Metro Manila (CNN Philippines, November 3) — High inflation experienced by Filipino consumers failed to take a bite out of Manuel V. Pangilinan-led PLDT’s financial performance in the first nine months of 2022, with profit and revenues growing in the period.
Despite economic headwinds facing the market, the telco giant continued to gain from pandemic-driven digital lifestyles, as evidenced by the 10% jump in its telco core income, hitting ₱25.4 billion in the January-September period.
Its consolidated service revenues also booked an all-time high of ₱141.9 billion after PLDT’s home business saw record growth.
While more Filipinos started heading back to the grind, PLDT kept its target of penetrating new markets for its home business, allowing it to generate record-high revenues of ₱42.7 billion. It ended the third quarter with 3.24 million fixed broadband subscribers.
“PLDT Home continues to grow despite increasing challenges to people’s wallets due to continuing high inflation and the prolonged impact of Typhoon Odette,” Alfredo Panlilio, PLDT and Smart Communications President and CEO, said in a disclosure Thursday.
“This supports our view that there is still growth in what remains to be an underpenetrated market, albeit future revenues will likely come from regional areas where rollout is needed and from lower market segments,” Panlilio said.
“As we reach deeper into the market, we are exploring lower denomination plans to address affordability,” he also said.
The official added that the enterprise segment might become a “bright spot” for the group as businesses pursue their digital shift in the new normal.
PLDT’s enterprise segment posted ₱35.2 billion in the first nine months, 9% up from a year ago.
Its individual wireless business, on the other hand, generated ₱61.7 billion in revenues, 84% of which was contributed by data and broadband. Active data users as of end-September stood at 41.6 million, PLDT noted.
“Our third quarter performance has shown that the business continues to do well amidst external challenges,” Panlilio said. “First COVID-19, then inflation and high interest rates, not to mention the ever-present typhoons and the indication so far is that the full year performance will be ahead of last year especially as the fourth quarter is typically a good one.”
On its massive tower sale, PLDT said the ownership of 4,435 towers, or 75% of the transactions, had already been transferred to foreign companies. So far, the group has raised ₱57.7 billion, which would be used to beef up its operating and capital expenditures.
“The transaction is timely as it allows PLDT to avoid additional debt against a backdrop of a rising interest rate environment,” the company said.
It expects the final closing to be completed by early 2023.
PLDT added that it was looking into selling more towers.
The telco titan also hinted that its spending might “exceed” the initial ₱85 billion set for the year.
“At this time that the consumer wallet is diminished when consumer income is under threat and government finances are challenged, investments will emerge as a primary recovery tool,” said PLDT Chairman Pangilinan.
“Hence, investments are needed, both by the government and the private sector to drive the economy forward,” he added.
