While its competitors are setting revenue targets this year, Pangilinan-led telecommunications giant PLDT Inc. is taking a more cautious approach by going against the grain amid the threat of weaker consumer demand affecting its bottom line.

PLDT Chief Financial Officer Danny Yu said it is hard to predict the company’s growth trajectory right now, especially since prices remain unstable due to inflationary pressures.

He said the impact of the Middle East crisis on its revenues, which will likely be felt in the second quarter, is leaving PLDT with no choice but to take a more disciplined outlook on its growth strategy.

Based on its financial report, net income in the first quarter declined by two percent to ₱8.87 billion from ₱9.03 billion in the same period last year, as expenses surged faster than revenues.

PLDT saw its revenues went up by two percent to ₱56.51 billion, but expenses rose at a faster rate of five percent to ₱42.75 billion.

PLDT Chief Operating Officer Menardo Jimenez said the company is implementing intervention measures to keep expenses, particularly operating costs such as fuel and electricity, at a manageable level.

He said the company has entered into agreements with major fuel distributors involving pricing for its fuel needs, while also working to accelerate the shift of its network towers to solar energy.

With inflation climbing to a three-year high of 7.2 percent in April, the company will rely on its enterprise segment to cushion weaker demand from consumers amid belt-tightening.

Enterprise revenues improved by four percent to ₱12.4 billion in the first three months, which Jimenez expects to remain elevated through the rest of the year, driven by sustained demand for information and communications technology (ICT) solutions.

“Definitely enterprise is going to be leading the growth for us,” he said during a press briefing, noting that enterprise customers require ICT for business development.

In addition, he said PLDT’s home business will also see stable demand this year as more people work from home to cut fuel and transport costs. Total home revenues in the first three months were down by one percent to ₱14.7 billion.

Jimenez said its wireless segment is on a “slippery slope” this year since it is predominantly prepaid, leaving it vulnerable to weaker consumer demand during periods when the cost of other goods is higher.

Wireless revenues eased to ₱21 billion in the first quarter, which the company attributed to “selective” consumer spending.

Amid this softer outlook, Maya is expected to remain a bright spot for the company, as its contributions to PLDT are expected to increase by “double digits” from last year’s total of ₱716 million.

In the first quarter, the digital bank already contributed ₱285 million to the telco, or nearly 40 percent of last year’s haul.

For the year, PLDT will also leverage more of its non-telco assets to unlock value and manage its debt amid higher foreign exchange losses caused by a weakening peso.

The telco has so far raised ₱300 million in the first quarter from the sale of its properties, including those located in Cebu and Baguio. Yu said they plan to offload 200 more assets, although these are unlikely to be sold within the year given current market conditions.

PLDT’s capital expenditures (capex) from January to March amounted to ₱10 billion, helping it achieve positive free cash flow. The company expects capex to be within the mid-₱50 billion range this year.

Globe Telecom Inc. earlier said it remains on track to achieve low- to mid-single-digit revenue growth this year, similar to Converge ICT Solutions Inc. and its plan to raise revenues by eight to 10 percent.