Things looking up for MPIC, says MVP

MANILA, Philippines – Businessman Manuel V. Pangilinan has a positive outlook on Metro Pacific Investments Corp.’s financial performance this year amid favorable economic prospects, but is cautious on Philippine Long Distance Telephone Co. (PLDT) as the telecommunications industry is rapidly changing and becoming more competitive.

“I think the prospects are bright. I think the economy is still growing strong,” Pangilinan told reporters on the sidelines of the 45th Annual Membership Meeting of the Philippine Business for Social Progress.

Based on latest information from Manila Electric Co., Pangilinan said the company’s volume of electricity went up nine percent in January on the back of positive economic conditions.

The tollways business is also experiencing from a year ago a robust growth with traffic throughput zooming at a double digit rate, Pangilinan said.

Manila North Tollways Corp. chief operating officer Raul Ignacio told reporters during the tour of the North Luzon Expressway (NLEX) and Subic-Clark-Tarlac Expressway (SCTEX), the company expects up to seven percent growth in the volume of traffic in both tollways this year.

At present, the NLEX has an average daily vehicle volume of 200,000, while SCTEX has 35,000.

Maynilad Water Services Inc. is likewise seen to have a positive profit performance this year amid continued strong economic growth.

As for the hospital business, Pangilinan said the plan is to continue to acquire at least two to three hospital facilities this year.

MPIC is engaged in various businesses such as power distribution, toll operations, water utilities, hospital operations and rail.

As of end-September, MPIC’s core earnings reached P8.2 billion, 28 percent higher than last year’s level.

MPIC’s net profit rose 30 percent to P7.8 billion in the first nine months of last year.

While Pangilinan is optimistic on MPIC’s financial performance for this year, he has a cautious outlook on PLDT.

“It’s a tough industry mainly because of the nature of the business. It’s really transforming fast and radically so we’re still trying to understand fully what that transformation really means,” he said.

A new player in the telco industry is also expected as Telstra of Australia is in talks with San Miguel Corp. for a possible joint venture in the wireless business.

Pangilinan said PLDT is planning to forge more partnerships this year to cater to the subscribers’ digital lifestyle.

For the first nine months last year, PLDT’s core income reached P27.1 billion, down five percent from P28.6 billion a year ago.

The telco firm’s net income also dropped nine percent to P25.3 billion as of end-September last year from P28 billion in the same period in 2014.