PLDT net income for 2016 down by nine percent to P22.07 billion

March 7, 2017

PLDT Inc.  on Tuesday announced a consolidated core profit of P27.9 billion last year, down by 21 percent due to higher spending to support expansion of its fixed and mobile network.

"We faced very tough tests in the past year as competition intensified and the shift to digital services accelerated. Our results reflect the impact of these challenges, but also point to us the way forward. We are focused on growing our data and digital services," Manuel V. Pangilinan, chairman of PLDT said.

Net income amounted to P20.16 billon last year, down by nine percent to from P22.07 billon in 2015.

Pangilinan said the company is not yet out of the woods, but its prospect is brighter.

He said PLDT will lay off some infotech personnel by second quarter but he said manpower reduction is still "under discussion."

PLDT has over 1,000 IT personnel. He said  PLDT is talking to IBM to outsource its IT needs.

"In the course of providing IT needs, they will need people to provide it. So, the suggestion is they (IBM) will take over some of the IT personnels (of PLDT). We want to make sure that they will keep their jobs," Pangilinan said.

Pangilinan expects significant savings from streamlining of manpower.

In 2015, PLDT reduced about 5 to 6 percent of its workforce. It had 17, 176 employees at end-2015.

Pangilinan said the company is capitalizing on its Home and Enterprise businesses, which have more room for growth and enjoy significant advantage in terms of superior digital network infrastructure and brand strength.

He said 50 percent of its revenues starting will come from Home and Enterprise.

"At the same time, we are re-energizing our wireless consumer business by focusing on quality subscribers. Number of subscribers is not as important metric as it was before," Pangilinan added.

Home and Enterprise, which account for 47 percent of consolidated service revenues, net of international businesses, grew 10 percent to P29.3 billion and nine percent to P30.6 billion, respectively.

Its wireless consumer business, which consists of mobile services for individual customers of Smart and Sun, generated service revenues of P66.4 billion, nine percent lower than the previous year, due to declines in SMS and domestic voice revenues.

Mobile  data grew 20 percent and accounts for 34 percent of total service revenues, ahead of SMS and domestic voice revenues with shares of 33 percent each.

Pangilinan said the "2016 has been a period for resetting of the many dials of our Company. "

"Profitability has been reset to a lower level, reflecting the impact of the changes in the business, our customer base and our organization. This has provided us a new baseline from which we can build upon, and grow," he added.

Pangilinan targets a recurring core income to P21.5 billon this year, up by 6 percent from last year's P20.2 billion.

"That will be put us back on the path to sustained growth and improving profitability, this year and in the coming years” he added.

In 2016, PLDT and its subsidiaries began a three-year ‘digital pivot’ to maintain and enhance its market leadership, amid major shifts in technologies and market. DMS