Monday, March 15, 2021

DITO eyes fixed broadband in next two years, profitability in 5 years

The third telco player, DITO Telecommunity, targets introducing its fixed broadband services to home users in the next two years and being profitable in five years.

According to a report from Philstar, DITO Chief Administrative Officer Adel Tamano mentioned in a senate committee on public services hearing that the company targets positive EBITDA in three years and achieve “true profitability” in five years.

“In terms of EBITDA, we would already be positive by the third year of operations, and by the fifth year, we would have paid off our loans and have achieved true profitability,” Tamano stated.

DITO confirmed the following statements in a clarification report sent to the Securities and Exchange Commission (SEC):

“Based on information relayed to us by Dito Telecommunity Corp. (“Dito Tel”), we confirm the statements made by its Dito Tel’s chief administrative officer that (i) in terms of EBITDA, Dito Tel will be positive by the 3rd year of operations; (ii) by the 5th year, Dito Tel would have paid off loans and achieved profitability; (iii) Dito shall roll out its services in Metro Manila by May or June; and (iv) Dito’s end goal is to have 30% market share. Also, Dito Tel confirmed that it is eyeing to introduce fixed broadband services to home users in the next 2 years.”

Tamano also mentioned that 22,748 users signed up online for DITO’s services during its launch, and only 6,597 of them were qualified with compatible phones.

On the other hand, DITO CME Holdings Corp. also recently revealed that the Philippine Competition Commission (PCC) had given its clearance concerning its share-swap transaction. The transaction involves the acquisition of 100% of the shares of Udenna Communications Media and Entertainment Holdings Corp. in exchange for the issuance of 11.2 billion common shares of DITO CME in favor of Udenna pertaining to the Philippine Competition Commission.

“The PCC noted that the share-swap transaction does not breach the thresholds prescribed by the Philippine Competition Act and its implementing rules and regulations, and qualifies as consolidation of ownership in the same natural persons,” DITO CME said in a stock exchange filing.

Source: SEC, Philstar

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