DITO CME Holdings Corp. saw its attributable net loss for the first quarter of the year widen to P3.67 billion from a loss of P869.22 million in the same period a year ago.
The company’s total revenues surged to P1.33 billion in the first three months of the year from P7.81 million in the same period last year, its first-quarter report showed.
But its non-operating expenses climbed to P3.49 billion from P23.33 million previously.
The company ended 2021 with an attributable net loss of P9.67 billion, higher than the previous year’s loss of P2.63 billion.
“The group’s current liabilities exceeded its current assets by P126.4 billion and P114.0 billion as at March 31, 2022 and Dec. 31, 2021, respectively,” DITO CME said.
“These conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as going concern and, therefore, the group may be unable to realize its assets and discharge its liabilities in the normal course of business. Albeit these conditions, management believes that the group will be able to meet all its outstanding obligations and continue to operate as a going concern,” it added.
The company said that it continues to ramp up its commercial operations through targeted subscriber acquisition and promotional activities aimed at increasing revenue.
On how the company will fund its expenditures related to the construction of its network, it said that it secured commitments from creditors for a project finance loan facility up to $4.1 billion (P209.1 billion), which is expected to be closed within this year.
At the same time, it said that it has remaining credit line facilities from a bridge loan amounting to $200 million (P10.2 billion), which can be drawn any time to address capital expenditures and operating expenses directly related to network build.
“The group has plans to do various fund-raising activities within 2022, which include a follow-on offering at the parent company level, wherein proceeds will be used to fund the group’s telecommunications and digital businesses funding requirements,” it also said.
“Lastly, Udenna and the minority shareholders of DITO Tel are also committed to infuse additional capital in accordance with the schedule of infusion indicated in the investment agreement,” the company added.
DITO CME shares closed 2.42% higher at P4.66 apiece on Thursday. — Arjay L. Balinbin
