Digicel Group Holdings has warned that its business is being impacted by current unrest in Haiti.
In a statement, the operator noted that Haiti’s lifting of fuel subsidies in September 2022 has resulted in country’s security deteriorating considerably, with public unrest, violence and substantial disruption to economic activity.
In particular, ongoing disruption to fuel supplies has had a substantial impact on economic activity and Digicel's operations in Haiti, which depend on fuel to operate much of its network. The operator said that it is working hard to ensure that key sites in terms of traffic and population coverage are operating as effectively as possible, but as much as 50% per cent of its national telecommunications network is experiencing disruption at any given time.
While it is difficult to forecast given the uncertainty in the market and fluctuations in the exchange rate, Digicel estimates the financial impact on Digicel Haiti in H2 FY23 (the six-month period ended March 31, 2023) will be significant. On a reported basis, assuming recent trends, Digicel estimates Adjusted EBITDA in Haiti will be in the region of US$25 – 35 million compared to US$74 million in the prior half year. The operator will report its Q2 FY23 results November 29th 2022.
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."
