MANILA, Philippines — Dito Telecommunity Corp. is making progress in its push to nurse its bleeding as it was able to slash its net loss by P5.6 billion in 2023.
Based on its financial report, Dito’s parent Dito CME Holdings Corp. managed to cut its net loss by 41 percent to P8.17 billion in 2023 from P13.77 billion in 2022, gaining headway in its effort to break even by 2025.
Dito improved its revenue by half to P11.24 billion, offsetting the 28 percent increase in expenses to P26.21 billion.
Dito attributed the revenue growth to the expansion of its coverage and customer base. In 2023, the telco improved its network reach to 853 cities and municipalities, raising its subscriber count to around nine million for an average revenue per user of P128 per month.
The telco owned by Davao-based businessman Dennis Uy traced the bulk of its revenue at P8.1 billion to mobile data, followed by voice calls (P1.76 billion) and text services (P1.32 billion). It also raised income from value added services, amounting to P1.09 billion.
In spite of this, the telco is far from resolving its financial troubles given the amount of debt that it must settle in the future.
Dito also aggravated its financial deficiency by 27 percent to P35.37 billion from P27.89 billion, as the telco had to spend for its network build up to keep up with competitors.
“This was mainly attributable to the net loss recognized by the group driven by the commercial rollout of Dito Telecommunity offset by the capital infusions from shareholders,” Dito said.
For 2024, Dito will embark on fundraising activities within the first semester, mainly a follow-on offer at the parent level to generate funding for expansion projects. Uy’s flagship Udenna Corp. will also infuse additional capital if need be to ensure that Dito sustains its financial recovery.
In 2023, Dito secured a $3.9 billion loan from a syndicate of foreign banks to finance its capital expenditures and debt payments. Likewise, the telco raised P5.5 billion in funds through private placements from third party investors.
The good news for Dito is that it is picking up momentum in contending the top spot for internet quality among mobile operators in the Philippines.
In the April analysis of Opensignal, Dito beat telco giants Smart Communications Inc. and Globe Telecom Inc., posting a download speed of 32 Mbps to be crowned as the fastest provider in the country.