MANILA - Philippine Long Distance Telephone Company (PLDT) posted a 5 percent drop in its profits for the first half of the year.
PLDT said its consolidated core net income went down to P18.9 billion in the first half of 2015 from the P19.8 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 gain from the sale of Meralco shares by Beacon," the firm said.
Its consolidated service revenues for the period dropped by 2 percent to P81.2 billion, as revenues from the international and national long distance segments continued their decline.
As of end-June, the PLDT Group’s total cellular subscriber base stood at 68.9 million, broken down as follows: Smart had 25.3 million subscribers; Talk ‘N Text ended with 27.9 million subscribers; and there were 15.6 million Sun Cellular subscribers.
“The rapid decline in our toll revenues continues to bear down heavily on our medium-term revenue growth, with the onslaught of the Internet causing adverse substitution. The annualized impact of this decrease is P4-P5 billion for the full year 2015 and toll traffic could reduce even faster in the coming months as smart phone penetration accelerates," said PLDT chairman Manuel V. Pangilinan.