Industry giant PLDT Inc. is moving to top record spending last year with a historic high of P78.4 billion in 2019.
The amount is about P20 billion larger than last year’s budget and will be mainly used to boost its fixed-line network as well as its mobile business, which posted a turnaround in 2018, officials said in a briefing on Thursday.
The aggressive investment figure is also in sync with what PLDT chair and CEO Manuel V. Pangilinan described as a mission to “restore the shine that’s been attributed to PLDT in the past.”
The company had been battered in previous years by its slow response to changing trends, chief among which was the massive consumer and business shift to internet-based applications.
On Thursday, Pangilinan said the company posted “satisfactory” results in 2018, which showed growth in profit and revenues for its home, enterprise and wireless businesses.
“Much work needs to be done, we’re not out of the woods yet,” Pangilinan said.
He said the company would still feel significant effects on its legacy business until 2020.
Accordingly, PLDT chief financial officer Anabelle Chua said the company was spending P48 billion this year on its fixed-line and mobile networks, including the early rollout of 5G.
For 2019, PLDT is targeting so-called telco core earnings, which do not include the operations of Voyager Innovations, to hit P26 billion versus P24.4 billion last year.
Core earnings dropped 7 percent to P25.85 billion in 2018 and Chua said PLDT was targeting roughly the same figure for 2019.
PLDT also disclosed that service revenues last year rose 2 percent to P146.88 billion. This was driven by its enterprise and home segments, which bolstered revenues by 10 percent or P38.4 billion and P36.4 billion, respectively.
The wireless consumer group also saw revenues increase 7 percent to P62.4 billion.