Bayan posts P5.22B in core revenues for 2012
Manila, Philippines, 5 February 2013 – Bayan Telecommunications, Inc. (Bayan) today announced that it posted P5.22 billion in core revenues in 2012, eight percent higher than 2011.
This strong performance is attributed to the substantial growth in Bayan's data and voice services.
Data service revenues grew to P3.56 billion, up 11 percent or P256 million from 2011, driven by the increasing demand for data connectivity and internet connection.
DSL revenues grew year-on-year by 13 percent to P1.7 billion in 2012 mainly attributable to the increased usage of social media applications, the adoption of internet for education purposes. Bayan's DSL subscribers increased from last year by 12 percent to 132,000 subscribers.
Bayan's voice revenues, from its 184,000 subscriber base, reached P1.61B in 2012 up by four percent compared to 2011. The growth was due to Bayan's effective product bundling programs, expansion in select areas, and offering of innovative voice products for the corporate market.
"Last year was a banner year for us because all of our market groups posted positive growth as compared to 2011," the company said in a statement.
Bayan's business segment grew by 11 percent to P2.44 billion on a year-on-year basis due primarily to a combination of continuing demand for data connectivity and the success of Business Made Personal, Bayan's branding for its topnotch quality of accounts management.
The demand for connectivity was brought about by the uptake for its wide array of connectivity services and solutions such as internet services (Internet Access Service and DSL), data services (Metro Ethernet, IPVPN, Frame Relay and Leased Line), and Managed Services such as Cloud Computing, Managed CPE, Co-Location, Network Monitoring, Hosted Contact Center and Disaster Recovery Services.
Bayan's consumer segment, on the other hand, grew six percent to P2.19 billion, with growth coming from increased demand for DSL broadband and bundled packages.
Bayan Chief Operating Officer Rafael T. Aguado said one key and very important aspect for the company's good performance in 2012 can be attributed primarily to its employees.
"Beyond our products and services, it was our core strength – the people of Bayan, and their winning attitude," Aguado said, "that helped us achieve our targets."
Bayan's core EBITDA (Earnings before interest, taxes, depreciation and amortization) totaled P1.72 billion, or 13 percent higher than 2011.
In a related development, Bayan welcomed the recent successful tender offer bid of Globe Telecom to acquire its outstanding debts from its creditors.
In its stock market disclosure last December 26, 2012, Globe confirmed that the tender offer to purchase Bayan's debt has been a success with a 96.17% acceptance rate. With this, Globe now becomes Bayan's single biggest creditor under a court administered rehabilitation plan that the company entered into in 2004.
Mr. Aguado said the whole Bayan organization sees this as a positive development that will help strengthen the company's operations and enable it to become more competitive, help accelerate the completion of its rehabilitation, and one that will ultimately benefit its customers.