PLDT posts P21.7-B half-year income for 2010

The Philippine Long Distance Telephone Co. (PLDT) reported a net income of P21.7 billion in the first half of the year, growing by 10 percent over the same period in 2009. In a statement, PLDT said its core profits, exclusive of foreign exchange gains, inched up by 2 percent to P21.2 billion, primarily because of the expansion of its mobile phone and broadband internet subscriber base. “This year’s results reflect higher recurring net income and a net gain from foreign exchange revaluation of our financial assets and liabilities and derivatives to a net loss last year," PLDT said. Consolidate services revenues went down by one percent to P72.2 billion, despite a three percent rise in voice call revenues. Revenues from broadband internet and corporate data services also jumped up by 21 percent. However, these gains were partially offset by a 5 percent decline in data and information and communications technology (ICT) revenues. “[This was] large a result of the 13 percent decline in cellular data or short messaging service (SMS) revenues," the firm said. The biggest reason for the decline in total revenues, PLDT said, was a strengthening of the dollar. About 28 percent of the company’s revenues were directly or indirectly linked to the greenback. “Had the peso remained stable, service revenues for the first half of 2010 would have stayed at last year’s levels," PLDT added. The company’s subscriber base grew to 45.3 million users at the end of June, rising from over 43 million in the first quarter. For its broadband business, seen as the firm’s strongest growth area, the number of subscribers went up to 1.96 million users from 1.3 million in the first quarter. PLDT chairman Manuel V. Pangilinan said the profit growth in the first half supports the company’s year-end goal of growing its net income slightly year-on-year. “With first half results being encouraging, core profit guidance for 2010 is in excess of P41 billion and capital investment should remain at P28.6 billion," the company said. Pangilinan said the company will continue to focus on enhancing its broadband internet business because “core markets are maturing." “We are, therefore, looking to move beyond the verticality of the traditional telco business model as we lay the groundwork for a more horizontal perspective via our strategic platform and infrastructure investments," he said. –VVP, GMANews.TV