MVP Group holding on to PLDT
Despite PLDT Inc.’s lackluster earnings, Hong Kong-based conglomerate First Pacific Co. Ltd.has no plans to sell Philippines’ largest telecomunications company and is in fact determined to forge ahead with its transition to to digital multimedia communications, which includes strengthening its fixed and mobile networks.
“I think it’s still a great company. At the end of the day, most of these problems are man-made. We just did not manage it right from the beginning,” PLDT chairman and CEO Manuel V. Pangilinan said as he noted the group’s failure to decisively shift its business to data-driven services.
“I would like to attribute the delay in the digital pivot to the fact that we were so focused on delivering the profits and the dividends. So the focus was mainly on that,” the 70-year old Pangilinan said.
Just last week, PLDT announced a management shake up in an effort to reverse a prolonged slump that has seen its profitability and market share erode significantly.
“This is still a strong company, we still have the biggest EBITDA (earnings before interest, taxes, depreciation and amortization) among the biggest companies in the Philippines,” Pangilinan said.
“As we close 2016, and look to next year and beyond, I believe it is critical that PLDT establish a baseline position from which we could pivot to a higher plane in the coming years,” he said. “You’ve seen the thrust PLDT has been making on the home and enterprise side. We have to continue that. We have to accelerate the conversion of legacy revenues to data revenues,” he noted.