FLOW Jamaica has now restored mobile network traffic to 80 per cent of pre-Hurricane Melissa levels, while over 40 per cent of fixed-line customers are back online, rising to more than 80 per cent in major metropolitan areas, Liberty Latin America CEO Balan Nair said on Thursday during an earnings call.

Nair said the recovery remains dependent on the pace of power restoration by the Jamaica Public Service Company, which has restored service to over half of its customers so far. Emergency connectivity through Starlink direct-to-cell technology has reconnected more than 140,000 users in hard-hit areas as the company works to repair infrastructure and services.

“No doubt it will take time to recover from Hurricane Melissa in Jamaica, but I do know our employees are resilient and up to the task. We remain focused on getting key communications up for our customers and are encouraged by the quick progression in lighting up service since the event,” Nair added.

LILA, the parent company of Flow Jamaica which is registered as Cable & Wireless Jamaica, expects negative impacts to its key Caribbean financial measures for the rest of 2025. These include reduced revenue, lower numbers of active customers, and increased costs related to equipment and property repairs.

The recovery is supported by Flow Jamaica’s parametric weather insurance contract, which triggers payouts faster than conventional policies, allowing quicker funding for repairs and reconstruction.

During the call, Nair confirmed that Hurricane Melissa activated the weather insurance coverage, with a payout expected in the coming weeks. Although the amount remains undisclosed, LILA received US$44 million ($6.81 billion) from similar weather contracts in 2024.

“While it is too early to assess the full impact of the hurricane, we would remind investors that we maintain parametric insurance across the Caribbean. One of its advantages over traditional indemnity insurance is that it pays out quickly, which facilitates a more rapid repair and rebuild,” Nair explained during his presentation.

Weather derivatives are a type of financial protection that pay out money quickly after a severe weather event, such as a hurricane, based on set measurements like wind speed. Instead of waiting for traditional insurance claims to be processed, this system uses data — such as how strong the winds were — to trigger a payment, which helps companies like Flow rebuild faster after a disaster.

According to Flow Jamaica’s 2024 annual report, the company received $5.545 billion in net proceeds from weather derivatives. These funds offset $1.273 billion in infrastructure and equipment replacement costs arising from Hurricane Beryl in July 2024. Additionally, Flow Jamaica recorded $207 million in asset impairments related to hurricane damage.

Although Flow Jamaica will receive an insurance payout to help with rebuilding, Phoenix Tower International (PTI) — which operates its Jamaican mobile tower sites — is responsible for repairing the towers under a country-level agreement signed in November 2023.

“They’ve [PTI] put people on the ground, and they are rebuilding those towers on our behalf. There will be some work, but there’s more to come. I think we’re still in the early days of evaluating both the network damage, as well as what is really down, because of power. As power comes back, I think you’ll see our network come back up as well,” Nair explained regarding the current state of affairs in Jamaica.

LILA reported that its Jamaican business grew revenues by five per cent in the third quarter (July to September), reaching US$107.8 million ($17.17 billion). For the first nine months of the year, revenues were up three per cent to US$317.8 million ($50.61 billion). Jamaica accounted for nearly 10 per cent of LILA’s total revenue in the third quarter and the nine-month period, contributing US$1.11 billion and US$3.28 billion, respectively.

Flow Jamaica’s revenue for 2024 reached $43.57 billion, with mobile telecommunication services contributing 59 per cent, or $25.56 billion, of the total. The company reported a consolidated net profit of $1.15 billion, boosted mainly by a one-off net gain of $1.07 billion from insurance proceeds and operating costs associated with Hurricane Beryl.

LILA grew its consolidated revenue by two per cent to US$1.11 billion in the third quarter, with adjusted operating profit up eight per cent to US$433 million. The company posted a consolidated net profit of US$15.9 million in the quarter, with US$3.3 million attributable to shareholders. However, for the first nine months of the year, revenue fell by one per cent to US$3.28 billion, though adjusted operating profit rose eight per cent to US$1.26 billion. Over this period, LILA reported a net loss of US$525.9 million, with US$556.4 million attributable to shareholders.

LILA’s asset base decreased by six per cent to US$12.05 billion, mainly due to a drop in intangible assets. Total liabilities fell by three per cent to US$10.89 billion, with total debt standing at US$7.83 billion and shareholder equity at US$628.9 million.