Investing Stocks in Philippines: Philippine Long Distance Telephone Company

Showing posts with label Philippine Long Distance Telephone Company. Show all posts

Thursday, March 14, 2013

Stock News 2013: PLDT to expand fiber optic network

The PLDT Logo (Photo credit: Wikipedia)

Philippine Long Distance Telephone Co. is rolling out over 5,000 kilometers of new fiber optic cable this year to support both wireless and fixed-line services across the country.

In a statement, PLDT said it would spend P2.5 billion to push its fiber optic network to over 60,000 kilometers this year.

The fiber expansion program for 2013 will cover the domestic fiber optic network (DFON) used for long-haul applications, fiber-to-the home (FTTH), fiber-in the-loop (FITL) and other inter-office fibering projects.

The FTTH project, for example, will make PLDT’s high-speed internet services available to about two million homes in different parts of the country, incuding Metro Manila, the regions of Central Luzon, Southern Tagalog, and the provinces of Panay, Negros Occidental, Cebu, and Davao.

“With this expansion program, we are bolstering our already formidable fiber advantage,” PLDT president and CEO Napoleon Nazareno said.

“Fiber is key to having the capacity to deliver next-generation, large-bandwidth data services,” he added.

Additional fiber links include submarine cables that will boost the data connectivity of the islands of Palawan, Bohol and Panay where the demand for resilient data services is rising due to the booming tourism and business process outsourcing industries in these areas.

Last month, PLDT announced the completion of the Hong Kong FOC extension project as part of the 7,800-km undersea Asia Submarine-cable Express system that links the Philippines to Japan, Malaysia, Singapore, and Hong Kong through PLDT’s new landing station in Daet, Camarines Norte.

http://business.inquirer.net/111709/pldt-to-expand-fiber-optic-network

Thursday, February 7, 2013

Stock News 2013: High cost of modernization takes toll on Globe income

The old Globe corporate logo. (Photo credit: Wikipedia)

One step back, two steps forward. This was how Globe Telecom Inc. characterized its latest financial performance after it reported a 30-percent decline in its net earnings last year—despite having booked higher sales—as it accelerated spending for its ongoing network modernization program.

In a press briefing, officials of the Ayala-controlled telecommunications firm said that its net income for 2012 declined to P6.85 billion from the previous year’s P9.83 billion. The drop came despite a 6-percent increase in Globe’s revenues to P82.7 billion at the end of 2012 from P77.7 billion in the previous year.

Amid complaints being received by the firm from subscribers as it upgrades its long-neglected network, Globe president and CEO Ernest Cu said the company was “encouraged by the continued growth and resilience” of its mobile and broadband businesses “that allowed us to reach record peaks in revenues quarter after quarter despite intense competition” and the ongoing network and IT modernization.

“As we anticipate a more challenging year ahead, given the increasingly competitive environment, we are hopeful that the gains we have made in terms of brand building and differentiation through customer experience will tide us through this most critical period as we complete our network and IT modernization program and undertake the related transition efforts,” he said.

The impact of the modernization-related spending was felt most acutely in the final quarter of the year when its quarterly net income dropped to only P49 million from P1.84 billion in the same quarter of 2011.

The sharp decline was due to the accelerated depreciation costs associated with retiring old network equipment as well as to higher subsidies the company had to pay for the large demand for new iPhone 5 units acquired by subscribers.

On Wednesday, Globe officials also said that the company would soon begin talks with stakeholders of Lopez-owned Bayan Telecommunications Inc. to discuss the firm’s eventual exit from its ongoing rehabilitation program.

Globe recently acquired close to 100 percent of the liabilities of the debt-saddled company in a deal that also allowed the Ayala-led firm to make use of Bayan’s valuable 3G frequency.

Cu said that a future merger with Bayan was possible if such a plan would be accepted by all stakeholders involved. He stressed, however, that any prospective union between Globe and Bayan would not face the same regulatory roadblock experienced by rival PLDT and Digital Telecommunications Inc. two years ago since a merged Globe-Bayan entity would be far from the size that a PLDT-Digitel union would have created in terms of cellular frequencies controlled by a single entity.

