PLDT remains bullish despite ‘softer market’
Manuel Pangilinan —CONTRIBUTED PHOTO
MANILA, Philippines — The “softening market” pulled the first quarter earnings of PLDT Inc., but the telco giant has remained optimistic with the growth potential of now-profitable Maya Bank and significant addressable market for home broadband business.
In a media briefing on Thursday, PLDT chair Manuel Pangilinan said it was “slightly concerning” that the country’s overall macro environment has weakened compared with the previous year.
The telco giant saw its net income drop by 8 percent to P9.03 billion in the first quarter. Total revenues, however, were up 2 percent to P55.28 billion.
READ: PLDT profit down 8% in Q1 as growth in expenses outpaces revenues
“We’re navigating a softer market environment but our fundamentals are intact,” PLDT chair and CEO Manuel Pangilinan said.
The country’s gross domestic product growth was at 5.4 percent in the first quarter—below the expected 5.9 percent. It was also slower compared with 5.9 percent booked in the same period a year ago.
Maya – a bright spot
But Pangilinan said that Maya is a bright spot for the company, as the digital bank registered P300-million net income in the first quarter. This translated to a share of P127 million for PLDT—a turnaround from P400 million loss last year.
With Maya having a good start, Pangilinan said its profits might even exceed P1 billion this year.
Pangilinan said PLDT was interested in increasing its 38-percent stake in Maya amid the positive outlook.
As of end-March, Maya has 6.8 million bank customers. Deposit balance stood at P44 billion.
READ: Digital bank Maya throws hat into premium credit card market
“We are just probably in the initial stages of growth. We see a lot of upside in the coming months,” Maya CEO and founder Orlando Vea said.
Broadband prospects
Meanwhile, PLDT chief operating officer Menardo Jimenez Jr. said that the home broadband market still has more room for growth.
Jimenez said that about 5 million households have yet to be penetrated by the company.
“Penetration is relative to price. As long as we hit the right price point, we’ll be able to hit and grow that market,” Jimenez said.
As of end-March, PLDT has home subscribers of 3.47 million. Mobile subscribers stooped at 58.61 million.
The telco giant spent P6.3 billion in capital expenditures (capex) in the first quarter. It programmed P68 billion to P70 billion in capex this year to build new cell sites, upgrade existing facilities and deploy home fiber ports, among others.
