Digicel Group, the mobile services company controlled by billionaire businessman Denis O'Brien, saw first-quarter earnings slide on currency swings, two people with knowledge of the matter said.

Adjusted earnings before interest, taxes, depreciation and amortisation slid 8 per cent because of unfavorable foreign exchange rates during the first three months of its financial year from the year-earlier period, according to the people, who asked not to be identified as the details were not yet public.

On a constant-currency basis, earnings rose 5 per cent.

Pleased

“Digicel doesn’t publish quarterly earnings but we’re very pleased with underlying first-quarter performance in local currency,” the company said.

“Digicel’s outlook remains positive as we monetise our substantial network investment of recent years.”

Digicel cancelled a planned initial public offering (IPO) last year, citing volatility in equity markets. The company will probably hold off on a share sale for at least a year to 18 months, Mr O’Brien said in May.

He said at that time that Digicel remained “highly profitable” and planned to keep investing heavily, including through acquiring other businesses.

Mr O’Brien’s mobile-phone empire spreads from El Salvador to Vanuatu, built partly on the back of high-risk, high-yield debt. – (Bloomberg)