During Wednesday’s briefing, Globe officials noted that the company’s broadband and fixed line data segments also posted significant gains on account of the rising demand for data and Internet connectivity.

“Full year broadband revenues were up 16 percent to P8.7 billion as the year marked another milestone for the business with the commercial launch of its broadband LTE service that provided subscribers with alternative tools to improve their overall Internet experience,” Globe said.

http://business.inquirer.net/106337/high-cost-of-modernization-takes-toll-on-globe-income

Saturday, January 19, 2013

Stock News 2013: TV5 allots P6B for capex

GMA Logo in their 60th Anniversary (Photo credit: Wikipedia)

ABC Development Corp., owner and operator of TV5, is infusing P6 billion for its capital expenditures this year to boost its efforts to cut losses since dominant carrier Philippine Long Distance Telephone Co. (PLDT) acquired the network in 2009.

PLDT chairman Manuel V. Pangilinan told reporters on the sidelines of TV5’s “Blast Off for 2013” that the country’s third largest network’s budget for capital expenditures this year would be at par with the amount spent by the company last year.

This year’s budget would be allocated to complete the network’s state-of-the-art media center in Mandaluyong City with the news part scheduled to be finished in the first quarter.

“The capex would be around P6 billion, approximately the same as last year. We are still building our entertainment studios in Mandaluyong and the news part will be finished within first quarter this year,” Pangilinan said.

He added that a portion of the amount would also be used to introduce new shows as the network goes full throttle towards being one of the country’s leading multimedia this year.

TV5 welcomed the new year with its biggest show of force as it launched its biggest offerings for the first quarter of the year.

The PLDT chief pointed out that the company’s reprogramming would redound to improved bottomline as TV5’s losses ballooned to about P2.8 billion in the first half of last year.

“We should be better this year with better programming, better talents, and revenues I think,” Pangilinan said.

He said the company is now in the process of trimming its operating and production costs.

“It is a learning process for us in terms the ability to control cost of mounting a production whether it is a teledrama or a comedy. We are learning how to control the cost of production,” he explained.

According to him, TV5 would be able to sustain its strong finish last year after overtaking GMA Network Inc. (GMA7) in the last quarter in six viewer rich cities in Metro Manila including Iloilo, Cebu, Davao, Cagayan de Oro, Bacolod, and General Santos City that has a total four million viewers based on Nielsen TV Audience Measurement.

http://philstar.com/business/2013/01/17/897750/tv5-allots-p6b-capex-will-launch-new-shows

Friday, December 21, 2012

Stock News 2012: PLDT selling SPi Global

The PLDT Logo (Photo credit: Wikipedia)

The largest Filipino-owned business process outsourcing (BPO) firm, SPi Global Holdings Inc., is set to be acquired by a foreign group as the former’s parent, Philippine Long Distance Telephone Co., looks to pare down its debts.

PLDT chairman Manuel V. Pangilinan said the company had found a preferred buyer to acquire 80 percent of SPi Global, which has over 18,000 employees in the Philippines and four other countries.

“It’s an excellent business and (SPi Global CEO Maulik Parekh) has done an excellent job increasing its value,” Pangilinan said in an interview on Tuesday.

“The decision to sell came when we were still negotiating to buy GMA 7. That deal never happened, but we decided to push through with the sale of SPI,” he told reporters.

Pangilinan said the buyer would acquire an 80-percent stake in SPi, while PLDT would keep the remaining 20 percent.

Pangilinan said the PLDT group was also willing to contribute to SPi’s future expansion.

The PLDT group also recently sold its 27-percent stake in PhilWeb Corp., a gaming firm controlled by the group of Roberto V. Ongpin, for $101 million.

“We already identified a preferred buyer and we are in the final stages of documentation,” Pangilinan said, adding that the buyer was a foreign private equity fund with existing investments in the BPO business. He, however, declined to reveal other details.

