PLDT income rises by 30% to P16.7 B in H1

Pangilinan-led PLDT Inc. withstood the economic troubles in the first semester by posting a 30 percent jump in profit, strengthening its second half prospects as it looks to close a deal with ABS-CBN Corp.

PLDT yesterday reported that its net income increased by 30 percent to P16.74 billion in the first semester from P12.92 billion a year ago, as revenues from home and enterprise business reached all-time highs.

Also, core income – computed as net income adjusted to the net effect of gains and losses from various factors – grew by 12 percent to P17 billion from P15.21 billion.

Further, earnings before interest, taxes, depreciation and amortization (EBITDA) spiked by eight percent to P50.45 billion in the first half from P46.6 billion a year ago. As such, PLDT’s EBITDA margin improved by one percentage point to 52 percent.

Likewise, PLDT said that its service revenues rose by five percent to a record P94.3 billion from P89.9 billion. Although the individual segment dropped by six percent to P41.2 billion, the home and enterprise brackets jumped to all-time highs of P28.1 billion and P23.2 billion, respectively.

The telco giant also reported that it spent a total of P46 billion in capital expenditures in the first semester, made up of investments in its home broadband business, construction of its 11th data center, expansion of its cable systems, and addition of new towers.

PLDT chairman Manuel V. Pangilinan announced that the firm is nearing to close an agreement with ABS-CBN for the airing of its shows on TV5.

“I think it’s fair to characterize, and we have been having discussions with them for over a year, but it’s fair to characterize that we’re in the closing stages,” Pangilinan said.

Pangilinan said the partnership would be owned 65 percent by TV5’s parent MediaQuest Holdings Inc. and 35 percent by ABS-CBN. However, he clarified that the deal in work only goes as far as airing ABS-CBN shows on TV5, without any acquisition of shares.