PLDT recovery remains on track even as 1st half profit drops
PLDT Inc. said it remains on track for gradual recovery despite the 29 percent drop in its first half net income to P11.8 billion and the Department of Labor and Employment’s order to regularize over 7,300 workers.
The decline in profit was due to lower earnings from the telco giant’s wireless and other businesses.
Consolidated revenues rose four percent to P82.24 billion driven by data services in its fixed line business.
“We have stayed on the growth path through the mid-point of this year by banking chiefly on the momentum of our Home and Enterprise businesses. Our individual wireless business has taken further steps forward, making gradual additions to its revenues and subscriber base,” said Manuel V. Pangilinan, chairman and president of PLDT and Smart.
“ Life has, however, become more complicated due to developments like the order of [DOLE] to hire over 7,300 employees from 38 of our service contractors. The injunction order granted by the Court of Appeals and the court’s reversal of certain findings relating to labor-only contracting provide relief, but considerable work still has to be done to resolve this matter with finality,” he noted.
Pangilinan, however, remains confident the company will bounce back as PLDT continues to expand and improve its services. The company has in fact maintained its core profit guidance of P23-24 billion this year despite the profit drop.
IN the second quarter, PLDT reported its highest quarterly revenue ever of P37.5 billion. This also marks the fifth consecutive quarter of steady sequential improvements in service revenues, during which service revenues increased over P1.8 billion.