Exec: Dito won’t turn a profit for two years

While it is set to launch its commercial operations next week, Dito Telecommunity Corp. said it will not be able to turn a profit in 2022, given the long-term gestation period of its investments, which will reach the P226-billion mark next year.

Rodolfo Santiago, the company’s chief technology officer, said his group’s projections show that Dito, the third telco, will not be profitable for the first two years of its operations.

“Of course, our shareholders want it to be as soon as possible, but the telco industry is capital intensive. The gestation is for the long term, and as much as we wanted it to be profitable next year, I think it’s not possible,” he said.

Dito will sell its sim cards starting March 8. The launch will be done in waves with 17 cities and municipalities in Visayas and Mindanao as priorities. The National Capital Region, Luzon, and the rest of the country will follow suit.

The company is still mum about its pricing and the type of telco services it will offer, but officials assured that Dito will deliver on its commitment of providing 27 Mbps average minimum speed to 37 percent of the population this year.

Rodolfo said his group has already notified its creditors of its profitability track.

“Suffice it to say the assumptions that we’ve given our creditor banks, from their point of view, is reasonable,” he said.

Dito spent P150 billion to build its maiden network last year. This 2021, it is spending P26 billion to further expand the network to 45 percent of the population, while providing a minimum average speed of 55 Mbps. Next year, it has allotted another P50 billion for its network investments.

The company is subject for its second network evaluation on July 8. So far, Rodolfo said his group is confident of meeting its commitments.

Dito, controlled by Davao-based businessman Dennis A. Uy and partner China Telecom, won the auction for the third telco license in 2018, offering to cover 84 percent of the country’s population with telco services that have an average minimum speed of 55 Mbps through a P257-billion investment program.

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20 comments

  1. Now I am a but skeptical with DITO. Ang hirap naman kapitan nitong “The company is still mum about its pricing and the type of telco services it will offer, but officials assured that Dito will deliver on its commitment of providing 27 Mbps average minimum speed to 37 percent of the population this year.” Baka biglang taas ng singil sa plans ah.

  2. kawawanG investor naman nito..laGpaS na nGa sa deadlinE na profit p Until 2o22 ano b Nman Yan ..

  3. LaGpaS n sa deadline maS maSama pa baLita n profit p HanGAnG 2o22 kawawanG iNvestor naman nito …

  4. When is my lot be given priority for DITO tower. My documents are ready for lease to DITO. Please let me be the one to receive the benefit. Thanks and more power

  5. omg 😂 di pa nga nagsisimula gusto kumita na agad ungnnaginvest jusmeyo anong klaseng mindset yan may ROI yan syempre and tama langnsinabi nila na 2 years dahil sa bilyones na ginastos nila

  6. I have a 1.98 hectare lot in Cabongaoan Burgos Pangasinan. Titled.
    Pls consider it to be a cell site tower. Our signal is very weak with smart and globe towers.
    This is a new developed resort in Pangasinan and its growing like crazy.

  7. Investing in Dito is Worthit, I buy the shares at 2pesos no worries, ang masama Yung di ka ng invest ang ROI talaga nyan I agree 2 years Eh Billion ba naman ginastos, but for sure Top of The Line Service ang serbisyo Nila 5G Saan ka Pa DITO na.

  8. Bakit ang daming apurado at gustong one time big time agad ang income nila kay DITO. Ano yan magic? Hindi pa nga nagstart gusto ROI agad. Darating din yan. Remember Chinese can domite Philippine market, eh how about Filipinos?, Can we dominate China’s market?

  9. Sana po mayron na rin DITO Cellsite Tower sa Brgy.Salabaca, Esperanza, Sultan Kudarat 9806 Mindanao . . Thank you Sir Dennis Uy . . .

  10. Someone came to me. Told me that my lot 2k sq m is very much suitable for DITO tower. Gave a xerox copy of the title. After a month or two or even more, she told me, my lot is approved for DITO tower. Even told me Engineers will ocular the lot. She even told me payment will be done in Baguio city. That was 2 years ago. Up to this writing, she’s uncommunicated. Liar!

  11. Sana magkaroon agad ng Dito Internet services sa Calabarzon Area. We badly need a better telco over here. Pls. come ASAP.

  12. Pag ng start ang DITO bibilis na ang globe at smart kc kalahati ng subscribers nila lilipat sa DITO.

  13. So it was just a sim card that they will start to operate on March 8.

    I was looking to see the actual home internet program. It doesn’t seem to happen anytime soon.

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