He said that while he believed SPi was a financially strong company, its impact on the PLDT group’s overall bottom line or share price was never significantly felt.

The PLDT group expects to post a P37-billion net income this year. PLDT is also the most valuable firm listed on the Philippine Stock Exchange.

Proceeds from the sale of SPi would be used to pay debts.

http://business.inquirer.net/98779/pldt-selling-spi-global

Tuesday, November 6, 2012

Stock News 2012: Huge downpayment, regulatory approvals scuttle GMA-PLDT deal

GMA Network reportedly demanded billions of pesos paid once a memorandum of understanding (MOU) is signed with the group of Manuel V. Pangilinan, whether or not the latter’s bid to acquire the private stake in the broadcasting company pushes through.

This, as well as other non-monetary demands, led Pangilinan’s group to no longer pursue its quest to purchase the over 70 percent stake held by the Gozon, Jimenez, and Duavit families in GMA, The STAR learned.

Sources revealed that the billions of pesos in fees, which is on top of the reportedly over P50 billion purchase price, was to paid after the MOA is signed and before the closure of the deal. Other requirements prior to closure include securing all the necessary government and regulatory licenses and approvals, all to be secured by the PLDT Group.

Without GMA help, securing the necessary licenses and approvals will not be easy, a source said.

It was not immediately known why the owners of GMA wanted the inclusion of the provision on the “fee” in the discussions when during the Pangilinan’s group’s first attempt to takeover GMA, there was no such demand.

Sources privy to the recently failed negotiations revealed that Pangilinan’s group felt that the owners of GMA were just not interested to sell. “This was not something an interested seller would ask for,” a highly placed source said.

When the two parties jointly announced early last month that the discussions are no longer pushing through, they said that it was not about the purchase price.

The acquisition of GMA by PLDT Beneficial Trust Fund unit Mediaquest was supposed to be part of Pangilinan’s aim for the Philippine Long Distance Telephone Co. (PLDT) to transform into a multi-media company. The group owns minority stakes in The Philippine STAR, Philippine Daily Inquirer and Business World, and controlling interests in TV5 and Cignal, a direct-to-home (DTH) satellite company.

The acquisition of GMA, STAR sources revealed, augurs well with plans of Hong Kong-based First Pacific Co., which controls PLDT, to have a regional presence in the broadcasting field.

Pangilinan earlier said he is in talks with Anthoni Salim, chairman and controlling shareholder of First Pacific, to acquire Salim’s Indonesia-based TV station.

It was also learned that First Pacific is also eyeing a TV network in Vietnam.

In 2001, PLDT engaged in talks with the owners of GMA, but negotiations bogged down over issues encountered by the prospective buyer.

“2001, if I recall correctly was P14 billion (amount being offered for GMA). It’s just that Home Cable came ahead of GMA by a few months. In 2001 and 2002, PLDT was not in good shape. If GMA came in first, I think we would have chosen GMA. But that’s fate,” Pangilinan earlier said.

http://www.philstar.com/Article.aspx?articleId=866791&publicationSubCategoryId=66

Sunday, September 16, 2012

Stock News 2012: Before MVP, Ayala showed interest in GMA-7

GMA Network, Inc. (Photo credit: Wikipedia)
The Ayala Group’s plan to integrate telecommunications and media could have happened several years ago had it succeeded in reaching a deal with GMA Network Inc.

The conglomerate, which owns the country’s second biggest telco (Globe Telecom), once trained its sights on GMA-7 but talks failed to reach advanced stages.

When asked to confirm this, GMA-7 chairman and chief executive officer Felipe Gozon said: “Yes, several years ago.”

Gozon did not elaborate although he was quick to point that the Ayala conglomerate has not made any overtures lately.

In his previous interviews, Gozon said a big conglomerate aside from telecommunications giant Philippine Long Distance Telephone Co. has expressed interest in GMA-7. He did not name the interested party though.

