LIME squeezed further by recession

LIME Jamaica incurred a $351-million net loss for the three months to December 31, 2009 compared to a $33-million net profit in the comparative quarter in 2008, as costs associated with financing, depreciation and amortisation increased 70 per cent.

During the quarter, the telecom managed to keep its other operating expenses at $2.5 billion — the same as the comparative period in 2008 — and even improved its gross margin from $3.9 billion in the corresponding three months in 2008 to just over $4 billion in the review quarter.

Depreciation and amortisation charges for the quarter, however, were $1.3 billion compared with $764 million for the comparative period in 2008, while net finance costs increased by $152 million over the December 2008 quarter, primarily as a result of the increased interest costs of $329 million, which was 76 per cent higher than the comparative quarter in 2008 and which was higher due to additional borrowing from the parent company to fund network development and expansion as well as increased interest rates over the period. More