19 Apr PT&T optimistic about 2021 prospects
Despite the challenges of the pandemic, Philippine Telegraph and Telephone Corp.(PT&T)’s subscriber base grew 15 percent in 2020, pushing its year-on-year revenue up eight percent to P408 million.
PT&T also managed to cut down its losses by 40 percent, from P49.5 million in 2019 to P27.5 million last year, boosting its core earnings before interest, taxes, depreciation, and amortization (EBITDA) by 75 percent.
This was mainly due to depreciation on account of network investments and non-core expenses related to its exit from corporate rehabilitation.
While stringent lockdowns affected most Small and Medium Enterprises (SMEs) as well as Micro SMEs, increased demand in connectivity to support work-from-home and online learning arrangements drove the company’s fixed broadband revenues to increase by eight percent.
Its IT/Digital Services business brought on a six percent revenue contribution, driven by several contracts closed in IT infrastructure and business application.
To date, PT&T sees a steady growth trajectory towards the end of 2021 as the country rolls out its vaccination program.
“Our company’s 2020 performance was encouraging and provides a baseline for our plans moving forward with consumer activity bouncing back as the country rolls out the vaccination program,” announced President and Chief Executive James Velasquez.
“In 2021, we have earmarked large capital expenditure projects to provide our customers with an improved network and quality of service,” he disclosed.
Currently, PT&T has a network reach of 18,100 fiber kilometers in high-growth areas, with almost 40 percent coverage nationwide.
“We emerged from 2020 having undergone the demands of responding to the pandemic and we enter 2021 better equipped as a digital services provider while building a roadmap for recovery around the pillars of nation-building and customer-centricity,” Velasquez added.
Still, PT&T has yet to hurdle setbacks on its plans to exit corporate rehabilitation.
Recently, PT&T requested the Securities and Exchange Commission (SEC) to reverse the previously approved increase of its authorized capital.
The company wants sufficient time to complete the documentary requirements of the SEC before implementing any increase in its authorized capital under its Rehabilitation Plan.
“Simultaneous with the process of reversal of the increase in our authorized capital, PT&T will continue with its expansion and operational plans while working on securing the SEC requirements that will allow us to resume our active trading of shares with the PSE,” Velasquez explained.
News source: Manila Bulletin