Digicel’s Debt Burden Mounts as Earnings Dip

Denis O’Brien’s saw its debt burden increase in the three months to the end of December as earnings dipped, increasing pressure on the telecoms group as it seeks to lower its borrowings ratios, The Irish Times reported. The Jamaica-based group, which completed a massive debt restructuring earlier this year, told its bondholders on Wednesday that its net debt amounted to 6.8 times earnings before interest, tax, depreciation (ebitda) at the end 2018, its fiscal third quarter, according to sources. Digicel had set a target almost a year ago to lower its debt ratio from 6.7 times ebitda to 5.7 by the end of March 2019 by boosting its earnings and selling off unwanted assets. Ebitda for the third quarter declined by 2 per cent to $241 million (€212 million) on the same period in 2017, dragged down by unfavourable foreign-exchange fluctuations in some of its main markets across the Caribbean and Asia Pacific regions. Read more