PLDT reports lower earnings

Telecommunications giant Philippine Long Distance Telephone Co. reported that its earnings in the year's first half slightly declined as revenues slipped. PLDT on Wednesday said that its core net income dipped one percent to P21 billion from P21.1 billion in the same period last year. Reported net income, meanwhile, slid two percent to P21.3 billion from the P21.7 billion recorded in the same period last year. "Had the peso remained stable, core net income for the first half of 2011 would have been higher by P0.5 billion," PLDT added. Overall consolidated service revenues dropped three percent to P69.6 billion, pulled down by the two-percent reduction in cellular data/text revenues and an eight-percent decrease in combined cellular and fixed voice revenues. "Despite the mature market and aggressive pricing environment, we are pleased to have been able to maintain our strong cash flows and our commitment in terms of our regular dividend policy, " said Manuel V. Pangilinan, PLDT chairman. PLDT has declared an interim dividend of P78 per share. "Consolidated free cash flow for the period was at P24.2 billion, a 25-percent or P4.8-billion increase from last year. Consolidated capital expenditures for the period amounted to P6.3 billion for the first six months of 2011," PLDT said. The telecommunications company said its capital expenditures will be used to improve the group's broadband and cellular coverage and capacity and the modernization and upgrade of both their mobile and fixed networks. -- CMA/OMG, GMA News