O'Brien's Digicel declares revenues of $1.13bn

Telecoms tycoon Denis O'Brien has declared annual revenues of $1.13 billion (€823.5 million) at his Caribbean mobile phone empire Digicel. Profits before tax and finance costs amounted to $220 million.

Now the second-largest shareholder in Independent News & Media behind Sir Anthony O'Reilly, Mr O'Brien took full control of Digicel last February in a deal that netted him a profit of $800 million. That transaction was backed with the proceeds of a $1.4 billion issue of high-yielding junk bonds on the US capital markets.

Financial results circulated last night to bondholders in the business indicate that the bonds do not cover Digicel's operations in Trinidad and Tobago and in Haiti.

The results cover the 12 months to last March, a period in which Digicel grew its subscriber base to 4.7 million from 1.92 million.

The business now operates in 22 countries, up from 13 in March 2006.

Annual revenues rose to $1.13 billion from $623 million and unadjusted earnings before interest tax depreciation and amortisation (Ebitda) rose to $220 million from $193 million.

Annual revenues and Ebitda increased by $28 million following adjustments made in light of a Jamaican Court of Appeal ruling in May on "termination" charges the group paid in Jamaica to its rival Cable & Wireless in the period to January 2004.

While the ruling means the group is liable to repay money it received from Cable & Wireless, Digicel previously made a full provision for the difference in termination rates in the period in question.

Annual gross profits rose 47 per cent to $618.98 million, operating profits rose 6 per cent to $165.72 million and pre-tax profit declined 20 per cent to $52.38 million.

Revenues in the three months to March rose to $372 million from $173 million a year earlier and unadjusted Ebitda for the quarter rose to $110 million from $25 million.

The latest quarter revenues suggest an annualised run-rate of some $1.49 billion.

Digicel said average revenue per user (Arpu) in its "restricted" group of markets, which exclude Trinidad and Tobago and Haiti, stood at $28 for the year to March and for the final quarter of that fiscal year.

"Arpu has remained stable year-on-year despite the addition of a number of lower Arpu markets such as El Salvador and Guyana," the group said.

Restricted group annual revenues were $954 million. This included $475.7 million in Jamaica, up from $416.6 million in the previous year.

Digicel declared revenues of $14.2 million in the new market of El Salvador and $169.3 million in the new markets of Martinique, Guadeloupe and French Guiana. Revenues in all other markets - excluding Trinidad and Tobago and Haiti - rose to $294.8 million from $206.7 million.