Liberty Telecoms loses P1.13B in first 9 months

MANILA, Philippines - Liberty Telecoms Holdings Inc., a San Miguel-backed corporation which operates the wireless broadband Wi-Tribe, widened its net loss to P1.13 billion in the nine months ending September this year from only P741 million as a result of increased costs as it continued to invest in the expansion of its Internet infrastructure.

In a filing with securities regulators, Liberty Telecoms said cost and expenses shot up 71 percent to P1.48 billion as it accelerated its ongoing infrastructure project in a bid to attract more subscribers for its postpaid wi-max broadband services.

The company, however, more than doubled its revenues to P389.45 million from P115.2 8 million. Service revenue surged 241 percent compared with only P112 million.

Wi-Tribe Telecoms obtained a P1.1-billion short-term loan from a local bank and received additional interest-bearing advances from its major shareholders amounting to P220 million to cover its funding requirements for working capital, capital expenditures and operational expenses.

This resulted in a corresponding increase in total liabilities by 71 percent from P1.9 billion as of Dec. 31, 2010 to P3.25 billion as of Sept. 30 this year.

Cash increased by 47 percent or P84 million, representing the unutilized proceeds from the loan drawdown made and additional advances received during the period. This contributed to the four-percent increase in total assets from P5.12 billion to P5.34 billion.

“The Group is continuing the roll-out of its telecommunications network in order to make its wi-tribe broadband service available to more customers, and thereby result in the growth of the Group’s subscriber base and service revenue,” Liberty Telecoms said.

Liberty Telecoms said it expects to capture a portion of the market by offering reliable broadband services at competitive prices.

Wi-Tribe Telecoms, a joint venture between San Miguel and Qatar Telecoms, last week introduced a one of a kind prepaid Internet which gives subscribers the option to surf at speeds of up to six Mbps.

 Prepaid subscribers have several options to choose from: one day unlimited Internet service at 512 kbps for only P25, two Mbps for P45 or six Mbps at P145.