PLDT rings in P9.8 B profit in Q1, up by 9%

MANILA, Philippines — PLDT, the country’s largest telco, is adjusting well to the shrinking market for broadband products and spiraling cost of goods and services as it generated earnings of almost P10 billion in the first quarter of the year.

Based on its financial statement, PLDT’s profit improved by nine percent to P9.82 billion in the first quarter from P9.02 billion a year ago, showcasing its ability to expand in the face of industry challenges.

PLDT’s core income – computed as profit from the primary business of the telco excluding extraordinary items – likewise went up by eight percent to P9.32 billion.

With this, PLDT is on track to hit its core income guidance for the year of P35 billion. The telco is aiming to expand the business even though the connectivity market is becoming oversaturated and inflation is starting to pick up again.

PLDT chairman, president and CEO Manuel V. Pangilinan said the company is ready to surpass the industry standard for total shareholder return. He is confident PLDT will find new areas for growth, including in underserved areas and from high-income customers.

“While we recognize the realities of market saturation and higher capital expenditures as factors in slowing growth, we do not accept them as excuses for PLDT and Smart Communications Inc. to stop delivering value to our stakeholders,” Pangilinan said.

“When we see the seven percent average total shareholder return for telcos, our goal shouldn’t be to exceed it – our goal should be to set a new benchmark, one that challenges the lofty returns of the best tech companies.”

PLDT grew its revenue by four percent to P54.22 billion from January to March from P52.36 billion a year ago, as the telco improved its service income by five percent to P52.2 billion.

In total, PLDT drew single-digit growth from its individual and home segments, both increasing by seven percent to P21.1 billion and P13.7 billion, respectively. Enterprise also turned in P12.1 billion in revenues due to the ballooning demand for cloud services and data centers.

Further, PLDT embarked on cost-saving measures to keep its capital expenditures in check. The telco cut its expenses by three percent to P38.62 billion, from P39.7 billion in 2023.

For the year, PLDT will bring down its capex to a range of P75 billion to P78 billion, lower than the P85.1 billion invested in 2023, and the company has spent P15.7 billion so far.

“We continue to squeeze growth out of this industry that seems bound by gravity. With that said, our first quarter results are encouraging. We are determined to break past this gravitational hold,” Pangilinan said.