Wireless unit props up Digitel 1st-sem earnings

Written by Lenie Lectura / Reporter
Sunday, 16 August 2009 23:06

[BUSINESSMIRROR]DIGITAL Telecommunications Philippines Inc. (Digitel), the listed phone firm of conglomerate JG Summit Inc., reduced its net loss for the first half of the year to P638 million from P2.04 billion a year ago brought about by a stronger performance of its wireless business.

It reported on Friday that consolidated earnings before interest, taxes, depreciation and amortization—a measure of cashflow—was higher at P2.13 billion from P1.32 billion during the same period in 2008 due primarily to the higher service and nonservice revenues generated by the wireless business. But cost and operating expenses increased by 26.7 percent to P4.56 billion from last year’s P3.6 billion. Higher cost of sales, network-related expenses and general and administrative expenses primarily contributed to the increase.

The phone firm’s revenues for the period in review reached P6.7 billion, up by 35.9 percent from last year’s P5 billion. The company derives revenues from its wireless, wireline voice and wireline data services. The wireless segment, which comprised 71 percent of the phone firm’s consolidated revenues, grew 62.4 percent year-on-year.

Digitel’s Sun Cellular brand pioneered unlimited call and text messaging services. (Read More)