PLDT shares plummet on disappointing earnings, downgrade of core income target
Share prices of Philippine Long Distance Telephone Co. slumped 4.2 percent Monday following the continued decline in its earnings owing to its so-called digital pivot amid intensifying competition.
PLDT shares closed lower at P1,347 Monday compared to Friday’s close of P1,406 each share.
PLDT disclosed to securities regulators that its profit plummeted to P3.4 billion from P6.6 billion, bringing its nine month profit to P16 billion or 37 percent lower than the previous year.
Consolidated core income fell 20 percent as earnings before interest, taxes, depreciation and amortization declined by 15 percent to P45.7 billion.
Given its lousy third quarter results, PLDT revised downward its full year EBITDA guidance to P60 billion. With a lower EBITDA, management expects consolidated core income to hit P28 billion.
“We are making this adjustment, anticipating that while data and broadband will keep posting steady growth, toll, cellular voice and SMS revenues will, however, continue to wane,” PLDT chairman and CEO Manuel V. Pangilinan said.
“This year has been a particularly challenging period for PLDT, as we grappled with both intense price competition and the continuing shift from voice/SMS services to data demand impacting adversely our wireless revenues; as well as internal adjustments in our senior ranks and in our processes which we are undertaking,” he noted.
Pangilinan said the group would continue to pursue its network improvement program for both mobile and fixed services, which would lay a solid foundation for its efforts to further build its data and digital businesses.