Digicel books dip in EBITDA, plans to cut debt

4 Jul 2019

Pan-Caribbean telecom provider Digicel Group reportedly posted a 3% drop in turnover for the three-month period ending 31 March 2019 to USD570 million, the Jamaica Gleaner writes, quoting Head of Group Communications Antonia Graham. The official went on to say that, excluding the impact of currency fluctuations and one-off costs the group would have recorded a 1% increase in revenue. EBITDA, meanwhile, dropped by 9% year-on-year to USD230 million. Digicel expects its net debt to rise from 6.7 times earnings to 7.0 times its earnings by 2020, but assured bondholders that it plans to reduce its leverage over time. ‘We are fully committed to returning the business to a more sustainable leverage level,’ the official said, but noted that it would ‘take time’ and adding: ‘However the momentum that we are beginning to see in the underlying revenues provides us with comfort that we can return the business to full-year revenue and EBITDA growth and begin to deliver organic deleveraging’. On that front, Digicel is expecting to see single-digit growth in its earnings in 2020 but believes that the expansion will be sufficient to allow it to reduce its debt.

Jamaica, Digicel Group