Piltel reports 26% in net income in 2005

17 May 2006

Pilipino Telephone Corp (Piltel) said its net income for the full year 2005 rose by 26% to PHP11.03 billion (USD211.23 million), its second consecutive profitable year following eight years of losses. Piltel, a unit of incumbent operator Philippine Long Distance Telephone Company (PLDT), said the results were aided by its success in reducing expenses from PHP6.946 billion to PHP1.334 billion. Marketing costs for the year decreased to PHP511.9 million from PHP653 million as the company tried more ‘on-the-ground’ marketing strategies, instead of traditional TV advertising. Full year revenues fell, however, to PHP12.36 billion from PHP15.68 billion in 2004 on lower sales of new handsets and SIM cards. As a result of the growth of its net income, the company now hopes to pay off all its outstanding debts before 2010. By June 2006 it is expected to pay USD177 million of debt, or 43% of the total, reducing its liabilities to USD236 million.

Philippines, Smart Communications (Philippines)