Digicel makes €243.8m profit to end of September

DIGICEL GROUP, the telecoms business founded by Denis O’Brien, made a profit of $364 million (€243.8 million) during the half year to the end of September.

The earnings before interest, tax, depreciation and amortisation, represent a 10 per cent increase over the previous half year. The profit was achieved on revenues of $857 million in the company’s business in the Caribbean and El Salvador, the company said. Digicel had increased its subscriber base by 7 per cent over the past 12 months, to 7.3 million, it added.

“These results demonstrate a strong start to the financial year with Digicel increasing profits and subscribers even in a tough economic climate,” said Digicel group chief executive Colm Delves.

“Despite increased competition, Digicel is winning market share as customers continue to prefer the better value offered by Digicel’s bigger, better network.”

The increase in revenue was 3 per cent in constant currency terms. The group’s margin for the quarter was 44 per cent, the fifth successive quarter where it has been at or greater than 40 per cent.

“We have demonstrated that, with disciplined cost control and relentless focus on giving customers what they want, companies can continue to thrive even in challenging times,” Mr Delves said.

In July, Digicel Group completed a $160 million high yield bond issue that was more than two times over subscribed, the company said, demonstrating “the company’s continued good standing in capital markets”.

The results issued by Digicel Group yesterday are issued to the company’s bond holders.

Digicel Group operates in 24 markets in the Caribbean and El Salvador. Worldwide, Digicel also operates in other Central America countries and in the South Pacific region.

The subscriber base for Digicel worldwide increased to 10.3 million from 7.6 million in the year to the end of September.

The Guardiannewspaper reported at the weekend that Digicel is to compete with Vodafone for control of the sole telecoms company in the Bahamas.

Vodafone is understood to be considering involvement in a consortium run by JP Morgan’s private equity arm which has tabled an offer for a controlling stake in the Bahamas Telecommunications Company (BTC), the paper said.

The government is initially looking to sell 51 per cent of the business. There are also other parties seeking to buy the stake.