Piltel assures stockholders' dividend payout despite pricey expansion plans

MANILA, Philippines - Listed firm Pilipino Telephone Co. (Piltel) said its programmed investments for a nationwide data communications network will not affect its planned dividend payout to shareholders on Friday. In a disclosure to the Phlilippine Stock Exchange, Piltel said it is pushing with an earlier announced dividend payout of P5.1 billion, or 43 centavos per share to stockholders on record as of August 5. Piltel made the disclosure after reports said it has earmarked P7.57 billion in capital expenditures for a system which will deliver improved voice and multimedia content. The company is currently seeking the National Telecommunications Commission's (NTC) approval for a certificate of public convenience and necessity to construct, install, operate and maintain a nationwide data communications network. Piltel did not disclose financing plans for the new project, but said it expects to generate as much as P4.17 billion on the fifth year of operation of the new data communications network. “The forward-looking statements contained in the study were based on the company’s current expectations and projections of its business and operations. These forward-looking statements should therefore be taken in the context of the associated risks and uncertainties that could prevent them from occurring," said Piltel. Piltel is 92 percent owned by Smart Communications, Inc., the country's leading mobile phone company. Together, both networks have 33.2 million subscribers. - GMANews.TV