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Petron swings to P11-B loss as revenues fall

LISTED oil company Petron Corp. reported on Wednesday a net loss of P11.4 billion last year, swinging from a net income of P2.3 billion a year earlier, as sales declined due to the pandemic.

In a press release, Petron said that its consolidated revenues last year declined 44% to P286 billion, reflecting the impact of the global health emergency on its financial performance.

“For the whole of 2020, the company’s consolidated sales volume stood at 78.6 million barrels, down 27% from 2019’s 107 million barrels,” the country’s largest oil refining and marketing company said.

During the fourth quarter, however, Petron recorded a consolidated net income of P1.2 billion, which it attributed to “increased volumes and inventory holdings gains” as prices started to rally. The firm posted a P1.63-billion consolidated net income in the third quarter.

But the company noted that refining margins still remained soft in the fourth quarter, which challenged the economic viability of its Philippine operations.

Meanwhile, Petron’s consolidated revenues from October to December hit P69.6 billion, which it said “marked two straight quarters of growth” after the firm’s historic slump in the second quarter due to the pandemic’s impact.

“The last quarter of the year registered a 46% improvement from the P47.7 billion reported in the Q2, Petron’s hardest hit quarter in 2020,” it said.

Ramon S. Ang, Petron president and chief executive officer, said that the firm had been “working hard to minimize the pandemic’s impact on its business.”

“(O)ur performance in the second half of 2020 proves that we are moving in the right direction. We look forward to sustaining our recovery as we anticipate higher demand and a more stable industry situation with an end to this crisis finally in sight,” Mr. Ang said in a statement.

The firm, which also has a strong presence in Malaysia, said that it is now focused on improving its competitiveness.

In its statement, Petron said that its Bataan refinery’s inclusion as a registered enterprise of the Authority of the Freeport Area of Bataan (AFAB) would benefit the company in the paying of value-added taxes, which would be done as products are withdrawn from the refinery.

“We continue to implement various cost saving efforts, but tax efficiency is another critical area that should improve. Our AFAB registration will help make our refining business more competitive and financially viable as soon as demand recovers,” Mr. Ang said.

Petron said that it looks forward to a significant demand recovery in 2021, and it plans to resume its refining operations by the second half of the year.

It announced in December that it was suspending the operations of its 180,000 barrels per day refinery — the sole refining facility in the Philippines — to minimize losses from weak refining margins.

Petron, a unit of diversified conglomerate San Miguel Corp., has a combined refining capacity of 268,000 barrels-per-day and produces a full range of world-class fuels and petrochemicals.

Shares of Petron in the local bourse inched down 0.87% or three centavos to finish at P3.41 apiece on Wednesday. — Angelica Y. Yang

Singapore firm to invest nearly P12B in AC Energy

ARRAN Investment will subscribe to four billion primary shares through a private placement at P2.97 apiece. — ACENERGY.COM.PH

AN AFFILIATE of Singapore firm GIC Pte. Ltd. will be investing P11.88 billion in AC Energy Corp. (ACEN) for a 17.5% ownership stake in the local firm, the Ayala-led company said in a regulatory filing on Wednesday.

ACEN said that Arran Investment Pte. Ltd. would be subscribing to four billion primary shares through a private placement at P2.97 apiece.

The investment is subject to two pre-closing conditions, namely: ACEN’s completion of its stock rights offering of 2.27 billion shares at P2.37 apiece; and the issuance by the Treasurer of the Commonwealth of Australia — or his delegate — of a notice of no objection under the Foreign Acquisitions and Takeovers Act 1975 with respect to Arran and the AC Energy and Infrastructure Corp. (ACEIC) “international transaction.”

The investment agreement between ACEN and the latter’s parent firm ACEIC was inked with Arran on Dec. 30.

ACEN said that Arran had a “put option” to sell to ACEIC all of its subscription shares and top-up shares, if any of the following occur: the required shareholder approval for the listing of Arran’s subscription shares is not obtained by June 30; the deed of assignment between ACEN and ACEIC is not executed by Dec. 31; and if the approval of ACEN’s minority shareholders of ACEIC’s international transaction is not obtained, but only if needed by the local bourse.

The GIC affiliate’s private placement of P11.88 billion is one of the five steps in ACEN’s corporate restructuring, according to its President and Chief Executive Officer Eric T. Francia during a media briefing in November.

