Telco giant PLDT Inc. said May 9 that its gross service revenues grew by five percent, or P2.5 billion, to P52.2 billion, in the first three months of this year, while net of interconnect costs stood at P48.7 billion.
The three percent growth, or P1.6 billion, in the consolidated service revenues in the first quarter of 2024 was mainly due to data and broadband, which grew by five percent, or P2 billion, to P40.5 billion.
“We continue to squeeze growth out of an industry that seems bound by gravity. That said, our first quarter results are encouraging. We are determined to break past this gravitational hold,” Manuel Pangilinan, PLDT and Smart chairman and chief executive officer, said in a statement May 9.
Consolidated EBITDA, or earnings before interest, taxes, depreciation, and amortization, grew by five percent year-on-year, to a record P27.3 billion in the first three months of 2024, as a result of higher revenues.
Telco core income, excluding the impact of asset sales and Maya Innovations Holdings, reached P9.3 billion, or up eight percent, from the same period last year, mainly due to higher EBITDA, but partly negated by the increase in financing costs and tax provisions, the company said.
PLDT’s Individual Wireless segment also started the year strong, posting revenues of P21.1 billion in the first quarter, higher year-on-year by seven percent, or by P1.3 billion, compared to the same period last year.
Mobile data revenues, which now account for 89 percent of total Individual Wireless revenues, grew to P18.8 billion, resulting from improved data monetization. Active data users grew to 39.4 million, with average data usage per subscriber was at 11.6 GB, higher than the 10.6 GB in previous year.
Among initiatives to accelerate revenue growth momentum were long validity offers, Power All and upselling efforts. The segment was also able to grow the 5G adoption through exclusive 5G offers and 5G device migration offers for both Prepaid and Postpaid customers.
The Smart’s eSIM upgrade campaign drove subscriber retention. As of end March 2024, Smart had registered 59 million mobile subscribers.
“In 2024, we expect our Consolidated Service Revenues and EBITDA to grow in the mid-single digit range, driven by robust increases in data and broadband revenue streams of the various business segments, and supported by top-line growth and tight cost management,” Pangilinan said.
“While we recognize the realities of market saturation and higher capital expenditures as factors in slowing growth, we do not accept them as excuses for PLDT and Smart to stop delivering value to our stakeholders. Only an obsession with growth will get us to escape velocity,” he added. “Our goal should be to set a new benchmark, one that challenges the lofty returns of the best tech companies.” ||
