BayanTel revenues down to P4.9 billion last year

Lopez-owned Bayan Telecommunications Inc. (BayanTel) reported yesterday that its net revenues for 2002 dropped to P4.9 billion from P5.1 billion the previous year, mainly due to lower-than-expected revenues from the fixed line business.

Revenues from BayanTel’s local exchange carrier (LEC) or fixed line services contracted by 9.8 percent to P1.8 billion from P2 billion due to a decline in the subscriber base as the company rid its account portfolio of non-paying customers.

Earnings before interest taxes and depreciation (EBITDA) increased by 18.4 percent year-on-year to P2.1 billion in 2002 as lower operating expenses and provisions for doubtful accounts overcame revenue declines.

"All things considered, we feel that we are moving in the right direction and we are optimistic that BayanTel will be better than ever in 2003", BayanTel chief finance officer Gary Olivar said.

Olivar described 2002 as the year the landline and data company turned the corner. "We implemented sweeping reforms in our organization and operation based on the new core values we introduced early this year. Our data for growth and voice for stability‚ strategy is paying off as shown in our performance figures by the third quarter," he said.

According to unaudited financial reports for last year, data revenues rose 15.4 percent to P1.4 billion in 2002 from P1.2 billion in 2001. The growth was a result of the launching and expansion of coverage of BayanTel’s DSL (digital subscriber line) service for the corporate market, improvement in customer take-up for its wide range of data services, and rise in domestic and international leased line net revenues.

Olivar added that stronger efforts to market its data services business to companies operating in Metro Manila and in other metropolitan areas helped push up the number of subscribed data and IP circuits.

In 2002, installed data access circuits increased by 120.5 percent while data IP circuits expanded by 433.3 percent from 2001 figures.

However, Olivar explained that BayanTel implemented programs to stabilize and grow existing subscriber base. During the fourth quarter of 2002, the downward trend in the number of subscribed lines was reversed, when total subscriber count posted a four percent quarter-to-quarter growth.

In addition, LEC revenues showed a slight uptick of 0.9 percent, or from P423 million in the third quarter to P427 million in the fourth quarter.

The programs launched include Bayan 399 and Bayan Business Deals, the affordable fixed-rate basic telephone program for residential and business markets, and the "24-hour Guaranteed Quick Repair" program that bounds the company to respond and remedy service-related problems within one day of customer complaint.

Olivar also said BayanTel is continuing the upgrading of batteries for its outside plant access cabinets (OPACs) to ensure uninterrupted service even during power failures.

Cost containment strategies played an important role as these brought down operating expenses by 12.1 percent compared to 2001.

As to the company’s debt restructuring program, he expressed optimism for a favorable conclusion on negotiations with creditors within the first half of 2003.