DIGICEL, the mobile phone group controlled by Denis O’Brien, has recorded strong double-digit increases in both revenues and earnings in the first six months of its financial year.
Figures released yesterday show that revenues rose by 16 per cent to $1.24 billion in the six months to the end of September.
Its earnings before interest, tax, depreciation and amortisation increased by 15 per cent to $524 million in the period.
Digicel’s subscriber base rose by 14 per cent to 11.1 million across its 30 markets in the Caribbean, El Salvador and the Pacific.
"The Pacific performed well for us as did Haiti, which is our biggest growth market," Digicel chief executive Colm Delves told The Irish Times.
The company added 830,000 subscribers in Haiti, the poorest country in the western world, to bring its customer base there to 3.4 million. This expansion was aided by reduced tariffs and subsidised handsets but Mr Delves said it was profitable business for Digicel.
“We’re being quite aggressive [with expansion in Haiti] but we still look at our payback closely. It still makes sense for us. It’s really an investment into next year.”
Digicel said its senior credit facility has been increased by $282 million to a level of $992 million. Borrowings now stood at about $4.7 billion while it had more than $400 million in cash on its balance sheet.
Digicel recently agreed a deal with global chain Marriott to open a 173-bed hotel in Port-au-Prince, Haiti’s capital. Mr Delves said this would involve a net cash investment by Digicel of $15-20 million. The project will cost $45 million.
“We want to promote the rebuilding of Haiti and this is a tangible way for us to do so. We will benefit as a company as more investment comes into Haiti. On a standalone basis, this project makes sense regardless of the benefits for the country of Haiti and Digicel. There is a dire shortage of quality of hotels in Haiti.”
Digicel recently concluded terms with rival America Movil to acquire that company’s business in Jamaica while selling its own operation to them in Honduras.
However, plans to sell its El Salvador business to American Movil have hit a snag with regulators. “They are in discussions with the government and regulator about the conditions [being imposed]. It’s going to take a bit of time.”
Digicel was last week linked with a proposal by a consortium to acquire a majority stake in a telecoms company in Libya owned by a sovereign fund established by Col Muammar Gadafy, the country’s deposed leader. Mr Delves said talks took place but no agreement was reached.