While the network is free to entertain other groups, GMA-7 is talking only to the PLDT Group at the moment, struggling to close a big-ticket deal that would give the Manuel V. Pangilinan-led group a leading market position in the broadcasting industry. The deal, when consummated, will likely change the face of Philippine broadcasting and telecommunications.

With the telecommunication industry grappling with shrinking profitability and increasing pressure from social networking sites, Globe Telecom recognizes the need to look for new avenues of growth in order to create a sustainable competitive advantage in its markets.

Globe president Ernest Cu in earlier interviews said the company is considering offering “new age” content, whether news or entertainment, to its subscribers.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=849610

Monday, July 23, 2012

Stock News 2012: MVP purchase of GMA-7 almost a done deal

GMA Network, Inc. (Photo credit: Wikipedia)
The group of telecommunications magnate Manuel V. Pangilinan’s acquisition of GMA Network Inc. is almost a done deal with the likelihood of taking in one or two investors to pick up a small minority stake in the broadcast firm, sources said.

Sources privy to the negotiations said financing for the purchase of GMA-7 is already in place and all that remains is some paperwork to finalize a deal with the Gozon, Duavit and Jimenez families, who own a controlling stake in the television network.

“It’s just a matter of time. Just the final paper work. Financing in place. Also possible that another person or two will come in for a small minority,” the source said.

Pangilinan told reporters last week that his group was willing to acquire GMA-7 at a price higher than the nework’s market capitalization, which stood at P33.95 billion as of Friday.

Sources said the three major owners of GMA-7, which collectively own 77 percent of the network, were willing to divest their stake for P55 billion to P60 billion.

Pangilinan said his group would pay in cash and that loans would only fund a small portion of the transaction.

He could not give a timetable for the acquisition, saying the proposed deal is subject to a lot of factors, which include approval of both the Congress and the National Telecommunications Commission.

Pangilinan, however, is hoping the deal can be finalized within the year.

He said Mediaquest, a unit of the Beneneficial Tust Fund of PLDT that also holds the group’s media assets such as a majority stake in Associated Broadcasting Co. or TV5 as well minority assets in several newspapers, would likely be the vehicle to be used in taking over GMA-7.

The acquisition of media assets is vital to the PLDT group’s goal of transforming into a multimedia and technology conglomerate as telecommunications companies across the global face intense competition from the so-called “over the top players like Facebook and Skype.

PLDT came close to buying a controlling stake in GMA in 2001. Talks, however, fizzled out down due to valuation issues.

The acquisition of GMA would catapult Pangilinan’s group to the number one position and would result to a virtual duopoly in the TV industry.

http://www.philstar.com/Article.aspx?articleId=830214&publicationSubCategoryId=66

Wednesday, July 18, 2012

Stock News 2012: Smart completes cellular network under PLDT's P67-billion program

Mobile phone giant Smart Communications Inc. has completed the installation and optimization of new base station equipment for its entire cellular network all over the country as part of the P67-billion modernization program of its parent firm PLDT.

Originally scheduled for completion in 2013, Smart president and chief executive officer Napoleon Nazareno said in a statement that the overhaul of Smart’s cellular network is part of the P67-billion network modernization program of the PLDT Group.

The program, according to Smart, has been fast-tracked in anticipation of increased demand for mobile services, particularly wireless broadband.

“The modernization program is not just an upgrade of our physical network equipment. We are investing heavily in our support systems and personnel re-training. That is why we refer to the program as a technology refresh,” Nazareno stressed.

Included in the modernization program are the installation of Multi Standard Radios which allow for push-button activation of the latest services and energy-efficient base stations which consume less electricity and take up less space.

Starting in late 2011, Smart replaced the radio equipment in 9,500 base stations with next-generation facilities that have increased its network’s capacity to handle voice, text messaging, and mobile broadband services.

Smart has been deploying Long Term Evolution (LTE) on a test basis since last year and has been gearing up to offer it as a commercial service.

LTE which is widely touted as the next generation of high-speed wireless broadband technologies capable of providing data speeds of up to 100 mbps and beyond.