In a separate disclosure on Wednesday, ACEIC’s parent firm Ayala Corp. said that its board of directors had approved the firm’s issuance of fixed rate bonds with the aggregate amount of up to P6 billion with an oversubscription option of up to an additional P4 billion.

The bonds would make up the first tranche Ayala Corp.’s P30 billion shelf registration program, which was earlier approved by the board, and it will be subsequently filed with the corporate regulator.

Shares of Ayala Corp. in the Philippine Stock Exchange were unchanged at P779 apiece on Wednesday. Meanwhile, shares of ACEN improved 4.12% or 0.27 centavos to finish at P6.82 apiece. — Angelica Y. Yang

Cebu Landmasters enters dormitory business

REAL ESTATE developer Cebu Landmasters, Inc. (CLI) entered a joint venture worth P360 million with Terre D’Or Realty Corp. to develop a co-living space project named Sugbu Prime Estate, Inc. in Cebu.

CLI is entering the dormitory business after seeing a demand for shared spaces by young professionals and students.

“We have long wanted to do a co-living or dormitory project to cater to Cebu’s workers and were thus excited to explore this opportunity with the Farrarons,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said in a statement on Wednesday.

The Farrarons family, which is behind Terre D’Or Realty, owns two hotels and a mall in Cebu City.

“Both our families believe this venture will contribute to the growth of Cebu and improve quality of living, especially for those seeking secure affordable housing near prime business areas,” he added.

The project will start with a 7,500 square meter property in Banilad, which is walking distance from Cebu IT Park. It is also near Cebu Business Park and is a ride away from the University of Cebu-Banilad, the University of Southern Philippines, and the University of San Carlos in Talamban.

A self-storage facility will be included in the property, with CLI citing a market study that forecast the demand for warehousing. The real estate developer said it would be useful for businesses doing e-commerce and home owners looking for extra spaces.

The mixed-use property will also feature retail spaces and more than 300 dormitory rooms.

“The project to be completed by the end of 2022 primarily targets young professionals and students returning to work and schools, respectively, and requiring comfortable home-away-from-home secure quarters that would spare them from the health threats and inconveniences of commuting,” the company said.

CLI expects the project to be a success as it projects a growth of outsourcing firms opening in Cebu. The co-living venture is the real estate developer’s latest move to diversify its portfolio, which already includes residential developments and hotels.

The company said it would disclose hotel partnerships for 307 rooms in the coming months. The company aims to roll out nearly 1,450 hotel rooms in the Visayas and Mindanao regions by 2024.

CLI shares at the stock exchange closed at P5.27 on Wednesday, going up by 0.38% from P5.25. — Keren Concepcion G. Valmonte

Filinvest Land unit to sell 1.63-B common shares

FILINVEST Land, Inc. (FLI) will sell around 1.63 billion common shares in subsidiary Cyberzone Properties, Inc. through a secondary offer worth P8.30 per share.

The FLI board of directors approved the initial public offering of the unit in a meeting on Tuesday, March 9.

The company is expected to submit requirements to the Securities and Exchange Commission and the Philippine Stock Exchange. Cyberzone Properties will also have to adhere to the revised implementing rules and regulations of the REIT Act of 2009.

The secondary offer of 1.63 billion common shares covers a third of Cyberzone Properties’ outstanding capital stock.

The real estate company previously increased its authorized capital stock to P7.13 billion, which was then divided into 14.26 billion common shares with a par value of P0.5 apiece.

An over-allotment option granted by FLI will also wait for the market regulators’ approval.

With the same terms of the secondary offer shares, a stabilizing agent or affiliate may collect up to 163.08 million common shares of Cyberzone Properties owned by FLI. These will be considered the option shares.

The board of directors assigned management to set the terms and conditions of the offer. — Keren Concepcion G. Valmonte

Toyota launches sporty Vios

TOYOTA MOTOR Philippines Corp. (TMP) is rolling out the sporty variant of its Vios model as part of its efforts to sell more locally produced cars while it looks forward to the potential timeline extension of a government incentives program.

The company on Wednesday launched its Vios GR Sport, a model assembled in its Santa Rosa, Laguna plant.

TMP Senior Vice-President for Marketing Jose Maria Atienza said that the rollout has been in the works before the imposition of safeguard duties on imported cars, but it is part of efforts to improve sales and increase local production.

“In general, this is one of those additional efforts for Toyota to enhance our sales of our CKD (completely knocked down/locally assembled) models — Vios being our number one model,” he said at the online media launch.

