PLDT Q2 net profit flat on year

Reuters

Posted at Aug 03 2010 12:31 PM | Updated as of Aug 03 2010 08:36 PM

MANILA, Philipines - Philippine Long Distance Telephone Co (PLDT), the country's most valuable listed firm, said on Tuesday its second-quarter net profit rose 1% and said it was seeking strategic investments as its core markets matured.

PLDT, owned by Hong Kong's First Pacific Co Ltd and Japan's NTT Communications and NTT DoCoMo said its net income for the April-June period reached P10.26 billion ($227 million) from P10.14 billion a year earlier.

Analysts do not make quarterly forecasts but they expect PLDT's net profit to rise 8% to P42.6 billion for 2010 from P39.78 billion in 2009, according to Thomson Reuters I/B/E/S.

PLDT said its core net profit, which excludes currency and derivatives-related items, rose 1% to P10.7 billion  in the second quarter from a year earlier.

The company said it maintained its guidance for core net profit of just over P41 billion in 2010, flat from 2009, amid tougher competition.

The company also said it was declaring an interim dividend of P78 per share, part of its commitment to pay out a minimum dividend of 70% of consolidated core earnings.

PLDT gained 0.4% against a 0.8% rise in the broader market in late trade on Tuesday.

The stock is down about 7% so far this year, underperforming a 14% gain in the main index, as some investors are cautious about prospects for telecoms firms given a mature market with mobile penetration at around 80%.