PLDT posts small rise in 2010 profit

1 Mar 2011

Filipino telecoms giant Philippine Long Distance Telephone Company (PLDT) said net profits in 2010 rose 1% year-on-year to PHP40.2 billion (USD922 million), fuelled by increased demand for fixed and wireless broadband, and internet services. The telco added that core profits increased by 2% y-o-y to PHP42 billion as revenue for the aforementioned product groups rose 16% last year. Service revenues were down 2% at PHP142.42 billion. Further, the group’s cellular business reported a 9% expansion in voice services in FY2010, although this was offset by a 12% decline in cellular SMS revenue. The group is forecasting lower profits for fiscal 2011, although chairman Manuel Pangilinan is confident of an upturn in fortunes the following year, saying he expects to ‘return to our growth path in profitability.’ To help drive the turnaround PLDT is investing PHP67 billion over the next two years to expand its broadband networks and cater for growing internet usage in the country. PLDT’s broadband subscriber base stood at a little over two million users at the end of 2010, compared to its 45.6 million mobile phone users. Broadband and internet revenues reached PHP17.4 billion in FY2010, accounting for just over 12% of PLDT’s total turnover for the year, but representing 16% growth over FY2009.