Third telco player expenses weigh down DITO CME to PHP 2.81 billion net loss

The higher operating expenses of the third telco player have pulled down the financial performance of its parent company DITO CME.

File photo: DITO Telecommunity logo

DITO Telecommunity drags parent company's earnings

In a disclosure to the Philippine Stock Exchange, DITO CME said it consolidated the financials of DITO Telecommunity to its latest financial results.

For the first nine months of 2021, DITO CME said its revenues reached PHP 327 million, while its gross profit hit PHP 287 million.

However, amid DITO Telecommunity's commitment to the telco industry, the group recorded higher expenses in the period at PHP 1.746 billion.

Given this, its operating loss stood at PHP 1.459 billion. Inclusive of other charges, DITO CME realized a net loss of PHP 2.808 billion.

DITO Tel is playing the long game. From day one we did mention already that building a telco from scratch will be very much capital extensive but the milestones reached in just nine months of operation are encouraging, to say the least, DITO CME President Eric Alberto said in the disclosure.

DITO Telecommunity entered the market in March of this year. After eight months, the company already attracted four million subscribers.

Alberto said that with DITO Telecommunity's growing subscriber base, it is "an affirmation that there is a large segment of the market that would go for an alternative fast, reliable, and widely available mobile service, with product offers that are simple, easy to understand, easy to buy, and specifically caters to the growing needs of our digital savvy consumers."

Source: PSE