The largest service provider in the Philippines, PLDT posted a 34% year-on-year decline in net income in the first quarter of 2016 to Php6.2 billion (USD$131 million), from Php9.4 billion in the same period last year. The decline is mainly due to the reduction in its core income and a Php1.6 billion asset impairment from its investment in German e-commerce company Rocket Internet. PLDT owns a 6.4%-stake in Rocket Internet.
PLDT's consolidated revenues for the period were up by 1% at Php42.8 billion with broadband, corporate data and data center revenues contributing Php2.5 billion, a 22% increase compared to the same period last year. The operator's consolidated service revenues were stable at Php40.6 billion.
At the same time, the operator saw its wireless business following suit with the share of its data and digital services increasing from 20% in 2015 to 25%. Mobile Internet revenues surged 38% to Php3.1 billion on the back of enhanced data service packages and compelling video and other digital service offers.
PLDT said that its capital expenditures for the first quarter amounted to Php14.6 billion, more than four times the capex for the same period in 2015. The Capex was channelled towards increasing coverage, speed, capacity and reliability of PLDT’s fiber and DSL and Smart’s mobile networks.
