Bayan posts 8% rise in core revenues
MANILA, Philippines – Lopez-led Bayan Telecommunications Inc. posted an 8% year-on-year rise in core revenues to P5.22 billion in 2012 on the back of substantial growth in the company’s data and voice services.
“Last year was a banner year for us because all of our market groups posted positive growth as compared to 2011,” said Bayan in a statement.
Bayan reported that data service revenues grew 11% to P3.56 billion, driven by increasing demand for data connectivity and Internet connection.
The company’s DSL subscribers rose 12% to 132,000. Increased usage of social media applications and the adoption of Internet for education purposes resulted in a 13% growth in revenues of the DSL business to P1.7 billion.
The company’s voice revenues from its 184,000 subscribers increased 4% to P1.61 billion in 2012 on the back of effective product bundling programs, expansion in selected areas and new innovative voice products for the corporate market.
Bayan’s business segment grew by 11% to P2.44 billion due primarily to a combination of continuing demand for data connectivity and branding for its accounts management. The consumer segment booked a 6% growth in terms of revenues to P2.19 billion due to the increased demand for DSL broadband and bundled packages.
The company’s core EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) jumped 13% to P1.72 billion last year.
Globe to buy stake in Bayan
Bayan also welcomed the successful tender offer bid of Ayala-led Globe Telecom Inc. to acquire its outstanding debt from its creditors.
Globe purchased Bayan’s debt with a 96.17% acceptance rate and became Bayan’s single biggest creditor under a court-administered rehabilitation plan that the company entered into in 2004.
“The whole Bayan organization sees this as a positive development that will help strengthen the company’s operations and enable it to become more competitive, help accelerate the completion of its rehabilitation, and one that will ultimately benefit its customers,” he added.
Bayan has reportedly settled a total of P8.19 billion in total debt since it filed for corporate rehabilitation. In the first 9 months of 2012, the company paid P908.3 million worth of debt. It intends to settle its outstanding debt by 2023. – Rappler.com