Islacom posts P182.7-M income in December

Isla Communications Co. Inc. (Islacom) has begun the trend towards profitable operations after concluding the months of November and December in the black. In announcing this good news, Frederick Dael, Islacom president and chief executive officer, declared: "We have successfully stopped Islacom's losing streak over the years, and we are thus entering our merger with Globe Telecoms with a healthy balanced sheet and income statement."

Islacom registered a net operating income before deferred tax of P182.69 million in December and P55.27 million in November. "The December performance is notable in many respects," said Ramon Diaz, Islacom chief finance officer.

Before Islacom bade goodbye to 1999, the company settled its long standing debts with three major equipment suppliers amounting to $298 million, but only after negotiating significant discounts from these three creditors.

The result of this transaction alone strengthened Islacom's balance sheet, notably making its debt-to-equity ratio a healthy 1:5:1.

"Our efforts have yielded significant results for the company, making this the best gift for the Islacom shareholders from the management team led by Mr. Dael," said Diaz.

The new Islacom team, assembled by Dael only three years ago, concentrated on key success areas to effect a turnaround for Islacom that had been saddled by mounting losses and even shareholder woes.

A vigorous integrated program covering negotiations with suppliers cash and debt management, marketing and promotions, sales operations, carrier relations, and human resource management -- all contributed to Islacom's turnaround in December.

"The December performance now sets the tone for our profitable operations in the coming months," Dael pointed out.

Freed from the onerous burden of debt, the company can now pursue aggressive marketing and sales operations efforts that are characterized by innovation and a lot of creative energy," said Jess Lantin, Islacom vice president for marketing.

"Islacom, which has been aggressively expanding its cellular and landline services, can now go 'full stream ahead' to deliver more telecommunication service even to far-flung areas -- and with it bring economic development," declared Reggie Santos, vice president for sales and services.

Joseph Mercado, Islacom vice president for carrier relations, pointed out that all Islacom stakeholders are in an "upbeat mood" following the firm's dramatic turnaround.

With the acquisition of a controlling interest by Ayala Corporation in Islacom and with the progress towards a merger with Globe Telecoms, the "contagion of confidence in Islacom has permeated the entire workforce," said Eugenio Muniosguren, Islacom vice president for human resources.