Digitel lifts PLDT?s wireless biz in Q1

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[/caption] Without Digitel?s revenue contribution of P4.7 billion, wireless revenues would have fallen 4 percent to P24.2 billion as the 6-percent increase in wireless broadband cellular and the stabilizing of cellular data/text revenues were offset by the 8-percent drop in voice revenues. ?We are pleased to note that we are beginning to see early signs of stability as we follow through on the integration of Digitel. We expect a gradual improvement in product yields and overall profitability from the ongoing rationalization on both services and brands front. More importantly, we continue to push our network modernization program even as our subscribers are already experiencing the benefits of our ongoing efforts,? said Napoleon L. Nazareno, president and CEO of PLDT and Smart. The carrier?s net income for the first quarter declined 6 percent to P10.1 billion, from P10.7 billion in 2011. Fixed line service revenues increased by P1.3 billion or 9 percent to P15.6 billion in the first quarter of 2012 from P14.3 billion in the same period in 2011 as enterprise data and DSL revenues continued on their growth path on the back of a 15-percent increase in DSL revenues and a 18-percent increase in third party corporate data revenues. On the other hand, the ILD, NLD, and LEC businesses posted a 3-percent decline in revenues. “The outlook for the Fixed Line business is encouraging with the Home and Enterprise segments continuing their growth performance. Prospects for Broadband remain bright as we introduce new services such as FTTH and triple play. We have also just opened a second data center in Subic which will support our data center- and cloud-based services,” declared Nazareno. Total broadband and Internet revenues for the first three months of 2012 totaled P5.8 billion, a 34-percent growth rate year-on-year, including a P800 million contribution from Digitel. Broadband and Internet now account for 14 percent of consolidated service revenues. Smart wireless broadband revenues, exclusive of mobile Internet revenues, increased by 6 percent to P1.7 billion, compared with the P1.6 billion recorded in the same period last year. Moreover, mobile Internet usage continues to grow strongly, with Smart?s mobile Internet revenues increasing by 71 percent, from P300 million at the end of March 2011 to P600 million in 2012. PLDT DSL generated P2.6 billion in revenues for the first quarter of 2012, up 15 percent from P2.3 billion for the same period in 2011. Orlando B. Vea, Smart Chief Wireless Adviser, said, ?We continue to expand our broadband offerings, be it handset-driven or usage-based. Prices of smartphones are fast approaching the ?sweet spot? of $100 which is when we can expect mobile phones to become the Internet access point of choice for Filipinos.” In 2011, the telco group consolidated its business process outsourcing operations, consisting of knowledge process solutions (KPS) and customer relationship management (CRM) under SPi Global Solutions Inc (SPi). KPS and CRM had previously been under ePLDT, along with other ICT businesses such as data center operations, which have since been transferred to the fixed line business. SPi reported service revenues of P2.4 billion for the first quarter of 2012, an increase of 20 percent compared with the same period last year. KPS increased by 22 percent as a result of an 11 percent revenue increase from content solutions services and the acquisition of Laserwords, while revenues from CRM rose 16 percent to P800 million, with domestic sales registering a strong 10 percent growth. 83 percent of SPi?s revenues are dollar-linked — had the peso remained stable, service revenues for the period would have increased by another P35 million. ?Our first quarter results are in line with our expectations that industry stability would return in gradual but quite certain terms. As we continue the complex task of integrating Digitel/Sun Cellular into the PLDT Group, we are heartened by the opportunities for both synergy and growth we see arising. In the meantime, we are pursuing further rationalization measures which may be somewhat adverse in the short-term but should produce sustainable, longer-term benefits,? concluded PLDT chair Manuel V. Pangilinan. ]]>

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