Buoyed by sustained demand for data and broadband in pandemic times, PLDT Inc. hauled in P126.6 billion revenues for the first nine months of 2020, up 9 per cent versus the same period last year.
Reported income grew 23 per cent to P19.7 billion, despite losses incurred from investments like Voyager Innovations, while core income rose 8 per cent to P21 billion.
"We expect revenues to continue to rise in the fourth quarter," PLDT Chairman and CEO Manuel V Pangilinan announced in this afternoon's (Nov. 5) virtual press conference.
"We are slightly more optimistic for 2021 and we're forecasting better numbers," he added. However, "The competition will be intense, with Dito starting operations, Globe and Converge.'
The telco spent P43 Billion for its capex in the first nine months and expects to spend P70 - 72 Billion for the full-year total, similar to 2019, despite the mobility challenges due to the quarantine period.
The final level will depend on actual home broadband installations, as Filipinos continue to shift more of their daily activities online, from the safety of their homes.
Consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) reached P66 billion as at the end of September, as a result of the higher service revenues and prudent cost management.
“I see us at the forefront of digital empowerment, overcoming constraints on businesses and lives imposed by COVID,” Pangilinan stressed.
“We future-proof our business by establishing what we believe to be our strongest foundations - the best network, excellent products, and world-class customer service.”
“We have set our eyes north in 2020 and kept a steady gaze on customer-centricity as the only way to win,” added Alfredo S, Panlilio, Smart CEO and President and PLDT Chief Revenue Officer.
Data and broadband revenues led the growth in PLDT's service revenues, reaching P90.8 billion, an 18% increase, with mobile internet and Home broadband rising 31% and 14%, respectively.
Data and broadband accounted for 72% of total service revenues.
Consumer Wireless posted P 60.8 billion revenues, up 15%; Enterprise, Php 30.9 billion, up 6% and Home, P30.3 billion, up10%.
Taken together, all three business units registered revenues of P42.3 billion for the third quarter alone, a 13% increase over the same period last year.
The record levels offset the 11% decline in International revenues in the first nine months, as roaming revenues dropped due to travel restrictions brought on by COVID-19.
Mobile interconnection fees were removed starting January 1 this year.
“We have seen our Service Revenues grow consistently quarter-on-quarter since 2018," Panlilio noted.
"If not for the negative impact of the lockdown in the second quarter of this year, we would have had 11 quarters of consecutive growth."
In light of lower collection levels during the lockdown and the deferred payment options of up to six-months interest-free to Home, Consumer Wireless, and Enterprise customers, PLDT raised provisions for the first nine months of 2020 to P6.4 billion, higher by 67% over the same period last year.
Collections have since recovered and, in the third quarter, already exceeded pre-quarantine levels
PLDT’s net debt as of the end of September 2020 amounted to US$ 3.9 billion while net debt-to-EBITDA stood at 2.13x. Gross debt amounted to US$ 4.6 billion, of which only 3% remains unhedged.
Debt maturities continue to be well spread out, with 52% of total debt maturing beyond 2025. Fixed-rate loans make up 88% of the total.
PLDT’s credit ratings from Moody’s, Standard & Poors and Fitch remain at investment grade.
The massive capex investments have fortified PLDT’s network, reinforcing its position as the largest integrated telco in the Philippines.
PLDT’s investments in capital expenditures total nearly P260 billion in the past 5 years, helping the telco cope with sustained growth in data traffic when COVID-19 community quarantines commenced in March.
As of end-September 2020, 95% of the Philippine population is covered by Smart’s 4G and 3G mobile data networks, while 46% of cities/municipalities have PLDT Home broadband presence, in both fiber and copper.
PLDT aims to extend its current 395,000-kilometer fiber optic cable footprint by another 81,000 kilometers.
With 8.3 million homes passed, PLDT is looking at a significant potential market in the near-term. PLDT has ongoing plans of adding500,000 fiber ports.
To further improve coverage and connectivity, Smart intends to add about 2,000 cell sites next year.
Smart has also tapped six tower companies to build the initial batch of 180 to 200 common towers, pursuant to the Government’s common tower policy.
In addition, PLDT’s backbone network capacity stands at 55 terabits per second in the first nine months. With the ongoing expansion, PLDT is looking to further increase this capacity by another 37 terabits per second.
The Consumer Wireless business saw a resurgence in revenues in the third quarter and the first nine months of the year, reaching an all- time high of P21 billion and P60.8 billion, respectively.
Daily top-up trends show consistent month-on-month growth since April, with each month hitting historic highs versus the previous years.
Data drove growth, contributing 74% to total revenues in the first nine months, from 68% in the same period last year.
“As we enter the fourth quarter of what has been an extraordinary year, we are fortunate to be where we are,” Pangilinan remarked.
“With Service Revenues at an all-time high, we are poised to surpass last year’s Core Income."