“Every single base station of Smart is now easily upgradeable to fourth-generation technologies like HSPA+ and LTE,” Nazareno added.

The modernization program would enable Smart to offer high-speed mobile broadband in many more parts of the country.

For his part, Smart chief wireless adviser Orlando Vea said the company would move on to the next phase of its modernization program that includes introducing new billing and customer managements systems in the next few months.

“Our goal is to make simple and easy for our customers to use our unmatched network infrastructure through innovative and flexible service packages and superior customer service,” Vea said.

Smart’s infrastructure build up is also being complemented by network investments of PLDT that has completed the installation of over 50,000 kilometers of fiber optic cabling, covering the entire country and the laying of over 50,000 kilometers of fiber optic cabling in looped configuration for unparalleled resiliency.

PLDT recently started operating its third international undersea cable landing station in Daet, Camarines Norte.

PLDT has two other landing stations – one in Nasugbu, Batangas and the other in San Fernando, La Union – giving its international communications and internet services unmatched resiliency.

Rolando Peña, head of PLDT-Smart Network said both companies are now ready for the next chapter of telecommunications.

“With our enhanced networks, we can offer world class services to Filipinos such as Fiber to the Home and LTE,” Pena added.

PLDT has started to deploy on a commercial basis FTTH services in selected areas of Metro Manila. Fiber offers data connection speeds of up to 100Mbps.

Smart is the Philippines’ leading wireless services provider with 50.6 million subscribers on its GSM network as of end-March.

http://www.philstar.com/Article.aspx?articleId=827899&publicationSubCategoryId=66

Thursday, July 12, 2012

Stock News 2012: PLDT unit sells 27% stake in Philweb

The PLDT Logo (Photo credit: Wikipedia)ePLDT Inc., a wholly-owned subsidiary of dominant carrier Philippine Long Distance Telephone Co., is selling its 27 percent stake in Philweb Corp. of businessman Roberto Ongpin for a total consideration of about P4.257 billion.

In a joint statement submitted to the Philippine Stock Exchange (PSE), ePLDT and Philweb said they inked the share purchase agreement yesterday.

The transaction covers 397.892 million shares or about 27 percent of the total outstanding capital of Philweb. It would be undertaken in four tranches to be completed by the end of 2013. The first transaction is expected to be consummated on Friday at P10.7 per share. The second tranche would also be priced at P10.7 per Philweb share while the third and fourth transactions would be priced at the same base price of P10.7 but with an adjustment of three percent interest per annum.

Philweb corporate information officer Cliburn Anthony Orbe told the stock exchange that the company has enough cash to acquire the shares, resulting in higher earnings per share.

“Philweb, on the other hand, was happy to acquire the ePLDT stake because its cash flow was sufficient to pay for its acquired shares and would therefore result in higher earnings per share for the company by reducing the outstanding share by approximately 27 percent,” Orbe stressed.

ePLDT invested over P500 million to acquire a 20 percent stake in Philweb in May 2006.

ePLDT corporate secretary Ma. Lourdes Rausa-Chan told the PSE that the company wanted to cash in on its investments and thus decided to unload its stake in Philweb.

“Having made over 660 percent return on its original investment in six years, ePLDT wanted to realize its profits,” Chan said.

Both companies, however, pledged to continue working with each other on various mutually beneficial projects.

Philweb is primarily engaged in Internet-based gaming, through its appointment as principal technology service provider under the marketing consultancy agreement for Internet sports betting and Internet casino with the state-run Philippine Amusement and Gaming Corp. (Pagcor).

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=826456

Friday, June 29, 2012

Stock News 2012: Metro Pacific divests Rockwell Land stocks

Photo of Manny (Photo credit: Wikipedia)
The Metro Pacific Group of business titan Manuel V. Pangilinan has divested in upscale property developer Rockwell Land Corp., which is not part of the conglomerate’s core business.

