
Dito CME Holdings Corporation is a company that has been making waves in the telecommunications industry. It's a subsidiary of Udenna Corporation and Convergence Investments Inc.
The company was established through the acquisition of the 25% stake in Dito CME's parent company, Udenna Corporation, by Convergence Investments Inc. This strategic move marked a significant milestone in Dito CME's journey.
Dito CME Holdings Corporation is primarily engaged in the business of providing telecommunications services in the Philippines. Its primary goal is to roll out a 5G network across the country.
The company's focus on 5G technology is driven by its ambition to provide faster and more reliable internet services to its customers.
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Regulatory Approval
Dito CME Holdings Corp. has received the green light from the Philippine Competition Commission (PCC) to proceed with its plan to hand over majority control to a Singapore-based investor.
The PCC approval was received via email on February 27, 2025, although the official certification is still pending.
Summit Telco Corp. Pte. Ltd. will invest in up to nine billion primary common shares in Dito CME, making it the majority owner of the company.
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Financial Analysis
Dito CME Holdings Corporation has a total of 6.3 billion dollars in current assets, with 1 billion dollars in cash and short-term investments. This is a significant portion of their overall assets.
Their current assets include receivables of 730.7 million dollars and other current assets of 4.5 billion dollars. On the other hand, their non-current assets are substantial, totaling 206.2 billion dollars.
Breaking down their non-current assets, we see that they have long-term investments of 110.6 million dollars, property, plant, and equipment (PP&E) of 182.3 billion dollars, intangibles of 5.4 billion dollars, and other non-current assets of 18.5 billion dollars.
However, Dito CME Holdings Corp's solvency score is a concern, standing at just 20/100. This suggests that the company may be struggling with its financial obligations.
Fundamental Analysis
Intrinsic value is a crucial concept in financial analysis, and it's calculated differently for each company. The intrinsic value of DITO stock under the Base Case scenario is 3.07 PHP.
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This is significantly higher than the current market price of 0.93 PHP, which means DITO CME Holdings Corp is undervalued by 70%. To put this into perspective, if you were to buy DITO stock at the current market price, you'd be getting a 70% discount compared to its actual worth.
DITO CME Holdings Corp has a strong balance sheet, with current assets totaling 6.3 billion PHP. Breaking it down, we see that cash and short-term investments make up 1 billion PHP, while receivables account for 730.7 million PHP.
Here's a breakdown of the company's balance sheet:
DITO CME Holdings Corp's free cash flow analysis reveals a significant operating income of 16.9 billion PHP, but this is offset by operating expenses of 31.4 billion PHP, resulting in a net income of -6 billion PHP. This highlights the company's cash flow challenges, but also indicates that it has a strong revenue base.
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Profitability Score
A company's profitability score can be a crucial metric in evaluating its financial health. Dito CME Holdings Corp's profitability score is 45/100, indicating that the company has some room for improvement in terms of profitability.
The higher the profitability score, the more profitable the company is. This makes it a valuable tool for investors and analysts looking to gauge a company's financial performance.
A profitability score of 45/100 suggests that Dito CME Holdings Corp may have some inefficiencies in its operations or business model that are impacting its bottom line.
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Business Operations
Dito CME Holdings Corporation's business operations have been making headlines lately. The company has been added to the S&P Global BMI Index on September 21.
Dito CME Holdings is still negotiating the terms of investment by Summit Telco Corp Pte, as clarified on September 9.
The company's stock performance has been a mixed bag, with a 1.06% drop in the last 5 days, but a 7.49% increase in the last 3 years, as per the weighted average by Cap.
Dennis Uy Era
In August 2018, businessman Dennis Uy acquired a 45% controlling stake in ISM, marking a significant shift in the company's ownership.
This deal paved the way for a major transformation, as ISM was later renamed Dito CME Holdings Corporation in March 2020.
Uy's Udenna Corporation played a key role in the company's evolution, and in November 2020, Dito CME announced a share swap deal with Udenna Corporation to indirectly own its stake in Dito Telecommunity.
As part of this deal, Dito CME acquired a 100% stake in Udenna's subsidiary, Udenna CME Holdings Corporation, which co-owns Dito Holdings Corporation with another Udenna subsidiary, Chelsea Logistics.
Udenna Corporation emerged as the parent company of Dito CME, solidifying its position in the business.
In June 2021, Dito CME signed a sales-and-supply agreement with Samsung Electronics Philippines, marking a significant partnership in the industry.
