MANILA, Philippines--Philippine Long Distance Telephone Co. on Tuesday reported a 49-percent increase in its net income for the third quarter due to higher recurring net income and lower net losses from foreign exchange fluctuations.

In a press briefing, company president Napoleon Nazareno said the country’s biggest telecommunications firm earned P10.2 billion in the July-to-September period, significantly higher than the P6.9 billion reported a year ago.

For the first nine months of the year, the company has so far earned P30 billion, representing a 15-percent increase from the P26.2 billion in the same period of 2008.

Despite this, company officials adopted a conservative stance for the rest of the year, being wary in particular about the adverse impact of the global financial crisis on consumer spending.

“As we had previously indicated, our third quarter performance was adversely impacted by the lagged effect of the global recession on our economy, compounded by the delay in school openings as a result of the ‘swine flu’ outbreak in the Philippines,” PLDT chair Manuel Pangilinan said. “The slowdown in economic and business activity was further exacerbated by successive natural calamities that battered the country, weakening what is already the slowest quarter of the year historically.”

He explained that the usual boost in the fourth quarter from holiday spending might be dampened by the recent typhoons, which caused extensive damage to the country’s infrastructure, adding that “even with OFW remittances holding up, we may see consumers adjusting their budgets and rethinking their spending priorities.”

Pangilinan said the company’s earnings before interest, taxes, depreciation and amortization (Ebitda) would likely be slightly lower once full-year figures are reported.

“We are taking a cautious stance and revising our revenue and Ebitda guidance to P146 billion and P88-88.5 billion, respectively, or a reduction of 1 percent and 2 percent from our previous guidance of P148 billion and P90 billion,” he added.

Nonetheless, PLDT still expects to report a core net income of P41 billion for the full year.

“Based on the nine-month results, and barring unforeseen circumstances, reported net income for the year is likely to exceed last year’s number,” Pangilinan said.

Daxim L. Lucas