PLDT reports 7% drop in 2011 core net income to P39B

Philippine Long Distance Telephone (PLDT) Company on Monday said its consolidated core net income dipped by 7 percent to P39 billion last year from P40.2 billion a year earlier. “The decline in core net income was a result of lower services revenues and higher operating expenses,” the country’s largest telco said in a statement. The company’s consolidated net income further sank to P31.7 billion, down 21 percent from P40.2 billion. The declines reflect a consolidation of PLDT’s merger with Digital Telecommunications Philippines Inc. (Digitel), the company said, noting the acquisition of Digitel was consummated last Oct. 26. Digitel’s full integration is underway, according to the company. Still, shareholders will receive a 100 percent dividend payout at P189 per share. “This is the fifth year in a row that we have paid out 100 percent core earnings per share, a significant achievement when taken in the context of our increased investment levels and heightened competition,” PLDT chairman Manuel “Manny” Pangilinan said in the same statement. The company’s combined cellular subscriber base increased by 3.4 million to 63.7 million last year. The broadband subscriber base posted a 45 percent increase in 2011 having 2.9 million subscribers. Fixed line subscribers also increased to 2.2 million at the end of 2011 from 1.8 million. The statement noted the increase reflected 47,000 new PLDT subscribers and 296,000 from Digitel. "The Home business of the Group continues its aggressive growth performance with broadband leading the way and voice services maintaining its leading position in the market,” Napoleon L. Nazareno, president and chief executive officer of PLDT and wholly owned subsidiary Smart Communications Inc. The inclusion of Digitel in our product portfolio will enable us to expand our subscriber base in the regional mainstream market," he added. Combined revenues from broadband and internet services amounted to P18.8 billion, up 18 percent. Similarly, wireless broadband revenues —including mobile internet — went up 13 percent to P8.1 billion from P7.2 billion. Smart’s mobile internet revenues skyrocketed by 91 percent to P1.6 billion from P900 million. The up tick in revenues from mobile internet services were brought by the affordability of smartphones, said Orlando Vea, chief wireless adviser at Smart. “As smartphones become more pervasive and more affordable, more Filipinos are able to access the Internet and social media. Clearly, we have built the most advanced network in the country. This translates to an enhanced experience and mobile lifestyle for our subscribers, most especially so for mobile Internet users,” Vea added. Under PLDT’s SPi Global Solutions Inc., revenues from business process outsourcing gained 6 percent to P8.6 billion. SPi Global handles knowledge process and customer interaction solutions.