PLDT to keep CAPEX at 2013 level; carrier on-track to meet its PHP38.3bn profit guidance

27 Nov 2013

Philippine Long Distance Telephone Company (PLDT) will spend roughly the same in capital expenditure in fiscal 2014 as it has committed this year, says CEO Napoleon L Nazareno in an interview to mark the group’s 85th anniversary celebrations. Nazareno confirmed that PLDT’s CAPEX target for the coming year is ‘more or less the same level as this year’, which totals around PHP29 billion (USD12.7 billion) in various network expansion projects – including the rollout of its fibre infrastructure. By 30 September 2013 the carrier said it had already spent PHP15 billion of this year’s allocation.

The chief executive says that in 2014, PLDT will commit around 60%-65% of its CAPEX in the development of its broadband networks, while another 25% will be ploughed into its fibre-optic facilities. By the start of October this year the telco had deployed 75,000km of fibre to support burgeoning growth in its broadband data business. PLDT sees strong traction in its fibre-to-the-home (FTTH) business and is targeting 100,000 FTTH subscribers next year, from the current figure of around 25,000 to 30,000. Further, Nazareno added that PLDT is on course to complete the rollout of its 3G mobile network in Q3 2014.

The CEO said that PLDT is on-track to meet its profit guidance of PHP38.30 billion for the current financial year, driven by strong broadband revenues and customers’ constant use of mobile voice and SMS services. The group’s core profit (excluding forex transactions and other non-recurring income) for the nine months ended 30 September 2013 reached PHP28.80 billion, up 4% from PHP27.70 billion in the corresponding period of 2012. In July-September alone, PLDT’s core net profit climbed 2% year-on-year to PHP9.39 billion, he said. Meanwhile, 9M13 net income stood at PHP28.95 billion (+2% y-o-y), with third-quarter earnings totalling PHP9.25 billion, up from PHP9.1 billion in 3Q12. Consolidated revenue for the nine-month period was PHP121.60 billion, compared to PHP119.05 billion, and third-quarter revenue of PHP40.60 billion eclipsed last year’s figure of PHP39.32 billion.