PLDT PUMPS UP CAPEX TO P70B
PLDT has originally set an P83 billion budget for this year, up 13 percent
Manuel V. Pangilinan-led telecommunications giant PLDT Inc. is jacking up anew its capital expenditure (capex) program to P70 billion this year to sustain growth and bankroll data business and information technology projects.
In a press briefing on Thursday, the PLDT president and said the increase in the company’s spending was also driven by the strong surge in data traffic of its customers during the quarantine period.
PLDT has originally set an P83 billion budget for this year, up 13 percent from P72.9 billion in 2019 but it was slashed by P20 billion to P63 billion last May due to the disruptions caused by the coronavirus pandemic. The company’s capex in the past five years thus far reached P260 billion.
Virus affects plans
“COVID-19 has set our agenda for the foreseeable future. Moving forward, we will grow our business by helping our customers and the country rebuild their lives and livelihoods with powerful connectivity like fiber, 4G and now 5G, combined with innovative digital solutions,” Pangilinan told reporters. Despite the crisis, PLDT maintained its growth momentum from the prior year, as total service revenues rose 8 percent to P82.8 billion in the first half as against its year-ago level. However, quarantine restrictions starting mid-March trimmed service revenues to P41.3 billion during the second quarter alone. This was slightly lower than the P41.5 billion in revenues posted in the previous quarter, but still 7 percent. higher on-year.
Broadband drives growth
Meanwhile, data and broadband revenues reached P59 billion, up by P9 billion or 18 percent higher from a year ago.
PLDT’s Net Debt as of the first six months of the year is pegged at $3,794 million while Net Debt-to-EBITDA stood at 2.19x. Gross Debt amounted to $4,748 million, of which only 4.4 percent remain unhedged.
The company said its debt maturities continue to be well-spread out, with 50 percent maturing after 2025. Fixedrate loans make up 85 percent of the total.
In line with PLDT’s dividend policy, the Board of Directors declared an interim dividend of P38 per share representing 60 percent of the telco core income during the first half.