San Miguel-led Liberty Telco trims losses to P1-B in 9-mo

MANILA, Philippines – The telecommunication unit of diversified conglomerate San Miguel Corp. trimmed its losses to P1.09 billion at end-September from P1.13 billion a year ago.

In a statement on Wednesday, November 14, Liberty Telecom Holdings Inc. attributed its improving performance to the strong take up of its Wimax broadband service.

“The Group continues to acquire more subscribers for its postpaid and prepaid Wimax broadband services,” Liberty Telecoms said.

Being in the red was blamed to continuous spending on the roll out of its Wimax network used for broadband services and building of its subscriber base.

“Its major shareholders, however, fully understand that these losses should be expected, considering that its business operations are essentially still in the start-up stage,” Liberty Telecoms said.

“The major shareholders are strongly committed to further expanding the Group’s operations in accordance with its strategic plans, as clearly shown by the level of financial and operational support already provided thereto,” it added.

Wi-tribe’s around 70,000 subscribers helped trim third quarter looses to P329.17 million from P415.92 million in the same period a year ago. This was from revenues of P149.26 million in the 3rd quarter, which brought 9-month revenues to P444.27 million, 14 percent higher than a year ago’s P389.45 million.

Expenses were also lower at P1.43 billion at end-September from P1.48 billion last year.

Liberty had said that it intends to make money before wi-tribe’s franchise expires in 2014. – Rappler.com