PLDT’s Q3 Net Income Drops 5 Percent On-Year

Philippine Long Distance Telephone Company (“PLDT”) (PSE:TEL) (NYSE:PHI) today announced its unaudited financial and operating results for the first nine months of 2015 with Consolidated Core Net Income, before exceptional items, amounting to P27.1 billion, 5 percent or P1.5 billion lower than the P28.6 billion recorded in the same period last year.

The decrease was due mainly to lower EBITDA reflecting the impact of expenses relating to the manpower reduction program, and higher financing costs, offset by lower provisions for income tax and a decrease in depreciation and amortization.


Reported Net Income, after reflecting exceptional transactions for the period, declined 9 percent to P25.3 billion, from P28.0 billion in the first nine months of 2014, as a result of the dip in core net income and higher foreign exchange losses.

EBITDA margin for the period was at 44%. Consolidated EBITDA for the first nine months of 2015 was 5 percent lower at P54.1 billion compared with the same period last year due to lower service revenues from the wireless business, higher cash operating expenses, which include the costs arising from the manpower reduction program, and higher provisions.

Excluding revenues from the international and national long distance (ILD/NLD) segments of P15.0 billion, consolidated service revenues grew by 2 percent year-on-year, from P104.5 billion to P107.0 billion at the end of September 2015.

Consolidated service revenues for Q3 2015 posted a positive 1 percent growth both quarter-on-quarter and year-on-year. The improvements in Q3 become even more pronounced without the drag of ILD/NLD, with Q3 consolidated service revenues growing by 4 percent and fixed line service revenues increasing by 9 percent.

Wireless service revenues rose by 1%, both quarter-on-quarter and year-on-year, bucking the negative levels of 1Q2015 and 2Q2015. With the drag of ILD/NLD, consolidated service revenues for the first nine months of 2015 dipped by 1% to P122.0 billion.

Consolidated free cash flow for year stood at P23.9 billion. Consolidated capital expenditures for the period amounted to P23.3 billion, P7.3 billion higher than the capital expenditures in the same period last year. –

The Group’s consolidated net debt increased to US$2.5 billion as at 30th September 2015, with net debt to EBITDA higher at 1.57x. Gross debt amounted to US$3.2 billion.

The Group’s debt maturities continue to be well spread out, with over 60% due after 2017. The percentage of U. S. dollar-denominated debt to the Group’s total debt portfolio is at 47 percent.

Taking into account our peso borrowings, our hedges and our US dollar cash holdings, only 30 percent of total debt remains unhedged.

The Group’s cash and short-term securities are invested primarily in bank placements and Government securities. PLDT continues to be rated “investment grade” by the three major international ratings agencies, namely Fitch Ratings, Moody’s and Standard and Poors. –

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