Eastern doubles capex to P1B

Source: www.pse.com.ph

THE PHILIPPINE STOCK EXCHANGE
Philippine Stock Exchange Center
Exchange Road, Ortigas Center
Pasig City
Attention : Ms. JANET A. ENCARNACION
Head, Disclosure Department
Ladies and Gentlemen:
Re: “Eastern doubles capex to P1B”
We refer to your letter of 1 June 2009 regarding a news article entitled “Eastern doubles capex to
P1B” published in the 1 June 2009 issue of the Malaya, which reported, in part, that:
EASTERN Telecommunications Philippines, Inc., has doubled its capital outlay this year
to P1 billion to finance the expansion of its data and internet services within its existing
network. Mario Locsin, Eastern Communications president and chief executive officer,
said at the annual stockholders meeting of ISM Communication Corp., the parent
company of Eastern, this year’s capex will be the last major undertaking after the
completion of Eastern’s backhaul project… Ongpin said ISM is putting on hold its
dividend payout as it focuses on financing the acquisition of the two IT firms this year.
“Beyond Eastern, ISM has accelerated its focus on acquisition targets in the IT sector. At
this time, we are evaluating two principal prospects. The first is an international stock
trading mobile applications provider and the second is likewise an international media
technology services provider. Both companies have successful track records and have
significant technological innovations that can be leveraged into a critical first mover
status in the Philippines” Ongpin said …
We hereby confirm the above-quoted news articles subject to the following clarifications:
1. For 2008, Eastern Communications budgeted P1.037 billion for capital expenditure.
However, of this budgeted amount, only P425.6 million was actually spent in 2008.
Out of the approved but unspent portion of the 2008 capital expenditure budget, around
P533 million was carried over to 2009. For 2009, an additional P460 million was
allocated for capital expenditure. Together with the carry-over from 2008, the total
The Enterprise Center, 17th Floor, Tower 1, 6766 Ayala Avenue, Makati City, Philippines, (632) 338-5599 / www.philweb.com.ph
capital expenditure program for 2009 would amount to a total of P993 million.
Therefore, it can be said that the total capital expenditure budget for 2009 (almost P1
billion) is double when compared to the actual capital expenditure in 2008 (less than
P500 million).
2. Mr. Mario J. Locsin (Executive Vice President of ISM Communications Corporation) is
the President and Chief Operating Officer of Eastern Communications. Mr. Eric O.
Recto remains the Chief Executive Officer of Eastern Communications.
3. ISM Communications Corporation is looking at four investment prospects (the details of
which cannot be disclosed at this time) in the Information and Communications
Technology Sector.
We hope the foregoing fully clarifies the matter.