PLDT says on track to meet core income target

By Denise A. Valdez, Reporter

PLDT, Inc. said it is on track to achieve its telco core income guidance of P26 billion this year, even hinting at the possibility of exceeding this target, as the company sees continuous growth in its wireless business.

PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan told reporters Tuesday after the company’s stockholders’ meeting in Makati City that the telecommunications giant is showing “good numbers” so far.

“I think 2019 would be better. We’re guided at P26 billion, 2018 was P24 billion. But I think we’ll be better than P26 billion,” he said.

“Numbers are looking good. Fueled mainly by the significant growth of wireless,” Mr. Pangilinan added.

The listed firm posted a telco core income of P7.2 billion in the first quarter, higher by 6% compared to the same period last year.

Consolidated service revenues went up seven percent to P38 billion, primarily due to the continued recovery of the individual wireless business which grew 18% to P16.9 billion. Its enterprise business contributed P9.8 billion, up 9%, and home business P9.1 billion, up 3%.

“Enterprise rises consistently… So growth ’yan by low double digit, that’s the expectation this year. But wireless is surprisingly on the upside,” Mr. Pangilinan said.

PLDT’s international business, however, registered a 39% drop in revenues to P2.1 billion in the first quarter. But Mr. Pangilinan said the company expects the pace of decline to slow, and by next year, to return to profit.

“The decline in the first quarter, compared to last year for international, was about P1.4 billion. The second quarter, we project it to be only P1.1 billion. Third quarter, below P1 billion na. Fourth quarter, ang projection…either they are neutral, no more decline, or they are slightly positive. Which means in 2020, hindi na problema ang international. Positive na sila. Kaya all four revenue streams will be positive in 2020,” Mr. Pangilinan said.

PLDT has allotted P78.4 billion for capital expenditures this year, which will be dedicated to improving its network coverage.

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