DITO CME Holdings Corp. — the holding firm for Dennis Uy’s information and communications technology businesses — posted wider losses in the first half of the year.
The company reported P15.43 billion worth of losses during the period, following the P7.26 billion in unrealized foreign exchange losses, a 135% increase in costs and expenses, and a 423% increase in interest expenses.
DITO CME said some $1.18 billion was also drawn out of the $1.30 billion in loan facilities through various financial institutions, which originally carried maturity dates from April to October 2022.
The company renewed its $500-million loan facility from China Minsheng Banking Corp. Ltd. to May 2023 in June.
It is also in the process of finalizing the renewal of loan facilities from several Bank of China branches worth $800 million.
“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,” chief financial officer Joseph John Ong said in an emailed statement.
DITO CME’s telecommunication interest is reflected in DITO Telecommunity Corp. through its wholly-owned subsidiary Udenna Communications Media and Entertainment Holdings Corp.
The DITO consortium is made up of Davao-based businessman Dennis Uy’s Udenna Corporation, Udenna’s subsidiary Chelsea Logistics Holdings Inc., and Chinese state-owned China Telecommunications Corporation.
“We continue to move forward and are very satisfied with our investment in DITO Telecommunity,” president Eric 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,” he added.
DITO Telecommunity Corp. officially launched commercial services in March 2021, and has recorded 9.64 million gross subscribers as of end-June, indicating a 614% annual increase. It targets to hit 12 million subscribers within the year.
Shares in DITO CME were trading down 2 centavos or 0.53% at P3.75 apiece as of 11:17 a.m. on Tuesday, August 16.—AOL, GMA News
DITO CME losses up in first half
Source: News Panda Philippines
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