PLDT revenues stable at net income falls 33% to

For the first half of 2016, PLDT, Inc. (PLDT) posted stable year-on-year consolidated service revenues of R75.8 billion and coughed up R20 billion for capital expenditure, 44% higher than the same period last year, although earnings and profitability continued to decline.

The telco’s consolidated core income went down 6% to R17.7 billion while reported net income plunged lower, 33%, to R12.5 billion due to subsidies and provisioning for receivables and investments in companies like Rocket Internet.

Core net income went down as PLDT’s Earnings Before Income Tax Depreciation and Amortization (EBITDA) declined by R4.8 billion to R30.8 billion while the telco expanded its data and broadband business.

However, this was offset by the R7.4 billion net gain from the sale of its 25% stake in Beacon Electric Assets Holdings, Inc.

PLDT’s total data and broadband service revenues grew 25 percent to R29.3 billion.

Hence, “We are maintaining our Core Income guidance of R30 billion for 2016,” announced PLDT and Smart Communications, Inc. Chairman and CEO Manuel V. Pangilinan.

“Our Fixed Line and Enterprise businesses have gathered momentum in building their data and digital revenues, with the share of these revenues now reaching nearly 60% of the total,” he elaborated. “We continue to make progress in our digital pivot but at different paces for the group’s various new businesses.”

Excluding international long distance (ILD) and national long distance (NLD) revenues, service revenues amounted to R72.1 billion, up 2% versus the same period last year. On the same basis, fixed line revenues rose 9% to

billion while wireless revenues declined 3%.

“Our wireless business is also gaining ground – data is now 27% of the total, up from 20%. But it has much further to go, in an environment where competition remains very keen. And this is where we are focusing our efforts – in both the prepaid and postpaid segments,” Pangilinan added.

Wireless service revenues amounted to R52.7 billion, 5.1% less compared to a year ago, largely due to declines in SMS and voice revenues. Revenues from data, broadband and digital platforms increased by 29% to R14.1 billion, raising its share of total wireless revenues to 27% from 20% in the previous year.

Data and broadband continue to power revenue growth for the PLDT Group. Revenues from data and broadband rose to R29.3 billion, increasing its contribution to total consolidated revenues (excluding ILD and NLD) to 41% as of the first half 2016 versus 33% a year ago.

Data-driven revenues accounted for 66% of fixed line service revenues (excluding ILD and NLD) in this period, while their share of wireless revenues (excluding ILD) reached 29%, up from 21% in the first half of 2015.

PLDT’s Fixed Line business stays on the growth path, posting service revenues net of interconnection costs of R30.9 billion in the first half of 2016, up 7.4% from the prior year. The share of data and broadband to total fixed line revenues has risen to 59% of the total, up from 57% in same period of 2015.

Meanwhile, the PLDT Board yesterday approved an interim dividend of R49 per share.

“In view of our current elevated capital expenditures, the resources required to support the transaction with SMC (San Miguel Corporation), and our efforts to manage debt levels, we have lowered our dividend payout to 60% of