Net Loss of Dennis Uy's Dito Balloons 300% to P15.43 Billion in First Half of 2022
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Dito CME Holdings Corp., the holding company of Dito Telecommunity Corp. firm chaired by businessman Dennis Uy, posted a net loss of P15.43 billion in the first half of 2022, an increase of 300 percent from the P3.81 billion net loss durin the same period last year.
In a filing with the Philippine Stock Exchange, the company said the losses were due to billions of unrealized foreign exchange losses, as well as increases in costs and interest expenses.
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Although revenues rose rapidly by 967 percent to P3.03 billion from only P283.82 million, Dito CME’s costs and expenses also increased from P4.17 billion to P9.82 billion.
The country’s third telco player also incurred P7.26 billion in unrealized foreign exchange losses and another P1.47 billion in interest expenses.
Dito CME’s subsidiary Dito Telecommunity Corp. was the company’s main revenue-earner, posting a 614 percent year- on-year increase in gross subscribers to 9.64 million as of end-June 2022.
“We continue to move forward and are very satisfied with our investment in Dito Telecommunity,” said Dito CME President Eric R. Alberto said. “The strong growth in Dito’s mobile subscribers in just a little over a year and a quarter from commercial launch is proof positive that there continues to be a segment of the market that prefers telco services that are no-nonsense, fast and reliable.”
Dito Telecommunity has renewed its $500 million loan facility from China Minsheng Banking Corp. Ltd. to May 2023 last month, while loan facilities from several Bank of China branches totaling $800 million “are in the process of finalization or will be renewed prior to the maturity dates.”
“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,” Dito CME CFO Joseph John L. Ong said.
Dito recently filed a complaint with the Philippine Competition Commission against major players Globe and Smart for supposedly abusing their dominant positions by imposing commercial demands for interconnection.
The company is chaired by Davao-based businessman Uy, who is a known close ally of former President Rodrigo Duterte.
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