In a joint statement to securities regulators yesterday, Metro Pacific Investments Corp. (MPIC) and First Philippine Holdings Corp. (FPHC) said Beacon Electric Asset Holdings Inc. has transferred around 1.5 billion shares in Rockwell worth roughly P3.1 billion to Lopez-owned FPHC and FPHC Pension Fund.

“Beacon transferred to FPHC 1.3 billion shares, as additional consideration for the 74.7 million Manila Electric Co. (Meralco) common shares acquired by Beacon from FPHC pursuant to the exercise of a call option on such shares on March 30, 2010,” the companies said.

“The consideration of the transfer of the 1.3 billion shares to FPHC is P2.01 per share or a total consideration of P2.613 billion,” they added.

The shares were crossed yesterday at the Philippine Stock Exchange.

Beacon secured a stake in Rockwell after Meralco divested its 51 percent stake in Rockwell by declaring it as property dividends. It resulted in FPHC owning a 52-percent stake in the high-end property firm.

Beacon, equally is owned by MPIC and PLDT Communication and Energy Ventures Inc., also transferred 84.546 million shares worth P169.938 million to FPHC as instructed by First Philippine Utilities Corp. (FPUC).

FPUC, a subsidiary of FPHC, retained its rights over the shares despite the MPIC group’s purchase of 30 million Meralco common shares, Beacon said.

Furthermore, Beacon sold 52.787 million additional Rockwell shares to FPHC valued at P2.01 apiece or a total of P106.1 million.

In 2009, FPHC sold 223 million Meralco shares worth P20.07 billion to the Pangilinan-led group. The Lopez-led holding firm sold an additional 74.7 million Meralco shares, or 6.6 percent of Meralco, in March 2010 for P22.41 billion.

Lastly, Beacon sold 87.953 million shares to FPH Pension Fund for P2.01 apiece or a total consideration of P176.787 million.

MPIC unloaded its shares in Rockwell as the company is not a core business of the conglomerate. Specifically, MPIC is into toll roads (Metro Pacific Tollways Corp.), power distribution (Meralco), water utility (Maynilad Water Services Inc.) and hospitals.

In May, Rockwell listed 6.23 billion common shares in the local bourse by way of introduction as a result of a Meralco’s property dividend.

Rockwell earned P915 million last year, up 14 percent from P801 million a year earlier on the back of a 26 percent jump in revenues to P6.2 billion. Revenue growth was driven by residential sales due to higher booking and construction completion in 2011 from ongoing projects.

Rockwell is looking to breach the P1 billion mark in terms of net income this year. Revenues are forecast to grow to P7.4 billion, an increase of 20 percent from the year before.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=821974

Monday, June 18, 2012

Stock News 2012: Telecom industry to remain competitive

The PLDT Logo (Photo credit: Wikipedia)
The telecommunications industry is expected to remain very competitive, more so that competition will come not only from existing and new telcos but also from services offered by “over the top” players of the Internet world, Philippine Long Distance Telephone Co. (PLDT) group chairman Manuel V. Pangilinan said.

During the company’s stockholders’ meeting, he noted that players like Facebook, Google and Apple directly compete with PLDT’s traditional services.

“The radical changes that digital technologies are bringing to the telecoms industry will become more pervasive and profound in the next few years,” Pangilinan said.

He emphasized that these forces are changing the face of communications — from keypads and keyboards to touch screens of various sizes. “Increasingly, people are communicating with each other through smartphones, tablets, laptops and smart TVs. From voice and text, connections whether wired or wireless are becoming broadband and multimedia. In five years, the market will, in growing numbers, be populated by ‘digital natives’ — young people who have grown up with mobile phones, Facebook, Twitter and YouTube,” he added.

Pangilinan revealed that the PLDT of the emerging digital future will be one of many touchscreens, and will offer and support a wide range of services beyond basic communications.

“We will help people enjoy entertainment, use financial services, manage their energy needs at home and office, take care of their health,” he said.

