PLDT sees flat growth this year

MANILA, Philippines — Telco leader PLDT Inc. expects to earn P35 billion anew this year as it banks on the strength of its broadband expansion and gains more from the turnaround of its digital banking arm.

Based on its financial report, PLDT sustained a two percent drop in profit to P18.1 billion in the first half due to higher asset depreciation and revenue slowdown from key units.

PLDT’s core income – measured as profit from flagship services – went down by four percent to P17.2 billion due to the reduction in revenue contribution from individual and enterprise businesses.

As such, PLDT chief financial officer Danny Yu said the telco could end up with flat income growth this year, replicating its core income in 2024. Last year, PLDT booked a core income of P35.14 billion to exceed its P35-billion guidance.

The company is confident it can at least attain flat growth on the strength of its broadband segment. The unit’s contribution went up by four percent to P30.4 billion, driven by a net addition of 169,000 subscribers, most of which subscribed to higher-value plans.

Apart from this, digital bank Maya turned a leaf financially, turning over a profit of P400 million for PLDT in the first semester, from a P700-million loss a year ago.

PLDT chairman, president and CEO Manuel V. Pangilinan said Maya could record a profit of P2 billion this year, with the telco taking up to 40 percent of that based on its current stake.

Maya has 8.2 million customers and P50.4 billion in deposit balance, and it is growing in lending with loan disbursements reaching P152 billion.

On the other hand, Pangilinan said mobile unit Smart Communications Inc. is struggling to catch up with the evolving demands of consumers. Last week, Smart launched its new platform KiQ aimed at catering to the Gen Z market by offering personalized plans.

Enterprise, for its part, is expected to pick up pace in the second half. Pangilinan said the telco is signing new deals with the government between July and December, and this is expected to raise fresh revenue.

PLDT has spent P27.4 billion for capital expenditures as of June, far below the guidance of P68 billion to P73 billion for the year.

Yu said PLDT is tracking a capex spending of P63 billion right now, as the telco managed to bargain more favorable deals with a number of its vendors.