Rapid recovery

Flow Jamaica has successfully restored 80% of its mobile network traffic and over 40% of fixed-line services following the devastation caused by Hurricane Melissa, according to Liberty Latin America CEO Balan Nair. In major metropolitan areas, fixed-line recovery has surged to more than 80%. However, the pace of restoration remains heavily reliant on the Jamaica Public Service Company’s efforts to restore power, which has so far reached over half of its customers. Emergency connectivity via Starlink’s direct-to-cell technology has reconnected over 140,000 users in severely affected regions as the company continues to repair infrastructure and services. Nair expressed confidence in the resilience of Flow Jamaica’s employees and their commitment to restoring critical communications for customers. Despite the progress, the company anticipates negative impacts on its Caribbean financial metrics for the remainder of 2025, including reduced revenue, fewer active customers, and increased costs for equipment and property repairs. Flow Jamaica’s recovery is bolstered by a parametric weather insurance contract, which enables faster payouts compared to traditional policies, facilitating quicker funding for repairs. Nair confirmed that the hurricane triggered the insurance coverage, with a payout expected soon. While the exact amount remains undisclosed, LILA received $44 million from similar contracts in 2024. Weather derivatives, which pay out based on specific measurements like wind speed, have proven instrumental in accelerating recovery efforts. Flow Jamaica’s 2024 annual report revealed $5.545 billion in net proceeds from weather derivatives, offsetting $1.273 billion in costs from Hurricane Beryl. Additionally, the company recorded $207 million in asset impairments due to hurricane damage. Phoenix Tower International (PTI), responsible for repairing mobile tower sites under a 2023 agreement, has deployed teams to rebuild infrastructure. Nair emphasized that network recovery will align with power restoration efforts. Despite the challenges, Flow Jamaica reported a 5% revenue growth in Q3 2024, reaching $17.17 billion, with mobile services contributing 59% of total revenue. LILA’s consolidated revenue grew by 2% to $1.11 billion in Q3, though it reported a net loss of $525.9 million for the first nine months of 2024.