Digicel Group Ltd, a major mobile operator, announced on Tuesday that it had gained a 27% increase in subscribers bringing the total to 12.8 million and its revenues from its 30 markets in the Caribbean, Central America and the Pacific were up 14%, registering US$2.54 billion.
The Digicel Group Ltd, in a press release on Tuesday datelined Kingston, Jamaica, declared a strong set of financial results for the year ended 31st March, 2012.
“With subscribers up 27% to 12.8 million and revenues for Digicel Group Limited (which comprises 30 markets in the Caribbean, Central America and the Pacific) up 14% to US$2.54 billion, EBITDA margins remained steady at a robust 45%,” the release stated.
EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.
The company posted EBITDA of US$1,082 million, up from US$954 million in the previous year, representing a year-on-year increase of 13%, the release stated.
Value Added Services and data revenues were up 47% year-on-year and now account for 20% of overall service revenues. This growth was supported in part by Digicel’s 4G Mobile offering which is now available in 14 markets across the globe (with further rollouts planned) and by the rise in smartphone usage. Meanwhile, the Diaspora business saw its revenues grow by 28% year-on-year.
Digicel’s balance sheet and liquidity position has continued to improve with cash reserves of over US$657 million at 31st March 2012. The Group’s strong financial performance has been endorsed by ratings agency, Fitch, which in May reaffirmed the Group’s debt rating citing its “strong operational performance”.
Commenting on the performance, Digicel Group CEO, Colm Delves, is quoted as saying: “I am pleased to report that Digicel has closed out another strong year in which, for the first time in our 11-year history, our annual EBITDA was over US$1 billion. With 12.8 million subscribers across 30 markets, Digicel has delivered 14% revenue growth placing us at the leading edge of performance amongst telecoms operators worldwide.”
He thanked their customers for their loyalty to Digicel and partners and staff who always go the extra mile to ensure that the customers benefit.
Denis O’Brien, Chairman and Founder of Digicel Group, commented that the results announced reflect the continued growth and development of Digicel in the Caribbean, Central America and Asia Pacific.
“The success of Digicel is due to the commitment of a very strong management team and workforce whose sole focus is on the highest standards of service delivery in all markets,” O’Brien added.
