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Broadband and Digital Services among Growing Segments for PLDT's Increased Revenue

PLDT PLDT

Philippine Long Distance Telephone Company (PLDT), announced its 3rd Q 2013 financial results, which saw the net income for the company increased 4 percent to P28.8 billion than for the same period a year ago. PLDT's mobile subscriber base stands at 72.5million, with a net addition of 2.6 million for the first 9 months of the year.  Besides its traditional business lines such as voice and messaging, PLDT's venture into digital services via its online music service, the Smart Music partnering with MCA Music and Sony, saw a good uptake. Smart Music, an online music service with more than three million tracks from MCA Music and Sony‟s global catalog, is available to Smart, Talk ‘N Text and Sun subscribers. Since its launch in July, close to a million unique visitors have accessed the Smart Music portal. The subscriptions can now be accessed via the mobile app, SPINNR. The first of its kind in the country, SPINNR powered by Smart Music offers more than just music downloads. It makes possible unlimited music streaming at the most affordable rates, playlist customization and access, and offers the best download discounts. 

smart music
 
Summary of PLDT's 3rd Q Financial Results

Consolidated Core Net Income of P28.8 billion for 9M2013, P1.1 billion or 4% higher than P27.7 billion in 9M2012 

Consolidated Reported Net Income for 9M2013 at P29.0 billion, 2% up from the P28.4 billion in 9M2012 

Consolidated service revenues increase 2% to P121.6 billion 

Consolidated EBITDA margin up to 49% of service revenues; consolidated EBITDA higher by 4% at P59.6 billion 

Consolidated free cash flow grew by P3.2 billion to P32.9 billion for 9M2013 

Cellular subscriber base at 72.5 million, net additions of 2.6 million for the nine months 

Total broadband subscribers at 3.3 million; aggregate revenue contribution from broadband and internet services of P19.5 billion for 9M2013, 16% higher than last year 

"The structural change in PLDT‟s revenue mix has now reached an inflection point where our “growing” revenue streams, such as data and broadband, have outpaced our declining legacy businesses. The growth rates of the former are now more than double the latter‟s rate of decline. With much of our core businesses in a stable state, we anticipate the upward trend of our revenues to continue," declared Napoleon L. Nazareno, President and CEO of PLDT and Smart. 

“Smartphone penetration is now at 11%, and is especially encouraging in the postpaid sector where about 59% of subscribers now own a smartphone. We have also begun to tap the huge potential of the prepaid market with products and services that address affordability, in terms of both handsets and usage,” said Orlando B. Vea, Smart Chief Wireless Adviser. “In fact, we have already tweaked the pricing model our Smart Music service to make it even more affordable”, he added.  Read More 'Philippine Long Distance Telephone Company (“PLDT”) (PSE: TEL) (NYSE: PHI) today announced its unaudited financial and operating results for the first nine months of 2013' 
Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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