Denis O’Brien’s Digicel sees drop in second-quarter earnings
Telecoms operator hit by currency swings, as company plans to reduce its debut ratios
Digicel operates in 32 markets across the Caribbean and Asia Pacific regions. Photograph: Soe Zeya Tun/Reuters
Digicel, the mobile carrier company controlled by Denis O’Brien, saw second-quarter earnings fall on currency swings, according to sources.
Adjusted earnings before interest, taxes, depreciation and amortisation slid about 11 per cent because of unfavourable foreign exchange rates during the second three months of its financial year from a year earlier, according to the sources.
On a constant-currency basis, earnings rose about 1 per cent.
Services revenue dropped about 6 per cent in the period, but rose 1 per cent on a constant currency basis, one of the sources said.
Total revenue dropped about 7 per cent, and was unchanged in constant currency, according to the source, adding the company said it planned to reduce its debt ratios over the next two years.
A Digicel spokesman declined to comment.
Digicel operates in 32 markets across the Caribbean and Asia Pacific regions. The company was on track to float on the New York Stock Exchange last year but the transaction was pulled.