PLDT expects better Q2 earnings

Dominant carrier Philippine Long Distance Telephone Co. (PLDT) sees better earnings in the second quarter of the year fuelled by the company’s data and broadband businesses as well as fixed line segment.

PLDT chairman Manuel V. Pangilinan said in an interview with reporters after the company’s 2014 Annual Stockholders’ Meeting that the country’s largest telecom company expects higher profits in the second quarter compared to the same period last year.

“It will be better than last year,” Pangilinan said.

PLDT recorded a P10.54-billion net income in the second quarter of 2013 on the back of revenues amounting to P42.14 billion.

Pangilinan said the growth of company’s profits from April to June is being fuelled by data and broadband as well as the company’s fixed line business.

“Typical thing data and broadband but I think the fixed line business has been doing very well actually during the past year and the first quarter of the year,” he said.

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Furthermore, he said the decline in the company’s international and domestic long distance businesses is “norrower and less steep.”

PLDT’s net income climbed two percent to P9.38 billion in the first quarter of the year from P9.18 billion in the same quarter last year as revenues rose four percent to P42.54 billion from P40.96 billion.

Pangilinan said PLDT is looking at a two percent rise in core net income to P39.5 billion this year from P38.7 billion last year.

PLDT president Napoleon Nazareno told the company’s stockholders that the momentum in profitability last year is expected to be sustained this year.

“For 2014, we expect to sustain this momentum in profitability and anticipate core income to rise further by two percent to P39.5 billion,” Nazareno said.

He said the company’s net income dipped two percent to P35.4 billion last year reflecting the combined impact of foreign exchange and derivative losses, losses from Super Typhoon Yolanda, and higher manpower rightsizing program expenses.

Nazareno explained that PLDT operated in a challenging competitive environment in the last two years while it was undertaking important internal changes involving the integration of Digital Telecommunications of the Philippines Inc. and Sun Cellular into the PLDT Group as well as the massive network transformation program.

Globe partners with Malaysia's IX Telecom

Globe Telecom's enterprise arm has partnered with global service provider IX Telecom Sdn Bhd of Malaysia to expand its enterprise coverage in Southeast Asia.

Through the partnership, Globe will provide connectivity services and information communication technology (ICT) solutions to IX Telecom customers in the Philippines.

Globe has been providing businesses with ICT interconnectivity solutions through mobile, wireline, broadband, data connections, internet and managed services.

“Being at the forefront of ICT not only in the Philippines but also in the ASEAN region, Globe Business is honored to partner with IX Telecom as we both synergize our expertise and leadership in delivering world-class connectivity for our enterprise customers not just in our respective countries but also in Southeast Asia,” said Globe Telecom chief operating officer and executive vice president for international and business markets Gil Genio.

Meanwhile, the chief executive of IX Telecom, Noor Mohd Helmi Nong Hadzmi, said the partnership with Globe will strengthen their presence in Southeast Asia and elevate their positioning in the value-chain as IX Telecom explores other business ventures among telecommunication firms in the region.

The partnership was signed during the Specialized Marketing Mission of the Malaysia External Trade Development Corp from May 21 to 24, 2014.

Globe Telecom exits print and OOH for digital

Globe Telecom is booting print and out-of-home media out of its marketing mix as the country’s 6th largest advertiser finds a better return on investment on digital than from traditional channels.

Speaking to creative and media buying agencies this Wednesday, chief operating advisor Peter Bithos (pictured) said they will keep TV and radio but will now focus its attention on media that is relevant to the brand and to its customers who are increasingly found online.

He declined to detail the breakdown of Globe’s ad budget allocation in response to the changes.

“We at Globe no longer advertise on print. We at Globe made the decision to exit outdoor. So that the ad dollars that we buy do not increase, shifting the least measurable and the most speculative media and the least aligned with our customer segments into digital where we can measure it, grow it and prove it.”

Bithos said that Globe saw the need to make tough top-down decisions to better understand and increase the effectiveness of the money it spends.

Globe devotes upwards of US$ 70 million in advertising annually. A hefty investment that has helped the telco secure 40% of its market, Bithos shared that the company is “very unhappy” in spite of.

“We cannot measure it. We don’t know the returns on it and we don’t know if we are making the right decisions,” he adds.

Bithos vented his frustrations in a fairly emotive talk, saying that after observing the situation for the last three years, Globe has grown tired with lack-luster marketing strategies that have been used year after year.

“No brand marketer, no advertising middle manager, no junior analyst ever got fired for doing what they did last year. So we started realizing this as what kept coming up through the brand campaigns – the same media plan where we do this amount of outdoor, we do this amount of print, we do this amount of TV and that’s what we did last year and even the year before that.”

Digital marketing is undoubtedly an inventible path for Globe to take, taking advantage of its core strengths as a top broadband provider and mobile network for over 30 million users. Together with Globe Mobile Advertising and Entertainment Gateway Group, larger and bolder developments are to be expected.

Their biggest challenge now, Bithos admits, is on how Globe can stand out where virtually every business in the Philippines are all competing for tweets, likes and online attention.

“If you are doing Facebook advertising, guess what, you are doing Facebook advertising just as everybody else. Really? Is that the way we are going to innovate? Is that the way to stand out in the market place?”

He appealed to the agencies in attendance to present campaigns that both make business and creative sense.

“We are not satisfied with the measurements we are getting, the creatives we are getting, with the innovative approaches we are getting. We need your help. Bring innovative ways to advertise to us. Bring new ways to reach our customers,” Bithos said.