Pangilinan also revealed that since having being acquired by the PLDT group, Sun Cellular has been improving its coverage, starting with Mindanao where it has strengthened its signal in Lanao del Norte and Sur, Basilan, Camiguin, Tawi-tawi, Sulu, Bukidnon, Compostela Valley, and Davao del Sur. This was followed by Luzon in areas like Benguet, Ifugao, Kalinga Apayao and Mountain Province, Isabela, Nueva Ecija and Vizcaya, Aurora, and Quirino, and in the Visayan islands of Panay and Bohol.

In maximizing the synergies among PLDT, Smart, Digitel and Sun, Pangilinan noted that they have rationalized the group’s network rollout by minimizing duplication which has resulted in reducing capital expenditure by P8 billion

He revealed that by the end of this month, they will have completed the installation in every cellsite of Smart all over the country a new generation of base station equipment. This will allow the group to quickly upgrade to the latest mobile phone technologies such as HSPA+ and LTE, as and when their plans and market demand requires.

Within this year, he said that they will have upgraded their transport network with over 54,000 km of fiber optic cable assets that will allow the group to carry up to 10 times more data to handle the rapidly growing traffic in voice, SMS and data traffic. In addition, PLDT will be installing its third and fourth cable landing station to enhance international cable links. The company will also finish the upgrade of its core networks and backroom facilities for both fixed and mobile by yearend

All this, he stressed, will require an investment of about P38 billion this year, bringing the total bill for PLDT’s modernization program to about P67 billion.

http://www.philstar.com/Article.aspx?articleId=818220&publicationSubCategoryId=66

Wednesday, May 16, 2012

Stock News 2012: JG Summit profit soars 77% to P4.91 billion

Universal Robina (Photo credit: Wikipedia)
JG Summit Holdings Inc., the investment vehicle of taipan John Gokongwei, said its net earnings grew 76.7 percent in the first quarter to P4.91 billion, boosted by a dividend income from its investment in Philippine Long Distance Telephone Co. (PLDT) as well as higher mark-to-market gains.

Consolidated revenues went up 13.9 percent to P33.48 billion, mainly driven by the strong performance across all business units, the company said in a statement.

The food business contributed P18.2 billion to total revenues, up from P16.74 billion. The airline business, through Cebu Pacific, chipped in P9.34 billion while property pumped in P3.35 billion. Petrochemicals contributed P1.38 billion while banking pitched in P709.96 million.

Dividend income from its PLDT investment amounted to P1.9 billion.

Core earnings before tax increased 49.9 percent to P5.89 billion while the group’s EBITDA (earnings before interest, taxes, depreciation and amortization) was flat at P6.48 billion.

Equity in net earnings of associates amounted to P499.76 million, down 5.6 percent from the previous level due to reduced income from the group’s investment in UIC Ltd.

Consolidated cost of sales and services climbed 17 percent P23.77 billion due to higher aviation fuel expenses incurred by its airline business.

However, the company booked P680.28 million in gains from its investment in the capital market, 51.9 percent higher than the previous level.

Food manufacturing arm Universal Robina Corp. reported a 36.5 percent growth in net income for the first half of its fiscal year ending September to P4.48 billion. Net sales improved 6.6 percent to P35.487 billion.

URC’s branded consumer foods (BCF) segment, including the packaging division, registered sales of P28.029 billion, up 13.1 percent. Of the total, the domestic foods business grew faster at 13.7 percent to P16.59 billion, largely driven by the be-verage division which jumped 41.5 percent on account of strong sales acceptance for its new product, Great Taste White Coffee.

For the snack foods division, snacks and biscuits exhibited double-digit growth.

http://www.philstar.com/Article.aspx?articleId=807650&publicationSubCategoryId=66

Thursday, April 26, 2012

Stock News 2012: Arthur Ty is new Metrobank chairman

Metropolitan Bank and Trust Company (Photo credit: Wikipedia)
The Metropolitan Bank and Trust Co. (Metrobank) has a new board chairman in Arthur Ty, erstwhile bank president. He replaces his father, Dr. George S.K. Ty as bank chairman.

