PLDT logs P82.8-B revenues, P12.3-B net income in H1
Despite severe disruptions caused by the COVID-19 pandemic, PLDT Inc.'s revenues continued to fly to a historic high, rising 8% to P82.8 billion in the first half of this year, compared to that of the same period last year, buoyed up by soaring data demand, while net income grew slightly by 1.0% to P12.3 billion.
Quarantine restrictions starting mid-March whittled down the telco's service revenues to P41.3 billion in the second quarter - slightly lower than the P41.5 billion posted in the 1st quarter, but still 7% higher year-on-year.
The telco's core income (excluding Voyager Innovations) for the first half increased 5% to P13.9 billion, with 2nd quarter figures at P7 billion, marginally higher than the 1st quarter.
Data and broadband revenues reached P59 billion, up by P9 billion or 18% year on-year.
Data and broadband accounted for 71% of service revenues, with PLDT Home leading the way with 79%, followed by Consumer Wireless Individual with 73% and Enterprise with 69%.
The Consumer Wireless Individual Business Group continued to set the pace, growing 16% versus a year ago to P39.8 billion on the back of continued strong growth of wireless data usage.
PLDT Home revenues grew 7% to P19.6 billion despite the operational constraints on our ability to install new connections by quarantine restrictions.
PLDT Enterprise grew service revenues to P20.3 billion, up 5% from the previous year - a creditable performance given the pandemic’s severe impact on many businesses.
The Consumer and Enterprise Business Groups accounted for 96% of service revenues and more than offset the 30% decline in the International and Carrier Business revenues, due to the deceleration of roaming revenues and the removal of mobile interconnection fees effective January 1 this year.
EBITDA reached P43.2 billion, up 8% from 2019, as a result of higher service revenues, and as prudent cost management compensated for unbudgeted COVID-19-related expenses and increases in provisions.
Strikingly, PLDT hiked its capex to P70 billion for 2020 in response to increased demand for digital connectivity, on top of its P260 billion total capex spent in the last five years.
Originally, the telco set an P83 Billion capex for the year, which was brought down to P63 Billion at the onset of the pandemic before it was upgraded recently to P70 Billion, which was just 15 per cent lower than the original figure, noted Manuel V. Pangilinan, Chairman, President and CEO.
"The balance of our original P83 billion capex budget will be spent next year,” he added.
“COVID-19 has set our agenda for the foreseeable future " the Chairman acknowledged.
"At the outset, our task was clearly to keep people connected as the country went into lockdown.
Moving forward, we will grow our business by helping our customers – and the country – rebuild their lives and livelihoods with powerful connectivity like fiber, 4G and now 5G."
PLDT’s Net Debt as of 1H2020 amounted to US$3,794 million while Net Debt-to EBITDA (earnings before interest, taxes, depreciation, and amortization ) stood at 2.19x. Gross Debt amounted to US$4,748 million, of which only 4.4% remain unhedged.
The PLDT Board of Directors yesterday declared an interim dividend of P38 per share representing 60% of first half 2020 telco core income, in line with PLDT’s dividend policy.
Record date is set for 20 August, while payment date is on 4 September 2020.
Overall, "This pandemic has underscored how staying connected is crucial to everyone’s lives," according to Pangilinan.
"We are social creatures by nature and thankfully, technology has made it possible to keep in touch, even during a lockdown.”
Significantly, “Our strong performance will allow us to further boost our already significant investments," he pointed out.
PLDT invested P260 billion over the past five years, enabling its networks to carry all the additional traffic during these past few months and bringing new technologies such as 5G.