%) |
Dividend yield % | 3.01% |
Share price volatility % | 26.58% |
Award term (years) | year | 2.93 |
Share fair value | $ | $ 49.79 |
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 | $ | $ 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 | $ | $ 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 | $ | $ 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 | $ | $ 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 | $ | $ 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 | $ | $ 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 | $ | $ 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 | $ | $ 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, 2019USD ($)shares | Dec. 31, 2018shares | Dec. 31, 2017shares | Dec. 31, 2016shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Shares issued (in shares) | (326,883) | (207,092) | |||||
Shares still expected to vest (in shares) | 570,404 | 512,211 | 570,404 | 570,404 | 570,404 | ||
2019 Performance Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 257,601 | ||||||
Additional shares granted (in shares) | 0 | ||||||
Revision for forfeitures (in shares) | (17,182) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 240,419 | ||||||
Shares issued (in shares) | (150) | ||||||
Shares still expected to vest (in shares) | 240,269 | 240,269 | 240,269 | 240,269 | |||
Estimated cost over the vesting period | $ | $ 11 | $ 11 | $ 11 | $ 11 | |||
2019 Deferred Plan | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Initial shares granted (in shares) | 320,840 | ||||||
Additional shares granted (in shares) | 20,131 | ||||||
Revision for forfeitures (in shares) | (9,198) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 331,773 | ||||||
Shares issued (in shares) | (24,294) | ||||||
Shares still expected to vest (in shares) | 307,479 | 307,479 | 307,479 | 307,479 | |||
Estimated cost over the vesting period | $ | $ 18 | $ 18 | $ 18 | $ 18 | |||
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) | (27,494) | ||||||
Revision for cancellations (in shares) | (4,728) | ||||||
Total before issuances (in shares) | 204,974 | ||||||
Shares issued (in shares) | (3,109) | (97) | |||||
Shares still expected to vest (in shares) | 201,768 | 201,768 | 201,768 | 201,768 | |||
Estimated cost over the vesting period | $ | $ 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) | (26,860) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 238,747 | ||||||
Shares issued (in shares) | (54,971) | (18,747) | |||||
Shares still expected to vest (in shares) | 165,029 | 165,029 | 165,029 | 165,029 | |||
Estimated cost over the vesting period | $ | $ 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) | (40,946) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 241,729 | ||||||
Shares issued (in shares) | (19,143) | (2,724) | 0 | ||||
Shares still expected to vest (in shares) | 219,862 | 219,862 | 219,862 | 219,862 | |||
Estimated cost over the vesting period | $ | $ 10 | $ 10 | $ 10 | $ 10 | |||
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) | (88,437) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 379,474 | ||||||
Shares issued (in shares) | (82,486) | (99,399) | (2,686) | ||||
Shares still expected to vest (in shares) | 194,903 | 194,903 | 194,903 | 194,903 | |||
Estimated cost over the vesting period | $ | $ 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) | (149,487) | (752) | (1,214) | ||||
Shares still expected to vest (in shares) | 0 | 0 | 0 | 0 | |||
Estimated cost over the vesting period | $ | $ 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) | (78,253) | ||||||
Revision for cancellations (in shares) | 0 | ||||||
Total before issuances (in shares) | 209,063 | ||||||
Shares issued (in shares) | (163,751) | (43,579) | (1,733) | ||||
Shares still expected to vest (in shares) | 0 | 0 | 0 | 0 | |||
Estimated cost over the vesting period | $ | $ 12 | $ 12 | $ 12 | $ 12 |
Performance B.4.2. Pension and
Performance B.4.2. Pension and other long-term employee benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 59 | $ 60 |
Estimate of contributions expected to be paid to plan in future years | $ 106 | $ 111 |
Weighted average duration of defined benefit obligation | 6 years | 7 years |
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 management (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Employee Benefits Expense [Line Items] | |||
Remuneration charge for the Board (gross of withholding tax) | $ 1,923,000 | $ 943,000 | $ 1,122,000 |
Renumeration charge (in shares) | shares | 19,483 | 6,591 | 8,731 |
Remuneration expense, percent shares | 73.00% | 51.00% | 52.00% |
Remuneration expense, percent cash | 27.00% | 49.00% | 48.00% |
Shares beneficially owned by the Directors | shares | 38,093 | 23,887 | |
Classes of employee benefits expense: | |||
Base salary | $ 358,000,000 | $ 346,000,000 | $ 308,000,000 |
Pension | 4,000,000 | 7,000,000 | 8,000,000 |
Other benefits | 39,000,000 | 67,000,000 | 41,000,000 |
Share based compensation | 27,000,000 | 21,000,000 | 22,000,000 |
Employee benefits expense | $ 496,000,000 | $ 500,000,000 | 434,000,000 |
Shares awards vested (in shares) | shares | 326,883 | 207,092 | |
Shares not yet vested (in shares) | shares | 570,404 | 512,211 | |
Chairperson | |||
Employee Benefits Expense [Line Items] | |||
Remuneration charge for the Board (gross of withholding tax) | $ 366,000 | $ 169,000 | 233,000 |
Shares beneficially owned by the Directors | shares | 5,814 | 8,554 | |
Other members of the Board | |||
Employee Benefits Expense [Line Items] | |||
Remuneration charge for the Board (gross of withholding tax) | $ 1,557,000 | $ 774,000 | 889,000 |
Shares beneficially owned by the Directors | shares | 32,279 | 15,333 | |
CEO | |||
Classes of employee benefits expense: | |||
Base salary | $ 1,167,000 | $ 1,112,000 | 1,000,000 |
Bonus | 1,428,000 | 1,492,000 | 707,000 |
Pension | 279,000 | 247,000 | 150,000 |
Other benefits | 50,000 | 66,000 | 64,000 |
Termination benefits | 0 | 0 | |
Total before share based compensation | 2,924,000 | 2,918,000 | 1,921,000 |
Share based compensation | 5,625,000 | 5,027,000 | 2,783,000 |
Employee benefits expense | $ 8,549,000 | $ 7,945,000 | $ 4,704,000 |
Number of shares granted (in shares) | shares | 102,122 | 80,264 | 61,724 |
Shares awards vested (in shares) | shares | 190,577 | 122,310 | |
Shares not yet vested (in shares) | shares | 236,211 | 172,485 | |
CFO | |||
Classes of employee benefits expense: | |||
Base salary | $ 654,000 | $ 673,000 | $ 648,000 |
Bonus | 626,000 | 557,000 | 455,000 |
Pension | 98,000 | 101,000 | 97,000 |
Other benefits | 260,000 | 63,000 | 15,000 |
Termination benefits | 0 | 0 | |
Total before share based compensation | 1,639,000 | 1,393,000 | 1,215,000 |
Share based compensation | 1,576,000 | 1,567,000 | 1,492,000 |
Employee benefits expense | 3,215,000 | 2,960,000 | 2,707,000 |
Executive team | |||
Classes of employee benefits expense: | |||
Base salary | 3,498,000 | 3,930,000 | 3,822,000 |
Bonus | 2,098,000 | 2,445,000 | 1,590,000 |
Pension | 798,000 | 962,000 | 628,500 |
Other benefits | 1,521,000 | 805,000 | 1,192,500 |
Termination benefits | 863,000 | 301,000 | |
Total before share based compensation | 8,779,000 | 8,444,000 | 7,233,000 |
Share based compensation | 5,965,000 | 4,957,000 | 5,202,000 |
Employee benefits expense | $ 14,743,000 | $ 13,401,000 | $ 12,435,000 |
Number of shares granted (in shares) | shares | 135,480 | 112,472 | 167,371 |
Shares awards vested (in shares) | shares | 136,306 | 84,782 | |
Shares not yet vested (in shares) | shares | 334,193 | 339,726 |
Performance B.5. Other non-oper
Performance B.5. Other non-operating (expenses) income, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Investment [Line Items] | |||||
Change in fair value of derivatives | $ 0 | $ (1) | $ (22) | ||
Change in value of put option liability | (25) | 0 | 0 | ||
Exchange gains (losses), net | (32) | (40) | 21 | ||
Other non-operating income (expenses), net | 10 | 2 | 0 | ||
Total | 227 | (39) | [1] | (2) | [1] |
Equity Investment In Jumia | |||||
Investment [Line Items] | |||||
Change in fair value in investment | (38) | 0 | 0 | ||
Equity Investment In HTA | |||||
Investment [Line Items] | |||||
Change in fair value in investment | $ 312 | $ 0 | $ 0 | ||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Performance B.6.1 Income tax ex
Performance B.6.1 Income tax expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income tax (charge) credit | |||||
Withholding tax | $ (56) | $ (64) | $ (74) | ||
Other income tax relating to the current year | (88) | (82) | (81) | ||
Adjustments in respect of prior years | (7) | 1 | (21) | ||
Current tax expense (income) and adjustments | (151) | (145) | (176) | ||
Deferred tax (charge) credit | |||||
Origination and reversal of temporary differences | 58 | 32 | 15 | ||
Effect of change in tax rates | (8) | (10) | 19 | ||
Tax income (expense) before valuation allowances | 50 | 22 | 34 | ||
Effect of valuation allowances | (9) | (8) | (28) | ||
Deferred tax expense (income) | 41 | 14 | 6 | ||
Adjustments in respect of prior years | (10) | 19 | 8 | ||
Deferred tax expense (income) and adjustments | 31 | 33 | 14 | ||
Income Tax Calculation: | |||||
Profit before tax | 218 | 119 | 171 | ||
Tax at the weighted average statutory rate | (37) | (1) | (10) | ||
Effect of: | |||||
Items taxed at a different rate | (1) | 7 | (11) | ||
Change in tax rates on deferred tax balances | (8) | (10) | 19 | ||
Expenditure not deductible and income not taxable | (37) | (59) | (64) | ||
Unrelieved withholding tax | (56) | (64) | (73) | ||
Accounting for associates and joint ventures | 36 | 5 | 17 | ||
Movement in deferred tax on unremitted earnings | 9 | (2) | 1 | ||
Unrecognized deferred tax assets | (20) | (8) | (29) | ||
Recognition of previously unrecognized deferred tax assets | 11 | 0 | 1 | ||
Adjustments in respect of prior years | (17) | 20 | (13) | ||
Total tax (charge) credit | $ (120) | $ (112) | [1] | $ (162) | [1] |
Weighted average statutory tax rate | 17.00% | 0.80% | 5.80% | ||
Effective tax rate | 55.00% | 94.10% | 94.70% | ||
Discontinued operations | |||||
Income Tax Calculation: | |||||
Profit before tax | $ 59 | $ (29) | $ 56 | ||
Tax at the weighted average statutory rate | (11) | 0 | (12) | ||
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 | 9 | (2) | 5 | ||
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 | 0 | (2) | (12) | ||
Recognition of previously unrecognized deferred tax assets | 0 | 0 | 13 | ||
Adjustments in respect of prior years | 0 | 0 | 10 | ||
Total tax (charge) credit | (2) | (4) | 4 | ||
Aggregate continuing and discontinued operations | |||||
Income Tax Calculation: | |||||
Profit before tax | 277 | 90 | 227 | ||
Tax at the weighted average statutory rate | (48) | (1) | (22) | ||
Effect of: | |||||
Items taxed at a different rate | (1) | 7 | (11) | ||
Change in tax rates on deferred tax balances | (8) | (10) | 19 | ||
Expenditure not deductible and income not taxable | (28) | (61) | (59) | ||
Unrelieved withholding tax | (56) | (64) | (73) | ||
Accounting for associates and joint ventures | 36 | 5 | 17 | ||
Movement in deferred tax on unremitted earnings | 9 | (2) | 1 | ||
Unrecognized deferred tax assets | (20) | (10) | (41) | ||
Recognition of previously unrecognized deferred tax assets | 11 | 0 | 14 | ||
Adjustments in respect of prior years | (17) | 20 | (3) | ||
Total tax (charge) credit | $ (122) | $ (116) | $ (158) | ||
Weighted average statutory tax rate | 17.30% | 1.10% | 9.70% | ||
Effective tax rate | 44.00% | 128.90% | 69.60% | ||
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 | 35.00% | 37.00% | 40.00% | ||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Performance B.6.3 Deferred tax
Performance B.6.3 Deferred tax (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | $ (34,000,000) | $ 124,000,000 | |||
(Charge)/credit to income statement | 31,000,000 | 33,000,000 | |||
Change in scope | (73,000,000) | (184,000,000) | |||
Accounting policy changes | 4,000,000 | ||||
Transfers to assets held for sale | (3,000,000) | ||||
Exchange differences | 0 | (11,000,000) | |||
End of period | (79,000,000) | (34,000,000) | |||
Deferred tax assets | 200,000,000 | 202,000,000 | [1],[2] | $ 191,000,000 | $ 180,000,000 |
Deferred tax liabilities | (279,000,000) | (236,000,000) | [1],[2] | $ (62,000,000) | (56,000,000) |
Deductible temporary differences | 4,923,000,000 | 5,112,000,000 | |||
Unrecognized tax losses | 4,705,000,000 | 4,886,000,000 | 4,844,000,000 | ||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 697,000,000 | ||||
Deferred tax assets, intragroup dividends | 26,000,000 | 34,000,000 | 32,000,000 | ||
Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | (52,000,000) | (52,000,000) | |||
Deferred tax liabilities | 52,000,000 | 52,000,000 | |||
Fixed assets | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | (178,000,000) | 32,000,000 | |||
(Charge)/credit to income statement | 41,000,000 | (18,000,000) | |||
Change in scope | (82,000,000) | (192,000,000) | |||
Accounting policy changes | 0 | ||||
Transfers to assets held for sale | 0 | ||||
Exchange differences | 2,000,000 | 0 | |||
End of period | (217,000,000) | (178,000,000) | |||
Deductible temporary differences | 92,000,000 | 92,000,000 | |||
Fixed assets | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 84,000,000 | 76,000,000 | |||
Deferred tax liabilities | (301,000,000) | (254,000,000) | |||
Unused tax losses | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | 44,000,000 | 52,000,000 | |||
(Charge)/credit to income statement | (15,000,000) | (3,000,000) | |||
Change in scope | 5,000,000 | 0 | |||
Accounting policy changes | 0 | ||||
Transfers to assets held for sale | 0 | ||||
Exchange differences | 0 | (5,000,000) | |||
End of period | 34,000,000 | 44,000,000 | |||
Deductible temporary differences | 4,705,000,000 | 4,886,000,000 | |||
Unused tax losses | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 34,000,000 | 44,000,000 | |||
Deferred tax liabilities | 0 | 0 | |||
Unremitted earnings | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | (34,000,000) | (32,000,000) | |||
(Charge)/credit to income statement | 8,000,000 | (2,000,000) | |||
Change in scope | 0 | 0 | |||
Accounting policy changes | 0 | ||||
Transfers to assets held for sale | 0 | ||||
Exchange differences | 0 | 0 | |||
End of period | (26,000,000) | (34,000,000) | |||
