MANILA, Philippines – Dominant carrier Philippine Long Distance Telephone Co. (PLDT) recorded higher revenues in the first quarter of the year amid the country’s growing domestic output as measured by the gross domestic product (GDP).
PLDT chairman Manuel V. Pangilinan said the company’s revenues from January to March this year was better compared to the same period last year.
“Better than last year. It should be better than last year,” Pangilinan replied when asked about the company’s revenues in the first quarter of the year.
He added that the higher revenues would also translate to a better bottomline for PLDT in the first quarter of the year.
PLDT’s consolidated revenues remained steady at around P40 billion in the first quarter of last year while its net income fell eight percent to P9.2 billion after it booked a P900-million reduction in its net foreign exchange and derivative gains due to stronger peso.
PLDT is back on the growth track as the company finally booked a five-percent increase in core net income to P38.7 billion last year from P36.9 billion in 2012.
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The PLDT Group’s service revenues increased three percent to P164.1 billion last year from P159.7 billion as its wireless revenues grew three percent to P116.7 billion while its fixed line business expanded by five percent to P61.9 billion.
On the other hand, PLDT’s reported net income slipped two percent to P35.4 billion last year from P36.1 billion due to higher foreign exchange and derivative losses, the P900 million estimated losses from typhoon Yolanda, and the retroactive effect of the application of Revised Philippine Accounting Standard 19.
The lower net income could be attributed to the P3.7 billion foreign exchange and derivative losses before tax, the P1.3 billion manpower reduction program expense, and the P900 million estimated losses from typhoon Yolanda.
The losses offset the P1.8 billion increase in core net income, the P2.2 billion sale of SPI Global, and the lower asset impairment of P800 million.
The company’s cellular subscriber base reached 70 million composed of 29.5 million Talk ‘N Text subscribers, 25.5 million subscribers of Smart Communications Inc., and 15.1 million subscribers of Sun Cellular.
The company also has 3.4 million fixed broadband subscribers and 2.1 million fixed line subscriber base.
Economic managers see the country’s GDP expanding between 6.5 percent and 7.5 percent this year after growing by 7.2 percent last year.
