PLDT sees 2006 income in excess of P35B

PLDT sees 2006 income in excess of P35B
By Mary Ann Ll. Reyes
The Philippine Star 02/21/2007

 

Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) expects to exceed its P35 billion net income target for 2006, following a reversal of provisions made for the company’s investments in a satellite company.

The reported net income for 2005 was P34 billion, or three percent lower than the 2006 projection. Core earnings, on the other hand, are projected to increase by around 8.6 percent from P29 billion to P31.5 billion. The core earnings projections for 2006 took into account the peso appreciation, which has impacted the top line revenues of the company’s fixed line business. More than 56 percent of revenues of the fixed line business are dollar-driven.

PLDT chairman Manuel Pangilinan earlier revealed that the projected reported earnings of P35 billion for 2006 will depend on whether on not PLDT will be able to close the transaction involving a satellite company. PLDT owns 100 percent of ACeS Phils.Cellular Satellite Corp. as well as 20 percent of ACeS International Ltd. (ACIL). Without the Aces transaction, PLDT would end up with a reported net income of P33 billion, or lower than the nprevious year’s P34 billion.

He refused to elaborate on the transaction, but hinted that it will involve a reversal of some provisions made for ACeS. "Both entities (ACeS Phils. and Intl) will be involved. There will be potential new investors and there will be some rearrangement of our ownership. But we will retain a portion," Pangilinan disclosed

It was learned that ACeS International and Inmarsat have entered into an agreement whereby the latter will come in as a new partner by assuming certain obligations of the former.

PLDT clarified that it is not divesting its equity interest in ACIL or sold its its ACeS System satellite-based business. "In fact, PLDT’s equity in ACIL has increased," PLDT president Napoleon Nazareno said in an interview.

ACIL earlier entered into collaboration arrangements with Inmarsat, a leading mobile satellite operator, that will transform regional operator ACIL into a global one, with the combined coverage of one satellite and four series satellites.

Following the signing of the collaboration arrangements, PLDT and its subsidiary ACeS Philippines, have entered into certain agreements with ACIL, other stockholders of AIL, creditors of ACIL, national service providers (NSPs) of the ACeS system satellite-based services, regarding changes in the debt and equity structure of ACIL and amendments to the air time purchase agreements with the NSPs.

 

http://www.philstar.com/philstar/NEWS200702210703.htm