PLDT's ICT business revenues down by 2%

CEBU, Philippines - The instability of foreign exchange in the Philippines, has not only affected the exporters in general, but also the ICT (Information Communication Technology) sector, as the Philippine Long Distance Telephone Company (PLDT) reported a two percent decline of its ICT business last year.

PLDT’s ICT business reported service revenues of P10.7 billion in 2010 a two percent decline from 2009.

With 70 percent of their revenues being dollar-denominated, the ICT business’ results were particularly hard hit by the appreciation of the peso, the company’s 2010 report said.

The EBITDA for the ICT business increased by 30 percent to P1.7 billion in 2010 as compared with P1.3 billion in 2009, with a five percent decrease in cash operating expenses, largely due to a reduction in headcount.

The company further reported that EBITDA margin at 16 percent was higher than the 12 percent recorded in 2009. ICT’s revenues account for seven percent of PLDT’s consolidated revenues.

PLDT president and chief executive officer (CEO) Napoleon Nazareno said that prospects for the re-organized SPi Global Holdings, Inc., are particularly encouraging with the projected expansion of both its new and existing customer base.

“Now, that we have recalibrated the focus of ePLDT and SPi, we are looking forward to a banner year from both entities,” said Nazareno.

Meanwhile, PLDT reported that the strengthening of the peso during the year resulted a reduced over-all service revenues of P2.2 billion, as well as sale of Mabuhay’s satellite business, which reduced revenues by P900 million.

Consolidated EBITDA was lower at P83.7 billion while EBITDA margin was at 59 percent, the same level as 2009.

Approximately 26 percent of consolidated service revenues are linked to the US Dollar. Had the peso remained stable, service revenues and EBITDA for 2010 would have each declined by one percent relative to 2009.