PLDT Inc. has raised its capital expenditure (capex) guidance this year to P85 billion, from the original guidance of about P80 billion, to support further network expansion and its data center business.
PLDT said the revised capex will support the growth in demand for home broadband, its data center business and the additional upgrade of the tower/passive infrastructure assets subject of the tower sale and leaseback transaction.
“We are raising the capex guidance from between the P76 billion to P80 billion in the start of the year to P85 billion for the full year but the highlights of the financial development in the course of the year, cash inflow from the EBITDA (earnings before interest, taxes, depreciation and amortization), we’re guiding P108 billion for the full year and the capex of P85 billion a ratio of EBITDA to capex would be 1.3 times,” Manuel Pangilinan, PLDT chairman, said in a virtual press briefing.
Pangilinan also said the company is targeting service revenue growth of mid-single digit and telco core income of P33 billion for the full year.
Pangilinan stressed PLDT must be steadfast in its goal to deliver its core income target and achieve positive free cash flow.
“I am encouraged with our strong start for 2022 as we once again posted record high in revenues, improved EBITDA and increased telco core. That said, we must stay the course in order to generate greater free cash flow from higher revenues, cost optimization and the sale of our towers — the last of which could enhance income this year and in succeeding years,” he said.
Alfredo Panlilio, PLDT and Smart Communications Inc. president and chief executive officer, said the growth in service revenues will be underpinned by the company’s continued rollout of fiber ports and Long Term Evolution/5G, data center expansion and commitment to deliver the best customer experience.
PLDT reported a consolidated service revenue of P46.4 billion in the first quarter of the year, up by 3 percent from P44.8 billion in the same period last year.
The growth in service revenue was led by the Home and Enterprise businesses. Data and broadband, which grew by 8 percent to P36.6 billion, contributed 79 percent to consolidated service revenues.
PLDT said its telco core income, excluding the impact of asset sales and Voyager Innovations, reached P8.2 billion in the first quarter, up 9 percent from P7.5 billion a year ago, in line with guidance.
The company reported net income of P9.1 billion in the first quarter, surging 56 percent from P5.8 billion in the same period last year.
As of end-March, the PLDT Group has a total of 70.3 million mobile subscribers, 4 million broadband users and 3.8 million fixed line subscribers.
