PLDT profit falls 6% on downsizing costs

05 Aug 2015
Daily News

The Philippines' PLDT reported a 6% decline in net income for 1H15 to 18.7 billion pesos ($408.8 million), largely due to forex losses and the financial impact of a headcount reduction program.

Service revenues dipped 2% to 81.2 billion pesos due to declining international and national long distance revenue. Excluding these segments, service revenues increased a slim 1%.

Ebitda shrank 7% to 35.5 billion pesos due to costs accrued from the downsizing, as well as lower service revenues from PLDT's wireless business.

Capex meanwhile increased by nearly 6 billion pesos to 13.9 billion pesos, as the company spent heavily on improving its 3G and 4G access networks, enhancing indoor and outdoor coverage and increasing its fiber reach and capacity.

Overall consumer data and broadband revenue grew 13% year-on-year to 23 billion pesos, with mobile internet revenues surging 21% to 3.9 billion pesos. The group's combined broadband subscriber base reached 4.9 million. Of these 3.7 million were using wireless broadband.

Despite this, total wireless revenue fell 4% to 55.6 million. Postpaid revenue improved 12% to 11.6 billion pesos, accounting for 23% of total cellular revenues.

The group's total mobile subscriber base reached 68.9 million by the end of the quarter, consisting of 25.3 million under subsidiary Smart's mainstream brands, 27.9 million under value brand Talk 'N Text and 15.6 million for Sun Cellular. Postpaid subscribers reached 461,000.

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