PLDT maintains 5% profit growth goal

08/06/2008

Dominant telecommunications firm Philippine Long Distance Telephone Co. (PLDT) remains confident of posting at least five percent growth in its core net income this year despite tougher economic conditions, its officials said yesterday.

PLDT chairman Manuel Pangilinan said that amid rising inflation and high food and fuel prices, “overall the tone is one of caution but some confidence as well.”

He said PLDT expects to post a core net income of P37 billion this year as well as revenues of about P145 billion, up 7 percent from 2007.

“We still think there is a potential for growth in our core business, which is why in this difficult period, we have chosen to increase our (capital expenditures),” he said.

“The business is good and the prospects of this country are good.”

PLDT president Napoleon Nazareno said core net income in the first half of 2008 amounted to $417 million, a 12 percent increase over last year.

Smart Communications, the company’s cellphone subsidiary, saw its total subscribers rise by 3.2 million in the first half of the year to 33.2 million, Pangilinan said.

He said he expects the effect of higher inflation to be felt in the third quarter, which is traditionally the weakest point of the year.

Many of the company’s costs, like fuel and electricity, were beyond its control, he said, noting that the government had just announced that inflation in July had hit a 17-month high of 12.2 percent due to food and fuel costs.

But Pangilinan said he expects a recovery in spending as the Christmas season approaches.

Back to top

For comments about this website:Webmaster@tribune.net.ph
The Daily Tribune © 2006