Durrant Pate/Contributor

Jamaica-based regional telecoms giant, Digicel, has seen some improvements in its July quarterly performance.

Results for company’s first quarter of its 2024 financial year, covering the three months from April 1, showing underlying service revenue of US$457 million and earnings before interest, taxes, depreciation, and amortisation (EBIDTA) of US$192 million, both up five percent over the comparative period last year. EBITA is used as an indicator of the overall profitability of a business.

The Sunday Independent of Ireland, home and business base of Digicel founder, Dennis O’Brien contacted a spokesman for further details on the latest financials but the individual declined to comment on the company’s results, which are private being that it is not a publicly listed entity.

However, the spokesman reported that Digicel is pleased to secure the support of creditors holding over 80 per cent of the group’s entire capital structure for an agreement to restructure its balance sheet. O’Brien is a former shareholder in Independent Newspapers, now Mediahuis Ireland, owner of the Sunday Independent and Independent.ie.

Implementation of the restructuring agreement, which will take some months to complete, is expected to reduce Digicel’s debt by US$1.7 billion, providing an appropriate capital structure to support long-term, sustainable growth. In June, O’Brien endorsed the restructuring, calling it a positive outcome for the business.

The restructuring deal Digicel and bond investors signed in June would see holders of almost US$1.18 billion of Digicel bonds convert their investment into equity. The bond investment firms poised to take control of Digicel include US-based PGIM, GoldenTree Asset Management and Contrarian Capital Management.

The agreement means Digicel will continue operating its businesses and facilities without disruption.