DITO CME widens net losses in first quarter of 2022

Dennis Uy’s DITO CME Holdings Corp. reported a bigger net loss in the first quarter of 2022.

File photo: DITO app

DITO earned PHP 3.03 billion, but losses widened to PHP 15.43 billion

In a statement, the company said its losses widened to PHP 15.43 billion. It associated this to PHP 7.26 billion unrealized foreign exchange losses, and 135 percent and 423 percent increases in costs and expenses, inclusive of depreciation and amortization, and interest expenses.

DITO CME recorded a loss despite a surge in its revenues from PHP 286.3 million to PHP 3.03 billion during the said period

The company said its subsidiary DITO Telecommunity drove this strong growth with a 614 percent 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 Alberto said.

The company also noted that "[o]ut of the US$1.30 billion in loan facilities through various financial institutions, US$1.18 billion have been drawn and all originally carried maturity dates from April to October this year."

DITO Telecommunity had renewed its USD 500 million loan facility from China Minsheng Banking Corp Ltd, while loans from several Bank of China branches amounting to USD 800 million are either being finalized or will be renewed prior to the maturity dates, the company added.

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, said DITO CME CFO Joseph John Ong.

What do you think guys?