Digitel clears P4.7 M in 2000

Digital Telecommunications Inc. (Digitel), the telecommunications arm of the Gokongwei Group, reported a profit of P4.7 million for 2000, just a tad higher than the P4.5-million net income recorded for 1999, due to the start-up losses of its Internet unit.

Based on documents submitted to the Securities and Exchange Commission, Digitel absorbed a P54.7-million loss from Digitel Information Technology Services Inc. (DITSI), a wholly owned Internet and networking subsidiary which started operations in late 1999.

Despite losses from DITSI, Digitel’s operating revenues increased by 31 percent from P3.678 billion in 1999 to P4.823 billion in 2000 due to the rise in its fixed-line subscribers, the currency-related adjustments in service rates resulting from the peso depreciation and the establishment of additional direct circuits with major foreign administrations which enhanced its international toll revenues.

The company, which mainly services Central Luzon, Bulacan and parts of Metro Manila and Laguna, had connected 365,476 telephone lines in 2000, up from 269,600 in 1999.

The increase in international toll revenues, however, was partially offset by the negative impact of the decrease in international and accounting settlement rates as well as the reduction in IDD (international direct lines dial) rates for calls to certain destinations.

Nevertheless, Digitel’s consolidated operating income rose 142 percent to P1.22 billion, net of the P54.9 million operating losses of DITSI as it was able to contain its expenses to P1.511 billion, only a 14-percent jump from the previous year. – Conrado Diaz Jr.