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<p>Irish-owned telecoms company Digicel continues to report less revenue while its debt mountain grows bigger.<br> <br>According to Bloomberg, for the three months to the end of March, its quarterly earnings dropped by 9% to just US$210 million. Digicel now has around US$280 million in cash as it looks to salvation from digital and data services.<br> <br>Digicel has a whopping debt of 6.7 times earnings and had promised to reduce it to 5.7 times earnings by the end of March this year. Instead, it is now over 7 times earnings.<br> <br>The Group got a reprieve of sorts by pushing back bonds falling due in 2020 by two years but its bond prices continue to drop with some bondholders now becoming anxious.<br> <br>Earlier this year, JMMB advised its clients holding Digicel bonds to sell them as the company will face challenges servicing them.</p>
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<blockquote class="wp-block-quote"><p> “ We believe the bonds will continue to trade well below par in the medium term with a significant risk of further price depreciation.” </p><cite>Statement from JMMB</cite></blockquote>
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<p>Can Digicel turn things around, reduce its debts significantly and transform itself over the next two years?<br> <br> Should it look to offload more assets?<br> <br> Do let us know at Buzz</p>
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