BayanTel expects to post loss on higher dollar-denominated debts

Bayan Communications (BayanTel) chief executive consultant Tunde Fafunwa says the company is likely to record a loss in FY2008 as the weakening peso makes the operator’s dollar-denominated debts more expensive to service. Fafunwa said that with the peso currently at more than PHP47 per US dollar, BayanTel expected to ‘end up with negative figures because of foreign exchange losses, not operational losses’. In a briefing yesterday, he went on to say that the losses would come despite success in signing up new subscribers – especially to its broadband internet services. As of 30 June BayanTel had 160,000 fixed wireless subscribers, a figure it hopes to increase to more than 200,000 by the year end. In addition, BayanTel is looking to increase its DSL internet subscriptions from 60,000 to 90,000 subscribers. By contrast, the telco’s fixed line telephony base continues to fall and is forecast to drop by more than 10,000 this year, to 230,000.