PLDT core income hits P38.7 B
MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) has put itself back on the growth track it finally booked an increase in core net income last year after two years of steady decline.
PLDT president and chief executive officer Napoleon Nazareno said in a press conference that the company’s core income went up five percent to P38.7 billion last year from P36.9 billion in 2012, exceeding the P38.4-billion target for 2013.
“We are proud to announce that after two years of decline in our profitability, PLDT is firmly back on the growth track,†Nazareno pointed out.
He traced the higher core net income before exceptional items to the P4.3-billion increase in service revenues and higher earnings before income tax, depreciation and amortization (EBITDA).
The PLDT Group’s service revenues increased three percent to P164.1 billion last year from P159.7 billion as its wireless revenues grew three percent to P116.7 billion while its fixed line business expanded five percent to P61.9 billion.
The group’s revenues from data business surged 35 percent to P35.4 billion last year from P30.6 billion in 2012 while revenues from short messaging system (SMS), domestic voice, local exchange carrier and satellite business remained steady at P101.8 billion from P101.3 billion.
On the other hand, revenues from national long distance as well as fixed international voice and cellular international voice fell four percent to P26.9 billion from P27.9 billion.
“2013 was characterized by a structural shift in revenue mix,†he said.
He added that revenues from the growing data businesses are already larger than the legacy businesses.
The EBITDA of the PLDT Group inched up three percent to P77.6 billion from P75.4 billion as higher service revenues, P900 million lower cash operating expenses, and P1.1 billion increase in equity shares of subsidiaries offset the P2.2 billion increase in subsidies.
PLDT chairman Manuel V. Pangilinan said the company is looking at sustaining the growth as it expects a two percent increase in core net income to P39.5 billion next year from P38.7 billion last year.
“I am pleased to note that PLDT has turned the corner and is back on the growth track as demonstrated by the marked improvement in our 2013 numbers and early indications from the first two months of 2014. I fully expect our 2013 performance to be the springboard for continued growth,†Pangilinan said.
The PLDT Group’s reported net income slipped two percent to P35.4 billion last year from P36.1 billion due to higher foreign exchange and derivative losses, the P900 million estimated losses from Super Typhoon Yolanda, and the retroactive effect of the application of Revised Philippine Accounting Standard 19.
The lower net income could be attributed to the P3.7-billion foreign exchange and derivative losses before tax, the P1.3-billion manpower reduction program expense, and the P900 million estimated losses from Super Typhoon Yolanda.
The losses offset the P1.8 billion increase in core net income, the P2.2 billion sale of SPI Global, and the lower asset impairment of P800 million.
The company’s cellular subscriber base reached 70 million composed of 29.5 million Talk ‘N Text subscribers, 25.5 million subscribers of Smart Communications Inc. and 15.1 million subscribers of Sun Cellular.
The company also has 3.4 million fixed broadband subscribers and 2.1 million fixed line subscriber base.
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