PLDT says Q1 consolidated core net income down 5% on-year

Published May 5, 2015 1:47pm

Philippine Long Distance Telephone Co. (PLDT) on Tuesday said consolidated net income totaled P9.3 billion in the first quarter of the year, down 5 percent or P500 million from P9.8 billion a year earlier.

"The decrease was due mainly to lower EBITDA (earnings before income tax, depreciation and amortization) and higher financing costs," according to PLDT, saying it was in line with a core income guidance of P35 billion for 2015.

Net income was stable at P9.4 billion year-on-year, the biggest Philippine telco said, citing unaudited financial and operating results for the first three months of 2015.

"EBITDA margin for the period was at 48 percent, identical to the same period last year and higher than the 47 percent margin for fourth quarter of 2014." the company said.

"Consolidated EBITDA for the first quarter of 2015 was 2 percent lower at P19.3 billion compared with the same period last year, as the decrease in cash operating expenses was offset by lower service revenues and higher provisions," it added.

“While our core revenue sources undergo this transition phase where the erosion of our high-margin legacy businesses still outpaces the growth of our newer initiatives for now, we are taking significant steps to ensure that we are ready and prepared for the digital future," PLDT chairman Manuel V. Pangilinan said.

"This future will require looking at our customers from a different set of lenses, as both Individuals and enterprises embrace a digital life," Pangilinan added.

Consolidated revenues, including non-service revenues relating to the sales of PLDT Home solutions, were stable at P42.6 billion.

But consolidated service revenues declined by 2 percent to P40.5 billion, as the declines in SMS revenues and the international and national long distance streams offset increases in revenues from the data and broadband businesses.

Consolidated free cash flow grew by 36 percent to P14.6 billion due to the P5.1 billion in dividends from Beacon in relation to the sale of the 5 percent shareholdings in Manila Electric Co. in June 2014.

Consolidated capital expenditures for the period totaled P3.0 billion or P700 million higher than the capex level a year earlier.

Pangilinan cited the "... need to refresh our leadership team and, accordingly, we have just announced a major reorganization of some of our senior executives."

He welcomed new new executives that include chief strategy officer Winston Damarillo and chief technology and integration advisor Joachim Horn. – VS, GMA News

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