PT&T sees return to profitability this year with broadband business

Philippine Telegraph & Telephone Corp. (PT&T) expects to post a profit in 2018 on the back of steady growth from its fixed broadband business.

In its 2017 annual report, the company said it was “reasonably optimistic that a positive profitability can be achieved in the subsequent fiscal year,” citing a trend of narrowing losses since 2015. PT&T’s fiscal year ends in June.

This is the first annual report issued by PT&T since it sought a voluntary trading suspension in 2004.

Its release is part of PT&T’s goal to resume trading at the Philippine Stock Exchange (PSE) ever since a new set of owners, led by businessmen Salvador Zamora II and Benjamin Bitanga, took a controlling stake in the company last year.

PT&T noted in its report that it is currently focused on its broadband internet services. The company offers a dedicated or shared internet access service, via fiber or wireless, and operates a 10+ Gbps broadband network across Metro Manila and nearby provinces. It mainly caters to corporate and  residential customers.

PT&T’s broadband revenues have been rising in recent years. In 2017, the segment generated P124.47 million in sales, up 40 percent. PT&T posted a net loss of P26.9 million in 2017, less than the loss of P47.56 million the previous year.

PT&T said revenues in broadband have been a key driver of its “encouraging financial performance.” It noted that from 174 broadband circuits in 2015, it ended 2017 wth 603 circuits.

Earlier this month, PT&T said it would comply with the requirements set by the PSE in line with its petition to lift the trading suspension.

PT&T said the resumption of trading would help pave the way for the entry of interested investors. This is linked to its bid to join the government’s “third telco” initiative. The Department of Information and Communications Technology said it expects to name a new major telco player within the fourth quarter of 2018.

PT&T is also currently seeking to exit corporate rehabilitation.

On Aug. 6, the Regional Trial Court of Makati City Branch 66 approved the request of PT&T that it be allowed to exit from rehabilitation subject to compliance with certain requirements under the approved Rehabilitation Plan.

Under a court-approved 14-year rehabilitation plan, the P8.8 billion debts from its creditors would be paid in redeemable serial preferred shares of PT&T.