PLDT Jan-Sept profit weakens as sales slip

PHILIPPINE Long Distance Telephone Co. (PLDT) highlighted the need for government’s support in boosting Internet services during a quarterly earnings briefing that was dominated by questions over the possible entry of Australia’s Telstra Corp. Ltd. in the country.

PLDT announced its nine-month earnings Tuesday, less than a week after Telstra CEO Andy Penn criticized services provided by incumbent players PLDT and Globe Telecom, while saying they may invest about $1 billion in the Philippines as their share in a possible venture with San Miguel Corp.

The company said core profit in the January to September period of 2015 was down 5 percent to P27.1 billion as service revenues slipped 1 percent to P122 billion.

The decline was expected, as PLDT kept its full-year profit guidance at P35 billion, about 6.4 percent lower than 2014. PLDT, which is spending a record P43 billion this year, will see “elevated” capital investments through 2017 as it improves its network, PLDT chair Manuel V. Pangilinan said.

Meanwhile, he said it was difficult for them to speculate on Telstra’s plans, although SMC had indicated that talks were still ongoing and a new service could be launched by 2016.