Communications lead sectors’ slower growth

THE TRANSPORTATION, storage, and communication industry slackened in 2016, with decelerations observed almost across all sectors.

Contributing around 8% to economic output, the industry slackened to a 5.9% growth last year with a gross value added of P615.71 billion from the P581.29 billion posted in 2015.

Growth in communications grew 4.3% to P364.45 billion in 2016, slower than the 7.8% posted in the year prior although the subsector still comprise more than half of the industry’s gross value added.

Meanwhile, transport and storage kept steady at 8.4% to P251.25 billion.

Broken down, air transport was the top growth driver with 13.6% to P30.45 billion in 2016 although it was a slight slowdown from the 14.9% netted in 2015. Second place was “storage and services incidental to transport” which accelerated 8.5% to P68.24 billion from the previous 7.5%.

Growth of land transport was 7.6% (from 7.5%) while that of water transport was 6.2% (from 8.3%).

The sector’s mixed results was reflected in the performance of its big players.

BW FILE PHOTO

PLDT, Inc. reported a P27.85-billion consolidated core income in 2016, 20.9% lower than the previous year, due to lower earnings before interest, tax, depreciation and amortization or EBITDA and higher costs from its capital expenditures which was used to fund ongoing expansion in its fixed and mobile businesses. Its recurring core income — which strips out asset sales, depreciation, one-time provisions, and subsidies — reached P20.19 billion.

Ayala-led Globe Telecom, Inc., on the other hand, saw its core net income rise by an annual 6.1%, driven by growth in its data-related products and continued uptick in both its mobile and broadband subscribers. However, its net income dipped 3.75% to P15.88 billion in 2016 from the P16.48 billion recorded in 2015 amid a general slowdown in traditional legacy business and non-operating charges related to its acquisition of San Miguel Corp.’s telecommunications assets.

Meanwhile, PAL Holdings, Inc., the listed operator of Philippine Airlines saw total revenues and the number of passengers increase 7.1% and 12.2% in 2016, respectively.

Its profit during the period was down 38.8% to P3.59 billion from 2015’s P5.87 billion on account of rising operating expenses.

On the other hand, the country’s auto sales grew 24.6% last year, sustaining a run of double-digit growth for the industry.

Data jointly released by the Chamber of Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association showed that member companies sold a total of 359,572 units last year, up from the 288,609 units recorded in 2015. The two groups surpassed their 2015 sales total last October and beat the groups’ 2016 target of 329,300 units by 12.4%.

Broadcasting companies also saw earnings up last year on account of election-related advertisements. ABS-CBN Corp.’s net income was recorded at P3.52 billion for the year, up 38.5% from the previous year while that of GMA Network, Inc. rose 71.5% to P3.65 billion. — Arianne Kristel R. Pelagio