PLDT Inc. yesterday reported a 2 percent decline in profit for the first quarter but said it remains on track to achieve its telco core income target this year, driven by the continued growth of its home broadband business.
PLDT posted a net income of P5.8 billion in the first quarter, down from P5.9 billion in the same period last year while core net income rose by 9 percent to P7.5 billion from P6.9 billion.
Manual Pangilinan, PLDT chairman, president and chief executive officer (CEO), at the virtual financial briefing expressed confidence of hitting the higher end of the core net income target of P29 billion to P30 billion.
“The company appears to be on track for the full year, capex (capital expenditure), revenue and telco core. we’re getting better,” he said.
Consolidated service revenues grew by 8 percent to P44.8 billion bulk of which is from the wireless business at P22.1 billion, followed by PLDT Home’s P10.9 billion and P10.3 billion from the enterprise business, which grew 7 percent ,19 percent and 4 percent, respectively.
Pangilinan said he expects slower growth in the wireless business and a significant growth in home broadband if the lockdown continues for the balance of the year.
Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) hit an all-time high, growing 7 percent year-on-year to P23.3 billion, while EBITDA margin was at 51 percent in the first quarter of 2021, PLDT said.
Despite the mobility restrictions due to the pandemic, PLDT and its wireless unit Smart Communications Inc. spent P20.7 billion for capex in the first quarter for network upgrades.
The company said it is committed to spend between P88 billion and P92 billion for this year’s capex to further improve its network.
Meanwhile, Pangilinan announced that Alfredo Panlilio will be named as PLDT’s new president and CEO during the annual stockholders meeting set this June.
“I will retire as PLDT president and CEO and pass the baton over to Al (Panlilio), I won’t say as chairman (it’s) subject to shareholder consent to do that,” Pangilinan said.
Panlilio, former Manila Electric Co. senior vice president, returned to PLDT as chief revenue officer and Smart president and CEO in 2019.
