PLDT fixed line continues to improve

By Lynda B. Valencia

MANILA, Nov. 7 (PNA) -- Fixed line service revenues of the Philippine Long Distance Company (PLDT) increased by four percent to P38.2 billion in the first nine months of 2009 from P36.7 billion in the same period last year as the 17 percent increase in data revenues, both from corporate data and residential DSL services, was somewhat attenuated by declines in other segments of the business.

Napoleon L. Nazareno, President and CEO of PLDT and Smart Communications, Inc, said national long distance (NLD) revenues decreased while international long distance (ILD) revenues continued to weaken due to the shifting of traffic to cellular and other means of communications.

Local exchange revenues declined one percent due to the bundling of voice and data services, though somewhat mitigated by the increase in postpaid billed lines, he said.

Data service revenues contributed 42 percent of the fixed line’s service revenues as compared with 37 percent in the same period last year.

The fixed line business continues to pursue initiatives aimed at tapping new markets.

"These were enabled by leveraging both the fixed and wireless networks and creating new products for different market segments," he said.

Nazareno said, "In the third quarter alone, we introduced several services that include: the PLDT Budget Card which allows low rate IDD calls to the US and Canada; postpaid landline bundled with wireless landline SIMs; an enhanced myDSLbiz which now offers faster speeds, LAN networking and WiFi connectivity; and SUKI, a business networking site."

He added, "We also launched SWUP All Card Access and, in partnership with Tata Communications a public studio called Telepresence which allows virtual meetings."

PLDT DSL continued its strong performance as broadband subscribers grew by nearly 116,000 to 548,000 at the end of Sept. 2009 from 433,000 at the end of 2008.

PLDT DSL generated P5.1 billion in revenues in the first nine months of 2009, up 29 percent from P4.0 billion in the same period in 2008.

As expected, with the growth of broadband, which raises revenue and profitability but at lower margin, fixed line earnings before interest, taxes, depreciation and amortization (EBITDA) margin is lower at 53 percent for the first nine months of 2009 as compared with 56 percent in the same period last year.

However, the 53 percent margin is slightly higher than the full year EBITDA margin reported in 2008.

"The fixed line business has produced three straight quarters of revenue growth – no mean feat in this age when communications is accessible through numerous channels. We are encouraged by this progress and look to remain focused and sustain this transformation and this improvement," said Nazareno.(PNA)