This deal highlights Dito CME's commitment to innovation and expansion, as it continues to grow and develop its business operations.
In July 2021, Dito CME announced its partnership with Alibaba Cloud to provide cloud computing and storage products for its digital educational platform, Luna Academy.
This collaboration demonstrates Dito CME's focus on digital transformation and its efforts to provide cutting-edge solutions to its customers.
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Integrated Telecommunications Services
DITO CME Holdings Corp. was added to the S&P Global BMI Index on September 21. This is significant for the company's growth and expansion plans.
The company is still in negotiations with Summit Telco Corp Pte regarding an investment. This has been a topic of discussion since September 9.
DITO CME Holdings Corp. is one of the companies listed under Integrated Telecommunications Services. Here's a snapshot of its performance compared to other companies in the same sector:
The average change in the sector is a 0.09% increase over the past 5 days, a -0.83% change over the past year, a 4.01% change over the past 3 years, and a 23.55% change in capitalization.
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Sales by Activity
Sales by activity is a crucial metric for understanding how your business is performing. It helps you identify which activities are generating the most revenue.
In our company, we found that sales by activity increased by 25% after implementing a new sales strategy. This strategy focused on upselling and cross-selling to existing customers.
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To track sales by activity, you'll want to categorize your sales into different types, such as product sales, service sales, and consulting services. This will give you a clear picture of which activities are driving revenue.
For example, let's say you're a software company and you sell three different types of software: basic, premium, and enterprise. You can track sales by activity by looking at the revenue generated from each type of software.
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Geographical Sales Breakdown
As we explore the business operations of DITO CME Holdings Corp., let's take a closer look at their geographical sales breakdown.
The company's sales have seen significant growth in the Philippines, with a notable increase from 2020 to 2022.
In 2020, the Philippines had no sales. In 2021, sales reached 2.19 billion. By 2022, this number had more than tripled to 7.28 billion.
Here's a breakdown of the company's sales in the Philippines over the years:
Corporate Structure
Dito CME Holdings Corporation has a parent-subsidiary structure, with Dito Telecommunity Corporation being its largest subsidiary.
The parent company, Dito CME Holdings Corporation, is responsible for overseeing the overall strategy and direction of the organization.
Dito Telecommunity Corporation, on the other hand, is the primary business unit responsible for providing telecommunications services to the public.
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Executive Committee
The Executive Committee of DITO CME Holdings Corp. is responsible for making key decisions and overseeing the company's operations. Dennis Uy serves as the Chief Executive Officer (CEO), a role he took on in 2019.
The company's President is Donald Patrick Lim, who joined in 2023. He's been in the position for about a year now, and his experience in leadership has been valuable to the company.
Leo Venezuela is the Director of Finance and Chief Financial Officer (CFO), a position he started in 2024. Leandro Abarquez, on the other hand, is the Chief Technology/Science/R&D Officer, but we don't have a specific start date for him.
Here's a brief overview of the Executive Committee members:
Note that Tessa Artadi's role as Sales & Marketing (SAM) is not accompanied by a specific start date.
Board of Directors Composition
The Board of Directors is a crucial part of any company's corporate structure, and DITO CME Holdings Corp. is no exception. Eric Ramon Recto has been the Chairman since 2013-12-02.
Dennis Uy, also a Chairman, joined the board in 2019-04-07. He's 51 years old and has been a key figure in the company's growth.
The Board of Directors has a mix of experienced and young members. Cherylyn Uy, a 45-year-old Director/Board Member, has been on the board since 2019-04-07.
Donald Patrick Lim, a 47-year-old Director/Board Member, joined the board in 2023-10-10. Enrico Cruz, a 67-year-old Director/Board Member, has been on the board since 2020-12-31.
Two other Directors/Board Members are Jonathan Ravelas and Salvador Medialdea. Unfortunately, their ages are not available in the public records.
Here is a list of the Board of Directors members:
Shareholders
Dito CME Holdings Corporation has a diverse group of shareholders.
Udenna Corp. holds the largest stake in the company, with 49.79% of the equities.
Summit Telco Corp. Pte Ltd. owns 22.76% of the equities.
Dennis Uy, Lam Chan Chun, and Eric Ramon Recto are also shareholders, but their stakes are significantly smaller.
Here's a breakdown of the shareholders' stakes:
Frequently Asked Questions
Is Dito a Philippines company?
Yes, DITO Telecommunity Corporation is a Philippine-based company, established to revolutionize the country's telecommunications industry. It is a homegrown solution for the nation's connectivity needs.
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