27 Aug PT&T Corp. Reports Strong First Half 2024 Financial Results, Showcasing Strategic Growth and Operational Efficiency
Key Highlights of 1H2024 Performance
- Achieved ₱256.7 million in revenues, reflecting a strategic shift in focus. The company’s efforts in IT Services (ITS) business drove a remarkable 33% revenue growth.
- Total costs and expenses decreased by 7%, with effective cost management measures.
- Core EBITDA increased by 17% to ₱35.5 million.
- Net Income continues to be positive with ₱7.9 million, a 129% improvement from a net loss in 1H2023, driven by lower interest expenses and depreciation.
- Continued expansion of network infrastructure and IT services, aiming to increase coverage and support long-term growth in the telco and IT sector.
PT&T Corp. (PSE:PTT) (“PT&T” or the “Company”) today announced its financial results for the first half of 2024, highlighting the company’s strategic growth initiatives and operational resilience. Despite a slight dip in total revenues, PT&T demonstrated robust performance across key financial metrics, underscoring its commitment to innovation and sustainable value creation.
For the six months ending June 30, 2024, PT&T achieved total revenues of ₱256.7 million, reflecting a 4% decrease from ₱267.9 million in the same period last year. The reduction in revenue was primarily attributed to higher churn rates and minimal subscriber growth in the Connectivity business. However, this was offset by a substantial 33% YoY increase in revenues from its ITS business, underscoring PT&T’s successful efforts to diversify and expand its service offerings.
PT&T’s focus on cost management has yielded significant results, with total costs and expenses reduced by 7% YoY. Personnel-related expenses dropped by 10% versus the previous year, as the company strategically prepares its workforce to sustain growth in both its businesses. Premises-related expenses also dropped by 34%, reflecting PT&T’s effective cost control measures.
These reductions contributed to a 17% increase in Core EBITDA, which rose to ₱35.5 million, up from ₱30.3 million in the first half of 2023. The Core EBITDA margin also saw a significant improvement at 14%, up from 11% in the prior year.
PT&T reported a net income of ₱7.9 million for the first half of 2024, a remarkable turnaround from the net loss of ₱27.1 million in the same period last year. This 129% improvement was driven by a substantial reduction in Rehabilitation Interest Expense following the ₱8.9 billion debt-to-equity conversion in December 2023, as well as decreased depreciation expenses.
Looking ahead, PT&T is optimistic about the growth potential of the Philippines’ broadband industry. The company is committed to expanding its network coverage and upgrading its infrastructure to meet the growing demand for high-speed internet. With plans to extend its reach to key cities in the NCR, CALABARZON, and parts of Northern Luzon.
PT&T is also focused on building a nationwide backbone to support its long-term goal of offering comprehensive telecommunications services, including mobile services in the future. This expansion includes deploying massive fiber optic infrastructure and exploring innovative network concepts like “virtualization” to enhance service delivery and reduce costs.
Commenting on the results, PT&T President and CEO James Velasquez said, “The first half of 2024 has been a transformative period for PT&T. Our strategic initiatives and disciplined execution have led to significant financial improvements, even as we navigate challenges in the Connectivity business. The strong performance in our IT Services business and our ongoing investments in network expansion reflect our commitment to delivering sustainable value to our stakeholders and driving innovation in the Philippine telco and IT industry.”
As PT&T continues to grow, the company remains dedicated to leveraging digital technologies to drive economic and social impact. With several projects lined up, including a partnership to provide high-speed, low-latency broadband internet across the Philippines, including remote areas, PT&T is well-positioned to capitalize on the opportunities ahead and continue its journey of growth and innovation.
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Disclaimer on Forward-looking Statements and Information:
This disclosure contains forward-looking statements and forward-looking information in accordance with applicable laws in the Philippines. These statements and information are based on the current expectations, estimates, and assumptions of our management regarding future events. They are subject to certain risk factors and uncertainties, including those beyond our control, which may cause the actual results, financial situation, or performance to differ materially from the estimates or developments implied in these forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such statements, as required by Philippine laws and regulations.
About PT&T Corporation (PSE:PTT)
Incorporated in 1962, PT&T Corp. (previously known as Philippine Telegraph & Telephone Corp.) is a diversified telecommunications and information technology services provider. The Company caters to corporate, small/medium business, and residential segments across the Philippines. PT&T continues to specialize in adapting its services to the needs of enterprise and institutional end users. At present, PT&T’s business activities are categorized into two major businesses: Connectivity and IT Services.
Currently, PT&T has a network reach of 29,203 fiber kilometers in high-growth areas, covering almost 40% of the total Philippine population. The Company holds a 25-year National Legislative Franchise which allows it to establish, maintain, and operate both wired and wireless telecommunications systems for domestic and international communication. PT&T is a publicly listed company in the Philippine Stock Exchange.
For media inquiries or further information, please contact:
PT&T’s Investor Relations at [email protected] or visit https://www.ptt.com.ph or check @PTTFiberInternet on Facebook or LinkedIn.