DITO CME posts P2.8-B net loss in Jan-Sept

Dennis Uy’s listed DITO CME Holdings Corp. incurred losses in the first nine months of 2021, dragged by operational expenses of new telco player DITO Telecommunity Corp.

In a disclosure to the Philippine Stock Exchange on Tuesday, DITO CME said it consolidated the financials of DITO Tel into the holding firm in the third quarter, making it part of the company’s reporting of its third quarter and nine months 2021 financial results.

DITO CME reported that for the January to September period it posted P327 million in revenues, which generated a gross profit of P287 million.

However, it said that 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.

Inclusive of other charges of P1.340 billion, DITO CME reported a net loss of P2.808 billion.

The increase in operating expenses was mainly due to expenses involving the rollout of DITO Tel in various areas within the Philippines, in satisfactory compliance with its obligations and commitments under the Certificate of Public Convenience and Necessity (CPCN).

DITO Tel commenced commercial operations earlier this year in March and has since been present in over 340 cities and municipalities with over 3,300 towers built and powered up with a further 4,000 plus under mobilization which are scheduled to be online in the next twelve months.

DITO Tel has already gained four million subscribers since 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,” said DITO CME president Eric Alberto.

DITO Tel was granted a CPCN by the National Telecommunications Commission (NTC) in July 2019.

It then passed two technical audits in January and July 2021, and secured a 25-year franchise valid until 2048.

“Gaining more than four million subscribers in just over nine months from commercial launch is an affirmation that there is a large segment of the market that would go for an alternative fast, reliable, and widely available mobile service , with product offers that are simple, easy to understand, easy to buy, and specifically caters to the growing needs of our digital savvy consumers,” Alberto said.

"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 chief operating officer Donald Lim added. — VBL, GMA News