DENIS O’BRIEN’S Digicel mobile phone group increased its revenues by 14 per cent to $2.54 billion (€2.04 billion) in the year to the end of March 2012.
This followed a 27 per cent rise in subscriber numbers to 12.8 million across its 30 markets in the Caribbean, central America and the Pacific.
Digicel Group Ltd published a limited set of financial results yesterday.
It showed that earnings before interest, tax, depreciation and amortisation (Ebitda) increased year-on-year by 13 per cent to $1.08 billion.
Digicel said its Ebitda margin “remained steady at a robust 45 per cent”.
However, the results published yesterday showDigicel’s strong double-digit growth performance of recent years is slowing.
Last year, the group reported annual growth of 27 per cent for both its revenues and Ebitda.
In relation to 2011-2012, Digicel said data revenues and revenue from other “value added” services rose by 47 per cent during the period and now account for one-fifth of its turnover, up from 15 per cent last year.
“This growth was supported in part by Digicel’s 4G mobile offering, which is now available in 14 markets,” the company said.
Digicel’s cash reserves stood at $657 million at the end of March 2012, compared with $600 million a year earlier. According to a recent note from ratings agency Fitch, Digicel had total debts of $4.5 billion at the end of December 2011 relating to its operations in the Caribbean, Central America and the Pacific.
Digicel did not disclose its debt levels yesterday but they are thought to have increased to about $5 billion considering the extension and amendment of a loan facility in January 2012 and the placement of a $250 million bond in February.
Digicel Group’s chief executive Colm Delves was not available for comment yesterday.
In a statement, Mr Delves said he was “pleased” with the results.
Mr O’Brien, Digicel’s chairman and founder, said the results “reflect the continued growth and development” of Digicel in its various markets.
During the period, Digicel acquired Voila, a rival operator in Haiti. It also completed the takeover of Claro in Jamaica as part of a deal with América Móvil, owned by wealthy Mexican businessman Carlos Slim.
That deal involved América Móvil agreeing to acquire the Digicel businesses in Honduras and El Salvador.
While the Jamaica and Honduras deals have been completed, the El Salvador leg of this transaction awaits regulatory approval.
According to Fitch, the biggest contributors to Digicel’s Ebitda are Jamaica, Haiti, Trinidad and Tobago, eastern Caribbean operations, and Papua New Guinea.
