With the pandemic continuing to change how the world operates, Flow Jamaica has continued to reap the fruits of its labour as it earned US$297.3 million ($44.60 billion) in revenue for the nine months and added more than 100,000 customers in the last year for its non-mobile business (fixed lines, internet and video).

This performance is seven per cent higher than the 2020 comparison and well ahead of the US$287.6 million for the same period in 2019. Flow Jamaica made up eight per cent (US $100.6 million) of Liberty Latin America’s (LLA) US$1.19 billion revenue and 23 per cent of C&W Caribbean and Networks’ US$434.5 million revenue for the third quarter. LLA earned US $170.4 million in profit attributable to owners compared to a loss of US $658.3 million in the prior nine months. Flow Jamaica is 92 per cent owned by C&W.

Due to the continued need for mobile services, Flow’s mobile subscriber base is up by 88,700 users this year to a record 1,081,000 users. This is the second-best year in recent history and is just behind 2019 when Flow added 139,000 users. The non-mobile customer base has expanded by 72,200 additions to 706,400 users. This growth was recognised by LLA’s Chief Executive Officer Balan Nair in a recent earnings conference call. Nair noted that the growth of fixed telephony has been driven by the bundling of products with gross margins close to 100 per cent.

“We’ve built a resilient business model and were able to quickly adapt to the demand brought on by the [novel coronavirus] pandemic. Both our residential and business customers had different but urgent needs during the period, especially at the start of the pandemic when we had to transition to online learning and working from home. We listened to our customers and, on the residential side, rolled out cost-effective plans to meet their needs, including discounted plans for fixed internet and for content. We also provided them with greater affordability, predictability and flexibility through the merger of their mobile and fixed services,” stated vice-president of C&W and Flow Jamaica General Manager Stephen Price in an email to the Jamaica Observer.

With talk revenue and mobile spend per customer in ‘structural decline’, Price spoke about the continued interest in connectivity as citizens and nations move to the digital age. He further stated that the current outlook will “continue the digital transformation of small business across the country, expanding our fibre network to more homes across Jamaica and driving greater internet penetration and digital inclusion”. It recently signed a US$8.5-million contract with the Government of Jamaica to provide equipment and computers to digitise and make medical services more efficient.

Flow Jamaica has been on a massive investment spend on infrastructure over the last three years as it upgrades its network to fibre-optic and expands the reach of Flow Business to the burgeoning business processing outsourcing industry (BPO). According to Price, the company has expanded its fibre-optic reach to 240 communities since the start of the year with 490 communities upgraded since January 2020. This has cost the company US$200 million ($30 billion) to date with further ambitions set over the next two years.

As the company continues to deal with theft and damage from vandals, Price reiterated the need for the State’s support to protect the investment made in telecommunications. Apart from the company’s own comprehensive asset protection strategy, it has submitted proposals to various ministers and has received some feedback. Flow is relocating some of its aerial cables underground in areas that experience frequent damage. Once underground installation is possible, it is done.

Seventy per cent of the company’s workforce continues to work from home with a hybrid model set to be introduced in mid-2022 where team members will be in office once per week, depending on their role. Flow is also working on its vaccination programme; it recently held the largest Private Sector Organisation vaccine initiative to date.

In recalling three special moments so far this year, Price mentioned the ability to retain staff throughout the year, the launch of Flow Business and assisting many small business operators to transition to the digital space, and being awarded the Business Process Industry Association of Jamaica’s (BPIAJ) Pioneer Award. Price said, “As a key player since the inception of the BPO industry, we are humbled by this recognition. Over the years our focus has been on supporting the various industries that we serve and, through that support, continue helping to grow businesses and the economy.”

“My special wish is for our country’s vaccination levels to get to a point where the country can reopen and our recovery can accelerate. We have been advocates for vaccination and a key moment for us was the staging of a vax day with other essential services providers. There are many opportunities on the horizon to drive economic growth, but we have to get to that place where we can safely reopen to take advantage of them and leverage those for the benefit of all Jamaicans,” Price concluded, in his wish for the Christmas season and the future.

— David Rose