Piltel president and chief executive officer Gregorio Atienza said this marks the first time that the company has reported a positive operating income since September 1998. "We are pleased to note the improved operating results and significant reduction in Piltel’s net loss and we look forward to continuing this positive trend throughout this year and beyond," he said.
Increase in revenues coupled with the reduction in operating expenses resulted in Piltel’s registering an operating income of P54.1 million for the first half of 2003, compared to an operating loss of P1.66 billion for the same period in 2002.
Gross revenues for the January to June 2003 period reached P4.38 billion, 11 percent higher than the P3.96 billion for the first half of 2002.
Net operating revenues registered a 13 percent increase, from P1.73 billion in the first half of 2002 to P1.96 billion for the same period in 2003.
GSM (global system for mobile communications) gross revenues increased by 19 percent, from P3.32 billion last year to P3.94 billion for the first semester of 2003, while net GSM revenues increased by 31 percent, from P1.22 billion to P1.59 billion in the same period.
GSM revenues now make up 90 percent of total subscriber revenues. Piltel’s GSM brand, Talk ‘N Text, continued its growth as its subscriber base increased by 38 percent to 2.22 million at the end of June 2003 compared to 1.6 million subscribers at end June 2002.
Piltel’s total customer base also includes 50,254 landline subscribers as of June 30, 2003.
Operating costs decreased by 44 percent, from P3.39 billion to P1.9 billion in the first half of 2003 led by the 83 percent decline in depreciation resulting from the write down of additional Piltel assets taken at the end of last year.
All site-related expenses, such as rent, utilities and maintenance, and insurance, declined by 83 percent, primarily due to the decommissioning of various AMPS/CDMA cell sites. Marketing expenses increased by five percent, from P936 million last year to P979.1 million in the first half of 2003 due to the doubling of prepaid phone kit and SIM pack sales, partly offset by the lower incentive scheme for dealers which was implemented in August 2002.
Management fees of P382.5 million, representing payments made in connection with various outsourcing agreements with Smart Communications Inc. and Philippine Long Distance Telephone Company covering their management of the relevant Piltel operations, increased by six percent, in line with the increase in Piltel’s GSM subscriber base.
Other expenses increased by 85 percent, due to an impairment charge of P280.4 million taken by Piltel in its investment in ACeS Phils. Cellular Satellite Corp. as well as a foreign exchange loss of P27.4 million for the first half of 2003.