The new bank president is Fabian S. Dee, erstwhile senior vice president while Francis C. Sebastian was retained as vice chairman.

The new board is still in a meeting as of presstime, as they were still deciding on management positions.

Likewise, the present board decided to expand the 2012 board to 14 seats from the present 12.

The new members of the board are Fabian S. Dee, Antonio Viray, Amelia Cabal and Vy Tonne So. Out of the new board are Antonio S. Abacan Jr. and Jose P. de Jesus (independent director).

Abacan was named Metrobank Group chairman.

Sources said that the patriach of the Ty conglomerate would remain as the guiding light of the Metrobank Group as it has been expanding its corporate reach to new ventures such as energy generation.

The change was expected as Arthur Ty has agreed to be bank president only for a five-year period.

Younger brother Alfred remains at the board as corporate secretary. He is also the president of Federal Land Inc., Toyota Motor Philippines Corp., and an independent director of the Philippine Long Distance Telephone Co. (PLDT).

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800777

Thursday, June 16, 2011

Stock News 2011: PLDT awaits regulators’ go-ahead on P78-billion Digitel deal

Image via Wikipedia
Although stockholders of the Philippine Long Distance Telephone Co. (PLDT) approved yesterday the telco’s takeover of Digital Telecommunications Philippines, Inc. (Digitel), the P78-billion deal – supposed to be completed at the end of the month, could still be left dangling without the nod of regulators.

“We don’t see a legal impediment,” PLDT Chairman Manuel V. Pangilinan told reporters after the stockholders’ meeting the other day. However, the National Telecommunications Commission (NTC) still has to hold a second hearing on the transaction next Tuesday (June 21).

Meanwhile, in this week’s stockholders’ meeting, PLDT elected Pangilinan, Nazareno, Ray Espinosa, Oscar Reyes, Tatsu Kono, Takashi Ooi, Tony Tan Caktiong, Helen Dee, Juan Santos, and Lourdes Rausa Chan as Directors. Fr. Bienvenido Nebres, Pedro Roxas and Alfred Ty were elected independent directors.

PLDT needs a go-ahead from the NTC as well as the Securities and Exchange Commission (SEC) for the asset valuation and the Philippine Stock Exchange (PSE) for the block sale of the Digitel shares, among other technical requirements.

“It’s beyond our hands,” he admitted. “If everything goes well next week (at the NTC hearing), we hope it will be sooner than later. But we can’t tell how many days (it will take).”

http://www.mb.com.ph/articles/322852/pldt-awaits-regulators-goahead-p78billion-digitel-deal

Tuesday, March 1, 2011

Stock News 2011: PLDT makes P40.2-B net profit in 2010

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Philippine Long Distance Telephone Company (PLDT) reported that it’s consolidated net income was almost flat last year, increasing by one percent to P40.2 billion, from the P39.8 billion recorded in 2009.

PLDT’s Board of Directors declared a final dividend of P78 per share, fulfilling the company’s commitment to pay out a minimum ratio of 70 percent of core earnings. It approved a special dividend of P66 per share.

Added to the interim dividend of P78 per share paid in September 2010, total dividends for the year will amount to P222 per share, representing a payout of 100 percent of 2010 core earnings, similar to the payout ratio of the last three years. Total dividend payments for 2010 will total P41.4 billion.

PLDT Chairman Manuel Pangilinan said the firm is expected to invest heavily in technology to ensure future growth although core net income is seen to suffer in the next two years before recovering in 2013.

“At about this time last year, we had indicated that 2010-2012 would be a critical period in the PLDT Group’s transformation, as it was being undertaken at a time when the operating environment was becoming increasingly price-competitive and market-share sensitive,” said PLDT chairman Manuel V. Pangilinan.

He noted that “our 2010 performance has underscored our views and indeed reinforced our position that in order to survive and prosper, we must be prepared to make changes now.”

http://www.mb.com.ph/node/306960/pldt-make

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