Telco startup DITO Telecommunity Corp. expects its earnings before taxes to turn “positive” by the third year of its commercial operations, according to DITO CME Holdings Corp.
“Based on information relayed to us by DITO Telecommunity Corp. (DITO Tel), we confirm… that in terms of EBITDA (earnings before interest, taxes, depreciation and amortization), DITO Tel will be positive by the third year of operations,” DITO CME said in a disclosure to the stock exchange on Friday.
“By the fifth year, DITO Tel would have paid off loans and achieved profitability,” it added.
The third telco player recently launched its mobile services in Metro Davao and Metro Cebu.
According to DITO CME, the telco startup is targeting to rollout its services in Metro Manila by May or June.
It also plans to introduce fixed broadband services to home consumers in the “next two years,” it added.
The new telco wants to capture 30% of the market “as soon as possible,” DITO Chief Technology Officer Rodolfo D. Santiago said at a recent online briefing.
Achieving the target is easier if the telco increases its population coverage to 84% or higher, he noted.
DITO Telecommunity is currently capable of serving 37.48% of the country’s population based on the technical audit report by R.G. Manabat & Co. It has a commitment to cover 84% of the population and provide an internet speed of at least 55 megabits per second by the end of its fifth year of commercial operations.
DITO CME Holdings shares closed 8.38% higher at P11.38 apiece on Friday. — Arjay L. Balinbin