PLDT unit's first half net profit plunges

ABS-CBN News

Posted at Aug 03 2010 10:53 AM | Updated as of Aug 03 2010 07:49 PM

MANILA, Philippines - PLDT Communications and Energy Ventures Inc. (PCEV) said its net income in the first half  plunged to P872 million from P7 billion last year after it sold its mobile operation to its parent firm, Smart Communications Inc.

Smart is a wholly-owned subsidiary of Philippine Long Distance Telephone Co. (PLDT).

PCEV,  formerly known as Pilipino Telephone Corporation or Piltel, sold its cellular business to Smart on August 17, 2009, and focused on investments in the energy business, particularly its acquisition of a stake in power distributor Manila Electric Co. (Meralco).

In a filing with the Philippine Stock Exchange, PCEV said its core net income, excluding one-off items, also dropped sharply to P1.1 billion from P6.3 billion a year ago, since the bulk of its income then was derived from its cellular business.

PCEV has a 6% stake in Meralco and 50% of Beacon Electric Asset Holdings Inc., which controls 34.8% of Meralco.