Deferred tax liabilities | 0 | (584,000,000) | (842,000,000) | ||
Unremitted earnings | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 0 | 0 | |||
Deferred tax liabilities | (26,000,000) | (34,000,000) | |||
Other | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Beginning of period | 134,000,000 | 72,000,000 | |||
(Charge)/credit to income statement | (3,000,000) | 56,000,000 | |||
Change in scope | 4,000,000 | 8,000,000 | |||
Accounting policy changes | 4,000,000 | ||||
Transfers to assets held for sale | (3,000,000) | ||||
Exchange differences | (2,000,000) | (6,000,000) | |||
End of period | 130,000,000 | 134,000,000 | |||
Deductible temporary differences | 126,000,000 | 134,000,000 | |||
Other | Before Offset | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Deferred tax assets | 134,000,000 | 134,000,000 | |||
Deferred tax liabilities | (4,000,000) | 0 | |||
Less than 1 year | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | 1,000,000 | 0 | 39,000,000 | ||
1 to 5 years | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | 2,000,000 | 3,000,000 | 494,000,000 | ||
After five years | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | 493,000,000 | 493,000,000 | 0 | ||
No expiry | |||||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||||
Unrecognized tax losses | $ 4,209,000,000 | $ 4,390,000,000 | $ 4,311,000,000 | ||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Performance B.7. Earnings Per S
Performance B.7. Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
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 | $ 93 | $ 23 | $ 28 | ||
Net profit (loss) attributable to equity holders from discontinuing operations | 57 | (33) | 59 | ||
Net profit attributable to all equity holders to determine the basic earnings (loss) per share | $ 149 | $ (10) | [1] | $ 87 | [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) | 101,144 | 100,793 | 100,384 | ||
Potential incremental shares as a result of share options (in shares) | 0 | 0 | |||
Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution (in shares) | 101,144 | 100,793 | 100,384 | ||
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
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 (usd per share) | $ 1.5 | $ 1.5 | ||||
Share capital | $ 153 | $ 153 | ||||
Share premium | 480 | 482 | ||||
Share capital and premium | 633 | 635 | [1],[2] | |||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | [1],[2] | (538) | ||||
Share based compensation | [3] | 30 | 22 | $ 22 | ||
Issuance of shares | 1 | 2 | 1 | |||
Remeasurements of post-employment benefit obligations | 0 | 0 | [4] | (2) | [4] | |
Cash flow hedge reserve movement | (16) | (1) | [4] | 4 | [4] | |
Currency translation movement | (4) | (81) | [4] | 85 | [4] | |
Effect of restructuring in Tanzania | [5] | 0 | ||||
Other equity reserves | (544) | (538) | [1],[2] | |||
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 | 46 | 43 | |||
Share based compensation | 29 | 22 | 22 | |||
Issuance of shares | (25) | (22) | (18) | |||
Other equity reserves | 52 | 47 | 46 | |||
Hedge reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | (1) | 0 | (4) | |||
Cash flow hedge reserve movement | (16) | (1) | 4 | |||
Other equity reserves | (18) | (1) | 0 | |||
Currency translation reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | (599) | (531) | (616) | |||
Currency translation movement | (2) | (68) | 85 | |||
Effect of restructuring in Tanzania | 9 | |||||
Other equity reserves | (593) | (599) | (531) | |||
Pension obligation reserve | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | (3) | (3) | (1) | |||
Remeasurements of post-employment benefit obligations | (2) | |||||
Other equity reserves | (2) | (3) | (3) | |||
Other reserves | ||||||
Disclosure of reserves within equity [line items] | ||||||
Other equity reserves | (538) | (472) | (562) | |||
Share based compensation | [3],[6] | 29 | 22 | 22 | ||
Issuance of shares | [6] | (25) | (22) | (18) | ||
Remeasurements of post-employment benefit obligations | (2) | |||||
Cash flow hedge reserve movement | (16) | 1 | 4 | |||
Currency translation movement | (2) | (67) | 85 | |||
Effect of restructuring in Tanzania | [5],[6] | 9 | ||||
Other equity reserves | $ (544) | $ (538) | $ (472) | |||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | |||||
[3] | Share-based compensation – see note C.1. | |||||
[4] | Re-presented for discontinued operations (shown in note A.4.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | |||||
[5] | Effect of the restructuring in Tanzania A.1.2. | |||||
[6] | Other reserves – see note C.1. |
Capital structure and financi_4
Capital structure and financing - C.2. Dividend distributions (Details) - USD ($) $ / shares in Units, $ in Millions | May 02, 2019 | May 04, 2018 | May 04, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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 | $ 306 | $ 324 | $ 345 |
Capital structure and financi_5
Capital structure and financing - C.3. Debt and financing (Details) $ in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2018COP ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | $ 5,915 | $ 4,291 | |||
Less: portion payable within one year | (129) | (168) | |||
Debt and financing – non-current | 5,786 | 4,123 | [1],[2] | ||
Total non-current financing due after more than one year | 57 | 289 | |||
Debt and financing – current | 186 | 458 | [1],[2] | ||
Borrowings | 5,972 | 4,580 | |||
Millicom International Cellular S.A. (Luxembourg) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 2,773 | 1,770 | |||
Colombia | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 827 | 1,016 | |||
Paraguay | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 502 | 504 | |||
Bolivia | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 350 | 317 | |||
Panama | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 918 | 261 | |||
Tanzania | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 186 | 201 | |||
Chad | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 0 | 64 | |||
Costa Rica | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 148 | 148 | |||
El Salvador | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 268 | 299 | |||
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 | 4,067 | 2,501 | |||
Total non-current financing due after more than one year | 46 | 0 | |||
Banks | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | 1,805 | 1,324 | |||
Total non-current financing due after more than one year | 11 | 289 | |||
Finance lease liabilities | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | 0 | 353 | |||
Other Borrowings | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total non-current financing | $ 43 | $ 113 | |||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Capital structure and financi_6
Capital structure and financing - C.3.1. Bond financing (Details) | Nov. 01, 2019USD ($) | May 15, 2019USD ($) | Apr. 08, 2019USD ($) | Mar. 25, 2019USD ($) | Oct. 16, 2018USD ($) | Sep. 20, 2017USD ($) | Mar. 17, 2015USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018 | May 31, 2016USD ($) | May 31, 2012USD ($) | May 31, 2012BOB (Bs.) | May 31, 2011USD ($) | Mar. 31, 2010USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [1] | Dec. 27, 2019USD ($) | Dec. 27, 2019PYG (₲) | Jul. 03, 2019USD ($) | Jul. 03, 2019BOB (Bs.) | Jun. 30, 2019USD ($) | Jun. 30, 2019PYG (₲) | Apr. 05, 2019USD ($) | Oct. 12, 2017USD ($) | 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 | $ 4,113,000,000 | $ 2,501,000,000 | |||||||||||||||||||||||||||||||||
Proceeds from debt and other financing | 2,900,000,000 | 1,155,000,000 | [1] | $ 996,000,000 | |||||||||||||||||||||||||||||||
SEK Variable Rate Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 211,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 2,000,000,000 | ||||||||||||||||||||||||||||||||||
Borrowing costs capitalised | $ 2,400,000 | ||||||||||||||||||||||||||||||||||
Borrowings term | 5 years | ||||||||||||||||||||||||||||||||||
SEK Variable Rate Notes | Stockholm Inter Bank Offered Rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Adjustment to interest rate basis | 2.35% | ||||||||||||||||||||||||||||||||||
SEK Variable Rate Notes | Effective interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 0.20% | ||||||||||||||||||||||||||||||||||
SEK Variable Rate Notes | Bottom of range | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.99% | ||||||||||||||||||||||||||||||||||
SEK Variable Rate Notes | Top of range | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.88% | ||||||||||||||||||||||||||||||||||
USD 6.625% Senior Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 495,000,000 | 495,000,000 | |||||||||||||||||||||||||||||||||
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 6.000% Senior Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 492,000,000 | 491,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 500,000,000 | ||||||||||||||||||||||||||||||||||
Borrowing costs capitalised | $ 8,600,000 | ||||||||||||||||||||||||||||||||||
Borrowings term | 10 years | ||||||||||||||||||||||||||||||||||
Repayments of non-current borrowings | $ 1,000,000 | ||||||||||||||||||||||||||||||||||
Repayments of non-current borrowings, per $1,000 principal amount | $ 2.50 | ||||||||||||||||||||||||||||||||||
USD 6.000% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 6.00% | 6.00% | |||||||||||||||||||||||||||||||||
USD 6.000% Senior Notes | Effective interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 6.132% | ||||||||||||||||||||||||||||||||||
USD 6.250% Senior Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 742,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 750,000,000 | ||||||||||||||||||||||||||||||||||
Borrowing costs capitalised | $ 8,000,000 | ||||||||||||||||||||||||||||||||||
Borrowings term | 10 years | ||||||||||||||||||||||||||||||||||
USD 6.250% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 6.25% | 6.25% | |||||||||||||||||||||||||||||||||
USD 6.250% Senior Notes | Effective interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 6.36% | ||||||||||||||||||||||||||||||||||
USD 5.125% Senior Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 492,000,000 | 493,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 500,000,000 | ||||||||||||||||||||||||||||||||||
Borrowing costs capitalised | $ 7,000,000 | ||||||||||||||||||||||||||||||||||
Borrowings term | 10 years | ||||||||||||||||||||||||||||||||||
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 6.750% Senior Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 0 | 297,000,000 | |||||||||||||||||||||||||||||||||
USD 6.750% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 6.75% | 6.75% | |||||||||||||||||||||||||||||||||
USD 5.875% Senior Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 296,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 300,000,000 | $ 300,000,000 | |||||||||||||||||||||||||||||||||
Borrowing costs capitalised | $ 4,000,000 | ||||||||||||||||||||||||||||||||||
Borrowings term | 8 years | ||||||||||||||||||||||||||||||||||
USD 5.875% Senior Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 5.875% | 5.875% | 5.875% | ||||||||||||||||||||||||||||||||
USD 5.875% Senior Notes | Effective interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 6.00% | ||||||||||||||||||||||||||||||||||
Telefonica Celular del Paraguay S.A.E. Notes Program | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings face amount | $ 5,400,000 | ₲ 35,000,000,000 | ₲ 300,000,000,000 | ||||||||||||||||||||||||||||||||
PYG 9.250% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 2,000,000 | 0 | |||||||||||||||||||||||||||||||||
PYG 9.250% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 9.25% | ||||||||||||||||||||||||||||||||||
PYG 8.750% Notes (tranche A) | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 18,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 18,000,000 | ₲ 115,000,000,000 | |||||||||||||||||||||||||||||||||
PYG 8.750% Notes (tranche A) | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 8.75% | 8.75% | 8.75% | ||||||||||||||||||||||||||||||||
PYG 9.250% Notes (tranche B) | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 8,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 8,000,000 | ₲ 50,000,000,000 | |||||||||||||||||||||||||||||||||
PYG 9.250% Notes (tranche B) | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 9.25% | 9.25% | 9.25% | ||||||||||||||||||||||||||||||||
PYG 10.000% Notes (tranche C) | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 10,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 10,000,000 | ₲ 65,000,000,000 | |||||||||||||||||||||||||||||||||
PYG 10.000% Notes (tranche C) | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 10.00% | 10.00% | 10.00% | ||||||||||||||||||||||||||||||||
PYG 9.25% Notes Tranche A Due December 2026 | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings face amount | $ 1,500,000 | ₲ 10,000,000,000 | |||||||||||||||||||||||||||||||||
PYG 9.25% Notes Tranche A Due December 2026 | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 9.25% | 9.25% | |||||||||||||||||||||||||||||||||
PYG 10.0% Notes Tranche B Due December 2029 | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings face amount | $ 3,900,000 | ₲ 25,000,000,000 | |||||||||||||||||||||||||||||||||
PYG 10.0% Notes Tranche B Due December 2029 | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 10.00% | 10.00% | |||||||||||||||||||||||||||||||||
PYG 10.000% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 4,000,000 | 0 | |||||||||||||||||||||||||||||||||
PYG 10.000% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 10.00% | ||||||||||||||||||||||||||||||||||
BOB 4.750% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 30,000,000 | 59,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | Bs. | Bs. 1,360,000,000.00 | ||||||||||||||||||||||||||||||||||
Payments for debt issue costs | Bs. | 5,000,000 | ||||||||||||||||||||||||||||||||||
Proceeds from debt and other financing | $ 191,000,000 | Bs. 1,320,000,000 | |||||||||||||||||||||||||||||||||
BOB 4.750% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.75% | 4.75% | |||||||||||||||||||||||||||||||||
BOB 4.750% Notes | Effective interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.79% | ||||||||||||||||||||||||||||||||||
BOB 4.050% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 4,000,000 | 7,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 15,000,000 | Bs. 104,400,000 | |||||||||||||||||||||||||||||||||
