on Dec 17, 2016 the Irish Times sounded the alarm on Digicel. from all indications looks like the end cold be nearer than you thought
Chakardjian suggested Digicel’s debts may be “unsustainably high” and advised bondholders to sell some of their holdings.
While he believes it has a long-term future, there are “a substantial amount” of near-term risks. Digicel “fundamentally disagrees” with him.
The analyst identified four separate threats facing the company, which O’Brien tried and failed to float on the stock market 14 months ago.
when your debt is 6 times your falling earnings. what do you get?
“By their own admission, the company is trying to do something they have never done before . . . we believe management’s deleveraging plan comes with substantial execution risk.”
The third stick with which he beats Digicel is its prospects for revenue growth. Voice calls account for more than half its income but, like the rest of the industry, are falling fast. Data, fibre and cable are currently not growing fast enough to plug the gap.
Digicel maintains that the heaviest portion of its debts don’t start maturing until 2020, however, there it still needs to find $291 million to repay debt in the next eight months.
Nation wide radio in jamaica covered this two days later after the Irish Times and the next week our own stabroek news ran an article from barbados nation in which digicel denies any troubles ahead. looks like everyone is ignoring this fast developing story
digicel last reported net income stands at -$31,432,000
dennis o’brien may soon be out of luck