Digitel’s losses widen


By Erik de la Cruz
Xinhua Financial News Service
Last updated 03:11pm (Mla time) 08/15/2006


DIGITAL Telecommunications Philippines Inc.’s (Digitel) second-quarter losses widened compared to the same period last year, as the peso's strength hurt its international call services.

Digitel, a unit of conglomerate JG Summit Holdings Inc., said it had a net loss of 1.5 billion pesos in the second quarter, more than double the 636 million loss it incurred in April-June 2005.

Higher costs and expenses brought the telecoms firm in the red again, having posted a net profit of 43 million pesos in the first quarter.

Costs and expenses rose to 4.1 billion pesos during the June quarter, including 1.38 billion pesos in foreign exchange losses, from 2.7 billion a year earlier.

For the first half of the year, Digitel said its net loss stood at 1.44 billion pesos, also bigger than the year-ago loss of 1.09 billion.

Digitel said first-half consolidated revenue dropped to 4.3 billion pesos from 4.5 billion a year earlier, mainly due to lower international traffic volume which could be attributed to "the possible adverse impact of foreign carriers' preference for alternative least cost routes as well as the impact of the peso appreciation, particularly in the wireline voice communications business."

Digitel did not provide figures on its subscriber base for mobile phone service, but said its wireless business generated total revenue of 1.47 billion pesos in the first half compared to 1.46 billion a year earlier.

source:
http://business.inq7.net/money/topst...ticle_id=15411