BOB 4.050% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.05% | 4.05% | 4.05% | ||||||||||||||||||||||||||||||||
BOB 4.850% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 57,000,000 | 71,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 85,000,000 | Bs. 591,600,000 | |||||||||||||||||||||||||||||||||
BOB 4.850% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.85% | 4.85% | 4.85% | ||||||||||||||||||||||||||||||||
BOB Notes Issued November 2015 | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings face amount | $ 100,000,000 | Bs. 696,000,000 | |||||||||||||||||||||||||||||||||
BOB Notes Issued November 2015 | Effective interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.84% | 4.84% | |||||||||||||||||||||||||||||||||
BOB Notes Issued April 2016 | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings face amount | Bs. | Bs. 522,000,000 | ||||||||||||||||||||||||||||||||||
BOB 3.950% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 36,000,000 | 43,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 50,000,000 | ||||||||||||||||||||||||||||||||||
BOB 3.950% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 3.95% | 3.95% | 3.95% | ||||||||||||||||||||||||||||||||
BOB 4.300% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 21,000,000 | 23,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 25,000,000 | ||||||||||||||||||||||||||||||||||
BOB 4.300% 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, Tranche A | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | 0.0430 | ||||||||||||||||||||||||||||||||||
BOB Notes Issued October 2017, Tranche B | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | 0.0470 | ||||||||||||||||||||||||||||||||||
BOB Notes Issued October 2017, Tranche C | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 0.0530 | ||||||||||||||||||||||||||||||||||
BOB 4.300% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 26,000,000 | 30,000,000 | |||||||||||||||||||||||||||||||||
BOB 4.300% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.30% | ||||||||||||||||||||||||||||||||||
BOB 4.700% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 32,000,000 | 35,000,000 | |||||||||||||||||||||||||||||||||
BOB 4.700% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.70% | ||||||||||||||||||||||||||||||||||
BOB 5.300% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 13,000,000 | 13,000,000 | |||||||||||||||||||||||||||||||||
BOB 5.300% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 5.30% | ||||||||||||||||||||||||||||||||||
BOB 5.000% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.60% | 4.60% | |||||||||||||||||||||||||||||||||
Bonds issued | $ 61,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 40,000,000 | Bs. 280,000,000 | |||||||||||||||||||||||||||||||||
BOB 5.000% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 5.00% | ||||||||||||||||||||||||||||||||||
BOB 4.600% Notes | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 40,000,000 | 0 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 61,000,000 | Bs. 420,000,000 | |||||||||||||||||||||||||||||||||
BOB 4.600% Notes | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.60% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||
UNE Bond 1 (tranches A and B) | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 46,000,000 | 46,000,000 | |||||||||||||||||||||||||||||||||
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 | 46,000,000 | |||||||||||||||||||||||||||||||||
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] | |||||||||||||||||||||||||||||||||||
Borrowings face amount | $ 176,000,000 | $ 540,000,000,000 | |||||||||||||||||||||||||||||||||
Extinguishment of debt | $ 150,000,000,000 | ||||||||||||||||||||||||||||||||||
UNE Bond 3 (tranche A) | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 9.35% | 9.35% | |||||||||||||||||||||||||||||||||
Bonds issued | $ 49,000,000 | 49,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 52,000,000 | ||||||||||||||||||||||||||||||||||
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] | |||||||||||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.15% | 4.15% | |||||||||||||||||||||||||||||||||
Bonds issued | $ 78,000,000 | 78,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 83,000,000 | ||||||||||||||||||||||||||||||||||
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] | |||||||||||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.89% | 4.89% | |||||||||||||||||||||||||||||||||
Bonds issued | $ 38,000,000 | 39,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 41,000,000 | ||||||||||||||||||||||||||||||||||
UNE Bond 3 (tranche C) | Consumer Price Index | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Adjustment to interest rate basis | 4.89% | ||||||||||||||||||||||||||||||||||
USD 4.5% Senior Notes Due 2030 | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Bonds issued | $ 584,000,000 | 0 | |||||||||||||||||||||||||||||||||
USD 4.5% Senior Notes Due 2030 | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.50% | ||||||||||||||||||||||||||||||||||
Cable Onda Bonds 5.750% | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 5.75% | ||||||||||||||||||||||||||||||||||
Bonds issued | $ 184,000,000 | $ 184,000,000 | |||||||||||||||||||||||||||||||||
Borrowings face amount | $ 185,000,000 | ||||||||||||||||||||||||||||||||||
Cable Onda Bonds 5.750% | 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% | ||||||||||||||||||||||||||||||||||
Cable Onda 4.5% Senior Notes Due 2030 | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings face amount | $ 600,000,000 | $ 600,000,000 | |||||||||||||||||||||||||||||||||
Borrowing costs capitalised | $ 16,000,000 | ||||||||||||||||||||||||||||||||||
Borrowings amortization period | 10 years | ||||||||||||||||||||||||||||||||||
Cable Onda 4.5% Senior Notes Due 2030 | Fixed interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.50% | ||||||||||||||||||||||||||||||||||
Cable Onda 4.5% Senior Notes Due 2030 | Effective interest rate | |||||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||||||||||||
Borrowings, interest rate | 4.69% | ||||||||||||||||||||||||||||||||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Capital structure and financi_7
Capital structure and financing - C.3.2. Bank and Development Financial Institution financing (Details) Tsh in Millions, Bs. in Millions | Dec. 20, 2019USD ($) | Dec. 12, 2019 | Nov. 19, 2019USD ($) | Aug. 27, 2019USD ($) | Jan. 31, 2018USD ($) | Jul. 04, 2017USD ($) | Sep. 30, 2019 | Jan. 31, 2019PYG (₲) | Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [1] | Nov. 19, 2019BSD ($) | Jun. 04, 2019USD ($) | Jun. 04, 2019TZS (Tsh) | Apr. 24, 2019USD ($) | Feb. 25, 2019USD ($) | Feb. 25, 2019PYG (₲) | Jul. 31, 2018PYG (₲) | Jun. 30, 2018BOB (Bs.) | Apr. 30, 2018USD ($) | Jul. 04, 2017PYG (₲) | May 30, 2017USD ($) | Apr. 15, 2016USD ($) | Oct. 31, 2015PYG (₲) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | $ 5,972,000,000 | $ 4,580,000,000 | ||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | 1,157,000,000 | 530,000,000 | [1] | $ 1,176,000,000 | ||||||||||||||||||||||||||
BOB Long-term loans | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 7 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 10,000,000 | Bs. 69.6 | ||||||||||||||||||||||||||||
Bs. Newloan | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 4 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 11,000,000 | $ 78,000,000 | ||||||||||||||||||||||||||||
PYG Long-Term Loan, 9% | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 7 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 57,000,000 | ₲ 370,000,000,000 | ||||||||||||||||||||||||||||
USD Credit Agreement, Banco Nacional de Panama S.A. [Member] | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 75,000,000 | |||||||||||||||||||||||||||||
USD Credit Agreement, Bank of Nova Scotia | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 75,000,000 | |||||||||||||||||||||||||||||
PYG Long-Term Loan, 10.10% | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 66,000,000 | ₲ 367,000,000,000 | ||||||||||||||||||||||||||||
PYG Long-Term Loan, 8.90% | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 7 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 18,000,000 | ₲ 115,000,000,000 | ||||||||||||||||||||||||||||
PYG Long-Term Loan, Paraguay, 8.94% | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 7 years | |||||||||||||||||||||||||||||
Borrowings face amount | ₲ | ₲ 177,000,000,000 | |||||||||||||||||||||||||||||
USD Long-Term Loans, Costa Rica | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | $ 150,000,000 | |||||||||||||||||||||||||||||
MIC S.A. Loan Facility Tranche A | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | $ 174,750,000 | |||||||||||||||||||||||||||||
MIC S.A. Loan Facility Tranche B | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | $ 45,000,000 | Tsh 103,000 | ||||||||||||||||||||||||||||
USD Senior Unsecured Term Loan Facility | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | $ 50,000,000 | $ 50,000,000 | ||||||||||||||||||||||||||||
Other Long-Term Loans | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 0 | 51,000,000 | ||||||||||||||||||||||||||||
Itau Bank Loan Facility | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 40,000,000 | ₲ 257,700,000,000 | ||||||||||||||||||||||||||||
USD Credit Facility, El Salvador Due 2021 | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | $ 30,000,000 | |||||||||||||||||||||||||||||
USD Credit Facility, El Salvador, Due 2023 - 1 | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 100,000,000 | |||||||||||||||||||||||||||||
USD Credit Facility, El Salvador, Due 2023 - 3 | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 50,000,000 | |||||||||||||||||||||||||||||
MIC S.A. Term Facility Agreement | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 66 months | |||||||||||||||||||||||||||||
Borrowings face amount | $ 300,000,000 | |||||||||||||||||||||||||||||
Columbia Loan Due 2024 | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||||||||||
Borrowings face amount | $ 300,000,000 | |||||||||||||||||||||||||||||
Total Bank and Development Financial Institution financing | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 1,817,000,000 | 1,613,000,000 | ||||||||||||||||||||||||||||
Floating interest rate | USD Long-Term Loans, Costa Rica | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 148,000,000 | 148,000,000 | ||||||||||||||||||||||||||||
Floating interest rate | USD Long-Term Loans, Chad | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 0 | 1,000,000 | ||||||||||||||||||||||||||||
Floating interest rate | USD Long-Term Loans, Tanzania (Zantel) | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 14,000,000 | 0 | ||||||||||||||||||||||||||||
Floating interest rate | USD Long-Term Loans, Tanzania | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 171,000,000 | 90,000,000 | ||||||||||||||||||||||||||||
Floating interest rate | USD Short-Term Loans, Luxembourg | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 0 | 250,000,000 | ||||||||||||||||||||||||||||
Floating interest rate | USD Long-Term Loans, Luxembourg | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 298,000,000 | 0 | ||||||||||||||||||||||||||||
Floating interest rate | COP Long-Term Loans, Colombia | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 274,000,000 | 277,000,000 | ||||||||||||||||||||||||||||
Floating interest rate | USD Long-Term Loans, Colombia | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 295,000,000 | 298,000,000 | ||||||||||||||||||||||||||||
Floating interest rate | USD Senior Unsecured Term Loan Facility | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 268,000,000 | 274,000,000 | ||||||||||||||||||||||||||||
Fixed interest rate | PYG Long-term loans | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 166,000,000 | 180,000,000 | ||||||||||||||||||||||||||||
Fixed interest rate | USD - Long-term loans | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | 150,000,000 | 24,000,000 | ||||||||||||||||||||||||||||
Fixed interest rate | BOB Long-term loans | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings | $ 31,000,000 | $ 20,000,000 | ||||||||||||||||||||||||||||
LIBOR | USD Long-Term Loans, Luxembourg | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Adjustment to interest rate basis | 3.00% | |||||||||||||||||||||||||||||
Interest rate and currency swap | USD Long-Term Loans, Costa Rica | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | 35,000,000 | |||||||||||||||||||||||||||||
Interest rate swap | USD Long-Term Loans, Costa Rica | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | $ 35,000,000 | |||||||||||||||||||||||||||||
Interest rate swap | USD Credit Facility, El Salvador, Due 2023 - 1 | ||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||
Borrowings face amount | $ 100,000,000 | |||||||||||||||||||||||||||||
[1] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Interest and other financial expenses: | |||||
Interest expense on bonds and bank financing | $ (348) | $ (234) | $ (246) | ||
Interest expense on (finance) leases | (157) | (91) | (65) | ||
Early redemption charges | (10) | (4) | (43) | ||
Others | (47) | (37) | (35) | ||
Total interest and other financial expenses | $ (564) | $ (367) | [1] | $ (389) | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Capital structure and financi_9
Capital structure and financing - C.3.4. Finance leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Income from tower deal transactions | $ 22 | $ 141 | $ 161 |
Finance lease liabilities | 353 | ||
Gains or losses arising from sale and leaseback transactions | $ 5 | 61 | $ 63 |
Tanzania | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Finance lease liabilities | 112 | ||
Paraguay | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Finance lease liabilities | 27 | ||
El Salvador | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Finance lease liabilities | 26 | ||
Other Geographical Areas | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Finance lease liabilities | 6 | ||
Movil | Colombia | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Finance lease liabilities | 83 | ||
UNE EPM Telecommunicaciones SA | Colombia | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Finance lease liabilities | $ 99 |
