Lopez-led Bayan posts losses last year, reversing profitability in 2007

MANILA, Philippines - Bayan Telecommunications Inc. reversed last year’s profitability by posting losses this year due to the peso’s depreciation against the US dollar. Net losses reached P777 million in 2008, one year after it reported earnings of P2 billion the previous year, the company said, blaming the plunge of the peso which reached P47 to a dollar from only P41. As a result, the company posted unrealized foreign exchange losses worth P2.7 billion last year, reversing its foreign exchange gains of P3.3 billion last year. However, despite the worrisome global conditions, the company remains optimistic of earning more revenues this year, Tunde Fafunwa, Bayan’s chief executive said. “We are tempering our expectations to below single digit growth," Fafunwa told reporters. Revenues last year reached P6.3 billion, 15 percent more than P5.5 billion reported in 2007. Revenue expansion was boosted by an 11 percent rise in voice services to P3.8 billon, compared to P3.3 billion the previous year. The rise was mainly the result of the 123 percent hike in Bayan Wireless Landlines (BWLL). Currently, the company’s BWLL subscribers are at 180,000 and growing. BWLL customers are expected to reach 230,000 by year end. Data and Internet revenues amounted to P2.4 billion, while Internet, including Bayan digital subscriber lines (DSL) reached P1.4 billion. An estimated P1.2 billion in capital expenditures – sourced from internally-generated funds – have already been allotted this year to bankroll the expansion of its wireless landline network nationwide. Bayan currently offers wireless landline services in Metro Manila, Naga, Legaspi, Tacloban, Samar, Davao, Iloilo, Cagayan de Oro and General Santos cities. Bayan will also expand its broadband services to other parts of Metro Manila through its new service that uses Evolution-Data Optimized (EVDO) technology to deliver unlimited broadband access. With its offerings available in more areas, the company expects to increase its broadband base by 50 percent to reach at least 160,000 households by end of 2009, Fafunwa said. Bayan is a privately-held company under the Lopez group which controls ABS-CBN, the rival of GMA Network Inc. GMA Network Inc. is the parent of Media Merge Corp., the company which runs GMANews.TV. - GMANews.TV