Corporate News: PLDT on track to hit profit target for the year, Nazareno says

Posted on August 02, 2013

bworldonline.com

http://www.bworldonline.com/content.php?section=Corporate&title=pldt-on-track-to-hit-profit-target-for-the-year-nazareno-says&id=74343

PHILIPPINE Long Distance Telephone Co. (PLDT) is on track to hit its profit target for this year as it launches an improved broadband service in a bid to cement market dominance.

When asked about the company’s financial prospects, PLDT President Napoleon L. Nazareno told reporters: “Overall, we are back on a growth path for both top line and bottom line. On guidance figure, we are on track,”

Mr. Nazareno made the statement ahead of the company’s announcement on Aug. 7 of its financial performance for the second-quarter period.

PLDT’s net income for the first quarter dropped by 8% to P9.2 billion this year from P9.9 billion last year. The drop was mainly due to losses on foreign exchange, officials said.

Its core net income went up 2.7% to P38.3 billion during the first three months of 2013.

The company earlier said it is expecting its core profit to increase 2.7% to P38.3 billion this year, from last year’s record of P37.3 billion.

HOME INTERNET

PLDT Home Business Head Ariel P. Fermin said they are eyeing to get up to 30,000 subscribers from the current record of over 10,000 subscribers before the end of this year as the company launches new features for its Fibr broadband Internet service to home subscribers.

“Fibr will further solidify PLDT’s market dominance as it works to reach its P38 billion core income target this year,” Mr. Fermin told reporters.

PLDT said the broadband service is currently available in over 600 subdivisions in key cities nationwide like Forbes Park, Dasmariñas Village, Ayala Alabang, Greenhills, Valle Verde, White Plains, and Green Meadows in Metro Manila; Cebu Royale Estate and Beverly Hills in Cebu; and Don Lorenzo in Davao.

The company aims to expand its coverage to 700 subdivisions by the end of 2013.

TV CHANNELS
Mr. Fermin said Fibr broadband now offers Cignal digital TV that allows subscribers to enjoy high-definition TV channels at home using the broadband Internet service.

“This new partnership with Cignal is proof of PLDT’s culture of innovation as we commit to provide Filipino families with only the best telecommunication and digital entertainment services,” Mr. Fermin said.

He said current PLDT Home Internet subscribers only need to upgrade to a “triple play package,” which includes broadband, landline, and Cignal digital TV. PLDT said the Fibr triple play package gives subscribers the convenience of having all three services under one account, allowing subscribers to connect up to three TV sets when they avail of the triple play package.

“Truly, Fibr is PLDT Home’s most powerful broadband as it only delivers powerful, dedicated connection to the home but also allows subscribers to watch movies on Clickplay and watch Cignal Digital TV simultaneously,” PLDT said in a statement.

Mr. Fermin said they are expecting to further expand their coverage and reach the mainstream market with the Fibr broadband service at around 2015- 2016.

Earlier this year, PLDT launched Clickplay movies-on-demand. It is an application that lets the subscribers download movies from the application’s database and a dual core PLDT Telpad that merges the functions of a landline phone and a tab in one device.

Cignal Digital TV recorded 500,000 subscribers as of the end of June.

Cignal is owned and operated by MediaScape Inc., a subsidiary of MediaQuest Holdings, the media partner of the PLDT Group of Companies.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake in BusinessWorld. — Ma. Soccoro D. Villamor and Jeffrey O. Valisno

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