LIME on Wednesday reported progress on its three-year transformation plan to reframe its regional corporate model, but Jamaican shareholders were not entirely confident that the rebranding component or image remake had taken the right track.

"Jamaica is different and the branding should reflect that," said one shareholder at the Cable and Wireless Jamaica/LIME Jamaica's 22nd annual general meeting. Last year, to cement itself as a company in the business of landline, Internet, mobile phones and entertainment services, and adopt a Caribbean flair, C&W became LIME, and shed its traditional blue and white colours for a splash of hues set against a black background.

But at Wednesday's AGM, shareholders argued that while they understood the necessity for a seamless operation, the rebranding component should have captured each island's uniqueness.

"In Jamaica, black means funeral; it might be different in other countries," the same shareholder said.

Offered another: "Although a family might have a number of siblings, each has their own personality; Jamaica is a place of bright colours, this brand is not Jamaican."

Yet another blamed the parent company in London for failing to understand its own country markets, even as some chided the LIME Jamaica directors for not consulting with the shareholders before making the decision.

Country manager of LIME Jamaica, Geoff Houston, being new to his current job, was given clemency and even commended for his style by shareholders.

Significant impact

Houston assured them that the rebranding made a significant impact, even at the halfway point of the transformation process.

The shareholders commended Houston and his team for their performance to date. They also lauded the company for securing five and three years contract from Scotiabank Jamaica and Sandals Resorts International as their primary telecommunications provider - deals brokered by former CEO Phil Green who left the job in December 2008.

LIME Jamaica is working to rebuild both its business and finances after retiring its old cellular network at a loss of $5 billion.

The company has already began its recovery, reporting operating profit of $1.6 billion at year end March 2009, while its bottom line though still in the red at $303 million was a 24-fold improvement over the $7 billion loss before tax credits, and 14-fold the $4.2 billion net loss in the 2008 period.

Revenue declined by four per cent from $22.9 billion to $22 billion, which the company attributes to a decline in mobile and international inpayments that was offset partially by an increase in fixed line revenue.

The company instituted tighter controls over the issue of free handsets under contractual arrangements and sale of handsets at subsidised prices during promotions resulting in the reduction in other cost of sales from $2.8 billion to $1.95 billion.

Overall cost of sales also decreased by $2.04 billion or 21 per cent.

Outpayments to other carriers declined from 30 per cent to 26 per cent of revenue, as a result of the decline in international traffic and the elimination of low margin price plans.

The combination of these factors resulted in an increase in the company's gross margin as a percentage of revenue, rising from 58 per cent to 66 per cent. Gross income increased nine per cent year on year from $13.3 billion to $14.4 billion.

Houston, speaking with the Financial Gleaner after the AGM, acknowledged the importance of the input of the shareholders, but said he was confident the company was headed in the right direction and that all stakeholders would come to accept this.

LIME is about half-way through its pan Caribbean transformation to bring its 13 country markets under one corporate regional umbrella.

mark.titus@gleanerjm.com