PLDT, Inc. saw its attributable profit drop by 16% in the third quarter, as higher revenues from its wireless business were weighed down by lower earnings from its fixed-line and other businesses.
In a regulatory filing, the listed telecommunications giant posted a net income attributable to the parent of P3.79 billion, as revenues slipped 5% to P42.45 billion.
For the nine-month period, PLDT’s attributable net income fell 2% to P16 billion, on “higher (manpower rightsizing program) expenses and lower gains from the sale of Rocket Internet sales.”
Revenues rose 2% to P124.43 billion during the January to September period, “primarily due to higher revenues from data services in our Wireless and Fixed Line business segments, partially offset by lower revenues from voice and SMS services in our Wireless business segment, and lower non-service revenues in our Wireless and Fixed Line business segments, as well as lower revenues from our Other business segment due to the deconsolidation of (Voyager Innovations) in November 2018.”
Third-quarter service revenues stood at P39.6 billion, up 9% year on year. For the nine-month period, consolidated service revenues rose 8% to P116.3 billion, which was the “highest nine-month revenue level ever attained by PLDT, surpassing the previous peak in 2014,” the telco said.
Data and broadband now account for 66% of total service revenues, growing 20% to P76.7 billion in the first nine months.
PLDT said its consumer wireless business saw a 21% rise in revenues to P18.2 billion in the third quarter, bringing the year-to-date tally to P52.6 billion, up 20%. The bulk or 68% of revenues came from data.
Mobile internet revenues surged 47% year-on-year, as mobile internet traffic doubled to 1.1 Exabytes in the first nine months of 2019.
The Home business generated P27.6 billion in revenues during the January to September period, 2% higher than a year ago. Around 77% of its revenues came from data/broadband services.
PLDT’s enterprise group posted P29.2 billion in revenues in the nine-month period, a 6% increase from a year ago. Two-thirds of revenues came from data.
“By posting its highest-ever nine-month revenues, PLDT is providing more evidence that it is firmly back on the growth path. It is worth noting that we have started to make inroads in recovering market share in revenue terms in the mobile business in the last two quarters, indicating that we have reached a turning point,” Manuel V. Pangilinan, PLDT chairman, president and chief executive officer, was quoted as saying in the statement.
Mr. Pangilinan said during the same briefing that PLDT remains confident that it will achieve its guidance “for full-year telco core income of P26.4 billion.”
For the first nine months of 2019, PLDT’s telco core income stood at P19.4 billion, up 1% from a year ago.
PLDT has achieved a combined 51.9% share of the market for fixed and wireless services, Alfred S. Panlilio, president and CEO of Smart Communications and executive vice-president and chief revenue officer of PLDT, said during a news conference in Makati City on Thursday.
The telco giant said its total capex reached P53.4 billion in the first nine months, out of the P78.4 billion allocated for the full year.
PLDT said it will continue to invest “significantly” in both fixed and mobile networks and IT platforms and systems, noting that these initiatives have “sustained” its growth momentum, especially in the wireless business. — Arjay L. Balinbin