MANILA, Philippines — Dennis Uy’s Dito CME Holdings Corp. saw its net loss worsen by five times in the first half due to the weakening of the peso against foreign currencies and the settlement of loans taken from Chinese banks.
In a disclosure to the Philippine Stock Exchange, Dito CME said that its net loss quadrupled to P8.3 billion in the first semester from P2.05 billion a year ago, as the firm dealt with the double whammy of forex fluctuations and debt payments.
During the period, Dito CME’s revenue grew by tenfold to P3.03 billion from P286.39 million, as Dito Telecommunity Corp. widened its subscriber base to 9.64 million.
However, expenses incurred by Dito CME more than doubled to P9.82 billion from P4.17 billion, as Dito Telecommunity spent more for infrastructure projects to expand its network reach. Further, the communications arm of Uy’s Udenna Group said its finances took a hit from the depreciation of the peso and the maturity of its loans.
Dito CME said it incurred a forex loss of P7.26 billion in the first half due to the peso’s weakening against the dollar and Chinese yuan, the currencies in which its loans are denominated in.
Likewise, interest expenses jumped by fivefold to P1.47 billion from P281.45 million, as the firm paid for its lease and interest-bearing liabilities.
Dito CME also reported that it has withdrawn $1.18 billion of the $1.3 billion in loan facilities that it secured from various financing institutions abroad.
Dito CME said these borrowings are scheduled to mature between April to October this year. On the other hand, the firm renewed the $500 million loan from China Minsheng Bank to May 2023 and plans to do the same for some $800 million in obligations to the Bank of China.
Dito CME chief financial officer Joseph John Ong said the firm hopes to rebalance its finances by renegotiating loans with the Chinese lenders and converting them into long-term debts.
“We are confident that these bridge loan facilities will be renewed until such time that these loan availments are converted into our arranged long-term loans with the same creditor banks,” Ong said.