Debt payments force Dennis Uy firms to accumulate P15B in losses
MANILA -Three listed companies controlled by Davao-based businessman Dennis A. Uy racked up losses amounting to P15 billion during the fist nine months of 2023 amid rising debt costs while the group unloaded assets to support operations.
Losses were led by DITO CME, Uy’s telecommunications holding firm, followed by casino firm PH Resorts Group and Chelsea Logistics and Infrastructure Holdings.
DITO CME recorded a net loss of P12.96 billion, which was 50 percent lower than the same period in 2022, after it erased foreign exchange losses. Revenues jumped 60 percent to P8.1 billion while interest expenses nearly doubled to P6.25 billion.
DITO CME, which operates telco player DITO Telecommunity with partner China Telecom, ended the period with a capital deficiency of P38.6 billion while current liabilities eclipsed current assets by P212.4 billion.
The company said it secured commitments of up to $3.9 billion (P222.1 billion) from creditors. It also raised P5.5 billion though the sale of shares to third-party investors at P1 each to bankroll the ongoing network expansion of DITO Telecommunity.
PH Resorts, which is developing the $300-million Emerald Bay Casino & Resort in Cebu, saw losses surge 300 percent to P2.2 billion on revenues of P19.4 million. Its financial report showed interest payments soaring 2,300 percent to P2.1 billion. It also had current liabilities of P10.7 billion versus current assets of P43 million.
PH Resorts is in talks with third-party investors for the sale of the Cebu casino project.
It previously sold the 12.4-hectare property of the Emerald Bay project to creditor China Banking Corp. under a loan restructuring deal. It then signed a lease deal for the land and maintains an option to repurchase the property at a later date.
Chelsea Logistics cut losses from January to September this year by 30 percent to P1.04 billion as revenues improved 15 percent to P5.35 billion.
Finance costs remained significant at P973 million, up 2 percent, while current liabilities exceeded current assets by P6 billion.