PLDT Inc. expects to post mid-single digit growth in revenue and to achieve positive free cash flow as it closes the sale of its cell site towers that will generate P50 billion.
PLDT reported a net income of P26.4 billion in 2021, up by 9 percent from the previous year’s P24.1 billion. Consolidated revenues also rose 6 percent to P182.1 billion from P171.5 billion the previous year.
Manual Pangilinan, PLDT chairman, said in a virtual press briefing that PLDT anticipates service revenues to grow in mid-single digit, similar to the growth in 2021, driven by the double digit growth in home broadband, high to single digit growth in the enterprise business and improvement in the mobile business due to the easing of mobility restrictions.
“We anticipate revenue to continue to grow in 2022 in peso value of higher than 2021; EBITDA (earnings before interest, tax, depreciation and amortization) over P100 billion growth,” Pangilinan said.
“For 2022, we anticipate that home will continue to lead the way at a sustained, double digit pace, alleviating the pressure on our individual business. We expect consolidated service revenues to grow by mid-single digit in 2022 and telco core income to be between P32-33 billion,” said Alfredo Panlilio, PLDT and Smart Communications Inc. president and chief executive officer.
Pangilinan said one of the major goals this year is to realize positive free cash flow after expenses, tax payment, capital expenditure (capex) and dividend for the company to reduce debts incrementally in the coming years.
“We believe continued negative cash flow for any company is not sustainable for the long run. It is important for PLDT starting this year, to be producing free cash flow. What will help us is the sale of the towers. We anticipated the bids coming P40-50 billion. We are pleased to report bids received in the north of P50 billion mark that provide us the bit of liquidity to reduce debts moving forward,” Pangilinan said.
PLDT expects to complete the tower arrangements by the end of the second quarter.
There were initially 18 bidders, mostly foreign firms with local partners but the number was pared down to six players that will undertake due diligence.
Panlilio said the telco is looking to sell 6,000 towers broken down into two portfolios with 3,000 towers.
PLDT said the strategy is to sell the physical tower structure, then lease the same for use of space in the tower and shift to monthly payment. The excess space can be potentially leased to other telcos.
PLDT has allocated between P76 billion and P80 billion capex this year, lower than last year’s actual spending of P89 billion. Bulk of the capex is still for the expansion of its data network infrastructure.
PLDT’s consolidated EBITDA reached an all-time high, growing 8 percent year-on-year to P96.2 billion, excluding manpower rightsizing program expenses of P0.3 billion, driven by higher service revenues. EBITDA margin was at 52 percent in 2021, up from 51 percent in 2020.
Telco core income, excluding the impact of asset sales and Voyager Innovations, climbed 8 percent to P30.2 billion, ahead of the earnings guidance of P30 billion, PLDT said.
As of end-2021, PLDT’s consolidated net debt stood at $4.5 billion while net-debt-to-EBITDA stood at 2.38 times.
The PLDT group’s subscriber base stood at 78.8 million in 2021, of which 71.2 million is for mobile and the rest are fixed and wireless broadband customers.
