Claro Caribbean earnings fall
Published:Friday | October 7, 2011 | 12:00 AM
Telecom provider Claro saw its combined operating income in Jamaica and its other two Caribbean markets dip to US$98 million (1.37 billion pesos) over six months ending June, or 11 per cent less than the year-prior period due in part to a fall in fixed line revenues.
The Caribbean operations, which includes Dominica Republic and Puerto Rico, was hurt by a reduction in overall revenues, down 5.3 per cent to US$899 million over the review period.
However, its operating income dipped 11 per cent year on year to US$98 million when factoring in the cost of doing business, as well as operating costs and expenses.
Claro did not explain the decline in its condensed financials but gave a subtle explanation of the Caribbean decline in a September posting.
"Several operations registered double-digit revenue growth; while in Mexico, Central America and the Caribbean growth was more subdued - approximately 2 per cent - because of the continued decline in fixed voice revenues ...," the Mexican company said.
The financials on the Caribbean form one of nine segments in the group operations of Claro's parent company, América Móvil, owned by one of the world's richest man, Carlos Slim.
In March, Claro and rival Digicel Group announced an acquisition swap of country assets. Jamaica has signed off on the deal, but Honduras and El Salvador regulators have not. Digicel is selling its Central American operations to Claro and buying its Claro Jamaica holdings.
Digicel will acquire Claro's 517,000 subscriber base as well as its 3G network, and is expected to net cash of US$350 million on the closing of the deal.