Dennis Uy companies cut losses in 9 months

MANILA, Philippines — The logistics and telco businesses of Davao-based billionaire Dennis Uy are regaining their footing financially, trimming their losses by double digits as revenues grow steadily this year.

Based on its financial report, Chelsea Logistics and Infrastructure Holdings Corp. cut its net loss by 30 percent to P1.04 billion from January to September compared to its losses of P1.49 billion a year ago.

Chelsea attributed the improvement to the 16 percent rise in revenue to P5.35 billion, coupled with a one percent dip in expenses to P4.24 billion.

The logistics arm of the Udenna Group received the bulk of its earnings from the freight segment at P2.67 billion due to increased cargo volume. It also got a significant contribution from its passage unit at P1.4 billion, as Filipinos began to travel again after deferring plans due to the pandemic.

Chelsea, however, remains wary of economic challenges that could hinder its full recovery. For one, the company is trying to address vessel availability issues to ferry the growing demand for cargo and passenger services.

Chelsea chief financial officer Ignacia Braga IV said the shipper can sustain its momentum in the fourth quarter, supported by its expanded menu of services and the rebounding demand for logistics.

On the other hand, Dito CME Holdings Corp. reduced its net loss by 60 percent to P5.73 billion in the nine months to September, from P14.2 billion during the same period last year.

Dito CME, the parent of telco newcomer Dito Telecommunity Corp., increased its revenue by 60 percent to P8.08 billion, mitigating the 18 percent rise in expenses to P17.68 billion.

Dito CME traced the revenue growth to the coverage expansion of Dito Telecommunity that has reached 843 areas as of September. This allowed Dito Telecommunity to claim about 7.8 million subscribers where it sources the bulk of its earnings through the sale of mobile services.

Recently, Dito CME has gone on a selling spree to raise fresh funds for the expansion projects of Dito Telecommunity. The company issued 4.89 billion shares for P1 a piece to Singapore-based Summit Telco Corp. Pte. Ltd, allowing the foreign entity to own 25 percent of Dito CME.

On top of the selling spree, Dito Telecommunity signed a $3.9 billion loan, maturing in 15 years, with foreign banks, marking one of the largest long-term debts arranged for a local company.