Digicel slips on currency swings
Currency swings in markets where the group operates pushed second-quarter earnings at Digicel lower, according to sources.
The mobile and communications business controlled by businessman Denis O'Brien, saw second-quarter earnings fall on the swings, two people with knowledge of the matter said.
Adjusted earnings before interest, taxes, depreciation and amortization (ebitda) slid about 11pc because of unfavourable foreign exchange rates during the second three months of its financial year from a year earlier, the sources said.
Digicel is active in 31 markets across the Caribbean, Central America and the South Pacific and has 13.8 million subscribers for services from mobile to cable TV and broadband.
On a constant-currency basis, earnings rose about 1pc. Services revenue dropped about 6pc in the period, but rose 1pc on a constant currency basis. Total revenue dropped about 7pc but was unchanged in constant currency, according to a source, who said the company said it planned to reduce its debt ratios over the next two years. Digicel declined to comment. Digicel cancelled initial public offering (IPO) plans last year because of market volatility and has indicated it is in no rush to reopen the flotation process. (Bloomberg)