MANILA, Philippines–Liberty Telecoms Holdings Inc., a listed provider of high-speed Internet services backed by San Miguel Corp. and Qatar Telecom, closed another year in the red while signaling—for the first time—that mounting losses are casting doubts on its business viability.
Liberty said in its 2014 annual report that net losses for the year amounted to P897.14 million against a net loss of P1.45 billion in 2013, while revenues from its core 4G broadband service launched five years ago also declined.
Liberty also said in the annual report that its deficit ballooned to P9.8 billion in 2014 compared with P8.91 billion a year before.
“These conditions indicate the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern,” Liberty said.
For now, its shareholders said they were “committed” to supporting the company in providing 4G Internet services, the company’s report showed.
“The group’s major shareholders, however, fully understand that these losses are expected,” it said.
Liberty’s internal assessment comes as domestic telecommunication giants like Philippine Long Distance Telephone Co. and Globe Telecom ramp up investments in the mobile Internet business.
Liberty, which is 49.76 percent held by SMC subsidiary Vega Telecom and 32.9 percent-owned by Qtel West Bay Holdings, is due to exit corporate rehabilitation in December 2016, the filing showed. Miguel R. Camus