TELECOMMUNCIATIONS provider LIME Jamaica reported a net loss of $1.3 billion over the second quarter ending September 30, 2011, but found a silver lining in a 11 per cent increase in mobile revenues and a three per cent growth in its postpaid mobile subscriber base.
Total revenues at LIME declined by three per cent to $4.5 billion over the period under review compared to the corresponding quarter last year. Operating expenses increased by 10 per cent to $2.5 billion, which the firm said was mainly due to a 29 per cent increase in staff costs as a result of a one-off retroactive pay increase.
However, while acknowledging that market conditions continue to be challenging, LIME Jamaica said it is responding with strategic commercial moves and internal initiatives which should have a positive impact on performance as the company enters the second half of its fiscal year.
During the quarter, the telecoms company said it saw its Average Revenue Per User (ARPU) for mobile increase by 26 per cent, driven by increases in prepaid voice and data ARPUs of 25 per cent and 92 per cent respectively. The company is also reporting a 30 per cent increase in enterprise and data revenue as it continues to compete aggressively in the corporate and government arena. And while broadband revenues dipped by 11 per cent; LIME said its FLIPTop promotion, which it said “offers the most affordable laptop in Jamaica” along with its internet service, is at the forefront of the company’s strategy to drive Internet penetration and reverse this decline.
“The recently completed quarter highlights the fact that we still have a lot of work to do on the road back to profitability. However, the good news is that our mobile business continues to capture an increasing share of this market’s value with an 11 per cent increase in service revenues driven by increased voice ARPUs and growth in data,” said LIME Jamaica managing director Garry Sinclair.
“We successfully initiated our residential broadband penetration drive toward the end of the quarter, with the introduction of our ‘FLIPtop’ computer offer. The intention is to drive revenue growth by offering customers improved broadband propositions to encourage higher adoption rates,” he added.
LIME also expects that the signing of a historic Memorandum of Understanding (MOU) with its Trade Unions will drive efficiency and facilitate more effective cost management which should reflect on performance going forward.
“We are very proud of the MOU signed with our Unions during the period and expect that the enlightened positions taken by our union partners will result in considerable cost efficiencies, increased productivity and enhanced revenue performances in the immediate future,” said Sinclair.
The company is also encouraged by the recent announcement by former prime minister, Bruce Golding which indicated the Government intends to address imbalances in the legislative framework which it said currently governs the telecoms industry.
“The recent announcement by the former prime minister regarding proposed legislative and regulatory changes has opened up the possibility for a much more competitive market for mobile phone services. We are therefore cautiously optimistic and remain vigilant in our quest to ensure that the contemplated legislation is enacted and that the relevant regulators exercise their mandate in the interest of increased competition and consumer choice,” Sinclair said.
Source: jamaicaobserver
