MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) chairman Manuel V. Pangilinan is looking at putting up an information technology (IT) hub in Intramuros, Manila.
Pangilinan, through his Twitter account @iamMVP, announced the lease of around 500 to 600 square meters in Palacio del Gobernador, beside the Manila Cathedral.
“Just done visiting Intramuros. We aim to build an IT hub in the area, close to academic community. Big boon to Manila,” he tweeted.
The PLDT Group has raised its budget for capital expenditures this year by 12 percent, from P34.8 billion last year to P39 billion, in anticipation of higher data usage amid increasing smartphone ownership.
Bulk of the budget this year would be used to activate more 3G base stations and to expand its Time Division-Long Term Evolution (TD-LTE) and Frequency Division-LTE (FD-LTE) services.
Earlier, Pangilinan said PLDT sees a 6.4 percent decline in core net income, from P37.4 billion last year to P35 billion this year.
The company’s core net income slipped three percent to P37.4 billion last year from P38.7 billion in 2013 due mainly to the rise in cash operating expenses, increase in product subsidies and a higher provision for income tax.
The PLDT Group’s consolidated service revenues inched up by one percent to P165.1 billion from P164.1 billion. Revenues from its wireless business declined by one percent to P115 billion while its fixed line business booked a five percent increase to P65.2 billion.
As a result, the company’s reported net income declined four percent, from P35.4 billion to P34.1 billion, due to the P1.3-billion decline in core net income, the P2.1-billion contribution from the discontinued business process outsourcing (BPO) operations in 2013, and a P1.7-billion upgrade of higher impairment of transport assets.
“Our 2014 performance reflects the combined effect of the intense domestic competitive situation and the changing global landscape,” Pangilinan stressed.
He pointed out that PLDT recognizes the need to complement its present business by participating in the digital world beyond providing access and connectivity.
“This transition is expected to carry on for the near-term and will likely involve an investment phase in both capital expenditures and corporate assets,” Pangilinan added.
For 2015, the PLDT chief said the company would continue to face intense competitive pressure, continued influence from OTT (over-the-top) players and higher capital expenditures for the buildup of its 3G and 4G networks.
“As a result, we project higher depreciation costs and financing charges which, along with ongoing efforts to defend our market share, will impact our bottom line which we expect to be in the vicinity of P35 billion for 2015,” he said.
But the PLDT Group, Pangilinan said, sees improved business prospects starting 2016.
“Beyond 2015, we see brighter prospects for PLDT,” he said.
PLDT president Napoleon Nazareno said the company is accelerating efforts to “reshape” the PLDT Group into a digital communications business from a telco-access business.
Nazareno said the five pillars of the PLDT Group’s “converged, digital communications business” include Individual, Home, Enterprise or international, Multimedia, and Digital – with the latter being welcomed as “the new kid on the block.”
He pointed out that PLDT’s Smart Communications Inc. is boosting its “Internet for All” campaign, while PLDT HOME, PLDT Alpha Enterprise and PLDT SME Nation continue to address the concerns of companies and enterprises.