The impact of COVID-19 on our first-quarter performance was most significant on delayed orders. Furthermore, given the uncertainty associated with the likely duration and related economic impact of the COVID-19 pandemic and unstable oil prices, it is not easy to reliably quantify the direct or indirect financial effects on our business.
We have activated our business continuity plan and implemented extensive response measures aimed at mitigating the potential impact on the network and overall business performance. The continuity plan covers, among others: supply chain, management of credit and liquidity, currency risk, counterparty risk, and potential revenue impacts from reduced consumer spend.
We are currently diversifying funding strategies and sources to fast track Capex related hardware investment and optimize funding costs. We have strong free cash flow and approved loan facility headroom to meet financial obligations. In line with existing banking covenants, there is headroom to leverage our balance sheet optimally for strategic investments.
Although the situation remains fluid due to uncertainties around the potential impact of COVID-19 as well as oil price, foreign exchange rate volatility and foreign currency availability on the business, we are continually assessing the situation and implementing mitigating interventions. We believe we are well-poised to weather the current macroeconomic turmoil.
Working together, we can change the course of this pandemic. And because ‘We are good together,’ we will get through this.”
Click here to read more about our broad set of initiatives deployed in this fight, Y’ello Hope