PLDT hopeful for better financial performance next year

MANILA, Philippines — Following a challenging 2017, PLDT Inc. is hopeful for a better financial performance next year as it intends to continue network improvements to arrest the decline in the wireless business. 

PLDT chairman, president and chief executive officer (CEO) Manuel V. Pangilinan told reporters this year has been a tough one for the telco and digital services provider. 

“It was a challenging year. It’s a good year for fixed (line business). Mobile, we still have some ways to go. There are some signs of recovery, but we are not out of the woods yet,” he said. 

“Hopefully, 2018 will be better,” he said further, citing next year’s performance would depend on how the wireless business performs.

While international voice calls are expected to decrease next year, he said the decline would be smaller compared to 2016 and this year. 

“So, it would depend whether wireless can recover,” he said. 

Last November, PLDT raised the recurring core profit guidance to P22 billion from P21.5 billion for this year, following positive financial results in the first three quarters.

As of end-September, PLDT’s recurring core income which excludes gains from asset sales, earnings before interest, tax, depreciation and amortization adjustments and related tax adjustments, rose five percent year-on-year to reach P17.4 billion. 

While revenue from the home and enterprise segments posted double-digit growth year-on-year in the January to September period, revenue from the wireless individual business slid 14 percent to P44.2 billion in the nine-month period from a year ago.

To address the weakness in the wireless business, Pangilinan said the company would continue to undertake network improvements.

“It looks like there has been big improvement both in terms of speed and coverage on data. The rest will be brand definition, coverage, sales... We have to push, push,” he said. 

According to an analysis from research firm OpenSignal released in October, PLDT’s wireless unit Smart Communications Inc. continued to lead in terms of Long Term Evolution speeds across all regions of the country.

As PLDT hopes for a better year in 2018, Pangilinan said next year may also be the time to think about the new CEO for the company.

“It is something to really think about. As I have said, if I am quite certain that PLDT is already on a sure footing in terms of this recovery, time to let go. I want to demonstrate I am not here to hold on to my position forever. Like in Meralco (Manila Electric Co.), I gave way to Oscar Reyes,” he said.

Based on the market scan conducted by PLDT,  there are some individuals from abroad being considered, as well as internal candidates for the post.

“Hopefully, over the holidays I could meet more of them in Hong Kong or here in Manila,” Pangilinan said.