PLDT posts P6.9B core profit in Q1, down 5%

Telecommunications giant PLDT Inc. saw a decline in its core earnings in the first quarter of 2020 due to higher spending.

In a statement, PLDT said its telco core income, or profit solely from its main telecommunications business, stood at P6.9 billion, down 5% from P7.2 billion year-on-year.

The lower core earnings was attributed to higher depreciation and financing costs resulting from higher capital expenditures —the offshoot of the PLDT Group’s sustained network roll-out program.

In 2019, PLDT embarked on a record high P72.19-billion capital spending program to boost its network. Around P5.5 billion of the 2019 capex were carried over for this year’s capital spending program.

“Also, last year’s first quarter 2019 core income was exceptionally high, due to lower levels for cash opex (operating expenses),” PLDT said.

Earning before interest, taxes, depreciation, and amortization (EBITDA) grew 8% to P21.6 billion, with the 9% rise in service revenues more than compensating for increases in cash operating expenses.

PLDT’s service revenues rose by 9% to P41.5 billion in the first quarter of 2020— a new high in its quarterly revenues.

The combined service revenues of PLDT’s consumer, home, and enterprise business groups grew by 11% to P39.9 billion and accounted for 96% of total revenues.

“This increase was driven by data and broadband services, particularly on its wireless network, which now account for 71% of total revenues,” the telco said.

However, PLDT said the outlook for the balance of 2020 has been affected by the COVID-19 pandemic, and the enhanced community quarantine (ECQ) implemented on Luzon and later extended to other parts of the country, starting the second half of March 2020 until the middle of May.

Still, amidst the challenges, new opportunities for growth have arisen, it said.

Life under the ECQ has pushed the rapid adoption of online and digital services as people working from home have turned to web-based collaboration tools, distance learning, online shopping and payments, e-health services, among others, according to PLDT.

“The solid performance of our major business groups in 2019 flowing smoothly into the first quarter of 2020 provides us the firm footing needed to face the tough trials created by the pandemic in 2020 and beyond,” Alfredo Panlilio, PLDT chief revenue officer, said.

“This early, we already see how the network infrastructure, expertise and technical resources that we have acquired, upgraded, and made more resilient over the past several years are playing a major role in helping our customers rebuild their lives, and the country regain its prosperity,” Panlilio said.—AOL, GMA News