The Department of Trade and Industry (DTI) imposed provisional safeguard duties on imported cars after it found a link between a decline in employment in the local industry and an import surge, based on a petition from an auto parts labor group.

The Safeguard Measures Act or Republic Act No. 8800 allows domestic producers to ask the government to conduct an investigation into their import competitors if they claim to have been injured by excessive imports.

Car manufacturers including Toyota have started raising prices as they collect deposits for cars affected by the provisional duties while the Tariff Commission conducts its own investigation.

The new Vios model will be part of Toyota’s commitment to the government to locally produce cars.

The Comprehensive Automotive Resurgence Strategy (CARS) program offers fiscal support to car companies that locally produce 200,000 units of high-volume car models for six years.

TMP First Vice-President Rommel R. Gutierrez had previously said that car manufacturers want the government to extend the compliance period, noting that the companies may not be able to meet the production target after a sales slowdown caused by the pandemic and the Taal Volcano eruption last year.

“We’re still discussing with DTI on the extension of the period, but again DTI understands the necessity — that the CARS program needs to be extended,” Mr. Guttierez, who also heads a car industry group, said during the online launch.

“That’s why we are quite positive about the final decision of the DTI and we understand that it’s not only DTI who’s going to decide on that, but we gather that DTI favorably recommended the extension of the CARS program.” — Jenina P. Ibañez

PLDT to launch digital platforms for hospitals by Q2

PLDT, Inc. is set to launch digital platforms for hospitals in the country by the second quarter of the year, a company official said.

“From a health perspective, we’ve been working with a lot of our partners actually, and we are looking at enabling some of our hospital groups for that capability by the second quarter of the year,” Juan Victor I. Hernandez, PLDT senior vice-president, head of PLDT & Smart Enterprise Business Groups and ePLDT president and chief executive officer, said at a recent online briefing.

He added: “We have proof of concepts already that are being undertaken, and we are just in the process of finalizing them.”

He said PLDT is not sticking to one platform. “We’ve made a decision to make sure we have multiple platforms to be able to serve a lot of our customers in that regard.”

For his part, PLDT Chief Revenue Officer Alfredo S. Panlilio said: “We are internally also building a solution for ourselves in terms of the vaccination, because we know that we will have to monitor that as we take delivery of the orders that we’ve had for our employees.”

“We are also working on an app,” he added.

To recall, PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan, who also serves as chairman of Metro Pacific Investments Corp. (MPIC), said last year that MPIC’s hospitals under Metro Pacific Hospital Holdings, Inc. (MPHHI) would be offering services through digital platforms.

MPHHI operates 16 hospitals with a combined capacity of 3,400 beds across the country, including Makati Medical Center, Cardinal Santos Medical Center and Asian Hospital & Medical Center.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT and Philex Mining Corp.

Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Globe’s tech firm Yondu bullish on maintaining growth this year

GLOBE TELECOM, Inc.’s technology company Yondu, Inc. is optimistic that its revenue growth will continue this year, after seeing “significant market success” last year.

“We see the need for business continuity as a critical driver for growth. People are now more oriented to the crucial role of technology in making enterprises more resilient and future-ready, expediting businesses’ digital transformation,” Yondu President and Chief Executive Officer Joan D. Peñaflorida said in an e-mailed statement on Wednesday.

According to Globe, its non-telco products generated a total of P1.3-billion revenues last year, up 99% from the previous year. Main contributors were Electronic Commerce Payments, Inc. or ECPay and Yondu, it noted.

Yondu delivers solutions such as information technology services, service management, software development, and turnkey solutions, among others, to various businesses.

Health Management for Enterprise (HealthMe), a mobile application that allows companies to keep track of employees’ health, and Vessell, an e-commerce platform builder that gives business owners the ability to create personalized online stores, are among Yondu’s products that saw “significant market success” last year.

Ms. Peñaflorida said, “People have placed the utmost importance on their health and safety, which makes contactless solutions viable innovations.”

“We believe that there is a plethora of opportunities in this innovation, especially when we integrate the Internet of Things,” she added.

Globe recently reported a 13.04% decrease in its core net income for 2020. The company attributed the decline to the impact of the coronavirus pandemic on its operations.

But Globe’s home broadband business performed well last year, as the revenue increased 23.23% to P26.80 billion from P21.75 billion.

Mobile revenue declined 7.08% to P103.11 billion from P110.97 billion.

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) for 2020 totaled P73.51 billion, down 3.31% from P76.03 in the previous year.

