The net income of the Philippine Long Distance Telephone Co. (PLDT) for the first nine months of the year stood at P29 billion, up by 2 percent from the P28.4 billion recorded during the same period last year.
“The operating conditions in the first nine months of 2013 have been favorable for the industry as a whole. The competitive environment has remained intense but, with consolidation, has also allowed for growth,” said Manuel Pangilinan, chairman of PLDT, on Tuesday.
He added that, “With the additional lift from the country’s positive economic situation, we are confident this is the year PLDT will turn the corner and return to a growth track.”
The company said that the increase was a result of the combined impact of higher core income, the gain from the sale of its business process outsourcing (BPO) business, higher foreign exchange and derivative losses, and the retroactive effect of the application of revised Philippine Accounting Standard (PAS) 19.
“The revised PAS 19 relates to the recognition of termination benefits arising from our manpower rightsizing programs [MRP], which resulted in a reversal of P1.3 billion of MRP expenses accrued in the fourth quarter of 2012 and the recognition of P1.3 billion of those expenses in the first nine months of 2013,” PLDT said.
PLDT’s earnings, before interest, taxes, depreciation and amortization, or Ebitda, for the first nine months period was at 49 percent, up from 48 percent in the same period last year. Consolidated Ebitda for the first nine months of 2013 was 4 percent higher at P59.6 billion compared with the same period last year, and stable quarter-to-quarter. Ebitda excludes the retroactive effect of the revised PAS 19.
Consolidated service revenues for the first nine months of 2013 grew 2 percent to P121.6 billion, as revenues from the company’s data and Internet businesses more than offset the declines from international and national long distance streams.
“The structural change in PLDT’s revenue mix has now reached an inflection point where our ‘growing’ revenue streams, such as data and broadband, have outpaced our declining legacy businesses,” said Napoleon Nazareno, president and chief executive officer of PLDT and Smart Communications Inc.
The company’s full-year capital expenditure is still expected to reach P29 billion. At the end of September, PLDT’s total fiber footprint stood at more than 75,000 kilometers, inclusive of 7,200 kilometers of international submarine fiber, and over 4,000 kilometers of domestic submarine fiber.
The PLDT Group’s total cellular subscriber base as of September 2013 was 72.5 million subscribers, with wireless subsidiary Smart Communications having 24.7 million subscribers under its mainstream Smart brands, while value brand Talk ‘N Text ended with 31.9 million subscribers as a result of 3.5 million net additions from the end of 2012. Digitel had 15.8 million Sun Cellular subscribers.
On the other hand, the group’s combined broadband subscriber base was 3.3 million at the end of the first nine months of 2013.
Meanwhile, the company’s fixed broadband subscribers increased by over 100,000 for the first nine months of 2013, bringing the total fixed broadband subscriber base to 950,000, representing 46 percent of the fixed-line subscriber base.