PLDT 9M19 net income slips 2% but revenues stable

The Philippines’ largest fixed and mobile operator by subscribers and revenue, PLDT Inc. (including Smart Communications), saw attributable net profit dip 2% year-on-year to PHP16.036 billion (USD317.7 million) for the nine months ended 30 September 2019, as higher revenues from its mobile business were weighed down by lower earnings from its fixed line and other businesses. In a regulatory filing, the listed company also noted that the fall in net profit was impacted by ‘higher (manpower rightsizing programme) expenses and lower gains from the sale of Rocket Internet’. Revenues rose 2% y-o-y to PHP124.43 billion during the January-September 2019 period, primarily due to higher revenues from data services in the Wireless and Fixed Line business segments, partially offset by lower revenues from voice and SMS services in the Wireless business segment, and lower non-service revenues in Wireless and Fixed Line, as well as lower revenues from the Other business segment due to the deconsolidation of Voyager Innovations in November 2018. Consolidated service revenues, meanwhile, rose 8% on an annualised basis to PHP116.3 billion, which the group claimed as its highest ever nine-month service revenue, surpassing the previous peak in 2014. Data and broadband now account for 66% of total service revenues, growing 20% y-o-y to PHP76.7 billion in 9M19, it added. Finally, the telco said its total CAPEX in 9M19 reached PHP53.4 billion, out of the PHP78.4 billion allocated for the full year. PLDT is committed to continuing significant investment in fixed and mobile networks and IT platforms and systems, noting that these initiatives have ‘sustained’ its growth momentum, especially in the wireless business.