Bayan posts 15% revenue hike, but ends year with P777-million loss

MANILA, Philippines - Lopez-owned Bayan Telecommunications (Bayan) posted a 15-percent growth in revenues to P6.3 billion last year, driven largely by strong subscriber growths in its voice, broadband and strategic services, but ended the year with a P777-million loss due to unrealized foreign exchange gains.

Company officials also reported that earnings before interests, taxes, depreciation and amortization (EBITDA) increased 34 percent to P1.88 billion in 2008, from P1.4 billion the previous year.

“Bayan has shown that it is able to compete effectively in the aggressive telecommunications industry, and in this uncertain economy, by giving its customers more value for their money through superior service and simplified products. In an industry dominated by prepaid services, our subscriber base is primarily postpaid which gives us a much higher ARPU than industry standards and proves that our subscribers choose to commit to us,” Bayan chief executive consultant Tunde Fafunwa said.

He noted that their strategic move to offer unlimited talking through the Bayan Wireless Landline (BWL), while maintaining their advantage in fixed voice and data services, is starting to pay off.

Revenue growth was driven by an 11- percent gain in voice services, to P3.8 billion from P3.3 billion the previous year, with a marked increase of 123 percent for BWL.

Data and Internet revenues went up 18 percent to P2.4 billion last year, from P2.05 billion in 2007. Internet revenues, including Bayan DSL, jumped 36 percent to P1.4 billion, from P1 billion the other year.

Total subscribers rose nine percent to more than 500,000 by the end of 2008. Residential broadband subscribers grew 113 percent to end the year with 105,000. Bayan also to maintained its market leadership in the wireless landline category with a 30-percent increase in 2008 to 180,000 postpaid clients..

At present, Bayan offers wireless landline services in Metro Manila, Naga, Legaspi, Tacloban, Samar, Davao, Iloilo, Cagayan De Oro, and General Santos cities.

Also yesterday, Bayan announced the expansion of its broadband services to other parts of Metro Manila through its new wireless service.

Bayan’s new wireless broadband service uses its existing Bayan Wireless Landline infrastructure using Evolution-Data Optimized (EVDO) technology to deliver unlimited broadband service with speeds up to 256kbps to households beyond Bayan’s traditional data service areas including Makati, Pasig, Pasay, Muntinlupa, Las Piñas, Parañaque, Taguig, Mandaluyong and San Juan. Going wireless is also an option for people in Quezon City, Manila and Malabon.

Bayan reported a 113-percent increase in its broadband base in 2008 from 2007’s 50,000 subscribers to end the year at 105,000 with 25 percent of its Bayan Wireless Landline users also using their units to connect to the Internet.

Fafunwa said that with the service available in more areas, they expect to grow their broadband base by 50 percent to reach at least 160,000 households by the end of 2009.”