PLDT telco core earnings rise 10% to P23 billion in 9 months

MANILA, Philippines — PLDT Inc., the fully integrated telecommunications company chaired by Manuel V. Pangilinan, reported a 10 percent increase in telco core net income to P23.1 billion in the nine months to September, putting the company on track to reaching its full year guidance of P30 billion.

Pangilinan, chairman of PLDT, Voyager Innovations, and PayMaya, said the digital transformation of the country is at the top of the PLDT Group’s agenda including Maya Bank, the soon-to-be-launched digital bank authorized by the Bangko Sentral ng Pilipinas (BSP).

Enhancing PLDT’s existing solutions and services are PayMaya, the fintech arm of Voyager Innovations, and Maya Bank, Pangilinan said.

“We are cautiously optimistic as the economy recovers,” he said during the briefing.

With PayMaya, Maya Bank will promote a seamless digital banking experience among customers through its strong affiliation with PLDT and wireless arm Smart Communications Inc (Smart). The digital bank is likewise a huge step forward for Voyager and PayMaya.

“Maya Bank will be a key vehicle in hastening digital adoption among Filipinos through inclusive financial services,” Pangilinan said.

PLDT’s consolidated service revenues for the nine-month period rose seven percent to P135.9 billion, driven by record-high service revenues of P46 billion in the third quarter.

During the period, EBITDA increased by eight percent to an all-time high of P71.1 billion while third quarter EBITDA rose by eight percent to a record-high of P24.5 billion, marking its fifth consecutive quarter of record growth.

Excluding the impact of asset sales and Voyager Innovations, telco core income climbed 10 percent year-on-year, to P23.1 billion during the nine months, helped by lower tax rates. Third quarter core net income improved by 11 percent to P7.9 billion.

However, reported net income declined by four percent to P18.8 billion, “after taking into account revaluation losses due to the peso’s depreciation this year vis-à-vis the peso appreciation last year.”

“As a true customer-centric and leading-edge technology company, our vision is to empower all Filipinos in building a stronger nation - securing a sustainable future for everyone by providing world-class connectivity. We will be relentless towards this vision, which inspires us to deliver more and better,” said Alfredo Panlilio, president and CEO of PLDT and Smart.

In terms of revenues, PLDT’s fiber-to-the-home business delivered growth for the third quarter.

Service revenues hit P9 billion, up 83 percent.

Total Home revenue grew 25 percent o to P35.3 billion during the nine-month period, boosted by a revenue increase in the third quarter of 29 percent to P12.6 billion.

PLDT Homes’ total fiber capacity now stands at 5.29 million ports after the completion of 1.23 million fiber ports in 2021.

The total target port build-out for the year remains at 1.7 million.

PLDT Home added a record 324,000 fiber customers in the third quarter, ending September with a market leading fiber customer count of 2.09 million, and bringing total fixed broadband customers to 2.77 million. Having already gained 802,000 new fiber subscribers in the first nine months, PLDT Home is on track to exceed one million net new fiber subscribers this year.

Individual Wireless revenues grew three percent to P65.1 billion in the nine month period, despite challenging market conditions due to limited mobility, economic difficulties and competition.

Mobile data revenues likewise grew nine percent to P52.6 billion, as third quarter promos drove increase in usage.

For PayMaya, usage surged during the COVID-19 pandemic, reaching over 41 million registered users across its consumer platforms at end-September.

Last September, the BSP granted a digital banking license to Maya Bank, a digital bank that will primary focus on the largely unbanked and underserved consumers and micro-, small-, and medium-sized enterprises (MSMEs).

Maya Bank will also promote a seamless digital banking experience among customers. It will be launched by the first quarter of 2022.

“We are cautiously optimistic that as the economy reopens, we are best positioned to serve our customers through the new normal, as evidenced by our strong results for the first nine months of 2021. While all business units continue to show solid performance, this is more apparent in the Home business, where we pushed record installations in recognition of the connectivity needs of our customers,” Panlilio said.

Pangilinan underscored the company’s commitment to sustaining its leadership amid rapidly shifting patterns of business.

“In many ways, we have to adopt revolutionary aspects of leadership, adapting to abrupt changes where really needed, while maintaining the values that are important to the company,” Pangilinan said.