MANILA, Philippines - Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) will likely meet, if not exceed, its P41-billion core income target for 2009, or eight percent more than in 2008, company chairman Manuel V. Pangilinan said on Friday.
He also revealed that the country’s largest telecommunications company is also spending around P28 billion this year for capital expenditures, particularly for the expansion and upgrade of its mobile telecommunications and broadband networks. This year’s capex is higher than the 2009 spending of P27 billion.
PLDT earlier said it has revised its targets for revenue and earnings before interests, taxes, depreciation and amortization (EBITDA) for the whole of 2009 to P146 billion and P88.5 billion, respectively, or a reduction of one percent and two percent from their previous goals of P148 billion and P90 billion.
The new service revenue guidance number is still two percent more than that of 2008 while the revised EBITDA target is 0.15 to one percent higher than in 2008.
Pangilinan also said that based on the first nine months of 2009 results, and barring unforeseen circumstances, reported net income for the past year is likely to exceed the prior year’s number of P34 billion, adding that the fourth quarter 2009 core income will likely reach P10 billion.
The company is expected to announce its full year 2009 financial and operational results in March.
PLDT earlier reported a 15 percent increase in its reported net income to P30 billion for the first nine months of the year, as against P26.2 billion in the same period last year.
Core net income, net of exceptional items, rose 11 percent to P31 billion during the nine-month period from P27.8 billion a year earlier.
Pangilinan pointed out that the third quarter performance was adversely impacted by the lagged effect of the global recession on the economy, compounded by the delay in school openings as a result of the swine flu outbreak. The slowdown in economic and business activity was further exacerbated by successive natural calamities, weakening what is already the slowest quarter of the year historically.
“While we anticipate the usual boost in the fourth quarter from holiday spending, we expect that this may be somewhat dampened as the recent typhoons caused extensive damage all around. Even with OFW remittances holding up, we may see consumers adjusting their budgets and rethinking their spending priorities,” Pangilinan explained.
Meanwhile, PLDT president and CEO Napoleon Nazareno explained that the first three quarters of 2009 results reflect the higher recurring net income, lower net losses from the foreign exchange revaluation of their financial assets and liabilities and derivatives, and the lower statutory tax rate.
Consolidated EBITDA for the first nine months remained stable at P65.7 billion while EBITDA margin was at 61 percent. Service revenues increased by three percent to P108.3 billion, fuelled mainly by the four percent growth in data and broadband revenues.
Group capital expenditure stood at P18.1 billion for the period of which about P10.6 billion was spent for the wireless business, with capex for the whole of 2009 estimated to reach P27 billion.
Nazareno also reported that the group’s debt balance as of Sept. 30 stood at $2.1 billion, with net debt at $1.5 billion.