PLDT Inc., the biggest telecommunications firm, said Thursday it raised capital expenditures this year to support its home broadband and data center businesses.
PLDT revised its capex guidance for 2022 to P85 billion from the original P76 billion to P80 billion.
PLDT said the increase in capex would support updated requirements for the Home broadband and data center businesses, additional upgrades of the tower and their passive infrastructure assets covered by sale and leaseback transactions.
PLDT Group recently announced a P77-billion sale and leaseback deal in connection with 5,907 towers and related passive telecom infrastructure.
The company reported a net income of P9.07 billion in the first quarter, up 56 percent from P6.80 billion in the same period last year.
Core income, excluding the impact of asset sales and Voyager Innovations, reached P8.2 billion, up 9 percent from P7.5 billion in the same period last year.
PLDT’s service revenues amounted to P47.97 billion in the first quarter, up 5 percent from P45.67 billion in the same period last year.
Total Home service revenues increased 25 percent year-on-year to an all-time high P13.6 billion in the first quarter of the year.
Enterprise revenues touched an all time high of P11.2 billion, up 7 percent from the same period in 2021, while individual wireless revenues hit P20.4 billion.
PLDT and Smart president and chief executive of Alfredo Panlilio said it PLDT was on track to meet its targets for the rest of 2022, with service revenues expected to post mid-single digit growth.
“This growth in service revenues will be underpinned by our continued rollout of fiber ports and LTE/5G, our data center expansion, and our commitment to delivering the best customer experience,” he added.
PLDT chairman Manuel Pangilinan said the company 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 a record high in revenues, improved EBITDA and increased Telco Core,” Pangilinan said. Darwin G. Amojelar
“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 added.