PLDT expects core income to surpass P35 billion this year

PLDT Inc. on Thursday said its core net income may exceed P35 billion this year, higher than the previous year’s P34.3 billion.

For 2023, PLDT’s attributable net income more than doubled to P26.61 billion from P10.49 billion previously on lower expenses and higher top line, the company said in a statement.

PLDT’s total revenues grew by 3% to P210.95 billion from P204.36 billion in the same period in 2022, while the company’s gross expenses declined by 24% to P158.47 billion from P209.43 billion previously.

Service revenues accounted for the bulk of PLDT’s top line for the period at P201.83 billion, its financial statement showed.

“PLDT is aiming not just for higher profits but to return PLDT and Smart to their premier positions. This requires a commitment to excellence all around — encompassing the quality of our network, the efficiency of our installations and repairs, the innovations we pursue and the speed of our services,” Manuel V. Pangilinan, chairman, president, and chief executive officer of PLDT said.

For this year, PLDT expects its core net income to exceed P35 billion, while its service revenues may experience mid-single-digit growth, said Danny Y. Yu, PLDT’s chief financial officer and chief risk management officer.

PLDT’s telco core income, which excludes the impact of asset sale and  Maya Innovations Holdings, formerly Voyager Innovations Holdings, reached P34.3 billion, up by 3% from P1 billion in 2022. 

“We are giving you the outlook for the consolidated service revenues at around mid-single-digit for the full year 2024,” Mr. Pangilinan said.

The company is allocating between P75 billion and P78 billion for its capital expenditures (capex) for 2024, which will be allocated for upgrading cell sites, expanding home broadband ports, developing data centers, and investing in submarine cables.

Its capex for the year is 9% lower than its P85.1 billion capex spending in 2023. This year’s capital spending will be funded by fresh capex and carry over capex from the previous years.

The company said it is in talks with a foreign entity for the asset management of ePLDT, Inc.’s data centers. 

Proceeds from the plan will help reduce the company’s debt, Mr. Pangilinan said.

“Just the data centers, because there are two parts of [ePLDT], the IT and managed services part which provides solutions to enterprises and the data centers, if you may like real estate,” he said.

“We’re keeping a substantial majority for each other. Well, that is the discussion, 50-50 (stake),” he added. 

At the local bourse on Thursday, shares in the company closed P12 or 0.93% lower at P1,278 apiece. 

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose