PLDT income more than doubled in 2023 to P26.61B

FILE PHOTO

MANILA, Philippines  — PLDT Inc. more than doubled its net income to P26.61 billion last year after registering better revenues and a significant decline in expenses, strengthening its balance sheet that was previously injured by a multibillion-peso budget overrun.

This marks the return of the telco giant to the income level before it got embroiled in a P48-billion budget mess. In 2022, its net income plunged by 60 percent to P10.49 billion to account for accelerated depreciation related to overspending.

Revenues last year were up 3 percent to P210.95 billion, the bulk of which were accounted for by data and broadband business. Expenses declined by 24 percent to P158.47 billion as depreciation costs slowed down.

Core income improved by 3 percent to P34.34 billion last year. It is estimated to reach P35 billion this year as consolidated service revenue and earnings before interest, taxes, depreciation and amortization are projected to grow by mid-single digit.

2024 capex lower at P75B

PLDT chief financial officer Danny Yu said capital expenditure (capex) guidance was set at P75 billion to P78 billion this year—a reduction from P85.1 billion in 2023 and P96.8 billion in 2022.

READ: PLDT secures P1-B loan for fiber network expansion

Capital outlays for the year include the upgrade of cell sites, deployment of home broadband ports, data center and submarine cable investment.

Yu said bringing down capex would translate to a positive free cash flow, which the company can use to extinguish obligations. The telco player has a net debt of P239.8 billion as of end-December 2023.

“If we were to land P75 billion, including the carryover capex from previous years, we have around P30 billion to handle the interest expense, the taxes and the dividends,” PLDT Chair Manuel Pangilinan added.

READ: After announcing 12th data hub, PLDT wants another one

To inject more liquidity, Pangilinan said they were also planning to sell some of the company’s data center assets—and discussions with a potential foreign buyer were ongoing.

Sale of data center assets eyed

Gains from the sale are estimated to reach hundreds of millions of dollars, Pangilinan said, given that investment in data centers ranges from $6 million to $9 million per megawatt (MW). The company currently has 10 data centers with a 50-MW combined capacity.

READ: PLDT offers $3-M settlement of budget overrun US class suit

Meanwhile, PLDT chief legal counsel Marilyn Victorio-Aquino said the $3-million settlement for the budget overrun lawsuit was being processed for approval by the US District Court of Central District of California.“Once that is done, then the case against PLDT and all the defendants will be dismissed,” she said, noting the payment to plaintiffs would not impact the company’s financials.

Last year, to recall, aggrieved investors filed a class action suit against PLDT and some of its officials to receive compensation, claiming they have incurred losses in their shareholdings following the disclosure of the budget mess by the end of 2022.