Philippine telecommunications giant PLDT net income up 10% in first half

14:09, August 03, 2010      

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Philippine Long Distance Telephone Company (PLDT), a telecommunications giant in the country, posted a consolidated net income of 21.7 billion pesos (478.5 million U.S. dollars) in the first half of 2010, up 10 percent on year.

PLDT's consolidated core net income increased 2 percent to 21.2 billion pesos (467.4 million U.S. dollars), according to a disclosure issued Tuesday.

Company officials attributed the increased earnings to higher recurring net income and a net gain from foreign exchange revaluation of the company's financial assets and liabilities and derivatives.

The company's cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 43.3 billion pesos (954.8 million U.S. dollars) for an EBITDA margin of 60 percent.

PLDT Chairman Manuel V. Pangilinan said with the "encouraging" first half results, he expects the company's core profits for the whole year to surpass 41 billion pesos (904 million U.S. dollars).

"While we believe that there is still room for growth in the broadband space, we do recognize that our core markets are maturing. We are looking to move beyond the verticality of the traditional telco business model as we lay the groundwork for a more horizontal perspective via our strategic platform and infrastructure investments," Pangilinan said in a statement.

PLDT's consolidated service revenues declined 1 percent on year to 72.2 billion pesos (1.6 billion U.S. dollars) on reduced cellular data/text revenues. But the steady growth in voice revenues (which grew 3 percent) and broadband/internet and corporate data revenues (which rose 21 percent) supported overall revenue growth.

"Wireless broadband continues to be a strong engine for growth and viability. Meanwhile, we have been re-architecting to be a truly smart pipe, ready for the next big wave when mobile broadband devices, applications, multimedia platforms, and the cloud environment fuse together explosively down at the mass- market level," said Orlando B. Vea, Chief Wireless Adviser of Smart Communications Inc., PLDT"s cellular subsidiary.

Company officials said that the first half earnings report also recognize PLDT's equity share in the earnings of the Manila Electric Company (Meralco). The PLDT Communications and Energy Ventures, Inc (PCEV) and Metro Pacific Investments Corporation own 34.8 percent of Meralco's outstanding common shares.

Meralco, the country's biggest power retailer, posted a net income of 4.8 billion pesos (105.8 million U.S. dollars), up 51 percent on year, in the first half of 2010.

Source: Xinhua


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