Digicel revenues hit US$2.2bn – earnings up 27pc

13 Jun 2011

In a fitting end to the company’s first decade in business, Denis O’Brien’s Digicel Group has reported a 27pc increase in revenues to US$2.23bn, with solid EBITDA margins at 43pc.

For the year ended 31 March 2011, Digicel posted EBITDA of US$954m for the year, up from US$753m the previous year and representing a year-on-year increase of 27pc – similar to its revenues growth.

Digicel’s balance sheet and liquidity position has continued to improve, with cash reserves of more than US$600m at 31 March 2011.

The Group’s strong financial performance has been endorsed by ratings agency Fitch, which recently upgraded the group’s debt as a result of its “continued strong operating performance”.

Progress with data services

Digicel made significant progress in terms of data services, with data revenues up 104pc year on year and continued strong growth of non-SMS data revenue. Overall, data now accounts for 15pc of service revenues.

“It’s been another successful year for Digicel as we continue to grow our business, introduce innovative new technologies to our customers and deliver on our commitments to providing best value, best service and best network,” explained Digicel Group CEO Colm Delves.

“We have successfully integrated our Caribbean and Pacific operations and expanded our capabilities in the business solutions area and have driven growth in our Caribbean and Pacific markets – especially in Haiti and Papua New Guinea.”

“This – in addition to the improving economic conditions across our markets – has resulted in robust performance and delivery on all of our targets once again,” Delves said.

Photo: Denis O’Brien, chairman, Digicel

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years