The Bermuda-based Digicel Group, which provides mobile phone services in 24 markets in the Caribbean region, and which has officially started operations in BVI in November 2008, reported $41 mln net profit for the year period ended 31 March 2009 – after a loss of $74 mln in the year 2008. The earnings of Digicel before tax made $680 mln – a 34 per cent rise from the last year. The group’s revenues rose by 11 per cent and made $1.73 billion, while the base of its subscribers has grown 9 per cent during the year, and made 7.1 mln.
According to Digicel representatives, the number of subscribers increased due to its opening in the British Virgin Islands, and to the successful launches in El Salvador, Trinidad Tobago and Suriname.
Digicel Group’s CEO Colm Delves said that its profit performance was achieved due to the strong sales growth and keeping an eye on its cost base. He also said that customer acquisition costs had declined from 16 per cent of its revenues to 11 per cent.
After the end of Digicel’s financial year, the group raised $350 mln through a bond issue, which provided funds to acquire a 38 per cent stake in its sister company Digicel Holdings (Central America) Limited (DHCAL), which owns mobile phone operations in Panama and Honduras launched in November-December 2008. Digicel invested more than $800 million in launching mobile services in Honduras and Panama.