We acknowledge our clients’ concerns about current political issues in Venezuela and the subsequent delay in receiving pay outs. Due to instability since the death of president Hugo Chávez and the looming prospect of recession, there has been a contraction of relations between some of the networks and our partners on the ground in that territory and difficulties repatriating revenues.
This means that payments that were due to be transferred to us have been delayed and we are currently working to better understand the situation and to define the best way forward to get clients’ revenue into their hands despite the financial crisis.
Other aggregators, as well as companies outside our industry, are facing similar issues on the back of currency devaluation at the beginning of the year and the fallout from massive government spending in 2012, so this is not confined to our platform or caused by it; there has been general press coverage of post-Chávez instability that provides some background to the issues faced by our clients. Telecoms research outfit Budde headlined problems in July by warning that:
“The general outlook for [telecoms in] 2013 is not promising for Venezuela, as the country faces a sharp economic slowdown and galloping inflation amidst political tension and shortages in basic household items such as food and toiletries.”
It was reported by the Wall Street Journal at the end of June that BlackBerry “wrote off about $72 million in telecoms-related service revenue because of Venezuela’s currency restrictions”, which similarly affected Colgate-Palmolive and Halliburton.
Reuters reported in the last few days that Venezuela’s annual inflation rate had reached 42.6%, amongst the highest in the world.
txtNation operates a worldwide platform and from time to time we are faced with geo-political issues outside our direct control that have an impact on our usual service. We fully understand the frustration of some our clients at this time and appreciate their patience. Of course we are fully committed to exploring all avenues in pursuit of a resolution but we do not pretend that events in Venezuela are conducive to a quick resolution.
We underline that such delays are outside our normal operating procedures for Venezuela and that we will continue to liaise with our partners in the region to restore normality as soon as we can.
This is an official statement updating our previous notification in April.