The company said it is optimistic about regaining momentum this year as the Philippine economy continues to recover.

For 2021, Globe has set a capital expenditure (capex) budget of about P70 billion, higher than last year’s revised capex guidance of P50 billion. — Arjay L. Balinbin

After tuna and corned beef, Century enters plant-based ‘meat’ market

ONE of the country’s biggest food companies, Century Pacific Food, Inc. (CNPF), is throwing its dice in the plant-based food category with unMEAT. The company is looking to enter not just the Philippine market for meatless “meat” but also plans to expand abroad.

The company behind tuna brands such as Century and 555 Tuna and canned meats Argentina, Wow!, and Swift Premium has developed a line of nuggets, sausages, patties, and giniling (ground “meat”) that is 100% plant-based: made without dairy or eggs, and containing neither cholesterol nor trans-fat. Century Pacific Food, Inc. General Manager Nikki Dizon said during an online press launch late last month that there are less than 10 ingredients in unMEAT, including soy protein, oils, salt, onions, soy sauce, and vinegar —  things that are easy to pronounce and can be found in people’s pantries.

According to a release, unMEAT was first introduced through Shakey’s Pizza’s newest offering, the Goood Burger. BusinessWorld got to try the burger and found it a little bit smoky-sweet, and with a firmer texture than a normal beef burger. Otherwise, if one did not know what was, they would likely conclude that it was a normal burger.

“One of the biggest concerns about plant-based foods is that they are not delicious or as pleasing to the palate as real meat,” Ms. Dizon was quoted as saying in the statement. “But our Nutrition Science team took that as a challenge, and completely delivered by coming up with a meat alternative that unbelievably and undeniably looks, feels, and tastes like meat. Moreover, they made unMEAT using simple ingredients and extracted the nutrients from real food rather than synthetic compounds so it’s healthier and more affordable.”

The brands in Century Pacific’s portfolio are among the nation’s most familiar, and one might wonder why they would enter new, meatless territory. “It’s in our mission and vision to really nourish and delight. When we say nourish and delight, we want to be inclusive in what markets we cover, and that includes the plant-based market. More and more, we have friends and family who are going into plant-based diets. We want to be able to capture that —  it’s not just about the common meats you see now,” said Ms. Dizon.

They also unveiled plans to roll out unMEAT in as many as 80 countries. Gregory Banzon, Executive Vice-President and COO of Century Pacific said that they’re undergoing regulatory processes in those countries, which Ms. Dizon says includes the US, the UK, China, Singapore, and the Middle East. Mr. Banzon, meanwhile, gave a timeline for this rollout in about two quarters, or about six months. “We really want to bring the goodness of unMEAT to as many [people] as possible,” said Ms. Dizon.

“I personally believe that plant-based food will move from a niche item into the mainstream, and will be a high-growth category,” said Chris Po, Executive Chairman of Century Pacific.

UnMEAT is already available in some supermarkets, and can also be found on online shopping platforms like Lazada. At Lazada’s Swift official store, unMeat products cost between P120-P135 for 200-226 gm packs. —  Joseph L. Garcia

San Miguel food unit posts P22.4-B net income

SAN MIGUEL FOOD and Beverage, Inc. (SMFB) posted a net income of P22.4 billion last year, which its top official described as “extremely challenging” but marked by a “strong” rebound in the second half.

SMFB President and Chief Executive Officer Ramon S. Ang said the company’s businesses had been able to deliver volume growth despite the challenges it faced in 2020.

“These encouraging results demonstrate the company’s resilience in the face of the global crisis and positions itself for a strong and stable recovery,” Mr. Ang said in the statement on Wednesday.

The listed company did not give its comparative bottomline in 2019.

For 2020, consolidated revenues dropped 10% year on year to P279.3 billion, while consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P46.8 billion.

“Second half consolidated revenues were up 27% to P156.5 billion from P122.8 billion in the first half while consolidated operating income jumped 94% to P22.0 billion from P11.4 billion in the first semester,” SMFB said.

According to SMFB, profits during the period were driven by its beer business, San Miguel Brewery, Inc. (SMB), which posted growth in the second half of 2020 after the lifting of liquor bans in different parts of the country.

SMB’s net income for 2020 reached P17.5 billion, with its consolidated revenues for the period amounted to P107.9 billion.

“The strong performance was backed by company-initiated consumption-generating programs, direct-to-consumer initiatives and cost containment efforts,” SMFB said.

