Philippine Long Distance Telephone Co. said Tuesday net income in 2014 fell 4 percent to P34.1 billion from P35.4 billion in 2013 because of higher expenses and competition from social media and free messaging applications.
PLDT said consolidated core net income, before exceptional items, also dropped 3 percent to P37.4 billion last year from P38.7 billion recorded in 2013. It said the decline was due to higher cash operating expenses, product subsidies and income taxes.
Consolidated service revenues grew 1 percent to P165.1 billion in 2014, as revenues from the data and broadband and domestic voice businesses offset the declines in SMS or text messaging revenues and the international and national long distance streams.
Earnings before interest, taxes, depreciation and amortization margin stood at 47 percent. Consolidated Ebitda fell 1 percent to P76.9 billion as the increase in service revenues was offset by higher cash operating expenses and subsidies.
“Our 2014 performance reflects the combined effect of the intense domestic competitive situation and the changing global landscape – where OTT [over-the-top] players are disintermediating the traditional telcos, and data services and social media are overtaking legacy services,” PLDT chairman Manuel Pangilinan said.
“Taking these into consideration as we chart our future growth, PLDT recognizes the need to complement its present business by participating in the digital world beyond providing access and connectivity,” Pangilinan said.