16 Aug PT&T revenues up 7%
The pandemic lockdowns wrought havoc on PT&T Corporation’s micro, small and medium enterprise (SME/MSME) clients although the telco managed to boost revenues by seven percent to P221 Million in the first half of 2021 versus the same period last year as its subscriber base modestly increased 15 percent and IT Services portfolio grew eight percent.
However, earnings plunged 36 percent and the company lost P26.6 Million due to lower revenue growth and booking of depreciation for capital expenditures and rehabilitation. Now, PT&T hopes the impact of this month’s reimposition of lockdown in the National Capital Region (NCR) from August 6 to 20 will be “minimal”, says President and CEO James Velasquez.
Whatever happens, the company is ready if the threat of the COVID19 Delta variant or more lockdowns persists, he added. “We’re confident that in this time of pandemic, Telco and IT Services sector will thrive, as demand remains strong and steadily growing,” he reiterated.
“This sector is essential to our country’s economic recovery, helping SMEs and MSMEs restart their businesses.” Furthermore, he expects revenue growth will gain momentum within the year as more Filipinos get vaccinated. For the first six months of 2021, PT & T’s operating expenses grew to P234 Million as it invested more to support its growing business and adapt to the new normal. With lower revenue growth in the first half, core EBITDA the telco’s contracted by 16 percent.
Still, PT&T expects positive catalysts will give an upside to its overall 2021 performance. These include the 12 percent economic expansion in the second quarter of the year, the government’s bolstered vaccination program, an expected surge in spending from the 2022 election campaigns, along with the start of the holiday season.
Last month, PT&T’s board approved a capital increase in the company’s authorized capital stock not exceeding P11.8 billion from the current P3.8 billion.
This is in anticipation of the expansion and development of its business and compliance with the debt-to-equity conversion under its rehabilitation plan.
The Markets and Securities Regulation Department of the Securities and Exchange Commission (SEC) also lifted the suspension of PT&T’s Registration Statement in Aug. 4, 2021.
The trading of PT&T’s shares with the Philippine Stock Exchange (PSE) remains suspended pending PSE’s evaluation of PT&T’s comprehensive corporate disclosure in relation to PT&T’s amended Registration Statement as approved by SEC. Currently, PT&T has a network reach of 22,800 fiber kilometers in high-growth areas and covering almost 40 percent of the Philippine population.
In 2019, the company forayed into the IT services space, offering accessible, enterprise grade solutions to complement their connectivity portfolio.
PT&T holds a 25-year franchise which allows the company to establish, maintain, and operate both wired and wireless telecommunications systems for domestic and international communication.
News source: Manila Bulletin