With 11.1 million customers across 30 markets in the Caribbean, Central America and the Pacific, Digicel Group has completed its acquisition of Claro, América Móvil’s business in Jamaica, and the sale of its business in Honduras to América Móvil. According to Digicel, the moves helped the carrier to a strong performance during the six-month period that ended Sept. 30, with revenue of U.S. $1.2 billion, an increase of 16% compared with the same period last year.
Digicel’s results in the first half of its fiscal year were also boosted by the launch of HSPA+ technology across the Cayman Islands and the Dutch Caribbean (Aruba, Bonaire and Curacao), an expansion strategy in Haiti that had resulted in a total of more than 3.4 million subscribers as of Sept. 30, and the launch of its Cellmoni mobile money service in Papua New Guinea.
Digicel reported that its earnings before interest, taxes, depreciation and amortization rose 15% during its fiscal first half from the same period last year, to $524 million, with EBITDA of $270 million in its most recent quarter.
Digicel’s global subscriber base increased 14% from a year ago, to 11.1 million, the company reported, with strong revenue growth in all its major markets, including El Salvador, French West Indies, Haiti, Jamaica, Papua New Guinea, and Trinidad and Tobago. Growth was especially rapid in Haiti, where Digicel added 830,000 new subscribers in its fiscal first half.
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In March, América Móvil announced an agreement with Digicel Group to acquire Digicel’s operations in Honduras and El Salvador. As part of the transaction, AMX would sell its Jamaican subsidiary Claro to Digicel, in a deal that is thought to include an undisclosed sum of money.
In August, Jamaican Prime Minister Bruce Golding gave approval for mobile service provider Digitel to acquire Claro, América Móvil’s business in Jamaica. Financial terms of the transaction have not been disclosed. Golding said the acquisition is to be done without any modification to the licenses or their obligations, meaning Digicel will be required to fulfill the obligations contained with the Claro licenses regarding the type of facility and specified service that must be provided, interconnection obligations, license limitations and network expansion obligations.
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