DITO Telecommunity auditor P&A Grant Thornton said that the company is facing a “material uncertainty” for growth due to the ongoing concerns after it was hit with Php24.8 billion in total losses.

That’s from Php6.8 billion losses in Q1 of 2022 and another Php18 billion in 2021. DITO had a Php4.6 billion capital as of December 2020. However, its capital deficiency grew to Php9.4 billion as of Q1 of 2022.

P&A also noted the third telco’s growing negative working capital that reached Php126 billion as of 1Q of 2022.

According to DITO, their continuous rollout since March of 2020 caused their higher operating expenses. The company also experienced more than Php3 billion in exchange losses as a result of the weakening peso value versus the US dollar and Chinese Yuan in Q1 of 2022.

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Despite this, DITO is expressing confidence that they will “generate sufficient cash flows” this 2022 so they can meet the maturing obligations and provide funds to help expand their network.

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DITO is expecting to close a USD3.9 billion (around Php198.7 billion) finance loan facility this year. Add to that the remaining credit line facilities they got from a bridge loan that amounts to USD100 million (around Php5.1 billion).

SEE ALSO: DITO list of compatible devices

The telco also planned to start a follow-on offering at the parent company level to help bankroll its telco and digital business funding requirements, after it aborted its Php8 billion rights offering back in January because of poor demand.

DITO also said that its minority shareholders have committed to “infuse additional capital” in line with the schedule of infusion that was part of its investment agreement. The company is referring to China Telecom, who owns 40% of DITO.

“The group continues to ramp up its commercial operations through targeted subscriber acquisition and promotional activities aimed at increasing revenue. Also, the group will continue to efficiently implement its network roll-out plan and cost-saving measures to improve the results of operations,” DITO added.

Via: Bilyonaryo



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