PLDT Inc. expects to finalize by yearend the deal with a new investor for the sale of 49-percent stake in ePLDT for $1 billion despite failed negotiations with Japan telco giant NTT.
At yesterday’s financial briefing, Manuel Pangilinan, PLDT chairman, president and chief executive officer, said the company aims to sign the derivative agreement with investors within the year.
“It is still under discussion with one potential investor, it’s in the process until we sign a derivative agreement. Well, if we’re to proceed, we need to sign the derivative agreement with the investor within the year, before the year closes, but still subject to notice to the PCC (Philippine Competition Commission),” Pangilinan said.
He declined to name the new investor but said it is willing to acquire a minority stake or 49 percent of ePLDT for around $1 billion. Pangilinan also said NTT had intended to buy a majority stake in the data center business which PLDT rejected as it will result in a P6- billion drop in its revenues.
“Because they (NTT) want the majority. If we give up the majority, then our revenues will drop by P6 billion,” he said, noting the importance of the data center to the business.
Pangilinan said proceeds from the transaction will be used to pay debts.
PLDT’s consolidated net debt as of June amounted to P252.7 billion, while its net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 2.38 times.
In the first half of the year, PLDT’s net income was stable at P18.4 billion while consolidated service revenues rose by 3 percent to P96.9 billion, driven by its data and broadband business, which grew by 4 percent to P80.5 billion, contributing 83 percent to the consolidated service revenues.
“Even as we continue to face challenges – among these geopolitical uncertainties, significant gravity in the telco space, and an increasingly competitive telco landscape – we remain determined to do our best to grow the business,” said Pangilinan.
Consolidated EBITDA grew by 3 percent year-on-year to P53.9 billion in the first six months of 2024. EBITDA margin was at 52 percent for the period.
Telco core income, excluding the impact of asset sales and losses from Maya Innovations Holdings, rose by 3 percent to P18 billion.
PLDT Enterprise, the corporate business arm of PLDT, delivered strong results in the first semester with P24 billion in service revenues.
On the digital solutions front, the growing adoption of data center services and customers’ attuned delivery of cloud solutions continue to drive the growth of ePLDT, the ICT subsidiary of PLDT.