“SMB’s international operations also benefitted from easing of restrictions in the second half of the year. Its Hong Kong, South China, Vietnam, and export markets delivered profits significantly better than 2019,” it added.

SMFB’s spirits business, Ginebra San Miguel, Inc. (GSMI), posted a net income of P2.8 billion, up 65% year on year after delivering 38.6 million cases despite the coronavirus disease 2019 (COVID-19) pandemic.

GSMI’s consolidated revenues also rose 25% to P36.2 billion, while its EBIDTA climbed 38% to P5 billion.

Meanwhile, consolidated revenues of the company’s food segment, San Miguel Foods (SMF), reached P135.2 billion, while its EBIDTA improved 8% year on year to P12.2 billion.

“Its prepared and packaged food segment benefitted most from the shift delivering a solid double-digit performance in 2020,” SMFB said.

“This segment also helped mitigate the effects of the softening of certain segments, particularly the protein business, as operations of most of its food service customers were affected by community quarantine restrictions,” it added.

Mr. Ang said the company is filled with optimism for 2021, adding that the worst of the COVID-19 pandemic is already over.

“We will continue to adapt to the changing market conditions and leverage on lessons learned. Soon, we will re-emerge stronger and more resilient on the path to long-term profitable growth,” Mr. Ang was quoted as saying.

On Wednesday, shares of SMFB at the stock exchange fell 1.23% or 80 centavos to end at P64.20 apiece. — Revin Mikhael D. Ochave

Yields on term deposits inch up as bids decline on rising prices

YIELDS on the central bank’s term deposits inched higher on Wednesday amid lower demand as investors remained cautious due to the continued increase in inflation and global oil prices.

Total demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) amounted to P523.769 billion yesterday, failing to beat the P540 billion on the auction block as well as the P700.754 billion in bids seen last week.

Broken down, tenders for the one-week term deposits amounted to P145.424 billion, lower than the P190-billion program and the P283.031 billion in tenders seen last week.

Accepted rates for the seven-day papers ranged from 1.61% to 2.05%, a wider margin compared with the 1.6% to 1.675% logged a week ago. This brought the tenor’s average rate to 1.6742%, inching up by 4.1 basis points (bps) from the 1.6332% seen on March 3.

Meanwhile, the central bank sold P350 billion as planned in 14-day term deposits as tenders reached P378.345 billion. This was below the P417.723 billion in bids recorded in the previous auction.

Lenders asked for yields ranging from 1.66% to 2%, a narrower band compared with the 1.6475% to 2% range logged last week. With this, the average rate for the two-week debt papers rose by 7.4 bps to 1.8544% from the 1.7804% logged in the previous auction.

The BSP did not offer 28-day papers for the 21st consecutive week to give way to its weekly offering of bills with the same tenor.

The TDF and BSP securities are tools used by the central bank to mop up excess liquidity in the financial system and to better guide market interest rates.

The uptick in TDF yields followed the continued upward correction in global oil prices and local data showing quicker inflation, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Fuel prices increased anew on Tuesday backed by expectations of recovery that will be supported by the $1.9-trillion stimulus bill approved by the US Senate, Reuters reported.

Brent crude futures for May increased 32 cents or 0.5% to $68.56 a barrel by 0125 GMT. Meanwhile, prices of the US West Texas Intermediate crude for April inched up 19 cents or 0.3% to $65.24 per barrel.

At home, inflation rose 4.7% in February, marking the second consecutive month the reading breached the 2-4% annual target of the BSP. Data from the Philippine Statistics Authority showed this was fueled by higher food prices. — L.W.T. Noble with Reuters

Pick.A.Roo upgrades services, supports women-led brands for Women’s Month

FROM getting your groceries done to accomplishing duties at work, on-demand lifestyle delivery app Pick.A.Roo now highlights women-led businesses and introduces new features for every multi-tasker.

After years of experience working for global brands and foreign-founded apps, Pick.A.Roo co-founder and CEO Crystal Gonzalez realized “a calling” launch her new start-up. “I noticed that every country had a popular app [which was create there],” she said. “I really wanted to create a brand that could be something that Filipinos can also be proud of.”

Launched in August 2020, Pick.A.Roo currently has 100,000 users of whom 70% are women.

“The profile of the users we cater to are the multi-taskers, very busy women, and the users that we have are the ones that need an app that saves them time and helps them multi-task,” Ms. Gonzalez added.

