PLDT nets 121.9 B, up 38%, from revenues of 1107.3 B

With data and broadband as its key growth drivers, PLDT, Inc. reported R21.9-billion net earnings, 38% higher, on R107.3-billion Consolidated Service Revenues, 4% lower, for the first nine months of 2017, versus the same period last year.

Notably, PLDT Home and Enterprise combined now accounted for 47% of the telco’s revenues, surpassing the 41% contribution of its Wireless Individual business.

Home revenues grew 12% to R24.3 billion, while Enterprise revenues increased 11% to R25.3 billion. On the other hand, the Wireless Individual Business hauled in R44.2 billion in service revenues – 14% lower than the first three quarters of 2016.

“The rising and sustained strength of our Home and Enterprise businesses is particularly heartening,” PLDT and Smart Communications Chairman and CEO Manuel V. Pangilinan yesterday announced..

“Our Wireless Individual business, while stabilizing, requires more effort towards operational improvements and efficiencies. We are mindful that progress in this space will take some time,” he elaborated.

Data and broadband accounted for 62% of fixed line service revenues and 36% of wireless service revenues, up from 59% and 30%, respectively.

“Data usage is driving all our businesses and we recognize that superior infrastructure is a key variable to providing the best data experience,” PLDT Group Chief Revenue Officer Ernesto R. Alberto acknowledged. “We are stepping up our investments in the next few years to ensure that our customers – whether individuals or companies – enjoy that experience via whatever device they are on, wherever they may be.”

“Our full-year capex guidance remains at R38 billion in 2017, with about another R15 billion committed already this year, but which we forecast will be finished in 2018,” Pangilinan confirmed.

Consolidated Core Income for the period amounted to R23.2 billion, 7% higher than last year’s figure, including gains from the sale of the telco’s shares in Beacon Electric worth R6.9 billion and SPi technologies, worth R1.4 billion.

Overall, “The fixed line business grew by 9%, fueled by data. That growth in what has been conventionally regarded as an extinct business has ceased to be a surprise to us,” according to the PLDT chairman.

“We are extremely pleased that we outpaced the industry again, as we grew our overall Fixed Line business by 11%. We enjoy better EBITDA margins from the Fixed Line side. It’s essential that we extend our market leadership on this front, which now stands at about 67%.”

“On the flip side, the mobile industry appears to have shrank somewhat – revenues are down 4%. This is of course a cause for some concern and we aim to address that by pursuing our network investments and ensuring that our various strategic initiatives take hold.”