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Bayan
Telecommunications Inc. (Bayan), the phone company of
the Lopez group, paid a total of P2.339 billion in
obligations as of end-December, chief financial officer
Meldin Roy said Thursday.
In an
interview, the official said interest payments totaled
P1.862 billion, while the balance accounted for
principal payments.
The
company settles a portion of its obligations every
semester and pays interest on quarterly basis.
“The
total interest payments to date is P1.862 billion and
the total principal payments is P476 million. We have
now paid a total of P2.339 billion to settle our
obligations,” said
Roy.
This
year, Bayan is expected to shell out P557 million in
interest payments and P202 million in principal
payments. “We will repay a total of P759 million for
this year,” he said.
A
subsidiary of Benpress Holdings Corp., Bayan will use
internal funds to pay for its debts. If Bayan is able to
post a healthy performance then the company may exit
from rehabilitation earlier than 2023, Roy said.
“It will
depend on how the company will grow, so that the company
can generate enough funds to pay all of its debts. We
may also invite investors to come in to help us trim
down those debts,” said Roy.
Bayan
expects to wipe out its $325-million debt by 2023.
In the
first nine months of 2007, Bayan’s net income slipped 51
percent to P490.1 million from P1 billion a year
earlier.
During
the period, the company reported a 10 percent growth in
landline revenues that consist largely of service fees
from wired and wireless-landline subscribers at P1.59
billion mainly due to the impressive take-up of its
Bayan wireless landline service.
Voice
revenues derived from Bayan wireless-landline
represented 12 percent of the total voice revenues.
Bayan’s total voice revenues grew 6 percent as of the
third quarter of 2007 at P2.41 billion compared to P2.28
billion in 2006.
Bayan
Wireless Landline—now with more than 100,000
subscribers—has increased by 30 percent Bayan’s landline
subscriber base.
According to chief executive consultant Tunde Fafunwa,
subscriber growth in wireless landline is expected to
double this year which would lead to a higher revenue
contribution to overall business.
“The
business results for wireless landline underscore that
Bayan is capable of establishing leadership in this
category and being the best in delivering
wireless-landline service.”
Fafunwa
said Bayan will aggressively pursue opportunities in
sustaining the growth of wireless landline to impact in
a positive manner profitability in the short-term in
tandem with potential gains if any on the peso-dollar
exchange. |