Capital structure and financ_10
Capital structure and financing - C.3.5. Guarantees and pledged assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [line items] | ||
Pledged deposits (related to back borrowings) | $ 1 | $ 2 |
Contingent liability for guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 464 | 626 |
Maximum exposure to contingent liabilities | 464 | 626 |
1 year | Contingent liability for guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 29 | 133 |
Maximum exposure to contingent liabilities | 29 | 133 |
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 | 134 | 281 |
Maximum exposure to contingent liabilities | 134 | 281 |
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 | 300 | 212 |
Maximum exposure to contingent liabilities | $ 300 | $ 212 |
Capital structure and financ_11
Capital structure and financing - C.4. Lease liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of share capital, reserves and other equity interest [Abstract] | ||
Current | $ 97 | $ 0 |
Non Current | 967 | $ 0 |
Lease liabilities | 1,063 | |
Expense relating to short-term leases (included in cost of sales and operating expenses) | (5) | |
Total cash outflow for leases | $ 236 |
Capital structure and financ_12
Capital structure and financing - C.5. Cash and deposits (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [2] | Dec. 31, 2016 | [2] | |
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 1,164,000,000 | $ 528,000,000 | [1],[2],[3] | $ 619,000,000 | $ 646,000,000 | ||
Restricted cash | 155,000,000 | 158,000,000 | [1],[3] | ||||
Non-current financial assets pledged as collateral for contingent liabilities | 0 | 0 | |||||
Current financial assets pledged as collateral for contingent liabilities | 1,000,000 | 2,000,000 | |||||
US Dollar | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 834,000,000 | 229,000,000 | |||||
Total debt denominated in other currencies | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 330,000,000 | 299,000,000 | |||||
Mobile Financial Services | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Restricted cash | 150,000,000 | 155,000,000 | |||||
Other Banks | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Restricted cash | $ 5,000,000 | $ 3,000,000 | |||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||
[3] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Capital structure and financ_13
Capital structure and financing - C.6. Net financial obligations, table 1 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2] | ||
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||||||
Total debt and financing | $ 5,972 | $ 4,580 | |||||
Lease liabilities | 1,063 | ||||||
Gross financial obligations | 7,036 | 4,580 | |||||
Cash and cash equivalents | (1,164) | (528) | [1],[2],[3] | $ (619) | [2] | $ (646) | |
Pledged deposits | (1) | (2) | |||||
Time deposits related to bank borrowings | (1) | 0 | |||||
Net financial obligations at the end of the year | 5,870 | 4,051 | $ 3,164 | ||||
Add (less) derivatives related to debt (note D.1.2.) | (17) | 0 | |||||
Net financial obligations including derivatives related to debt | 5,853 | 4,051 | |||||
Restricted cash | $ 155 | 158 | [1],[3] | ||||
Finance lease liabilities | $ 353 | ||||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | ||||||
[3] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Capital structure and financ_14
Capital structure and financing - C.6. Net finnacial obligations, table 2 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in liabilities arising from financing activities [abstract] | ||
Interest accretion, liabilities arising form financing activities | $ 8 | $ 11 |
Transfers, liabilities arising form financing activities | 3 | (9) |
Other non-cash movements, liabilities arising form financing activities | (14) | (19) |
Changes In Net Debt [Abstract] | ||
Net debt | 4,051 | 3,164 |
Cash flows, net debt | 998 | 676 |
Scope changes, net debt | 236 | 260 |
Additions/acquisitions, net debt | 109 | 44 |
Increase (Decrease) Through Effect Of Change In Accounting Policy, Net Debt | 545 | |
Foreign exchange movements, net debt | (14) | (72) |
Transfers (to)/from assets held for sale, net debt | (52) | (4) |
Net debt | 5,870 | 4,051 |
Bond and bank debt and financing | ||
Changes in liabilities arising from financing activities [abstract] | ||
Liabilities arising from financing activities, beginning of period | 4,227 | 3,420 |
Cash flows, liabilities arising form financing activities | 1,743 | 621 |
Scope changes, liabilities arising form financing activities | 74 | 267 |
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | 0 | 0 |
Interest accretion, liabilities arising form financing activities | 8 | 11 |
Foreign exchange movements, liabilities arising form financing activities | (16) | (84) |
Transfers (to)/from assets held for sale, liabilities arising form financing activities | (53) | 9 |
Transfers, liabilities arising form financing activities | 3 | 3 |
Other non-cash movements, liabilities arising form financing activities | (14) | (19) |
Liabilities arising from financing activities, end of period | 5,972 | 4,227 |
Finance lease liabilities | ||
Changes in liabilities arising from financing activities [abstract] | ||
Liabilities arising from financing activities, beginning of period | 353 | 365 |
Cash flows, liabilities arising form financing activities | 0 | (17) |
Scope changes, liabilities arising form financing activities | 0 | 0 |
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | 0 | 44 |
Interest accretion, liabilities arising form financing activities | 0 | |
Foreign exchange movements, liabilities arising form financing activities | 0 | (21) |
Transfers (to)/from assets held for sale, liabilities arising form financing activities | 0 | (8) |
Transfers, liabilities arising form financing activities | (353) | (11) |
Other non-cash movements, liabilities arising form financing activities | 0 | |
Liabilities arising from financing activities, end of period | 0 | 353 |
Lease liabilities | ||
Changes in liabilities arising from financing activities [abstract] | ||
Liabilities arising from financing activities, beginning of period | 0 | 0 |
Cash flows, liabilities arising form financing activities | (107) | 0 |
Scope changes, liabilities arising form financing activities | 178 | 0 |
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | 109 | 0 |
Change in accounting policy | 545 | |
Interest accretion, liabilities arising form financing activities | 0 | |
Foreign exchange movements, liabilities arising form financing activities | (6) | 0 |
Transfers (to)/from assets held for sale, liabilities arising form financing activities | (8) | 0 |
Transfers, liabilities arising form financing activities | 353 | 0 |
Other non-cash movements, liabilities arising form financing activities | 0 | 0 |
Liabilities arising from financing activities, end of period | 1,063 | 0 |
Cash and cash equivalents | ||
Assets For Calculation Of Net Debt [Abstract] | ||
Assets, beginning of period | 528 | 619 |
Cash flows, assets | 638 | (72) |
Additions/acquisitions, assets | 0 | 0 |
Foreign exchange movements, assets | (8) | (33) |
Transfers (to)/from assets held for sale. assets | (9) | 6 |
Assets, end of period | 1,164 | 528 |
Changes in liabilities arising from financing activities [abstract] | ||
Scope changes, liabilities arising form financing activities | 7 | |
Changes In Net Debt [Abstract] | ||
Scope changes, net debt | 16 | |
Other | ||
Assets For Calculation Of Net Debt [Abstract] | ||
Assets, beginning of period | 2 | 2 |
Cash flows, assets | 0 | 0 |
Foreign exchange movements, assets | 0 | |
Transfers (to)/from assets held for sale. assets | 0 | |
Assets, end of period | 2 | 2 |
Changes in liabilities arising from financing activities [abstract] | ||
Scope changes, liabilities arising form financing activities | $ 0 | |
Changes In Net Debt [Abstract] | ||
Scope changes, net debt | $ 0 |
Capital structure and financ_15
Capital structure and financing - C.7.2. Fair value of financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of assets [line items] | ||
Finance lease liabilities | $ 353 | |
Financial assets at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | $ 2,554 | 1,467 |
Current financial assets | 2,449 | 1,341 |
Non-current financial assets | 104 | 126 |
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 | 66 | 87 |
Financial assets at amortised cost | Trade receivables, net | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 371 | 343 |
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 | 68 | 73 |
Financial assets at amortised cost | Prepayments and accrued income | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 156 | 129 |
Financial assets at amortised cost | Supplier advances for capital expenditures | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 22 | 25 |
Financial assets at amortised cost | Equity Investment | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 371 | 0 |
Financial assets at amortised cost | Other current assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 181 | 124 |
Financial assets at amortised cost | Restricted cash | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 155 | 158 |
Financial assets at amortised cost | Cash and cash equivalents | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 1,164 | 528 |
Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 9,282 | 6,698 |
Current financial liabilities | 2,045 | 2,330 |
Non-current financial liabilities | 7,237 | 4,370 |
Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 9,538 | 6,536 |
Current financial liabilities | 2,045 | 2,329 |
Non-current financial liabilities | 7,493 | 4,208 |
Debt and financing | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 5,972 | 4,580 |
Debt and financing | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 6,229 | 4,418 |
Lease liabilities | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 1,063 | 0 |
Lease liabilities | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 1,063 | 0 |
Trade payables | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 289 | 282 |
Trade payables | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 289 | 282 |
Payables and accruals for capital expenditure | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 348 | 335 |
Payables and accruals for capital expenditure | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 348 | 335 |
Derivative financial instruments | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 17 | 0 |
Derivative financial instruments | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 17 | (1) |
Put option liability | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 264 | 239 |
Put option liability | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 264 | 239 |
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 | 498 | 483 |
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 | 498 | 483 |
Accrued interest and other expenses | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 432 | 381 |
Accrued interest and other expenses | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 432 | 381 |
Other liabilities | Financial liabilities at amortised cost | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | 399 | 399 |
Other liabilities | Financial liabilities at fair value | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities | $ 399 | $ 399 |
Capital structure and financ_16
Capital structure and financing - C.7.3. Equity investments (Details) $ / shares in Units, $ in Millions | Oct. 17, 2019USD ($) | Mar. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019£ / shares | Oct. 31, 2019USD ($) | Oct. 31, 2019£ / shares | Oct. 17, 2019£ / shares | Apr. 11, 2019$ / shares |
Disclosure of fair value measurement of assets [line items] | |||||||||||
Investments accounted for using equity method | $ 371 | $ 0 | |||||||||
Equity Investment In Jumia | |||||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||||
Net dilution gain (loss) | $ 7 | ||||||||||
Offer price per share (usd per share) | $ / shares | $ 14.5 | ||||||||||
Gain on investment | $ 30 | ||||||||||
Percentage ownership held by non-controlling interest | 6.31% | ||||||||||
Closing price (in dollars per share) | $ / shares | $ 6.73 | ||||||||||
Investments accounted for using equity method | $ 32 | 0 | |||||||||
Change in fair value in investment | $ (38) | 0 | $ 0 | ||||||||
Equity Investment In HTA | |||||||||||
Disclosure of fair value measurement of assets [line items] | |||||||||||
Net dilution gain (loss) | $ (3) | ||||||||||
Offer price per share (usd per share) | £ / shares | £ 1.15 | £ 1.15 | |||||||||
Gain on investment | 208 | ||||||||||
Percentage ownership held by non-controlling interest | 16.20% | ||||||||||
Closing price (in dollars per share) | £ / shares | £ 1.58 | ||||||||||
Investments accounted for using equity method | $ 292 | $ 338 | 0 | ||||||||
Change in fair value in investment | $ 312 | $ 0 | $ 0 | ||||||||
Enterprise value | $ 2,000 | ||||||||||
Market capitalization | $ 1,450 | ||||||||||
IPO option rights (as a percentage) | 4.00% | ||||||||||
Disposal of proportion of ownership interest (as a percentage) | 20.00% | ||||||||||
Gross proceeds from disposal | $ 57 | ||||||||||
Net proceeds from disposal | 25 | ||||||||||
Share in tax escrow | 30 | ||||||||||
Loss on disposal | $ 32 |
Capital structure and financ_17
Capital structure and financing - C.7.4. Call and put options (Details) - USD ($) $ in Millions | Aug. 29, 2019 | Dec. 13, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about business combination [line items] | |||||
Add (less) derivatives related to debt (note D.1.2.) | $ 17 | $ 0 | |||
Transaction Price plus interest (as a percentage) | 5.00% | ||||
Put option liability | $ 264 | $ 239 | [1],[2] | ||
Cable Onda S.A | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage ownership held by non-controlling interest | 20.00% | 20.00% | |||
Vesting period of put option | 42 months | ||||
Add (less) derivatives related to debt (note D.1.2.) | $ 239 | ||||
Vesting period of call option | 42 months | ||||
Threshold for ownership percentage of counterparty to make call option exercisable | 10.00% | 10.00% | |||
Enterprise value of acquired entity | $ 1,460 | ||||
Interest rate on put option | 5.00% | ||||
Interest rate on call option | 10.00% | 10.00% | |||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Financial risk management - D.
