PLDT books P29-B profit in Jan-Sept

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) is confident that 2013 would be a turnaround year for the country’s largest telecommunications provider as it booked a two percent increase in net income and revenues in the first nine months of the year.

PLDT chairman Manuel V. Pangilinan said in a statement that the operating conditions in the first nine months of 2013 have been favorable for the industry as a whole.

“The competitive environment has remained intense but, with consolidation, has also allowed for growth. With the additional lift from the country’s positive economic situation, we are confident this is the year PLDT will turn the corner and return to a growth track,” Pangilinan said.

PLDT Treasurer Anabelle Chua said in a press conference that PLDT booked a net income of P29 billion from January to September this year or P600 million higher compared to the same period last year.

The increase was traced to the P1.1 billion rise in core net income as well as the P2 billion gain from the sale of SPI Global that was offset by P2.4 billion net foreign exchange and derivative losses and the P1.3 billion adjustments in Philippine Accounting Standard (PAS) 19.

“The increase was a result of the combined impact of higher core income, the gain from the sale of the business process outsourcing business, higher foreign exchange and derivative losses and the retroactive effect of the application of revised PAS 19,” Chua said.

She added that consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) grew four percent to P59.6 billion compared with the same period last year.

Chua pointed out that the consolidated service revenues of the PLDT Group likewise inched up by two percent to P121.6 billion as of end-September this year.

“Revenues from the data and Internet business more than offset the declines from international and national long distance streams,” she explained.

Data showed that revenues from mobile short messaging system (SMS), cellular domestic and local exchange carrier revenues inched up one percent to P73.1 billion and accounted for 60 percent of total revenues while non-SMS data revenues grew 15 percent to P25.9 billion with a 21 percent share.

National long distance, fixed international voice, cellular international voice and satellite revenues retreated by six percent to P22.6 billion for a share of 19 percent.

“PLDT anticipates a return to growth in 2013 with core net income for the year expected to grow to P38.3 billion,” Chua said.

PLDT president and chief executive officer Napoleon L. Nazareno told reporters that the company is sticking to its core net income guidance of P38.3 billion as business is expected to pick up in the last quarter due to the Christmas holidays.