PLDT keeps acquisition tack

Philippine Long Distance Telephone Co., the country’s largest telecommunications firm, is keen on expanding via acquisitions or partnerships with domestic telco providers in the provinces, PLDT president Napoleon Nazareno said.

Nazareno, who stressed that there were no “concrete prospects” at present, said the company remained open to opportunities in Mindanao and parts of the Visayas.

“We are open to discussing with them where it is reasonable for us and appropriate,” Nazareno told reporters.

PLDT in September sealed an agreement with the Durano family, which owns Danao Telecom (Datelco), to provide telecommunications services in the city. This follows Datelco’s decision to wind down its local exchange business.

Datelco is the sole telco provider in Danao City in Cebu province.

Based on the agreement, Datelco will transfer its existing customers to PLDT’s network. The two companies also agreed to embark on joint marketing and promotions of PLDT’s products and services in Cebu’s 5th District.

PLDT has in the past acquired local telephone companies such as SubicTel, Clarktel in Central Luzon, Maranao Telecoms, CruzTelco Cluster 3 and Philcom in Mindanao.

Nazareno also noted that the company remained on track toward hitting its P38.3-billion core net income goal this year. The company will release its third quarter results in Nov. 5.

He noted that the industry was expecting continued growth through next year.

“The market will grow because the economy is growing positively,” Nazareno said. “In fact, this year, the entire telco market has grown. The first half was a growth year for the industry and I think the second half will be the same.”

PLDT booked a 2-percent increase in net income to P19.7 billion in the first six months of the year as consolidated service revenues hit P81.1 billion, up 2 percent.

PLDT attributed the small profit gain to the combined impact of higher core income, the gain from the sale of the business process outsourcing (BPO) business, higher foreign exchange and derivative losses, and the retroactive effect of the recognition of termination benefits.

PLDT said core net income during the period was up 5 percent at P19.4 billion. PLDT president Napoleon Nazareno said the company was maintaining its full-year core net income target of P38.3 billion.