16 Apr PT&T’s FY2023 financial results show remarkable 155% net income growth, signaling a significant turnaround
Key Highlights of FY2023 Performance
▪Notable decrease in liabilities attributed to the successful ₱8.7 billion debt-to-equity conversion into preferred shares approved by the Securities and Exchange Commission (SEC).
▪Wiped out nearly ₱10 billion in capital deficiency, representing a remarkable turnaround of over 100%.
▪Attained profitability with a remarkable 155% YoY surge in net income, marking significant growth.
▪Garnered several industry accolades from Growth Champions by Statista, Gawad Maestro Awards, and Asian Management Excellence Awards.
▪Implemented expansion initiatives to achieve incremental connectivity targets, including digital infrastructure network enhancement and service diversification through strategic partnerships.
PT&T Corp. (PSE:PTT) (“PT&T” or the “Company”) is pleased to announce a significant turnaround towards strengthening its financial footing for the fiscal year ending December 31, 2023. This positive shift is attributed to the Company’s debt-to-equity conversion, a crucial component in its ongoing implementation of key Rehabilitation Orders.
Successful Debt-to-Equity Conversion.
In November 2023, the Securities and Exchange Commission (SEC) greenlit the Company’s increase in its authorized capital stock from ₱3.8 billion to ₱12.6 billion. This increase facilitated the ₱8.9 billion debt-to-equity conversion, paving the way for the issuance of preferred shares (Series “A”, “B”, and “C”) as outlined in the Rehabiltation Plan. Furthermore, it enabled the partial settlement of statutory obligations, salaries, wages, and other employee benefits from the escrow accounts as of December 2023.
The successful debt-to-equity conversion enabled the Company to eliminate a total of ₱9.3 billion capital deficiency, resulting in a substantial decrease in its liabilities and strengthening its capital position, achieving an impressive turnaround of over 100% year-on-year.
PT&T remains steadfast to financial recovery and sustainability. Through prudent financial management practices, the Company has been able to partially address its statutory obligations and employee-related expenses.
Attained Substantial Profitability since 2017, Signaling a Notable Operational Turnaround.
PT&T reported a 5% year-on-year growth in gross revenue. Despite heightened costs attributed to expanded manpower in 2023, required to support the Company’s expansion initiatives, PT&T achieved an outstanding 26% growth in its core EBITDA, maintaining a healthy 22% margin.
Overall, PT&T recorded significant net income growth, with a substantial 155% year-on-year increase for the year ending December 31, 2023.
Mr. James Velasquez, President and CEO of PT&T, expressed his confidence in the Company’s financial trajectory, stating, “We are delighted to report PT&T’s impressive shift, which demonstrates our dedication to financial resilience and growth. We take pride in eliminating our capital deficiency through a successful debt-to-equity conversion and significantly strengthening our capital position.”
Garnered International Recognition for its Achievements in Innovation and Operational Excellence.
The Company’s commitment to growth, coupled with a forward-thinking approach, reflects a distinctive strategy in the competitive awards landscape. PT&T has garnered several industry accolades in FY2023:
1. Ranked 11th in 2023, PT&T was recognized by the Philippine Daily Inquirer and international market research firm Statista, as one of the Growth Champions in the Philippines.
2. Ranked 325th in 2023, PT&T was recognized by the Financial Times and international market research firm Statista, as one of the Growth Champions in the Asia Pacific Region.
3. Awarded Learning & Development Program of the Year for “PT&T Powerhouse: Building a Community of Project Management Champions” and Learning & Development Manager of the Year for “Capability Development Manager Karen V. Pinili” during the 6th PSTD Gawad Maestro Awards 2023.
4. Secured two prestigious honors at the inaugural Asian Management Excellence Awards: Philippines Health and Wellness Initiative of the Year – Telecommunications award, as well as the Philippines Executive of the Year – Telecommunications, won by Mr. James Velasquez.
Management Strategies are in Place.
PT&T is committed to advancing its network infrastructure, solidifying its status as a preferred provider for broadband connectivity and leading the charge in digital transformation solutions across its target market.
In pursuit of this goal, significant strides have been made to boost the Company’s financial standing. This includes the completion of infrastructure upgrades in 2023, alongside an ongoing application to expand NTC licenses for broader service coverage in alignment with the Company’s nationwide network rollout strategy.
To also support these endeavors, PT&T has engaged the services of one of the world’s largest financial advisory groups. This strategic partnership underscores PT&T’s proactive approach to optimizing its capital structure and driving shareholder value.
“With our fundraising initiative, we anticipate a substantial enhancement of our capacity to deliver reliable, streamlined, and sustainable broadband and IT services. This enhancement will not only benefit the CALABARZON region but also extend nationwide over the next few years, meeting the growing demand for connectivity in the country,” Mr. Velasquez said.
PT&T is also actively pursuing the resumption of its trading on the PSE. While the PSE has acknowledged that the Company no longer faces capital deficiency, there are still pending items to address within PT&T’s Rehabilitation Plan.
“While we cannot provide a specific date at this time, we are diligently fulfilling the requirements outlined in our Rehabilitation Plan. By adhering to the requirements set forth in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange. Our immediate goal is to secure the necessary approvals from the PSE to resume trading as soon as possible,” Mr. Velasquez added.
Looking ahead, PT&T remains focused on driving sustainable growth, expanding its network infrastructure, and delivering innovative solutions to meet the evolving needs of its customers and shareholders as it strives to reclaim its position as one of the top telecommunications companies in the country.
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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 (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 28,266 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.
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Garnered International Recognition for its Achievements in Innovation and Operational