Flow revenue dips on discontinued service
Published:Wednesday | June 7, 2023 | 12:06 AM
Cable & Wireless Jamaica’s revenue dipped in the March quarter and is expected to remain soft for the entire year.
It’s due to the elimination of income from a portion of its business service that the telecoms has discontinued.
The precise service was not identified, but it included the provision of discrete voice and internet services by the telecoms, which trades as Flow Jamaica.
In the quarter, Flow’s ultimate parent company, Liberty Latin America, reported that the Jamaican operation earned US$100 million for the first quarter, down from US$105 million a year earlier.
“The decrease is attributable to the net effect of discontinuing an internet transit services arrangement at C&W Jamaica, which decrease will continue for the remainder of 2023,” said Liberty.
Flow did not respond to requests for clarification on what particular business service was being discontinued.
Liberty said the discontinued B2B, or business to business, had contributed US$10 million of revenue in the comparative March 2022 quarter-year period “with a slightly negative gross margin”.
The Jamaican operations otherwise experienced growth in subscribers in the current review quarter.
Across Liberty Latin America’s multiple markets, the group also earned less revenue at US$1.1 billion in the March quarter, down from US$1.2 billion. Despite the reduction in revenue, the group gained customers in the quarter.
In the mobile segment, Liberty added20,000 postpaid subscriber additions; while its internet additions totalled 11,000 revenue-generating users.
Regarding the internet additions: “Jamaica drove this improvement following the successful launch of our fibre-mobile-convergence or FMG propositions,” Liberty said.
The company’s infrastructure now passes through more than 80 per cent of homes in the Cable & Wireless Caribbean network with broadband speeds of one gigabit per second or more.