PLDT profits exceed expectations

16 May 2003

Releasing Q1 2003 financial results, incumbent telco the Philippine Long Distance Telephone (PLDT) [NYSE:PHI] has announced a 13% rise in EBITDA to PHP12.5 billion (USD0.23 billion) over twelve months, and a growth in net income of 58% to PHP22.7 billion. With a current market share of 45%, the company’s mobile arm, Smart Communications, is seen to be the backbone of this success with year-on-year net profit surging by 87% to PHP2.8 billion. Fixed line performance also rose slightly from PHP11.2 billion to PHP11.3 billion. The improvement in cashflow to PHP6.4 billion has enabled PLDT to clear USD81 million of debts incurred by fixed and mobile operations. PLDT has streamlined its operations by reducing expenses and cutting staff by 313 in Q1. The company hopes this initiative will help it repay a further USD270 million of debt by the end of 2003.