Financial risk management - D. Financial risk management (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments [Abstract] | ||
Target percent debt in local currency | 40.00% | |
Target percent of debt fixed rate | 75.00% | |
Target percent of debt floating rate | 25.00% | |
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial liabilities | $ (17) | $ 0 |
Cash flow hedges | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Derivative financial liabilities | $ (17) | $ 0 |
Financial risk management - D.1
Financial risk management - D.1. Interest rate risk (Details) - Interest rate risk | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed interest rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of debt | 75.00% | |
Concentration percentage | 76.00% | 68.00% |
Floating interest rate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of debt |
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, 2019 | Dec. 31, 2018 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 5,972 | $ 4,580 |
Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 5,972 | 4,580 |
Reasonably possible change in risk variable, percent | 1.00% | |
Reasonably possible change in risk variable, impact on profit before tax | $ 14 | 15 |
1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 186 | 458 |
1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 155 | 337 |
2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 145 | 403 |
3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 517 | 570 |
4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 1,085 | 468 |
Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 3,884 | $ 2,345 |
Weighted average | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.82% | 4.95% |
Weighted average | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 5.10% | 9.08% |
Weighted average | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.55% | 6.23% |
Weighted average | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.34% | 4.06% |
Weighted average | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 5.81% | 5.18% |
Weighted average | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 4.73% | 4.28% |
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 | 5.24% | 5.76% |
Fixed interest rate | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 4,543 | $ 3,116 |
Fixed interest rate | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 118 | 140 |
Fixed interest rate | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 117 | 162 |
Fixed interest rate | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 118 | 137 |
Fixed interest rate | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 332 | 436 |
Fixed interest rate | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 431 | 204 |
Fixed interest rate | Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 3,428 | $ 2,036 |
Fixed interest rate | Weighted average | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 5.86% | 6.34% |
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 | 6.32% | 6.35% |
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 | 5.46% | 6.59% |
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 | 5.01% | 6.64% |
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 | 7.24% | 6.61% |
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 | 5.44% | 4.10% |
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 | 5.81% | 6.47% |
Floating interest rate | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 1,429 | $ 1,465 |
Floating interest rate | 1 year | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 68 | 318 |
Floating interest rate | 1–2 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 38 | 175 |
Floating interest rate | 2–3 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 27 | 266 |
Floating interest rate | 3–4 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 185 | 133 |
Floating interest rate | 4–5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 654 | 263 |
Floating interest rate | Greater than 5 years | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 457 | $ 309 |
Floating interest rate | Weighted average | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Borrowings, interest rate | 1.52% | 1.98% |
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 | 2.97% | 10.28% |
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 | 1.77% | 5.89% |
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 | 1.41% | 2.73% |
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 | 3.25% | 0.49% |
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 | 4.26% | 4.41% |
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 | 0.96% | 1.13% |
Financial risk management - D_3
Financial risk management - D.1.2. Interest rate swap contracts (Details) - Dec. 31, 2019 - Interest rate swap - Interest rate risk $ in Millions, kr in Billions | USD ($) | SEK (kr) |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Derivative notional amount | $ 211 | kr 2 |
Derivative financial liabilities held for hedging | 0.2 | |
El Salvador and Costa Rica | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Derivative financial liabilities held for hedging | $ 17 |
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, 2019 | Dec. 31, 2018 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 5,972 | $ 4,580 |
Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 5,972 | 4,580 |
Reasonably possible change in risk variable, percent | 10.00% | |
Reasonably possible increase (decrease) in risk variable, impact on profit before tax | $ 17 | 53 |
US Dollar | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 3,535 | 2,572 |
Total debt denominated in other currencies | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 2,437 | 2,008 |
Colombia | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 531 | 718 |
Chad | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 0 | 62 |
Tanzania | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 14 | 112 |
Bolivia | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 350 | 306 |
Paraguay | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 206 | 207 |
El Salvador | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 268 | 299 |
Panama | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 918 | 261 |
Luxembourg (COP denominated) | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | 43 | 43 |
Costa Rica | Foreign currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Debt | $ 107 | $ 0 |
Financial risk management - D.5
Financial risk management - D.5. Liquidity risk (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | $ (5,972) | $ (4,580) | ||||||
Lease liabilities | (1,063) | |||||||
Cash and cash equivalents | 1,164 | 528 | [1],[2],[3] | $ 619 | [2] | $ 646 | ||
Pledged deposits (related to back borrowings) | 1 | 2 | ||||||
Net cash (debt) including derivatives related to debt | (5,853) | (4,051) | ||||||
Trade payables (excluding accruals) | (40) | (26) | ||||||
Derivative financial liabilities | (17) | 0 | ||||||
Put option liability | (264) | (239) | [1],[3] | |||||
Trade receivables | 371 | 343 | [1],[3] | $ 339 | $ 386 | |||
Finance lease liabilities | 353 | |||||||
Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (5,972) | (4,580) | ||||||
Lease liabilities | (1,063) | |||||||
Cash and cash equivalents | 1,164 | 528 | ||||||
Pledged deposits (related to back borrowings) | 1 | 2 | ||||||
Refundable deposit | 0 | |||||||
Derivative financial instruments | (17) | |||||||
Net cash (debt) including derivatives related to debt | (5,888) | (4,051) | ||||||
Future interest commitments related to debt and financing | (1,111) | |||||||
Future interest commitments related to debt and financing | (1,502) | |||||||
Future interest commitments related to leases | (928) | |||||||
Trade payables (excluding accruals) | (510) | (478) | ||||||
Other financial liabilities (including accruals) | (1,388) | (1,347) | ||||||
Derivative financial liabilities | (17) | |||||||
Put option liability | (264) | (239) | ||||||
Trade receivables | 371 | 343 | ||||||
Other financial assets | 707 | 306 | ||||||
Net financial liabilities | (9,420) | (6,577) | ||||||
Liquidity risk | Less than 1 year | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (186) | (458) | ||||||
Lease liabilities | (97) | |||||||
Cash and cash equivalents | 1,164 | 528 | ||||||
Pledged deposits (related to back borrowings) | 1 | 2 | ||||||
Refundable deposit | 0 | |||||||
Derivative financial instruments | (17) | |||||||
Net cash (debt) including derivatives related to debt | 865 | 72 | ||||||
Future interest commitments related to debt and financing | (248) | |||||||
Future interest commitments related to debt and financing | (308) | |||||||
Future interest commitments related to leases | (157) | |||||||
Trade payables (excluding accruals) | (510) | (478) | ||||||
Other financial liabilities (including accruals) | (1,052) | (1,212) | ||||||
Derivative financial liabilities | (17) | |||||||
Put option liability | (264) | (239) | ||||||
Trade receivables | 371 | 343 | ||||||
Other financial assets | 602 | 181 | ||||||
Net financial liabilities | (469) | (1,582) | ||||||
Liquidity risk | 1 to 5 years | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (1,902) | (1,778) | ||||||
Lease liabilities | (490) | |||||||
Cash and cash equivalents | 0 | 0 | ||||||
Pledged deposits (related to back borrowings) | 0 | 0 | ||||||
Refundable deposit | 0 | |||||||
Derivative financial instruments | 0 | |||||||
Net cash (debt) including derivatives related to debt | (2,392) | (1,778) | ||||||
Future interest commitments related to debt and financing | (786) | |||||||
Future interest commitments related to debt and financing | (1,088) | |||||||
Future interest commitments related to leases | (476) | |||||||
Trade payables (excluding accruals) | 0 | 0 | ||||||
Other financial liabilities (including accruals) | (337) | (135) | ||||||
Derivative financial liabilities | 0 | |||||||
Put option liability | 0 | 0 | ||||||
Trade receivables | 0 | 0 | ||||||
Other financial assets | 104 | 126 | ||||||
Net financial liabilities | (4,189) | (2,573) | ||||||
Liquidity risk | Greater than 5 years | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Debt and financing | (3,884) | (2,345) | ||||||
Lease liabilities | (476) | |||||||
Cash and cash equivalents | 0 | 0 | ||||||
Pledged deposits (related to back borrowings) | 0 | 0 | ||||||
Refundable deposit | 0 | |||||||
Derivative financial instruments | 0 | |||||||
Net cash (debt) including derivatives related to debt | (4,361) | (2,345) | ||||||
Future interest commitments related to debt and financing | (77) | |||||||
Future interest commitments related to debt and financing | (106) | |||||||
Future interest commitments related to leases | (295) | |||||||
Trade payables (excluding accruals) | 0 | 0 | ||||||
Other financial liabilities (including accruals) | 0 | 0 | ||||||
Derivative financial liabilities | 0 | |||||||
Put option liability | 0 | 0 | ||||||
Trade receivables | 0 | 0 | ||||||
Other financial assets | 0 | 0 | ||||||
Net financial liabilities | $ (4,762) | $ (2,422) | ||||||
Commercial Banks | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 26.00% | 34.00% | ||||||
Bonds | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 58.00% | 54.00% | ||||||
Development Finance Institutions | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 1.00% | 4.00% | ||||||
Leases | Liquidity risk | ||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||
Concentration risk percentage | 15.00% | 8.00% | ||||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||||||
[2] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | |||||||
[3] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Financial risk management - D.6
Financial risk management - D.6. Capital management (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financial Instruments [Abstract] | ||||
Net financial obligations | $ 5,870 | $ 4,051 | $ 3,164 | |
EBITDA | $ 1,530 | $ 1,213 | ||
Net financial obligations to EBITDA | 384.00% | 334.00% | ||
Finance lease liabilities | $ 353 | |||
Equity | $ 2,410 | 2,542 | [1],[2] | |
Net financial obligations and equity | $ 8,280 | $ 6,593 | ||
Gearing ratio | 71.00% | 61.00% | ||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Long-term assets - E.1.1. Accou
Long-term assets - E.1.1. Accounting for intangible assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |
Period for which item is expensed (less than) | 1 year |
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 |
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 |
Long-term assets - E.1.3. Movem
Long-term assets - E.1.3. Movement in intangible assets (Details) $ in Millions | Jan. 08, 2020USD ($) | Jul. 09, 2019USD ($) | May 20, 2019USD ($)site | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019COP ($) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||||
Intangible assets, net | $ 3,219 | $ 3,219 | $ 2,346 | [1],[2] | ||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 2,346 | 1,265 | ||||||
Change in scope | 959 | 1,157 | ||||||
