Beacon divestment lifts PLDT's core income to over P12B
MANILA, Philippines (UPDATED) – A divestment in Beacon Electric Asset Holdings Incorporated (Beacon) and a manpower reduction program lifted PLDT Incorporated's core income for the 2nd quarter of 2017 to P12.1 billion.
This is compared to the P10.5-billion core income that the telecommunications giant registered in the 2nd quarter of 2016.
Aside from the sale of its Beacon assets and its manpower reduction program, Pangilinan said PLDT also did not incur any impairment losses from its investment in German e-commerce company Rocket Internet SE during the 2nd quarter of the year. (READ: PLDT's income drops by 33% on Rocket Internet losses)
"I'm satisfied because we are on the right track. However, there are still many tasks ahead of us, particularly in the wireless side. Significant growth in traffic volume in that area did not match growth in revenue. There is still a huge effort needed to monetize the growth in traffic," PLDT chairman Manuel Pangilinan said in a media briefing in Makati City on Thursday, August 10.
The company's service revenues slightly fell to P37.68 billion in the 2nd quarter of 2017, from the P40 billion it registered in the same period in 2016.
Wireless revenues, including international long distance, decreased to P20.6 billion in the 2nd quarter of 2017, from P24 billion in the same period a year ago. The PLDT chief said this was mainly brought down by international long distance and SMS.
Meanwhile, fixed revenues, including international long distance, increased to P17.3 billion in the 2nd quarter of 2017, from P15.5 billion in its comparable period.
"On the fixed side, we are slightly more confident. We can maintain double-digit growth in revenues, both enterprise side and fixed side," Pangilinan said.
Pangilinan: On the right track
PLDT's 2nd quarter performance narrowed its decline in core income in the 1st half of 2017 to P17.43 billion, from P17.7 billion in the same period a year ago.
During the 1st 6 months of 2017, PLDT saw its service revenues decline by 6% to P75.38 billion from P80.60 billion.
"We have made steady progress in the 1st half of this year in stabilizing our overall business and positioning the group to return to a growth path, largely on the back of data and broadband services," Pangilinan said.
PLDT has set its earnings before interest, taxes, depreciation, and amortization (EBITDA) target for 2016 to P70 billion, from P61.2 billion in 2016.
PLDT also lowered its capital spending budget to P38 billion in 2017, from the original P46 billion.
With improved quarterly results, Pangilinan said PLDT maintains core profit guidance, including exceptionals, of "around P28 billion" for 2017. – Rappler.com