Digicel warns investors on significant costs of Haiti unrest
Denis O'Brien's Digicel has warned that an economic and security crisis in Haiti is having a significant effect on its business there.
The company has activated emergency protocols to protect staff and their families as well as to ensure business continuity.
In a notice to bond investors Digicel said the financial impact remains difficult to forecast but that its earnings (adjusted EBITDA) in Haiti for the half year period ending on March 31, 2023, may be in the region of US$25m to $35m compared to US$74m in the prior half year.
Digicel said the current security situation in Haiti has deteriorated considerably following a lifting of fuel subsidies in September 2022, resulting in public unrest, violence and substantial disruption to economic activity.
"Digicel is working hard to ensure that key sites in terms of traffic and population coverage are operating as effectively as possible, though as much as 50pc of its national telecommunications network is experiencing disruption at any given time."
Digicel’s Chairman, Denis O’Brien, said: “Our thoughts are with the people of Haiti as they suffer extreme community and societal impacts.
"At times like these, our priorities are our colleagues and our customers. As such, we have activated our emergency protocols to secure the safety of our staff and their families and to ensure business continuity.”
The group said it will provide a further update on trading conditions in Haiti in its second quarter results call which will take place on November 29, 2022.
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