Corporate News

Liberty Telecoms trims losses in 2014 on lower expenses

Posted on April 16, 2015

LIBERTY TELECOMS Holdings, Inc., a unit of San Miguel Corp. (SMC), nearly halved its net losses last year as lower expenses offset shrinking revenues, its annual report filed yesterday showed.

The telecom firm narrowed its net loss to P897.14 million last year from P1.45 billion incurred in 2013, according to its regulatory filing.

Gross revenue decreased to P427.15 million from P447.35 million a year ago due to a “decrease in subscribers of postpaid and prepaid WIMAX broadband.”

The company, however, trimmed its costs to P1.22 billion last year from 2013’s P1.65 billion.

“[We are] committed to continue to implement Makati RTC (regional trial court) Nov. 16, 2011 approved Revised Rehabilitation Plan of the group, which is effective until Dec. 12, 2016,” the corporate filing read.

Liberty Telecoms filed a petition for corporate rehabilitation with the Makati Regional Trial Court in August 2005, a few months after it decided to suspend business operations due to lack of capital.

The trial court approved its revised rehabilitation plan on Dec. 12, 2006, which required its board of directors and shareholders to infuse more capital by buying the company’s unsubscribed shares, as well as to settle debts with its creditors.

The company sought an extension of the rehabilitation plan, which the court set for December 12, 2016, according to its latest regulatory filing.

Liberty Telecoms’ balance sheet remains weak with a deficit of P9.80 billion in 2014 after losses from its operations.

Despite the company remaining in the red, SMC’s telecom venture plans to introduce its mobile broadband service by January next year, SMC President and Chief Operating Officer Ramon S. Ang told reporters on the sidelines of an investment forum in Makati City last month.

Liberty Telecoms is the holding company of wi-tribe Telecoms, Inc. and Skyphone Logistics, Inc. It currently provides fourth generation (4G) broadband services using the wi-tribe brand. -- Chrisee Jalyssa V. Dela Paz