PLDT on track to meet P38.3-B profit guidance — chairman

Teleco giant Philippine Long Distance Company (PLDT)  is on track to meet its P38.3-billion profit guidance for 2013 on the back of continued growth in broadband wireless and home businesses, chairman Manuel V. Pangilinan said Friday.

 

"We are on-track to meet guidance this year. We saw our numbers in the first five months and they're very encouraging," Pangilinan told reporters on the sidelines of the PLDT stockholders' meeting in Makati City.

 

Growth will be driven by PLDT's "broadband, the data business and mobile internet, and pleasant growth in home business.

 

"That's all propelling the growth of PLDT,” Pangilinan said. “We expect that to continue especially in mobile internet and home businesses," he added.

 

In a speech addressed to stockholders, president and CEO Napoleon Nazareno said "2013 is the year when PLDT returns to growth.

 

"Our first five months' preliminary results are already pointing in this direction. Our acquisition of Digitel and the network transformation program had a dampening effect on our 2012 financials. However, these investments... should now put your company back on the growth path..." Nazareno added.

 

In the first quarter, profits went down 8 percent to P9.2 billion from P10 billion year-on-year due to the retroactive effect of adopting the revised Philippine Accounting Standard (PAS) 19 and higher core income, lower foreign exchange and derivative gains.

 

It netted P9.6 billion core consolidated earnings in the first three months of the year, up 4 percent in the same comparable period.

 

Capital expenditures were pegged at P29 billion for the year, or P7.4 billion lower from last year. — VS, GMA News