This change suggests that DITO is focusing on funding from long-term backers instead of raising fresh money from outside investors.
The plans, disclosed to the Philippine Stock Exchange on Tuesday, come as foreign-based Summit Telco Holdings Corp. moves to raise its stake in DITO, while Davao-based tycoon Dennis A. Uy scales back his exposure amid debt challenges faced by his group.
Summit Telco advanced billions of pesos last year
In its filing to the PSE, DITO said it is now planning to convert P26.53 billion in shareholder advances into equity, up from the earlier target of P15.96 billion.
The increase of about P10.6 billion is roughly the same as the P10.34 billion in advances put in by Summit Telco in 2024, DITO's latest annual report showed.
This was second only to the advances issued by China Telecom, which can no longer convert additional funds into equity after reaching the 40 percent foreign ownership limit set for state-owned enterprises.
Balance sheet boost
Shareholder advances are recorded as liabilities on DITO’s books, putting pressure on its capital position.
However, the company said the intention is to convert these advances into equity, which would increase Summit Telco’s stake and strengthen DITO CME’s balance sheet.
DITO faces significant capital gap
DITO recorded a P78-billion capital shortfall as of March 2025, mainly due to the massive cost of building a nationwide telecom network in just a few years.
Launched in 2021, DITO Telecommunity continues to grow, reaching 13.9 million subscribers as of March 2025.
DITO expects to be earnings before interest, taxes, depreciation, and amortization (EBITDA) positive by end-2025 and profitable by 2028, the filing showed.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
