PLDT keeps H1 profit at P18.4 billion

MANILA, Philippines — The largest Philippine telco expanded its wireless and enterprise segments in the first half of the year to keep its profit almost unblemished by industry challenges.

Based on its financial results released yesterday, PLDT Inc. plugged a profit of P18.41 billion in the first semester, almost intact from the P18.45 billion level a year ago.

PLDT’s core income – measured as profit from the primary business – went up by three percent to P18.01 billion, backed by the strength of its connectivity portfolio.

The telco turned in a
three-percent increase in its revenue to P107.58 billion, of which the largest source is wireless at P41.9 billion. Wireless arm Smart Communications Inc. has registered 60.8 million subscribers as of June, leading its competitors in terms of customer base.

PLDT also sourced P30 billion from broadband on the sustained expansion of its fiber network. Moreover, the telco generated P24 billion from enterprises, driven by businesses upgrading their digital networks and supported by the surging demand for cloud services and data centers.

On the other hand, PLDT tempered the growth in its expenses by one percent to P79.47 billion, as the company pursued cost-cutting measures for operational efficiency.

PLDT chairman, president and CEO Manuel V. Pangilinan said the telco industry is struggling to grow at exciting numbers as it contends the risk of market saturation, especially when most Filipinos are already locked in to a connectivity package.

In spite of this, Pangilinan is optimistic that PLDT can achieve its objectives for 2024 of growing in the mid-single digit level and booking a core income of P35 billion.

Likewise, Pangilinan confirmed an exclusive report by The STAR that PLDT has dropped out of negotiations with Japan’s Nippon Telegraph and Telephone Corp. (NTT) for the partial sale of its data centers. As was reported, he said NTT was bidding for a majority stake, but PLDT wants to keep control of the $1-billion portfolio.

Pangilinan, however, was hesitant to name who PLDT is entertaining right now, but said the telco will make proper disclosures once a deal is reached. The STAR reported that Europe’s CVC Capital Partners is keen on buying a minority stake.

PLDT, through VITRO Inc., manages a data center network of 11 facilities across Mega Manila, offering a combined capacity of 100 megawatts.