Market issue/event

DITO Telecommunity Corp. is set to start commercial operations in 17 cities and municipalities in Mindanao and the Visayas on March 8.

Opinion

DITO will first launch commercially in cities and municipalities in Davao and Cebu with the full nationwide rollout expected by mid-2021. Despite the seemingly adequate capacity of DITO’s services as indicated in the findings of its first technical audit, we see DITO’s play to be highly localized unless management decided to be aggressive on subscriber acquisition by pursuing lower pricing for its services or other subsidies for potential subscribers, which may exacerbate further the drag on its cash flow given its high D/E ratio of 7.5x and expected CAPEX of P26 Billion – P27 Billion per year until 2024.

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