Sunday 15 September 2019

O'Brien's Digicel sees 1pc drop in revenues

Digicel boss Denis O'Brien. Photo: Damien Eagers / INM
Digicel boss Denis O'Brien. Photo: Damien Eagers / INM

Katherine Doherty and Dara Doyle

Billionaire Denis O'Brien's Digicel reported revenue fell 1pc year-on-year to $539m (€485m) in the first quarter of 2019, with foreign exchange movements behind most of the decline, according to a person familiar with the results.

The company's underlying total revenues rose 5pc over 12 months, underlying service revenue was up 4pc at the mobile operator.

Please log in or register with Independent.ie for free access to this article.

Log In

Earnings before interest, tax, depreciation and amortisation dropped 2pc to $244m.

Net debt to Ebitda was 7.3 times and was said to have peaked during the quarter.

Total subscriber numbers fell 5.5pc year-on-year, which was linked to regulatory requirements in Papua New Guinea, the person said.

A representative for Digicel declined to comment and the company is to hold an earnings conference later today.

Digicel was last month reported to have sounded out Australian investment funds about a potential listing on the Australian Securities Exchange.

The Australian Financial Review wrote that a select group of funds in the country were asked to look at Digicel, as its owner explored strategic options including a potential listing.

Mr O'Brien sensationally pulled a planned initial public offering of Digicel shares at the 11th hour in October 2015, rather than push ahead with a deal he believed undervalued the telecoms group.

In Australia, reports suggest any new equity deal is a long way off.

Bloomberg

Irish Independent

Also in Business