PLDT raises earnings goal

Telecom giant PLDT Inc. is upgrading its full-year recurring core earnings target for 2017, citing gains from its fixed-line business despite continued weakness in its wireless segment.

PLDT yesterday announced that its 2017 recurring core profit, which strips away asset sales like that of the disposal of its stake in Manila Electric Co. earlier this year, would hit P22 billion, higher than its initial guidance of P21.5 billion.

This was after booking a 5-percent rise in recurring core earnings to P17.4 billion in the nine months through September this year.

PLDT introduced recurring core profit at the start of 2017. This was to isolate other factors and provide a better picture of the company’s underlying telco business prospects, part of a so-called reset in its strategy.

PLDT also said core profit during the nine-month period hit P23.2 billion, up 7 percent. It is maintaining its core profit forecast of P28 for 2017.

Earnings before interest, tax, depreciation and amortization for the year was slashed to P68 billion from P70 billion.

PLDT chair and CEO Manuel V. Pangilinan said there were indicators pointing to better earnings for PLDT.

Leading the way in terms of growth was the company’s increasing focus on fixed-line internet. PLDT Home saw revenue grow 12 percent to P24.3 billion in the nine-month period, while enterprise revenue rose 11 percent to P25.3 billion.

The two segments account for 47 percent of revenue, which slid by 4 percent to P107.3 billion in the nine-month period.