San Miguel's Liberty Telecoms trims losses
MANILA, Philippines - Liberty Telecoms Holdings, Inc., the telco arm of San Miguel Corp., trimmed its losses in the nine months to September from a year ago as an increase in subscribers boosted revenues.
In a disclosure to the stock exchange, the firm booked P1.092 billion in losses as of September, narrower than the P1.129 billion in losses it booked last year.
Revenues of the firm surged 14% to P444.265 million from P389.451 million, while cost and expenses went down 3% to P1.434 billion from P1.480 billion.
"The Group continues to acquire more subscribers for its postpaid and prepaid Wimax broadband services," Liberty Telecoms said.
The firm's net loss was blamed to continuous spending on the roll out of its Wimax network used for broadband services and building of its subscriber base.
"Its major shareholders, however, fully understand that these losses should be expected, considering that its business operations are essentially still in the start-up stage," Liberty Telecoms said.
"The major shareholders are strongly committed to further expanding the Group's operations in accordance with its strategic plans, as clearly shown by the level of financial and operational support already provided thereto," it added.
Liberty Telecoms is the holding firm of wi-tribe Telecoms, Inc. and Skyphone Logistics, Inc.
Wi-tribe is involved in providing broadband services, while Skyphone acquires, sells and maintains telecommunications products.
Liberty Telecoms was a dormant listed firm prior to investments by Qatar Telecom through Qtel West Bay Holdings and San Miguel Corp. through Vega Telecom, Inc., both made in 2009.