O’Brien’s Digicel sees quarterly earnings drop 10%

O’Brien’s Digicel sees quarterly earnings drop 10%

By Katie Linsell and Dara Doyle

Digicel, the mobile carrier company controlled by Denis O’Brien, has told bondholders that its quarterly earnings dropped 10%.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) in the three months to the end of March dropped to $253m (€219m) from the same period last year as the company altered tariffs and took a $3m hit from hurricanes, the company said in the presentation to bondholders.

Full-year earnings dropped 2% to just over $1bn, according to an earnings release seen by Bloomberg News.

Services revenues dropped 3%.

Mr O’Brien founded Digicel in 2001 and turned it into a mobile phone empire with customers spread from El Salvador to Vanuatu, financing the expansion partly with high-yield debt. The yield on the company’s 2020 bonds rose to 21%, approaching the record high of 23% reached earlier this month, data compiled by Bloomberg show.

Digicel’s operating cash flow decreased by 17% to $241m, due to lower EBITDA restructuring costs of $34m. The company had cash on hand, as of the end of March, totalling $155m.

Last month Bloomberg reported that Digicel plans to cut debt through a mixture of earnings growth and so-called inorganic measures, with the company looking to reduce borrowings to about 5.7 times earnings in the fiscal year 2019 from around 6.7 times in the year-earlier period.

- Bloomberg


More in this Section

Up to 9,000 jobs to be slashed from Emirates due to coronavirusUp to 9,000 jobs to be slashed from Emirates due to coronavirus

Ireland faces second mortgage arrears crisis when payment breaks end this autumn, leading financial advisers warnIreland faces second mortgage arrears crisis when payment breaks end this autumn, leading financial advisers warn

EU's Michel proposes €5bn Brexit emergency fund that may help IrelandEU's Michel proposes €5bn Brexit emergency fund that may help Ireland

Pressure builds on Donohoe after UK cut Vat to boost pubs and restaurants in Covid-19 stormPressure builds on Donohoe after UK cut Vat to boost pubs and restaurants in Covid-19 storm


Lifestyle

Dr Martin Coyne, a GP based in Donegal, takes Catherine Shanahan through one of his work daysWorking Life: Dr Martin Coyne, GP, Co Donegal

A Spielberg classic, a host of Premier League ties and Romesh Ranganathan in the Sahara are among this weekend's top picksWeekend TV Highlights: Premier League action, The Voice Kids, and Romesh Ranganathan

Contents from two Cork houses at Woodward's auction, says Des O'SullivanOnline sale with socially distant viewing at Woodward's

Des O'Sullivan previews Fonsie Mealy's timed online collector's saleCork silhouettes, a massacre and a landmark of Irish printing

More From The Irish Examiner