MANILA, Philippines – Dito CME, Dennis Uy’s holding company for the third telco and other tech interests, posted losses of P15.4 billion in the first semester of 2022, higher than the losses of P3.8 billion in 2021, as foreign exchange losses and expenses ballooned during the period.
A stock exchange disclosure on Tuesday, August 16, showed Dito CME’s revenues grew tenfold to P3 billion, while earnings before interest, taxes, depreciation, and amortization grew 26% to P2.79 billion.
Dito CME president Eric Alberto said: “We continue to move forward and are very satisfied with our investment in Dito Telecommunity. 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.”
The company attributed revenue growth to third telco player Dito Telecommunity, which saw 9.6 million subscribers as of end-June.
Dito CME shares fell 0.5% after the earnings disclosure.
As of June, Dito CME’s bank loans amounted to P64.6 billion. Non-current liabilities or loans that are not due within the next 12 months amounted to P16.65 billion.
Dito CME’s documents also showed that its current liabilities exceed its assets by P149.9 billion. Losses in the first semester amounting to P15.4 billion resulted in a capital deficiency of P18 billion.
“These conditions indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as going concern and, therefore, the Group may be unable to realize its assets and discharge its liabilities in the normal course of business. Albeit these conditions, management believes that the Group will be able to meet all its outstanding obligations and continue to operate as a going concern,” Dito CME said in its filing.
Dito CME currently has loan agreements with the Bank of China Limited-Singapore Branch ($300 million), China Minsheng Banking Corporation ($500 million), Bank of China ($450 million), and Bank of China-Manila ($50 million).
These short-term loans, amounting to $1.3 billion or P72.7 billion, were initially scheduled to mature within the year, but some have been negotiated to be paid in 2023.
“Out of the $1.3 billion in loan facilities through various financial institutions, $1.18 billion have been drawn and all originally carried maturity dates from April to October this year,” Dito CME said.
Dito Telecommunity added that it had renewed its $500-million loan facility with China Minsheng Banking Corporation to May 2023, while loan facilities with several Bank of China branches totaling $800 million are in the process of finalization or will be renewed prior to the maturity dates.
Dito CME chief financial officer Joseph John Ong said, “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.” – Rappler.com