Metro Manila (CNN Philippines, December 22) — Embattled telco player PLDT assured the investing public on Thursday that its business remains “very strong” despite a ₱48-billion capital spending overrun controversy.
Its chairman Manuel V. Pangilinan said the issue—which prompted the securities regulator to launch a probe— would not affect the telco’s profitability this year as earnings before interest, taxes, depreciation, and amortization (EBITDA) are on course to hit ₱100 billion.
The group’s core net income is also seen to reach ₱32.6 billion to ₱33 billion.
Likewise, the telco giant said it is confident it can pay the balance of the regular dividend for the full year 2022 estimated at ₱45 per share, and the remaining special dividend of ₱42 per share.
“PLDT’s business overall remains healthy and robust even as it continues to address its elevated capex spend and undergoes a comprehensive process review,” the company said in a disclosure.
Pangilinan reiterated that the company’s investigation of the budget overrun that covered four years found no anomalies or unrecorded deals.
He said “bulk” of the controversial amount involved purchasing necessary network equipment to boost connectivity, particularly PLDT’s 5G push for mobile and fiber rollout.
“There will be no write-off of these assets,” he said.
PLDT President and CEO Alfredo S. Panlilio also said there was a “confluence of factors,” which includes the following:
– underinvestment in capex
– threats of then President Rodrigo Duterte against incumbents
– heightened competition in the market following DITO Telecommunity’s entry and Converge’s strengthened position in the fiber space
– the COVID-19 pandemic and continual lockdowns under the Duterte administration pushing up demands for fiber connectivity at homes
“However, to the extent of the capex ordered, we plan to reduce fresh capex starting in 2023. Thereafter, we expect capex to reduce steadily. 2023 will be a year of consolidation as we continue to strengthen and grow the business. We strive to be better,” said Panlilio.
