PLDT reports slowest profit growth in five quarters

3 Aug 2010

Filipino operator Philippine Long Distance Telephone Company (PLDT), the country’s largest company by market valuation, said net income for the three months ended 30 June 2010 increased at their slowest rate in five quarters amid increased competition from the likes of Globe Telecom. The telco booked net income of PHP10.26 billion (USD228 million) in the three-month period, up 1% compared with PHP10.10 billion a year ago – the slowest pace since earnings fell in 1Q09. Revenues for the second quarter of 2010 fell for the third quarter in a row as the operator offered low-cost packages (such as an unlimited mobile calls and SMS bundle for just PHP30 per day), in an attempt to compete in a heavily saturated domestic cellular market. President Napoleon Nazareno said that PLDT’s average monthly phone bill fell 16% to PHP164 in the first half of this year, impacted by the increased take-up of social networking sites such as Facebook which is reducing demand for SMS in the country.