PLDT’s Q2 profit rises on cellular gains, raises full-year guidance

The Philippines’ dominant telecoms company Philippine Long Distance Telephone Company (PLDT) reported a near 15% year-on-year rise in profits in the three months to end-June, thanks to strong gains at its mobile business Smart Communications (incl. Piltel) which helped offset a drop in fixed line revenues. Core earnings, excluding foreign exchange and derivative gains, climbed to PHP8.76 billion (USD192.5 million), compared to PHP7.64 billion in the same period last year. Core profit in 1H 2007 climbed 13.2% to PHP17.2 billion on the back of the net addition of 2.9 million mobile subscribers in the six-month period to lift the group’s total to more than 27 million by the end of June. The positive results have led PLDT to revise upwards its core earnings estimate for the full year, although the company declined to provide a specific figure. Earlier guidance set the figure at PHP33 billion. Fixed line sales dipped 2% to PHP23.6 billion in the first half of 2007 as broadband and corporate data revenue gains were offset by a continued decline in traditional fixed lined voice revenues.