PLDT’s 9-month net income up 7%

By Aerol John Pateña

November 9, 2017, 8:23 pm

MANILA -- Telecommunications and digital services provider PLDT’s net income for the first nine months of 2017 increased by 7 percent to PHP23.2 billion from PHP21.7 billion in the same period last year, driven by the sale of its subsidiaries Beacon Electric Asset Holdings Inc. and SPi Technologies.

The telco’s net income for the third quarter of 2017 likewise amounted to PHP5.8 billion, growing by 43 percent from PHP4 billion in the second quarter of this year.

Recurring core income was at PHP17.4 billion, higher by 5 percent year on year from PHP16.6 billion and in line with the target PHP22 billion for 2017.

Consolidated service revenues have reached PHP107.3 billion for the first nine months of the year, increasing by 4 percent from PHP111.8 billion in the same period last year due to the growth in PLDT’s data services.

The third quarter service revenues reached PHP36.1, a stable figure compared with that of the same period last year.

Data, broadband, and digital services were the key growth drivers for PLDT's business segments, namely, Home, Enterprise, and Wireless.

The cluster of service revenues grew 11 percent to PHP49.6 billion, representing 46 percent of total revenues.

“Data usage is driving all our businesses and we recognize that superior infrastructure is a key variable to providing the best data experience. We are therefore stepping up our investments in the next few years to ensure that our customers - whether individuals or companies -enjoy that experience via whatever device they are on, wherever they may be,” PLDT Group Chief Revenue Officer Eric Alberto said during a press conference in Makati City on Thursday.

Home revenues grew 12 percent to PHP24.3 billion, while Enterprise revenues increased 11 percent to PHP25.3 billion.

Home and Enterprise’s combined revenues rose quarter on quarter by 5 percent and 2 percent, respectively.

The Wireless Individual Business posted PHP44.2 billion in service revenues, 14 percent lower than the first three quarters of 2016.

Revenues in the third quarter of PHP14.6 billion were lower by 2 percent from the previous quarter due to seasonality, according to the company.

Home and Enterprise combined now account for 47 percent of revenues, surpassing the 41-percent contribution of the Wireless Individual Business.

The telco has allocated PHP38 billion as capital expenditures in 2017 to further expand its growth in the Home and Enterprise businesses.

“Our full-year capex guidance remains at PHP38 billion in 2017, with about another PHP15 billion committed already this year, but which we forecast will be finished in 2018. We will continue to ramp up our capital investments in the near-term, as we are determined to have the best network,” said PLDT Chairman and CEO Manuel V. Pangilinan.

PLDT aggressively rolled out its fiber internet facilities to serve residences and offices in more areas of the country.
Under its Smart Fibr Cities program, PLDT expanded the reach of its fiber to the home (FTTH) services in south and east Metro Manila, adding more than 370,000 fiber links that can deliver internet service to residences and offices.

The footprint of PLDT’s fiber network is on track to reach approximately four million homes by end of 2017, up from 2.8 million as of end-2016.
Pangilinan said PLDT would be focusing on its fixed line services to further sustain its growth for next year.

He likewise expects to gain profits from the remaining receivables on the sale of its Beacon shares in Manila Electric Co. (Meralco) to Metro Pacific Investments Corp. (MPIC) and its stake in German technology firm Rocket Internet.

“I think we will do significantly better in 2018," Pangilinan said. "PLDT will continue to show signs of recovery.” (PNA)