PLDT's H1 revenue jumps 6% on consumer wireless, home and enterprise business growth

Wednesday 14 August 2019 | 10:01 CET | News
Philippines operator PLDT posted service revenues of PHP 76.7 billion for the first half of 2019, which represents an increase of 6 percent year-on-year. PLDT reports this is its highest half-year revenue level posted since the second half of 2014. Service revenues in the second quarter of 2019 rose 7 percent year-on-year and 2 percent quarter-on-quarter to PHP 38.7 billion. Revenue growth was mainly boosted by the Consumer Wireless Business, which together with the Home and Enterprise Businesses, raised revenues by 11 percent to PHP 72.1 billion, accounting for 94 percent of consolidated service revenues. Data, Broadband and ICT service revenues jumped 19 percent year-on-year to PHP 49.6 billion and now accounts for 69 percent of total service revenues from the Consumer and Enterprise businesses.

EBITDA rose 15 percent year-on-year to PHP 40 billion, due to the combined impact of higher service revenues and lower cash opex, the company said. EBITDA margin improved to 50 percent from 46 percent in June 2018. Telco core income was stable year-on-year at PHP 13.2 billion, excluding equity in losses from Voyager, accelerated depreciation and gains from the sale of Rocket Internet shares. Reported net income grew 4 percent year-on-year to PHP 12.2 billion, which includes the gain in the valuation of Rocket Internet shares. 

PLDT’s board of directors declared an interim regular dividend of PHP 36 per share payable on 10 September 2019 to stockholders on record as of 27 August 2019. This represents a 60 percent payout of core income, in line with the company’s dividend policy. 

PLDT’s Consumer Wireless business revenues jumped 20 percent year-on-year to PHP 34.4 billion in the 6-month period ended 30 June 2019. Data and broadband accounted for two-thirds of these revenues. The upturn of Consumer Wireless revenues was powered by subscriber growth, adoption by subscribers of LTE SIMs and LTE smartphones, increasing data usage for video and games. 

Smart, TNT and Sun added 8.7 million new subscribers in the first half of 2019, pushing the total to over 66.8 million as of end-June 2019. More than 80 percent of Smart subscribers adopted LTE SIMs and nearly two-thirds are currently using LTE handsets. Data traffic jumped to 670PB at the end of June or higher by 113 percent from the June 2018, and 31 percent from December 2018. In the second quarter alone, data traffic more than doubled year-on-year to 366PB, a 21 percent increase over the first quarter of 2019.

PLDT Home revenues grew by 2 percent year-on-year to PHP 18.3 billion in the six months ended 30 June 2019, and registered a 1 percent quarter-on-quarter increase in the second quarter of 2019 after three stable quarters.

The Enterprise Business Group posted a 6 percent revenue growth to PHP 19.4 billion. Growth continued to be led by ICT services, with revenues from data center, cloud, cyber security and managed IT services rising 20 percent to PHP 2.2 billion. Wireless services jumped 12 percent to PHP 3.1 billion as more clients signed up for wireless digital services such as IoT and M2M. Enterprise-grade iGate and Fibr boosted growth for Fixed Line services fueled by the demand for data of businesses around the country. Private networking services (such as IPVPN and Ethernet services) also contributed to revenue growth, increasing by 11 percent. PLDT’s fixed-line services grew by 6 percent to PHP 10 billion.

PLDT set its capital expenditure for 2019 at PHP 78.4 billion. In the first half of this year, the operator said it had spent PHP 32.7 billion to expand coverage and capacity of its fiber fixed line broadband network, LTE and 3G mobile data networks, as well as modernize its IT support systems. The operator plans to commercially launch 5G services on the local market in the first half of 2020.

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Categories: General
Companies: PLDT / Smart Communications
Countries: Philippines
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