MANILA - DITO CME Holdings Corp, which holds a controlling stake in third telco DITO Telecommunity, said Tuesday revenues rose in the first half of this year but its losses widened to P15.43 billion.
The P7.26 billion in unrealized foreign exchange losses as well as the 135 percent and 423 percent increases in costs and expenses, and interest expenses, respectively, contributed to the firm's losses in the first 6 months, DITO CME told the stock exchange.
Revenues increased to P3.03 billion or 10.6 times higher than the figure during the same period last year, it said.
DITO CME said DITO Telecommunity contributed to its revenues with a 614 percent increase in gross subscribers to 9.64 million as of the end of June. In July, the telco said its subscribers reached 11 million.
"The strong growth in DITO's mobile subscribers in just a little over a year and a quarter from commercial launch is proof that there continues to be a segment of the market that prefers telco services that no-nonsense, fast and reliable," DITO CME president Eric Alberto said.
Out of the $1.30 billion in loan facilities, $1.18 billion have been drawn, the company said.
DITO has also renewed bridge financing from several banks, DITO CME chief financial officer Joseph John Ong said.
DITO Telecommunity had renewed its $500 million loan facilities from China Minsheng Banking Corp to May 2023, while loans from several Bank of China branches amounting to $800 million are in the process of finalization or will be renewed prior to maturity dates, the company said.
"We are confident that the bridge loan facilities will be renewed until such time that these loan availments are converted into our arranged long-term loans with the same creditor banks," Ong added.
Due to unfavorable market conditions, DITO CME deferred in February this year its planned P8 billion stock rights offer which was supposed to support the third telco expansions.
DITO is involved in a competition scuffle with Globe Telecom and Smart Communications over alleged interconnection difficulties as well as fraudulent calls passing through its network.
DITO chief administrative officer Adel Tamano said they have the means to pay a P622 million fine for alleged interconnection violation but he insisted that these ISR originated from global syndicates.
He said DITO had so far invested about P200 billion in its network, which was mounted to challenge the duopoly of the older telco giants.
DITO CME also operates Luna Academy, advertising arm Acuity Global as well as Unalytics or its analytics hub focused on big data.