PT&T Corp. has attained profitability with a reported P7.9 million net income in 2023, a turnaround from its P14.2 million net loss in the previous year.
PT&T reported a 5 percent year-on-year growth in gross revenue to P528.7 million last year from P542 million revenue in 2022.
Despite heightened costs attributed to expanded manpower in 2023, required to support its expansion initiatives, PT&T said it posted 26 percent growth in core earnings before interest, tax, depreciation and amortization, maintaining a 22 percent margin.
The significant turnaround towards strengthening its financial footing was attributed to debt-to-equity conversion, a crucial component in its ongoing implementation of key rehabilitation orders, the company added.
In a statement, James Velasquez, PT&T president and chief executive officer, expressed his confidence in the company’s financial trajectory.
“We are delighted to report PT&T’s impressive shift, which demonstrates our dedication to financial resilience and growth. We take pride in eliminating our capital deficiency through a successful debt-to-equity conversion and significantly strengthening our capital position,” Velasquez said.
In November 2023, the Securities and Exchange Commission greenlit the company’s increase in its authorized capital stock from P3.8 billion to P12.6 billion.
This increase facilitated the P8.9 billion debt-to-equity conversion, paving the way for the issuance of preferred shares – Series “A”, “B” and “C” – as outlined in the rehabilitation plan, PT&T said.
It also enabled the partial settlement of statutory obligations, salaries, wages and other employee benefits from the escrow accounts as of December 2023, the company added.
The successful debt-to-equity conversion enabled PT&T to eliminate a total of P9.3 billion capital deficiency, resulting in a substantial decrease in its liabilities and strengthening its capital position, achieving a turnaround of over 100 percent year-on-year.
PT&T said it remains steadfast to financial recovery and sustainability. Through prudent financial management practices, it has been able to partially address its statutory obligations and employee-related expenses.
PT&T said it is committed to advancing its network infrastructure, solidifying its status as a preferred provider for broadband connectivity, and leading the charge in digital transformation solutions across its target market.
In pursuit of this goal, significant strides have been made to boost the company’s financial standing, including the completion of infrastructure upgrades in 2023 and an ongoing application to expand.
PT&T is also pursuing the resumption of its trading on the Philippine Stock Exchange (PSE).
While the PSE has acknowledged that the company no longer faces capital deficiency, there are still pending items to address within its rehabilitation plan.
