PLDT's Q2 bottom line sags by 33%

Pangilinan-led PLDT Inc. saw its net income fall by 33 percent during the second quarter of the year, pressured by an impaired investment in Rocket Internet.

The company reported a net income of P6.2 billion in April to June, while revenues fell 0.3 percent to P42.5 billion.

The latest figures brought the first half consolidated core net income to P17.7 billion, down 6 percent, and the reported net income down 33 percent to P12.5 billion.

In a briefing in Makati on Tuesday, PLDT CFO Anabelle Chua said the company registered a P5.4-billion impairment during the period due to an investment in Rocket Internet "to reflect the June 30 share price."

PLDT in 2014 acquired a stake in Berlin-based Rocket Internet.

"It's a long-term haul. Not much we can do in the short-term ... I think we just have to give him (Rocket Internet Chief Executive Officer Oliver Samwer) a little bit of time," PLDT CEO and Chairman Manuel V. Pangilinan said.

Chua noted that the revenue during the period fell, reflecting the drop in the business of international and national long distance (ILD/NLD) service.

"We still have the decline in the ILD and NLD of P1.7 billion during this period," she said.

"We continue to make progress in our digital pivot but at different paces for the Group's various new businesses. Our Fixed Line and Enterprise businesses have gathered momentum in building their data and digital revenues, with the share of these revenues now reaching nearly 60 percent of the total," Pangilinan said.

"This places PLDT in a unique position to lead in the development of the country's digital economy. Within this context, we are maintaining our core income guidance of P30 billion for 2016," he said.

PLDT in June updated its core income guidance this year to P30 billion from P28 billion after the selldown of Beacon Electric Asset Holdings Inc. to Metro Pacific Investments Corp. in May. — VDS, GMA News