Philippine Telegraph and Telephone Corporation (PTT) was incorporated in 1962 as a diversified telecommunications entity that caters to small and medium businesses, corporate, and residential segments.
The company is a subsidiary of Republic Telecommunications Holdings (RETELCOM), which owns 72.8 percent of PTT. RETELCOM has other telecommunication-based companies — Capitol Wireless Inc. and Philippine Wireless Inc.
RETELCOM had a challenging time during 1998 when the peso depreciated versus the dollar. It resulted in the company being unable to raise additional funds.
The company was unable to meet maturing obligations. Thus, it had to negotiate a restructuring of a substantial portion of its outstanding bonds.
In 2002, around 75 percent of the company’s liabilities were restructured, and the creditors signed the Master Restructuring Agreement accordingly. It was collectively called the “Definitive Agreements.”
However, the Definitive Agreements did not materialize. The company filed for a petition for Corporate Rehabilitation and Suspension of Payments in 2009.
The company is authorized to issue up to 1,500,000,000 authorized common stocks, wherein 800,000,000 are already listed in the Philippine Stock Exchange.
Nonetheless, the stock is still not tradable as a result of the application for voluntary suspension on December 10, 2004. It was approved on December 13, 2004.
PTT released its annual financial statements for the fiscal year ending June 30, 2017. Revenues reached PHP 124.50 million, a 40.52 percent increase from the recorded PHP 88.60 million in 2016.
In 2015, the company had revenues of PHP 57.50 million. It resulted in a growth income rate of 47 percent from 2015 to 2017.
The increase in the number of circuits caused the rise in the company revenues. The record totalled to 603 on June 30, 2017, from only 350 in 2016 and 259 in 2015.
The company capitalizes on fixed wire and wireless network. PTT saturated certain commercial business districts and had a relatively high average revenue per connected circuit — exceeding PHP 20,000 per month.
The company generated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of PHP 33.3 million in 2017. This figure was better than the recorded PHP 12.90 million in 2016 and PHP 2.60 million in 2015.
EBITDA margins continually improved from only 4 percent In 2015, 13 percent in 2016, to 25 percent in 2017.
Nonetheless, the company still recorded a net loss of PHP 26.91 million in 2017. This is better than the PHP 47.56 million loss in 2016 and PHP 58.63 million in 2015.
On August 20, 2018, PTT amended its Articles of Incorporation under Article VII requesting for an increase in its authorized capital stock. The increase was from PHP 3.8 billion to PHP 15.6 billion. This would allow the company to raise and secure more funds for its investments and operations.
PTT does not have any historical chart yet since it hasn’t resumed trading. The company, including some speculating traders and investors, expressed its interest in a bid to become the third TELCO in the country.
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