MANILA - DITO CME, the parent firm of third telco DITO Telecommunity, said its net loss widened in the third quarter to P2.8 billion as operating expenses outstripped revenues.
DITO CME disclosed to the stock exchange on Tuesday that from January to September, the company reported P327 million in revenues which generated a gross profit of P287 million.
“However, due to the increase in operating expenses to P1.746 billion as a result of the consolidation of DITO Tel into the Company, DITO CME reported an operating loss of P1.459 billion,” DITO
The Dennis Uy-led telco said another P1.34 billion in losses were booked as “inclusive of other charges.”
Operating expenses increased mainly due to the roll-out of DITO Tel in various areas within the Philippines, in compliance with its contract with the government, the company said.
Despite this, DITO CME president Eric Alberto said the telco reached a milestone as it has already booked 4 million subscribers since its commercial launch in March.
“DITO Tel is playing the long game. From day one we did mention already that building a telco from scratch will be very much capital extensive but the milestones reached in just nine months of operation is encouraging to say the least,” Alberto said.
The country’s third major telco said it is now present in over 340 cities and municipalities with over 3,300 towers built and powered up. More than 4,000 towers are “under mobilization” and are scheduled to be online in the next twelve months, it added.
DITO CME is also looking to expand its business beyond telco services, according to its chief operating officer Donald Lim.
“In the next few months you shall hear more of our digital initiatives in online learning through Luna Academy, customer data analytics through Unalytics and marketing and media solutions through Acuity Global. These initiatives are now starting to bear fruit and will prove to have strong synergies with DITO Tel.”
DITO CME shares were down 1.5 percent to P5.95 at the close of Tuesday’s trading.