DITO CME Holdings Corp., the telecommunications venture of Davao-based businessman Dennis Uy, said its capital deficiency widened to P78.04 billion at the end of March from P73.39 billion at the end of 2024 as losses continue to mount.
The company lost P41 billion in 2024, largely attributed to DITO Telecommunity’s continued network rollout and high startup costs.
The capital shortfall is primarily due to non-cash items, including P17.27 billion in cumulative foreign exchange losses since 2018 and straight-line depreciation from newly constructed telecommunications infrastructure. DITO Tel is in the midst of fulfilling a P256.54 billion investment commitment during its first five years of operations.
As of the first quarter of 2025, shareholder advances totaling P14.93 billion are recorded as liabilities. These are intended to be converted to equity, but remain classified as advances to preserve the required 60 percent local and 40 percent foreign ownership structure, in compliance with Philippine law. The company said conversion limitations apply particularly to foreign state-owned entities like China Telecommunications Corp.
Despite the wider capital deficit, DITO CME expects DITO Tel to become earnings before interest, taxes, depreciation and amortization-positive by end-2025 and report net profitability by 2028. Management maintains confidence in its long-term financial sustainability.
DITO CME has raised P2.05 billion through a fully subscribed follow-on offering last November to fund DITO Tel’s network expansion and general corporate needs. The company also secured P14.5 billion in private investments from January 2024 to May 2025, with a long-term equity-raising goal of P28.83 billion by 2028. Key investors include Summit Telco and Xterra Ventures, with recent infusions totaling P3.3 billion in October 2023 and P3.07 billion in early 2025.
DITO CME also aims to convert P26.53 billion in shareholder advances into equity by end of this year. This includes contributions from Udenna Corp., China Telecommunications, and other key backers, intended to reduce capital deficiency while preserving the required local-foreign ownership split.
Another follow-on offering or stock rights offering is under consideration, pending market conditions.
At the end of the first quarter, DITO Tel has 13.9 million subscribers.
