Rating agency Fitch expects Digicel’s earnings to hit at least US$730 million for its financial year ending March 2027, roughly 3.0 per cent higher than a year earlier.
“This is driven by low single-digit growth in the business-to-business and fixed operations, a steady subscriber base from its mobile operations, a single-digit increase in average revenue per user (ARPU), and lower costs due to operating efficiency measures,” stated Fitch in its recent update on the company.
Digicel operates telecom services in 25 markets and holds leading positions in many.
Fitch projects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of about US$730 million to US$740 million for fiscal 2027, reflecting a higher outturn than the US$710 million reported in fiscal 2026, which incorporates Hurricane Melissa’s impact.
It also projects capital expenditure relative to sales to remain close to 10 per cent in fiscal 2027.
Fitch on July 30 raised the Long-Term Issuer Default Rating of Digicel International Finance Limited to B+ from B and assigned a stable outlook, citing consistent financial improvement, continued progress in reducing debt, and positive free cash flow generation. The Fitch move follows a June 2026 upgrade by Moody’s Ratings, which raised Digicel Holdings (Bermuda) Limited’s Corporate Family Rating to B1 from B2, also with a stable outlook. Together, the two upgrades represent the strongest external credit endorsement the Caribbean operator has received since its post-restructuring relaunch.
Digicel’s debt metrics are also expected to improve. Gross leverage is projected to ease from 3.9 times EBITDA in fiscal 2026 to 3.7 times in fiscal 2027, while net leverage is expected to improve from 3.4 times to 3.1 times.
Fitch highlighted EBITDA margins before leases of some 40 per cent and noted that business solutions, home broadband and television services now collectively account for roughly 25 per cent of group revenue — a diversification away from pure mobile that has supported margin stability.
The rating agency also pointed to Digicel’s strong market presence in the Caribbean telecommunications sector and its geographic diversification across 25 markets.
The company’s debt-maturity profile has also improved markedly since its January 2024 restructuring, which saw a group of United States private equity firms take majority control and founder Denis O’Brien step back to a minority position. Digicel now faces no significant debt maturities until 2032 and retains access to a US$200-million secured revolving credit facility.
Fitch pointed to the company’s voluntary US$100-million Term Loan B repayment in April 2026 as evidence of balance-sheet discipline, and said it expected the operator to continue channelling positive free cash flow towards further net-debt reduction.
business@gleanerjm.com
