The Philippine telecom sector is bullish about 2024 amid easing inflation, a robust economy and a bigger focus on innovation.
The industry, boasting P267 billion in revenues through the first nine months of 2023, exhibited resilience in the face of economic challenges.
Globe’s outlook
Globe Telecom Inc. chief executive Ernest Cu expressed optimism, as he anticipates declining inflation and strong non-telco business growth. The Bangko Sentral ng Pilipinas forecasts inflation to moderate from 5.8 percent in 2023 to 3.5 percent and 3.4 percent by 2024 and 2025, respectively.
“We will continue to seek opportunities to thrive amidst challenges,” Cu said. “Our renewed focus on innovation, collaboration, sustainability and service, backed by our network excellence, will keep us ahead and pave the way for a digitally inclusive Philippines.”
Globe reported P83.2 billion in revenue in the first nine months of 2023, up from P80.6 billion a year earlier. However, net income declined to P19.36 billion from to P26.5 billion while core net income slipped 8 percent to P14.8 billion.
PLDT’s expectations
PLDT Inc. echoed positive sentiment, with chairman Manuel Pangilinan acknowledging success in navigating a tough environment. PLDT anticipates a core net income of P34 billion in 2023, exceeding the P33.3 billion reported in 2022.
“The company has done well against a tough environment,” Pangilinan said. He expects core net income of P34 billion this year, surpassing the P33.3 billion reported in 2022.
PLDT reported a net income of P27.9 billion from January to September, up 1 percent from P27.5 billion last year. Service revenues grew 3 percent to P156.35 billion, with data and broadband contributing 82 percent.
“Now more than ever, we see the power of technology and digital services impacting Filipinos’ lives,” said PLDT and Smart president Alfredo Panlilio. “Our mission is to enable our countrymen with the tools and connectivity needed to enhance their digital lifestyles.”
PLDT’s capital expenditure guidance remains at P80 billion to P85 billion, including P11 billion from prior years’ commitments. The group expanded its fiber footprint to over 1.1 million cable kilometers and passed more than 17.3 million homes.
Converge’s confidence
Converge ICT Solutions Inc. joined the chorus of optimism, expressing confidence in its growth trajectory.
Driven by both residential and enterprise segments, Converge logged a 5.2-percent increase in residential business and a 21.1-percent growth in enterprise revenues, solidifying its industry position. The company invested P5.2 billion in the first nine months to deploy 895,712 ports nationwide.
“Converge remains optimistic about the company’s overall growth trajectory,” said Converge founder and chief executive Dennis Anthony Uy.