Digicel Making Massive Profits

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Digicel made an operating profit of USD$707-million, on the back of revenue amounting to USD$2.8-billion, in the 12 months to the end of March.

That’s according to an updated filing made to the US Securities Exchange Commission, SEC.

In the year ended March 31, 2015, Digicel also generated a net loss of USD$158-million.

Its adjusted earnings before interest, taxes, depreciation, and amortisation, came in at USD$1.2-billion.

A report in the Irish Times newspaper says Digicel is expected to be valued in the region of USD$13-billion in a planned flotation on the New York Stock Exchange.

According to the SEC filing, Digicel has debts, largely raised in the bond market, of USD$6.5-billion.

The document shows that the company provides mobile communications services to 13.6-million subscribers in 31 markets in the Caribbean and South Pacific.

The updated filing includes a detailed breakdown of differences between the legal and corporate governance structures in Bermuda, where Digicel has its global headquarters and in the United States where the shares will be listed and traded.

The relatively small number of changes in the updated filing include a greater emphasis on the potential of Digicel’s entertainment offering as a driver of future growth, in particular in markets where mobile phone penetration is now high.

The updated filing does not say how much Digicel plans to raise on the markets, or how much of the currently privately held business will be sold.

By retaining enhanced voting rights for his shares, Digicel founder Denis O’Brien will continue to control the group regardless of the size of the rights issue.

Digicel intends to list in New York under the symbol “DCEL”.

Meanwhile, a former Executive of British multinational telecommunications company, Vodafone, Fergal Kelly is reported to be joining Digicel as Chief Technology Officer.