PLDT profits down 8% on FOREX loss and depreciation

8 Aug 2006

The Philippines’ dominant telecoms service provider Philippine Long Distance Telephone (PLDT), said its second quarter profit for the three months to June dipped by 8% to PHP6.7 billion (USD130 million), down from PHP7.3 billion a year ago, due to the effects of a foreign exchange loss and depreciation of its fixed line network. Excluding the charges, the company would have booked a net profit of PHP7.64 billion, up 6.2% year-on-year. Sales rose by 1.8% to PHP31.5 billion, but the bottom line was adversely impacted by a 4% loss in the peso against the dollar in the three-month period, making it the worst performer of 15 Asia-Pacific countries tracked by Bloomberg. PLDT also is curtailing the ‘useful life’ of its fixed line network and shifting emphasis to new technologies to cut operating costs, expand services and improve subscriber numbers. In the first quarter, PLDT booked a net depreciation cost of PHP500 million after shortening the useful life of its fixed line network.