PLDT earnings fall 7.8% in first half

INQ7 MONEY - BREAKING NEWS

August 08, 2006
Updated 12:09:55 (Mla time)
Erik de la Cruz
XFN-Asia

(2ND UPDATE) PHILIPPINE Long Distance Telephone Co. (PLDT), the country's largest telecommunications firm, said its second-quarter net profit fell 7.8 percent due to increased depreciation costs and foreign exchange losses, although core earnings rose.

Net profit for the three months to June came in at 6.73 billion pesos compared to 7.30 billion a year earlier. This brought first-half net income to 15.31 billion pesos from 16.52 billion in the same period last year.

"The decline is attributed to additional depreciation expenses, foreign exchange losses and a higher statutory tax rate -- which were partly mitigated by lower interest expense due to lower net debt balances," PLDT said in a statement.

Core profit, which strips out the impact of foreign exchange gains or losses and derivative transactions, rose to 7.64 billion pesos in the second quarter from 7.19 billion a year earlier.

Core profit in the first half of the year grew 11.1 percent year-on-year to 15.21 billion pesos

PLDT earlier said it added 1.57 million new mobile phone subscribers in the second quarter to bring its client base to 22.47 million at the end of June. Net subscriber additions in the first half of the year totaled 2.06 million.

PLDT provides mobile phone services through units Smart Communications Inc. and Pilipino Telephone Corp.

PLDT is controlled by Hong Kong-listed conglomerate First Pacific Co. Ltd., with NTT DoComo Inc. and NTT Communications of Japan holding a combined 14 percent stake.

At 11:48 am, PLDT shares lost 30 pesos or 1.43 percent at 2,075.

(One dollar = 51.40 pesos)

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