Additions | 202 | 158 | ||||||
Amortization charge | (272) | (145) | ||||||
Impairment | (8) | (6) | ||||||
Disposals, net | 0 | 0 | ||||||
Transfers | 33 | (15) | ||||||
Transfers to/from assets held for sale | (21) | (12) | ||||||
Exchange rate movements | (21) | (55) | ||||||
Closing balance, net | $ 3,219 | $ 3,219 | 2,346 | |||||
Spectrum | ||||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||||
Useful life measured as period of time, intangible assets other than goodwill | 10 years | 20 years | ||||||
Intangible assets, net | $ 8 | $ 47 | ||||||
Number of payment installments | 5 | 6 | 6 | 6 | ||||
Number of sites | site | 45 | |||||||
Site cost to be capitalized | $ 20 | |||||||
Intangible asset term | 15 years | 20 months | ||||||
Substitute payment | $ 20 | $ 20 | ||||||
Intangible asset liability | 20 | 20 | ||||||
Purchase obligation | $ 12 | |||||||
Total notional consideration | $ 736 | $ 736 | $ 2,450,000,000 | |||||
Percentage to be met by coverage obligations | 45.00% | 45.00% | 45.00% | |||||
Percentage payable in cash | 55.00% | 55.00% | 55.00% | |||||
Initial payment | $ 39 | $ 39 | ||||||
Goodwill | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 1,069 | 599 | ||||||
Change in scope | 650 | 504 | ||||||
Additions | 0 | 0 | ||||||
Impairment | 0 | (6) | ||||||
Disposals, net | 0 | 0 | ||||||
Transfers | 0 | 0 | ||||||
Transfers to/from assets held for sale | 0 | 0 | ||||||
Exchange rate movements | (7) | (28) | ||||||
Closing balance, net | 1,711 | 1,711 | 1,069 | |||||
Licenses | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 318 | 324 | ||||||
Change in scope | 139 | 0 | ||||||
Additions | 101 | 66 | ||||||
Amortization charge | (55) | (48) | ||||||
Impairment | (8) | 0 | ||||||
Disposals, net | 0 | 0 | ||||||
Transfers | (5) | 0 | ||||||
Transfers to/from assets held for sale | (18) | (12) | ||||||
Exchange rate movements | (8) | (12) | ||||||
Closing balance, net | 465 | 465 | 318 | |||||
Customer Lists | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 371 | 33 | ||||||
Change in scope | 141 | 350 | ||||||
Additions | 0 | 0 | ||||||
Amortization charge | (37) | (11) | ||||||
Impairment | 0 | 0 | ||||||
Disposals, net | 0 | 0 | ||||||
Transfers | 0 | 0 | ||||||
Transfers to/from assets held for sale | 0 | 0 | ||||||
Exchange rate movements | (1) | (1) | ||||||
Closing balance, net | 473 | 473 | 371 | |||||
IRUs | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 89 | 105 | ||||||
Change in scope | 10 | 0 | ||||||
Additions | 0 | 2 | ||||||
Amortization charge | (14) | (14) | ||||||
Impairment | 0 | 0 | ||||||
Disposals, net | 0 | 0 | ||||||
Transfers | 23 | 1 | ||||||
Transfers to/from assets held for sale | 0 | 0 | ||||||
Exchange rate movements | 0 | (5) | ||||||
Closing balance, net | 107 | 107 | 89 | |||||
Trademark | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 282 | 10 | ||||||
Change in scope | 0 | 280 | ||||||
Additions | 0 | 0 | ||||||
Amortization charge | (99) | (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 | 183 | 183 | 282 | |||||
Other | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 218 | 194 | ||||||
Change in scope | 20 | 23 | ||||||
Additions | 101 | 91 | ||||||
Amortization charge | (67) | (65) | ||||||
Impairment | 0 | 0 | ||||||
Disposals, net | 0 | 0 | ||||||
Transfers | 15 | (16) | ||||||
Transfers to/from assets held for sale | (3) | 0 | ||||||
Exchange rate movements | (4) | (9) | ||||||
Closing balance, net | 279 | 279 | 218 | |||||
Cost or valuation | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 3,423 | |||||||
Closing balance, net | 4,670 | 4,670 | 3,423 | |||||
Cost or valuation | Goodwill | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 1,069 | |||||||
Closing balance, net | 1,711 | 1,711 | 1,069 | |||||
Cost or valuation | Licenses | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 646 | |||||||
Closing balance, net | 922 | 922 | 646 | |||||
Cost or valuation | Customer Lists | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 561 | |||||||
Closing balance, net | 691 | 691 | 561 | |||||
Cost or valuation | IRUs | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 176 | |||||||
Closing balance, net | 214 | 214 | 176 | |||||
Cost or valuation | Trademark | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 325 | |||||||
Closing balance, net | 325 | 325 | 325 | |||||
Cost or valuation | Other | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 646 | |||||||
Closing balance, net | 806 | 806 | 646 | |||||
Accumulated amortization and impairment | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | (1,077) | |||||||
Closing balance, net | (1,451) | (1,451) | (1,077) | |||||
Accumulated amortization and impairment | Goodwill | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | 0 | |||||||
Closing balance, net | 0 | 0 | 0 | |||||
Accumulated amortization and impairment | Licenses | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | (328) | |||||||
Closing balance, net | (458) | (458) | (328) | |||||
Accumulated amortization and impairment | Customer Lists | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | (190) | |||||||
Closing balance, net | (218) | (218) | (190) | |||||
Accumulated amortization and impairment | IRUs | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | (87) | |||||||
Closing balance, net | (107) | (107) | (87) | |||||
Accumulated amortization and impairment | Trademark | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | (43) | |||||||
Closing balance, net | (142) | (142) | (43) | |||||
Accumulated amortization and impairment | Other | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Opening balance, net | (428) | |||||||
Closing balance, net | (527) | $ (527) | $ (428) | |||||
Telemovil El Salvador S.A. de C.V. | Spectrum | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Additions | $ 14 | |||||||
Major purchases of assets | Telemovil El Salvador S.A. de C.V. | Spectrum | ||||||||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||||||||
Additions | $ 20 | |||||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Subclassifications of assets, liabilities and equities [abstract] | |||||
Additions | $ 202 | $ 158 | $ 130 | ||
Change in accruals and payables for intangibles | (32) | (10) | 3 | ||
Cash used for additions | $ 171 | $ 148 | [1] | $ 133 | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Long-term assets - E.1.5. Goodw
Long-term assets - E.1.5. Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of information for cash-generating units [line items] | ||
Goodwill | $ 1,711 | $ 1,069 |
Panama | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 930 | 504 |
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 | 123 | 116 |
Paraguay | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 50 | 54 |
Colombia | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 181 | 183 |
Tanzania (Zantel) | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 12 | 12 |
Nicaragua | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 217 | 4 |
Other | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | $ 3 | $ 3 |
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, 2019 | Dec. 31, 2018 | |
Disclosure of information for cash-generating units [line items] | ||
Impairment loss recognised in profit or loss, goodwill | $ 6 | |
Bolivia | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 42.00% | 43.10% |
Average CAPEX intensity | 18.40% | 17.00% |
Perpetual growth rate | 1.50% | 3.00% |
WACC rate after tax | 10.70% | 10.20% |
Chad | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 26.70% | |
Average CAPEX intensity | 15.90% | |
Perpetual growth rate | 2.60% | |
WACC rate after tax | 14.80% | |
Colombia | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 34.10% | 32.10% |
Average CAPEX intensity | 17.70% | 19.30% |
Perpetual growth rate | 1.90% | 2.90% |
WACC rate after tax | 8.60% | 8.90% |
Costa Rica | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 36.30% | 41.20% |
Average CAPEX intensity | 23.30% | 19.90% |
Perpetual growth rate | 1.90% | 3.10% |
WACC rate after tax | 10.10% | 10.20% |
El Salvador | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 33.40% | 42.20% |
Average CAPEX intensity | 15.20% | 15.70% |
Perpetual growth rate | 0.80% | 1.60% |
WACC rate after tax | 10.70% | 11.70% |
Nicaragua | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 33.70% | 41.00% |
Average CAPEX intensity | 16.20% | 49.60% |
Perpetual growth rate | 2.00% | 3.60% |
WACC rate after tax | 10.90% | 10.10% |
Panama | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 42.60% | |
Average CAPEX intensity | 14.80% | |
Perpetual growth rate | 1.50% | |
WACC rate after tax | 8.30% | |
Paraguay | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 46.90% | 50.40% |
Average CAPEX intensity | 16.00% | 17.30% |
Perpetual growth rate | 1.60% | 3.00% |
WACC rate after tax | 9.00% | 9.80% |
Tanzania (Zantel) | ||
Disclosure of information for cash-generating units [line items] | ||
Average EBITDA margin | 31.20% | 37.10% |
Average CAPEX intensity | 12.20% | 18.50% |
Perpetual growth rate | 1.50% | 4.60% |
WACC rate after tax | 14.40% | 14.40% |
Weighted average cost of capital, measurement input | Goodwill Impairment Risk | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | 1.00% | |
Weighted average cost of capital, measurement input | Goodwill Impairment Risk | Nicaragua | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | 1.00% | |
Potential impairment | $ 32 | |
Perpetual growth rate, measurement input | Goodwill Impairment Risk | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | 1.00% | |
Perpetual growth rate, measurement input | Goodwill Impairment Risk | Nicaragua | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | (1.00%) | |
Potential impairment | $ 18 | |
EBITDA margin, measurement input | Goodwill Impairment Risk | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | 2.00% | |
EBITDA margin, measurement input | Goodwill Impairment Risk | Nicaragua | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | (2.00%) | |
Potential impairment | $ 1 | |
Weighted average cost of capital and perpetual growth rate, measurement input | Goodwill Impairment Risk | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | 1.00% | |
Weighted average cost of capital and perpetual growth rate, measurement input | Goodwill Impairment Risk | Nicaragua | ||
Disclosure of information for cash-generating units [line items] | ||
Reasonably possible change in risk variable, percent | 1.00% | |
Potential impairment | $ 63 |
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, 2019 | |
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, 2019 | Dec. 31, 2018 | |||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | $ (3,071) | [1],[2] | $ (2,880) | |
Change in scope | 255 | 386 | ||
Change in accounting policy | (307) | |||
Additions | 719 | 696 | ||
Impairments/reversal of impairment, net | 1 | 1 | ||
Disposals, net | (19) | (29) | ||
Depreciation charge | (711) | (685) | ||
Asset retirement obligations | 19 | 15 | ||
Transfers | (24) | 6 | ||
Transfers from/(to) assets held for sale | (88) | (52) | ||
Exchange rate movements | (34) | (147) | ||
Closing balance, net | (2,883) | (3,071) | [1],[2] | |
Cost or valuation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (7,790) | |||
Closing balance, net | (7,834) | (7,790) | ||
Accumulated amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (4,719) | |||
Closing balance, net | (4,952) | (4,719) | ||
Networks (including civil works) | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (2,455) | (2,399) | ||
Change in scope | 190 | 253 | ||
Change in accounting policy | (307) | |||
Additions | 87 | 62 | ||
Impairments/reversal of impairment, net | 0 | 1 | ||
Disposals, net | (8) | (24) | ||
Depreciation charge | (588) | (631) | ||
Asset retirement obligations | 14 | 14 | ||
Transfers | 444 | 551 | ||
Transfers from/(to) assets held for sale | (61) | (45) | ||
Exchange rate movements | (25) | (124) | ||
Closing balance, net | (2,201) | (2,455) | ||
Recognised finance lease as assets | 307 | |||
Networks (including civil works) | Cost or valuation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (6,663) | |||
Closing balance, net | (6,644) | (6,663) | ||
Networks (including civil works) | Accumulated amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (4,207) | |||
Closing balance, net | (4,443) | (4,207) | ||
Land and Buildings | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (175) | (147) | ||
Change in scope | 44 | 41 | ||
Change in accounting policy | 0 | |||
Additions | 4 | 1 | ||
Impairments/reversal of impairment, net | 0 | 0 | ||
Disposals, net | (1) | (2) | ||
Depreciation charge | (13) | (11) | ||
Asset retirement obligations | 5 | 1 | ||
Transfers | 4 | 9 | ||
Transfers from/(to) assets held for sale | (14) | (3) | ||
Exchange rate movements | (2) | (8) | ||
Closing balance, net | (202) | (175) | ||
Land and Buildings | Cost or valuation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (270) | |||
Closing balance, net | (360) | (270) | ||