For the duration of International Women’s month, Pick.A.Roo is running the We Are Women #WeAreMore campaign as a special tab on the app. The tab provides discount promos for select women-founded brands.

The brands are: restaurant Mary Grace (founded  by Mary Grace Dimacali), slipper brand Havaianas (Anne Gonzalez), The Moment Group of restaurants (Abba Napa), bakery Cupcakes by Sonja (Sonja Ocampo), online liquor store Boozy (Pam Solilapsi-Guerrero), Tiny Buds baby products (Lorina Tan), Sheraton hotel (Anna Liza Vergara), and MerryMart grocery stores (Hannah Yulo).

First time app users can use the code WEAREMORE20 to get 20% off on their first orders with a minimum purchase worth P500. There will be new promo codes designated to the partner brands daily. The promo runs until Mar. 31.

“We try to make it easier for you to do everything you need to do, and buy everything you need to buy as essentials in your home in one go,” Ms. Gonzalez said during the online campaign launch via Zoom on Mar. 5.

Ms. Gonzalez noted that they aim for the campaign to inspire women to be more productive, present, and mindful of whatever they want to do.

UPDATED FEATURES
This March, Pick.A.Roo welcomed new partner brands such as Power MAC Center, Mia Maison, Office Warehouse, Marks & Spencer Food, Revlon, AllDay Supermarket, Aura Athletica, and Karat World.

The app also has a new home page design where brands are divided per category (food, office supplies, apparel, etc.) and an improved search function. A live chat function has also been added to allow customers to deal directly, and in real time, with a customer service representative about concerns regarding orders.

Other new features include the option to save multiple credit cards  and e-wallet (GCash and PayMaya) accounts for transactions, multiple delivery addresses, and a single checkout feature for all purchases. Users now have various options when it comes to the mode of communication between them and the rider: Viber, Whatsapp, SMS, or call.

Additional offers are referrals codes for discounts for future transactions. The user is given a referral code which offers users special vouchers for future orders.

Six months since its launch, Pick.A.Roo now carries over 800 brands ranging from supermarkets to office and school supplies. Deliveries cover 21 cities surrounding Metro Manila including Lipa City.

One can download Pick.A.Roo from the Play Store or Google Play (for Android) and the App Store (for iOS). For more information, visit www.pickaroo.com. —  Michelle Anne P. Soliman

DITO franchise renewal clears Senate panel

THE Senate Committee on Public Services on Wednesday approved the franchise renewal application of DITO Telecommunity Corp.

The Senate panel approved House Bill No. 7332, which sought the renewal of the franchise of Mindanao Islamic Telephone Co. Inc., now known as DITO, for another 25 years.

The existing franchise is set to expire on April 24, 2023.

Senator Juan Miguel F. Zubiri during the committee hearing moved for the approval of DITO’s franchise renewal bid as well as the other applicants for franchise, after which Senator Grace Poe-Llamanzares, chair of the public services committee, congratulated the applicants.

“[DITO] in particular is approved on the committee level,” Ms. Poe said in a statement, adding that those of the other applicants are pending based on the submission of requested documents.

The telecommunications company, which is led by Davao City businessman Dennis A. Uy, launched its services on Monday in Metro Cebu and Metro Davao.

DITO Chief Administrative Officer Adel A. Tamano said a total of 22,748 individuals signed up for the company’s services but only 6,597 were qualified or have compatible phones in the proper areas.

As of March 9, up to 7,586 subscribers or SIM card purchases were recorded, he told the Senate committee hearing on Wednesday.

DITO Chief Technology Officer Rodolfo D. Santiago said he was confident of meeting the second-year commitment by July 2021.

“We are confident, Ma’am, that we can meet the population coverage required of us of 51%, because right now we’re nearing 45% population coverage,” he said in the hearing

“And that we are very aggressive in our five-year rollout, that would allow us to maintain the 55 mbps minimum average broadband speed,” he added.

The new telco player in February reported 37.48% coverage of the population, based on the audit conducted by R.G. Manabat & Co.

Edgardo V. Cabarios, deputy commissioner of the National Telecommunications Commission, said he expects DITO to “move faster” in the rollout and build more infrastructure to provide 55 mbps average speed once it has more users.

The House of Representatives approved on third and final reading the measure on Aug. 24, 2020.

President Rodrigo R. Duterte in July 2019 awarded a certificate of public convenience and necessity to DITO. — Vann Marlo Villegas

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