Latest Stories

PLDT posts 8% decline in Q1 net profit to P9.2B

Firm on track to hitting P38.3-B income goal


Philippine Long Distance Telephone Co. (PLDT) said its net income for the first quarter declined 8 percent to P9.2 billion, mainly on lower financial gains and employee termination expenses, but officials stayed upbeat despite the shifting trends in its key business units.

PLDT, which posted flat growth in service revenues at P40 billion during the quarter, remained on track to hit core net income of P38.3 billion, up 2.7 percent, a regulatory filing showed.

In a press briefing yesterday, PLDT officials also discussed the company’s operating results so far this year as they outlined changes in the company’s revenue model due to the rise of broadband and Internet services.

PLDT president Napoleon Nazareno noted declines in its “legacy” national and international long-distance revenues, double-digit growth in the broadband and Internet business and flattening revenues for the flagship wireless unit.

Nazareno said national and international long-distance revenues, which accounted for 17 percent of service earnings, dropped 9 percent to P6.6 billion with further declines forecast to continue due to the appreciation of the peso and growth in broadband.

Broadband and Internet revenues grew 10 percent to P6.4 billion, although Nazareno noted that margins remained lower than its legacy business.

“Double-digit growth in data and broadband are not yet sufficient to fully offset the decline in legacy revenues,” Nazareno said. “But the margins should improve once we increase network efficiency.”

Most of the company’s service revenues still came from the wireless business, which grew just 0.34 percent to P28.5 billion.

“As we have seen in the past few years, our service revenue levels are challenged by an evolving revenue mix,” PLDT chair Manuel V. Pangilinan said. “Fortunately, we saw a solid 10-percent growth in our broadband and Internet revenues. Overall, we are encouraged that the growth in these data revenues is offsetting the softness in other revenue segments.”

PLDT shares rose 0.06 percent to P3,076 each, giving the telecommunications giant a market value of P664.6 billion as of Tuesday’s close.

Meanwhile, the company’s combined subscriber base, which comprises Smart, Sun and Talk ‘N Text, grew 3 percent to 71.7 million subscribers quarter-on-quarter.

Nazareno said that competition for subscribers with Globe Telecom, the country’s second-biggest player behind PLDT’s brands, remained intense even after PLDT acquired Digitel Telecommunications Philippines Inc. two years ago.

“The competitive situation remains the same although moving forward we are looking at trying to grow the market by increasing our value-added services in broadband,” Nazareno said.

PLDT is set to receive an earnings boost in the second quarter when it books a P1.6-billion exceptional gain from the sale of its business process outsourcing (BPO) business.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , PLDT , profitability

  • Pablo Juan

    well revenues will continue to decline.. I wanted to get the galaxy s 4 from smart because globe’s services are flaky… the free GS4 bundle is at about P2k a month.. if I wanted unlimited internet with LTE it will cost an additional P999 so that’s P3k a month.. about P1k more expensive compared to the globe offer. How can I “Jump! Jump! Jump!” with this type of pricing?

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Security in place for Obama as police hope for ‘peaceful’ visit
  • Retired SC justice Lorenzo Relova; 98
  • Ligots fight 2nd forfeiture case
  • PH will be partly cloudy in afternoon, evening—Pagasa
  • Ex-COA chief nabbed for plunder
  • Sports

  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • NLEX roars to 7th D-League win
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • HK victims to get P115M; traders raised money
  • Afghan hospital guard kills 3 US doctors, including Fil-Am pediatrician
  • Marketplace