Trilogy International Partners revenue up 7% to USD653.6m in 2021

31 Mar 2022

Trilogy International Partners (TIP), which owns telecoms assets in New Zealand (2degrees) and Bolivia (NuevaTel), has reported total revenues of USD653.6 million for the twelve months ended 31 December 2021, up 7% on an annualised basis. Adjusted EBITDA for the year increased 8% to USD115.1 million, while the group reported a net loss of USD194.4 million for 2021, compared to deficit of USD79.7 million in 2020.

In operational terms, 2degrees reported a total of 1.443 million mobile subscriptions at end-2021, alongside 149,000 fixed broadband accounts. NuevaTel, meanwhile, claimed 1.530 million mobile subscriptions at year-end.

President and CEO Brad Horwitz commented: ‘Over the past several months Trilogy has been focused on strategic initiatives to appropriately manage risk and maximise value for our shareholders. At the end of December we announced that Trilogy, as well as the other 2degrees shareholders, have entered into a definitive agreement to sell 100% of the 2degrees business for cash consideration of NZD1.315 billion (USD916.5 million) to the owners of Vocus Group … In Bolivia, earlier this week we announced our agreement to transfer our 71.5% equity interest in NuevaTel to Balesia Technologies, for nominal consideration. The transaction is subject to customary closing conditions, and we anticipate that closing will take place in the second quarter of 2022.’

Ominously, Trilogy notes that NuevaTel could potentially have its licence revoked due to its failure to meet a pre-agreed rollout schedule. The company explains: ‘NuevaTel is also obligated to deploy 4G LTE services by October 2022 in numerous municipalities where it does not yet have network infrastructure. NuevaTel anticipates that it will be delinquent in meeting this obligation and as a result could be fined approximately USD0.2 million by the Authority for the Regulation and Oversight of Telecommunications and Transport (ATT). The ATT also has the authority to institute licence revocation proceedings in connection with a failure to initiate LTE service in a timely fashion. NuevaTel has received no indication regarding the likelihood that the ATT would pursue a licence revocation. Additionally, since November 2021, NuevaTel has deferred payments due under other contracts with various suppliers and vendors.’