Dito CME Holdings Corp.’s losses widened by more than 300 percent in the first half owing to billions of unrealized foreign exchange losses, as well as increases in costs and interest expenses.
In two separate disclosures to the stock exchange, holding company Dito CME informed investors that its net loss stood at P15.43 billion in the first half from the P3.81 billion net loss it incurred the year prior.
While revenues rose rapidly by 967 percent to P3.03 billion from only P283.82 million, Dito CME’s costs and expenses ballooned from P4.17 billion to P9.82 billion.
It also incurred P7.26 billion in unrealized foreign exchange losses and another P1.47 billion in interest expenses.
Dito CME subsidiary Dito Telecommunity Corp. drove its strong growth in revenues with a 614 percent year-on-year increase in gross subscribers to 9.64 million as of end-June.
“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,” Dito CME President Eric R. Alberto said.
Dito Telecommunity has renewed its $500-million loan facility from China Minsheng Banking Corp. Ltd. to May 2023 last month, while loan facilities from several Bank of China branches totaling $800 million “are in the process of finalization or will be renewed prior to the maturity dates.”
“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,” Dito CME CFO Joseph John L. Ong said.
Dito CME is controlled by Davao-based businessman Dennis A. Uy, an ally of former President Duterte.