TELECOM leader PLDT said Friday its core net income dropped by more than a fourth in the first three months of the year due to lower wireless revenues, but it remains optimistic it will hit its full-year core earnings guidance.
In a disclosure to the Philippine Stock Exchange, PLDT said its core income fell 26 percent to P5.3 billion in the first quarter from P7.2 billion a year ago.
“We’ve produced encouraging results in the first quarter this year, thanks to the continued strong growth posted by our Home and Enterprise businesses, whilst our Wireless Consumer Group re-doubled efforts to break the negative momentum and hold the line,” said Manuel V. Pangilinan, PLDT and Smart Communications chairperson and chief executive officer.
“It is thus with watchful optimism that we are maintaining our guidance for full year recurring core income (before exceptionals) at P21.5 billion,” Pangilinan added.
Consolidated service revenues (net of interconnection costs) reached P35.6 billion, 7 percent lower year-on-year. Fixed service revenues (net of interconnection costs) amounted to P16.9 billion, up 10 percent from last year, while wireless service revenues (net of interconnection costs) reached P20.8 billion, 16 percent lower than the previous year.
PLDT’s home and enterprise business units posted double-digit revenue increases. Home service revenues (net of interconnection costs) reached P7.8 billion, up by 12 percent, while enterprise service revenues (net of interconnection costs) rose by 13 percent to P8.5 billion.
The combined revenues of home and enterprise groups now make up 46 percent of consolidated service revenues, compared to the 41 percent contribution of the wireless consumer business of Smart, TNT and Sun.
The wireless consumer group posted service revenues of P14.7 billion, down 18 percent year-on-year due to declines in SMS and voice revenues.
The combined subscriber base of Smart, TNT and Sun rose by about 400,000 in the first quarter of 2017 from end-2016.
Data has powered revenue growth across all the major business units, with Enterprise and Home providing the fulcrum for PLDT’s digital pivot.
“In pursuing digital transformation, we are building on our strengths as the country’s leading integrated communications and digital services group with the most extensive and resilient wired and wireless networks and digital infrastructure,” said Ernesto Alberto, PLDT Group chief revenue officer.
PLDT earlier announced that the franchise granted to Smart has been extended for 25 years under Republic Act No. 10926, which was signed into law by the President Rodrigo Duterte. The said franchise law effectively extends Smart’s franchise until 2042.
“In a way, this marks a new beginning for Smart and indeed for PLDT as well. The next 25 years will be very different from the previous 25. The world today is turning deeply digital. And, as our results for the first quarter this year show, PLDT and Smart are moving with the times and making their digital pivot at an accelerating pace,” Pangilinan said.