Land and Buildings | Accumulated amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (95) | |||
Closing balance, net | (158) | (95) | ||
Construction in Progress | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (284) | (206) | ||
Change in scope | 14 | 32 | ||
Change in accounting policy | 0 | |||
Additions | 612 | 626 | ||
Impairments/reversal of impairment, net | 0 | 0 | ||
Disposals, net | (6) | (2) | ||
Depreciation charge | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Transfers | (537) | (568) | ||
Transfers from/(to) assets held for sale | (7) | (2) | ||
Exchange rate movements | (5) | (8) | ||
Closing balance, net | (355) | (284) | ||
Construction in Progress | Cost or valuation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (284) | |||
Closing balance, net | (355) | (284) | ||
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 | (156) | (128) | ||
Change in scope | 7 | 60 | ||
Change in accounting policy | (1) | |||
Additions | 16 | 7 | ||
Impairments/reversal of impairment, net | 1 | 0 | ||
Disposals, net | (3) | 0 | ||
Depreciation charge | (110) | (43) | ||
Asset retirement obligations | 0 | 0 | ||
Transfers | 64 | 14 | ||
Transfers from/(to) assets held for sale | (5) | (2) | ||
Exchange rate movements | (1) | (7) | ||
Closing balance, net | (125) | (156) | ||
Other | Cost or valuation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (573) | |||
Closing balance, net | (476) | (573) | ||
Other | Accumulated amortization and impairment | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Opening balance, net | (417) | |||
Closing balance, net | $ (351) | $ (417) | ||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Subclassifications of assets, liabilities and equities [abstract] | |||||
Additions | $ 719 | $ 698 | $ 824 | ||
Change in advances to suppliers | 1 | 2 | (8) | ||
Change in accruals and payables for property, plant and equipment | 17 | (25) | 26 | ||
Finance leases | (1) | (43) | (192) | ||
Cash used for additions | $ 736 | $ 632 | [1] | $ 650 | [1] |
[1] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Long-term assets - E.3 Leases (
Long-term assets - E.3 Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | $ 0 |
Change in scope | 177 |
Additions | 102 |
Modifications | 11 |
Impairments | (1) |
Disposals | (10) |
Depreciation | (141) |
Transfers | 1 |
Transfers to/from assets held for sale | (9) |
Exchange rate movements | (10) |
Closing balance, net | 977 |
Land and buildings | |
Right-of-Use Assets [Roll Forward] | |
Change in scope | 0 |
Additions | 25 |
Modifications | 6 |
Impairments | (1) |
Disposals | (4) |
Depreciation | (35) |
Transfers | 0 |
Transfers to/from assets held for sale | (1) |
Exchange rate movements | 0 |
Closing balance, net | 145 |
Sites rental | |
Right-of-Use Assets [Roll Forward] | |
Change in scope | 43 |
Additions | 4 |
Modifications | (2) |
Impairments | 0 |
Disposals | (4) |
Depreciation | (16) |
Transfers | 0 |
Transfers to/from assets held for sale | (5) |
Exchange rate movements | (2) |
Closing balance, net | 87 |
Tower rental | |
Right-of-Use Assets [Roll Forward] | |
Change in scope | 121 |
Additions | 67 |
Modifications | 7 |
Impairments | 0 |
Disposals | (1) |
Depreciation | (86) |
Transfers | 1 |
Transfers to/from assets held for sale | (3) |
Exchange rate movements | (7) |
Closing balance, net | 720 |
Other network equipment | |
Right-of-Use Assets [Roll Forward] | |
Change in scope | 1 |
Additions | 1 |
Modifications | 0 |
Impairments | 0 |
Disposals | 0 |
Depreciation | (2) |
Transfers | 0 |
Transfers to/from assets held for sale | 0 |
Exchange rate movements | 0 |
Closing balance, net | 8 |
Capacity | |
Right-of-Use Assets [Roll Forward] | |
Change in scope | 12 |
Additions | 2 |
Modifications | 0 |
Impairments | 0 |
Disposals | 0 |
Depreciation | 0 |
Transfers | 0 |
Transfers to/from assets held for sale | 0 |
Exchange rate movements | 0 |
Closing balance, net | 14 |
Other | |
Right-of-Use Assets [Roll Forward] | |
Change in scope | 0 |
Additions | 1 |
Modifications | 0 |
Impairments | 0 |
Disposals | 0 |
Depreciation | (2) |
Transfers | 0 |
Transfers to/from assets held for sale | 0 |
Exchange rate movements | 0 |
Closing balance, net | 3 |
Cost or valuation | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | 1,216 |
Cost or valuation | Land and buildings | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | 177 |
Cost or valuation | Sites rental | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | 103 |
Cost or valuation | Tower rental | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | 900 |
Cost or valuation | Other network equipment | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | 11 |
Cost or valuation | Capacity | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | 16 |
Cost or valuation | Other | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | 8 |
Accumulated depreciation and impairment | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | (238) |
Accumulated depreciation and impairment | Land and buildings | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | (32) |
Accumulated depreciation and impairment | Sites rental | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | (16) |
Accumulated depreciation and impairment | Tower rental | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | (180) |
Accumulated depreciation and impairment | Other network equipment | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | (3) |
Accumulated depreciation and impairment | Capacity | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | (2) |
Accumulated depreciation and impairment | Other | |
Right-of-Use Assets [Roll Forward] | |
Closing balance, net | (5) |
Increase (decrease) due to application of IFRS 16 | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | 856 |
Increase (decrease) due to application of IFRS 16 | Land and buildings | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | 154 |
Increase (decrease) due to application of IFRS 16 | Sites rental | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | 67 |
Increase (decrease) due to application of IFRS 16 | Tower rental | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | 623 |
Increase (decrease) due to application of IFRS 16 | Other network equipment | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | 9 |
Increase (decrease) due to application of IFRS 16 | Capacity | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | 0 |
Increase (decrease) due to application of IFRS 16 | Other | |
Right-of-Use Assets [Roll Forward] | |
Opening balance, net | $ 4 |
Long-term assets - E.4.2. Milli
Long-term assets - E.4.2. Millicom's assets held for sale (Details) - USD ($) $ in Millions | Jun. 26, 2019 | Apr. 27, 2018 | Dec. 19, 2017 | Jun. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2018 | ||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total liabilities directly associated with assets held for sale | $ 0 | $ 0 | [1],[2] | |||||||
Foreign exchange gain (loss) | (32) | (40) | $ 21 | |||||||
Cash and cash equivalents | 9 | (6) | [3] | 19 | [3] | |||||
Discontinued operations [Abstract] | ||||||||||
Cost of sales | (1,201) | (1,117) | [4] | (1,169) | [4] | |||||
Operating expenses | (1,604) | (1,616) | [4] | (1,531) | [4] | |||||
Depreciation and amortization | (1,100) | (803) | (812) | |||||||
Other operating income (expenses), net | (34) | 75 | [4] | 69 | [4] | |||||
Operating profit | 575 | 640 | [4] | 632 | [4] | |||||
Other non-operating (expenses) income, net | 227 | (39) | [4] | (2) | [4] | |||||
Profit (loss) before taxes from continuing operations | 218 | 119 | [3],[4] | 172 | [3],[4] | |||||
Net Profit/(loss) from discontinuing operations | 57 | (33) | [4] | 60 | [4] | |||||
Total assets of held for sale | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | 5 | 3 | ||||||||
Total liabilities directly associated with assets held for sale | 0 | 0 | ||||||||
Net assets held for sale / book value | 5 | 3 | ||||||||
Towers Paraguay | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | 0 | 2 | ||||||||
Total liabilities directly associated with assets held for sale | 0 | 0 | ||||||||
Towers Colombia | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | 2 | 0 | ||||||||
Towers El Salvador | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | 1 | 1 | ||||||||
Towers Zantel | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | 1 | 0 | ||||||||
Other | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | 0 | 0 | ||||||||
Chad | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | $ 168 | $ 168 | ||||||||
Total liabilities directly associated with assets held for sale | 140 | 140 | ||||||||
Net assets held for sale / book value | 28 | 28 | ||||||||
Intangible assets, net | 18 | 18 | ||||||||
Property, plant and equipment, net | 89 | 89 | ||||||||
Right of use assets | 9 | 9 | ||||||||
Other non-current assets | 8 | 8 | ||||||||
Current assets | 34 | 34 | ||||||||
Cash and cash equivalents | 9 | 9 | ||||||||
Non-current financial liabilities | 8 | 8 | ||||||||
Current liabilities | 131 | 131 | ||||||||
Senegal Operations | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | $ 227 | |||||||||
Total liabilities directly associated with assets held for sale | 81 | |||||||||
Net assets held for sale / book value | 146 | |||||||||
Intangible assets, net | 40 | |||||||||
Property, plant and equipment, net | 126 | |||||||||
Other non-current assets | 2 | |||||||||
Current assets | 56 | |||||||||
Cash and cash equivalents | 3 | |||||||||
Non-current financial liabilities | 8 | |||||||||
Current liabilities | 73 | |||||||||
Rwanda | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Total assets of disposal group held for sale | $ 85 | |||||||||
Total liabilities directly associated with assets held for sale | 40 | |||||||||
Net assets held for sale / book value | 46 | |||||||||
Intangible assets, net | 12 | |||||||||
Property, plant and equipment, net | 53 | |||||||||
Other non-current assets | 4 | |||||||||
Current assets | 14 | |||||||||
Cash and cash equivalents | 2 | |||||||||
Non-current financial liabilities | 11 | |||||||||
Current liabilities | $ 28 | |||||||||
Discontinued Operations - Chad | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Cash consideration | 110 | |||||||||
Costs of disposal | 4 | 4 | ||||||||
Foreign exchange gain (loss) | (8) | |||||||||
Net gain on disposal of discontinued operations | 70 | |||||||||
Discontinued operations [Abstract] | ||||||||||
Gain (loss) on disposal of discontinued operations | $ (77) | |||||||||
Net Profit/(loss) from discontinuing operations | $ (5) | |||||||||
Discontinued Operations - Senegal | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Cash consideration | 151 | |||||||||
Discontinued operations [Abstract] | ||||||||||
Gain (loss) on disposal of discontinued operations | $ (6) | |||||||||
Discontinued Operations - Rwanda | ||||||||||
Disclosure Of Detailed Information About Assets Classified As Held For Sale [Line Items] | ||||||||||
Cash consideration | $ 51 | |||||||||
Deferred cash payment due to be received | 18 | |||||||||
Earn-outs not recognized | $ 7 | |||||||||
Discontinued operations [Abstract] | ||||||||||
Gain (loss) on disposal of discontinued operations | 32 | |||||||||
Discontinued operations | ||||||||||
Discontinued operations [Abstract] | ||||||||||
Revenue | 50 | 189 | 440 | |||||||
Cost of sales | (14) | (51) | (130) | |||||||
Operating expenses | (29) | (83) | (188) | |||||||
Depreciation and amortization | (11) | (27) | (67) | |||||||
Other operating income (expenses), net | 0 | (9) | (4) | |||||||
Gain (loss) on disposal of discontinued operations | (74) | 29 | (38) | |||||||
Other expenses linked to the disposal of discontinued operations | (10) | (10) | (7) | |||||||
Operating profit | 61 | (21) | 81 | |||||||
Interest income (expense), net | (2) | (6) | (28) | |||||||
Other non-operating (expenses) income, net | 0 | (2) | 4 | |||||||
Profit (loss) before taxes from continuing operations | 59 | (29) | 56 | |||||||
Credit (charge) for taxes, net | (2) | (4) | 4 | |||||||
Net Profit/(loss) from discontinuing operations | 57 | (33) | 60 | |||||||
Cash flows from discontinued operations [abstract] | ||||||||||
Cash from (used in) operating activities, net | (8) | (38) | (1) | |||||||
Cash from (used in) investing activities, net | 5 | 8 | (25) | |||||||
Cash from (used in) financing activities, net | $ 7 | $ 11 | $ 8 | |||||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | |||||||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). | |||||||||
[3] | Re-presented for discontinued operations (shown in note A.4. and E.4.2.). 2018 and 2017 were not restated for the application of IFRS 16, and , additionally,2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. | |||||||||
[4] | Re-presented for discontinued operations (shown in note A.4.) 2018 and 2017 were not restated for the application of IFRS 16, and, additionally, 2017 was not restated for the application of IFRS 15 and IFRS 9, as the Group elected the modified retrospective approach. |
Other assets and liabilities F.
