PLDT says Q3 earnings dropped on costs, forex losses

Philippine Long Distance Telephone Co. (PLDT) saw its net income drop 16.75 percent to P6.606 billion in the third quarter of 2015 from P7.936 billion a year earlier on the back of increased costs and expenses.

The teleco giant noted on Tuesday that the drop was a result a dip in core net income and higher foreign exchange losses.

The impact of expenses related to a manpower reduction program and higher financing costs was offset by lower provisions for income tax and a decrease in depreciation and amortization, PLDT said.

Revenue grew by 1.95 percent to P42.680 billion from P41.860 billion while expenses rose by 1.19 percent to P11.041 billion from P10.911 billion.

“The third quarter is seasonally ‘soft’ yet our revenues have shown a general improvement, both quarter-on-quarter and year-on-year,” PLDT Chairman Manuel V. Pangilinan said in an emailed statement to reporters.

Data and broadband revenues continued to grow at record highs with wireless broadband posting P2.820 billion and mobile internet P2.871 billion.

PLDT closed the nine-month period with a broadband subscriber base of 5-million or 3.8 million from Smart Broadband and 1.2 million from PLDT’s fixed broadband service.

The company said net income declined by 16.40 percent to P23.355 billion in January to September from P27.937 billion a year earlier.

Revenues in the first nine months rose by 0.43 percent to P127.871 billion from P127.321 billion. Expenses decreased by 5.52 percent to P32.074 billion from P33.949 billion.

PLDT earlier announced the formation of PLDT Capital which will support PLDT business units in growing their digital service portfolio globally. 

PLDT also reported a $10-million investment in a joint venture with Phunware, a US-based mobile platform leader for next-generation customer engagement solutions. – Jon Viktor Cabuenas/VS, GMA News