PLDT looking to hit core profit of P30B this year amid robust revenues

Telecom giant PLDT sees itself on track to deliver a core profit of P30 billion for the full year as demand for connectivity sent telco service revenues to record highs, driving a strong growth in nine-month core earnings.

Excluding the impact of one-off items, particularly the impact of asset sales, PLDT reported a nine-month core income of P23.1 billion, up by 10 percent year-on-year. For the third quarter alone, core profit amounted to P7.9 billion, rising by 11 percent year-on-year.

After taking into account revaluation losses due to the peso’s depreciation this year, PLDT’s attributable net income for the first nine months amounted to P18.85 billion, down by 4 percent year-on-year. This accounted for about 64 percent of the P29.32 billion net income that Bloomberg market consensus expects PLDT to deliver for the full year.

In the third quarter alone, PLDT’s attributable net income amounted to P5.92 billion, down by about 20 percent year-on-year.

Telco service revenues for the third quarter rose by 5 percent year-on-year to P46 billion, likewise improving from the second quarter level of P45 billion.

At end-September, PLDT’s consolidated service revenues, net of interconnection costs, rose by 7 percent year-on-year to P135.9 billion.

Group-wide subscriber base ended September at 77.78 million, 70.56 million of which comprised mobile users, down by 3 percent from end-2020 amid stiff competition. However, broadband and fixed-line subscribers rose by 22 percent and 13 percent, respectively, to 3.78 million and 3.44 million.

In a press briefing on Thursday, PLDT president Alfredo Panlilio said the group was on track to add at least 1 million fiber-to-home subscribers this year.

“The digital transformation of our country is at the top of the PLDT group’s agenda … and establishing the digital bank is a huge step forward for Voyager [Innovations] and PayMaya,” said Manuel V. Pangilinan, who chairs PLDT, as well as Voyager and PayMaya.

Riding on the synergy with PLDT Group’s digital capabilities and consumer base, digital bank Maya Bank will be launched by the first quarter of 2022.

“Nowadays, companies are measured on two additional metrics which define their market value: sustainability and digitalization. These are no longer options, but imperatives,” Pangilinan said.
At end-September, PLDT’s cash flow increased by 8 percent year-on-year to an all-time high of P71.1 billion, helped by lower tax rates.

—Doris Dumlao-Abadilla