Other assets and liabilities F.1. Trade receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | 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 | $ 371 | $ 343 | [1],[2] | $ 339 | $ 386 |
Neither past due nor impaired | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 241 | 210 | |||
Gross | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 636 | 592 | |||
Provisions | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | (265) | (249) | |||
30–90 days | Past due (net of impairments) | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 88 | 95 | |||
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 | 43 | 37 | |||
Telecom operators | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 40 | 39 | |||
Telecom operators | Neither past due nor impaired | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 23 | 17 | |||
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 | 9 | |||
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 | 8 | 14 | |||
Own customers | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 270 | 246 | |||
Own customers | Neither past due nor impaired | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 177 | 158 | |||
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 | 63 | 69 | |||
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 | 29 | 19 | |||
Others | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 60 | 58 | |||
Others | Neither past due nor impaired | |||||
Disclosure of financial assets that are either past due or impaired [line items] | |||||
Trade receivables, net | 40 | 36 | |||
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 | 15 | 17 | |||
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 | |||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Other assets and liabilities _2
Other assets and liabilities F.2. Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Telephone and equipment | $ 18 | $ 26 | |
SIM cards | 3 | 4 | |
IRUs | 3 | 3 | |
Other | 9 | 6 | |
Inventory | $ 32 | $ 39 | [1],[2] |
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Other assets and liabilities _3
Other assets and liabilities F.3. Trade payables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade payables | $ 40 | $ 26 |
Other assets and liabilities _4
Other assets and liabilities F.4.1. Current provisions and other liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |||||
Deferred revenue | $ 77 | $ 85 | |||
Customer deposits | 14 | 15 | |||
Current legal provisions | 36 | 27 | |||
Tax payables | 74 | 68 | |||
Customer and MFS distributor cash balances | 141 | 147 | |||
Withholding tax on payments to third parties | 15 | 17 | |||
Other provisions | 3 | 7 | |||
Other current liabilities | 113 | 126 | |||
Total | 474 | $ 492 | [1],[2] | $ 379 | $ 425 |
Provision for tax risk not related to income tax | $ 36 | ||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Other assets and liabilities _5
Other assets and liabilities F.4.2. Non-current provisions and other liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Non-current legal provisions | $ 18 | $ 8 | |
Long-term portion of asset retirement obligations | 96 | 77 | |
Long-term portion of deferred income on tower sale and leasebacks recognized under IAS 17 | 68 | 85 | |
Long-term employment obligations | 71 | 68 | |
Accruals and payables in respect of spectrum and license acquisitions | 61 | 41 | |
Other non-current liabilities | 68 | 71 | |
Non-current provisions | $ 383 | $ 351 | [1],[2] |
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
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, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Contract Assets [Line Items] | |||||
Contract assets, net | $ 41 | $ 37 | [1],[2] | $ 28 | $ 0 |
Contract liabilities [abstract] | |||||
Short-term portion | 82 | 87 | [1],[2] | $ 51 | $ 0 |
Revenue that was included in contract liability balance at beginning of period | 87 | 45 | |||
Transaction price allocated to remaining performance obligations | 61 | ||||
Contract Costs, Net [Roll Forward] | |||||
Contract costs, net, beginning of period | 5 | 4 | |||
Contract costs capitalized | 7 | 4 | |||
Amortisation, assets recognised from costs incurred to obtain or fulfil contracts with customers | (6) | (4) | |||
Contract costs, net, end of period | 4 | 4 | |||
Gross Carrying Amount, Non-current | |||||
Contract Assets [Line Items] | |||||
Contract assets, net | 6 | 3 | |||
Gross Carrying Amount, Current | |||||
Contract Assets [Line Items] | |||||
Contract assets, net | 37 | 35 | |||
Provisions | |||||
Contract Assets [Line Items] | |||||
Contract assets, net | (2) | (1) | |||
Current contract liabilities | |||||
Contract liabilities [abstract] | |||||
Long-term portion | 1 | 1 | |||
Short-term portion | 81 | 86 | |||
Total | 82 | $ 87 | |||
2020 | |||||
Contract liabilities [abstract] | |||||
Transaction price allocated to remaining performance obligations | 60 | ||||
2021 | |||||
Contract liabilities [abstract] | |||||
Transaction price allocated to remaining performance obligations | $ 1 | ||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
Additional disclosure items G.1
Additional disclosure items G.1 Fees to auditors (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Auditor's remuneration [abstract] | |||
Audit fees | $ 6.8 | $ 6.7 | $ 4.7 |
Audit related fees | 1.3 | 0.4 | 0.3 |
Tax fees | 0.1 | 0.2 | 0.2 |
Other fees | 0.6 | 0.6 | 0.7 |
Total | $ 8.8 | $ 7.7 | $ 5.9 |
Additional disclosure items G.2
Additional disclosure items G.2.1. Capital commitments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Capital Commitments [Line Items] | ||
Capital commitments | $ 122 | $ 88 |
1 year | ||
Capital Commitments [Line Items] | ||
Capital commitments | 102 | 71 |
Joint ventures | ||
Capital Commitments [Line Items] | ||
Capital commitments | 52 | 66 |
Joint ventures | 1 year | ||
Capital Commitments [Line Items] | ||
Capital commitments | $ 51 | $ 56 |
Additional disclosure items G_2
Additional disclosure items G.2.2. Lease commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Rental expense | $ 1 | $ 152 | $ 151 |
Minimum lease payments payable under non-cancellable operating lease | 801 | ||
Minimum finance lease payments payable | 914 | ||
Finance lease liabilities | 353 | ||
Interest expense on finance leases | $ 157 | 91 | $ 65 |
1 year | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | 127 | ||
Minimum finance lease payments payable | 99 | ||
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 | ||
Minimum finance lease payments payable | 400 | ||
After five years | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | 262 | ||
Minimum finance lease payments payable | 415 | ||
Joint ventures | |||
Disclosure of finance lease and operating lease by lessee [Line Items] | |||
Minimum lease payments payable under non-cancellable operating lease | 312 | ||
Minimum finance lease payments payable | $ 1 |
Additional disclosure items G.3
Additional disclosure items G.3.1. Litigation and legal risks (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [line items] | ||
Legal proceedings provision | $ 30 | $ 22 |
Joint ventures | ||
Disclosure of contingent liabilities [line items] | ||
Legal proceedings provision | 3 | 4 |
Legal proceedings contingent liability | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | 204 | 683 |
Legal proceedings contingent liability | Joint ventures | ||
Disclosure of contingent liabilities [line items] | ||
Estimated financial effect of contingent liabilities | $ 4 | $ 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, 2019 | Dec. 31, 2018 |
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 | $ 50 | $ 44 |
Tax contingent liability | ||
Disclosure of other provisions [line items] | ||
Estimated financial effect of contingent liabilities | 300 | 226 |
Joint ventures | Provision for taxes other than income tax | ||
Disclosure of other provisions [line items] | ||
Other provisions | 4 | 2 |
Joint ventures | Tax contingent liability | ||
Disclosure of other provisions [line items] | ||
Estimated financial effect of contingent liabilities | $ 49 | $ 29 |
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 Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Additional information [abstract] | |||
Acquisition of property, plant and equipment, including (finance) leases | $ 17 | $ (65) | $ (174) |
Asset retirement obligations | 19 | 15 | (20) |
Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | 0 | 30 | 0 |
(Finance) Leases | 1 | (43) | 192 |
Share based compensation | $ 27 | $ 21 | $ 22 |
Additional disclosure items G.5
Additional disclosure items G.5. Related party balances and transactions (Details) - USD ($) $ in Millions | Dec. 13, 2018 | Oct. 07, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 14, 2019 | |
Expenses from transactions with related parties | |||||||
Other expenses | $ (15) | $ (3) | $ (4) | ||||
Total | (412) | (244) | (250) | ||||
Income and gains from transactions with related parties | |||||||
Other revenue | 3 | 2 | 1 | ||||
Total | 322 | 303 | 295 | ||||
LIABILITIES | |||||||
Sub-total | 531 | 482 | |||||
Total | 531 | 580 | |||||
Amounts due to non-controlling interests, associates and joint ventures | 337 | 135 | [1],[2] | ||||
Amounts receivable | 73 | 73 | |||||
Joint ventures where entity is venturer | |||||||
LIABILITIES | |||||||
Amounts receivable | 23 | 20 | |||||
Other related parties | |||||||
LIABILITIES | |||||||
Sub-total | 0 | 9 | |||||
Amounts receivable | 4 | $ 1 | |||||
Kinnevik | Principal shareholder | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Shareholder ownership percentage | 37.00% | 37.00% | |||||
Miffin | Entities with joint control or significant influence over entity | |||||||
Expenses from transactions with related parties | |||||||
Purchases of goods and services | (209) | $ (173) | (181) | ||||
Income and gains from transactions with related parties | |||||||
Sale of goods and services | 13 | 17 | 18 | ||||
Guatemala joint ventures | Joint ventures where entity is venturer | |||||||
LIABILITIES | |||||||
Sub-total | 361 | 315 | |||||
Amounts due to non-controlling interests, associates and joint ventures | 337 | ||||||
Honduras joint ventures | Joint ventures where entity is venturer | |||||||
LIABILITIES | |||||||
Sub-total | 133 | 143 | |||||
EPM | Entities with joint control or significant influence over entity | |||||||
LIABILITIES | |||||||
Sub-total | 37 | 14 | |||||
Amounts receivable | 3 | 5 | |||||
EPM | Joint ventures where entity is venturer | |||||||
Expenses from transactions with related parties | |||||||
Purchases of goods and services | (42) | (40) | (36) | ||||
Income and gains from transactions with related parties | |||||||
Sale of goods and services | 306 | 284 | 277 | ||||
Helios Towers Africa Ltd (HTA) | |||||||
Expenses from transactions with related parties | |||||||
Lease of towers and related services from HTA | (146) | (28) | $ (28) | ||||
LIABILITIES | |||||||
Finance lease liabilities to tower companies | 0 | 99 | |||||
Amounts receivable | 0 | 6 | |||||
Panama | |||||||
LIABILITIES | |||||||
Amounts receivable | 0 | 0 | |||||
Ghana | |||||||
LIABILITIES | |||||||
Amounts receivable | $ 43 | $ 41 | |||||
Colombia | EPM | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage ownership held by non-controlling interest | 50.00% | ||||||
Cable Onda S.A | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage ownership held by non-controlling interest | 20.00% | 20.00% | |||||
Cable Onda S.A | Cable Onda Partners | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage ownership held by non-controlling interest | 20.00% | ||||||
Telefonica Moviles Panama | Cable Onda Partners | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Percentage ownership held by non-controlling interest | 20.00% | ||||||
[1] | Not restated for the application of IFRS 16 as the Group elected the modified retrospective approach. | ||||||
[2] | The consolidated statement of financial position at December 31, 2018 has been restated after finalization of the Cable Onda purchase accounting (note A.1.2.). |
IPO - Millicom's operations i_2
IPO - Millicom's operations in Tanzania (Details) | 1 Months Ended |
Jun. 30, 2016 | |
Tigo Tanzania | |
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) | Feb. 24, 2020USD ($)$ / shares | Feb. 28, 2020USD ($)shares | Feb. 28, 2020SEK (kr)shares | Jan. 28, 2020USD ($) | Dec. 31, 2019 | Apr. 30, 2019USD ($) | Apr. 05, 2019USD ($) |
Potential ordinary share transactions | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Repurchases of shares (at least) (in shares) | $ 500,000,000 | $ 11,000,000 | kr 107,000,000 | ||||
Repurchase term | 3 years | ||||||
Repurchase percentage (up to) | 5.00% | ||||||
Dividends proposed (usd per share) | $ / shares | $ 1 | ||||||
Share repurchase plan maximum (in shares) | shares | 350,000 | 350,000 | |||||
USD 5.875% Senior Notes | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Borrowings face amount | $ 300,000,000 | $ 300,000,000 | |||||
USD 5.875% Senior Notes | Entering into significant commitments or contingent liabilities | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Borrowings face amount | $ 250,000,000 | ||||||
Issuance price | 106.375% | ||||||
Implied yield to maturity (as a percentage) | 4.817% | ||||||
Fixed interest rate | USD 5.875% Senior Notes | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Borrowings, interest rate | 5.875% | 5.875% | 5.875% |
Uncategorized Items - tigo-2019
Label | Element | Value | [1] |
Cumulative Adjustment Arising From Change In Measurement Attribute, Initial Application Of IFRS Standard | tigo_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | $ 6,000,000 | |
Retained earnings [member] | |||
Cumulative Adjustment Arising From Change In Measurement Attribute, Initial Application Of IFRS Standard | tigo_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | 10,000,000 | [2] |
Non-controlling interests [member] | |||
Cumulative Adjustment Arising From Change In Measurement Attribute, Initial Application Of IFRS Standard | tigo_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | (4,000,000) | |
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] | “IFRS 15, “Revenue from contracts with customers” and IFRS 9, “Financial Instruments” were adopted effective January 1, 2018 using the modified retrospective method. The impact of adoption was recorded as an adjustment to retained profits. | ||
[2] | Retained profits – includes profit for the year attributable to equity holders, of which $306 million (2018: $324 million; 2017: $345 million) are not distributable to equity holders. |