PLDT’s CAPEX Allocation
PLDT Inc. Is going to allocate P78-billion capital expenditure this 2019. For the record, this is 34% higher than their allocation in 2018, which is a P20-billion increase from last year’s P58-billion CAPEX. This was clearly stated by the firm’s Chairman, CEO, and President Manual V. Pangilinan during the press briefing on March 07, 2019 as he reported the company’s performance in 2018 financially. So, how would the firm spend its budget for the year?
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CAPEX Allocation Breakdown
The firm has also disclosed how are they going to allocate the P78-billion this year. Out of the total CAPEX, P48 will be designated “to widen PLDT’s lead in network quality.” This is a major step in the improvement of the firm’s network and information platforms as they focus more on expanding the coverage of LTE/3g mobile, fiber footprint, and increasing the capacity of its network so to satisfy the expanding demand for data usage. Another expenditure will be designated businesses and customers. P16-billion will be used for modems since the firm is not charging customers for it, thus, it is considered the company’s CAPEX and asset. P3-4 billion will be utilized to hire more installation and repair services while P2-billion will be for data center expansion.
Behind The Expansion
The next question is–What triggers PLDT to increase its capital expenditure? According to the firm, the increase of CAPEX is driven by the entry of new players in the market. This is the company’s strategy to maximize its network expansion to step ahead of its competitors. Pangilinan also stated that although the budget allocated is high for now, they consider normalizing the high investment for the next years coming. The company is also looking forward for new emerging revenue areas as they experience a home to home interaction with the clients. Specifically, the emergence of 5G in the country soon will fuel the revenue of the PLDT.
PDLT’s Financial Performance
2018 has been fruitful for PLDT. Its attributable income increase to 40.47% or P18.92 billion from its 2017 income of P13.37 billion. The demand for data increase as well by 3% or P164.75 billion. Due to the P3-billion loss from its Voyager Innovation Inc., the core income of the firm dropped by 5% or P26.2 billion in figures. If we exclude Voyager from the picture, PLDT still performed better than 2017 with a 3% increase on its core income. The service revenue of the firm also jumped 5% to 149.4 billion, which is a positive result of higher usage of data services that made P90.2 billion or 37% high year on year. It’s truly been a satisfactory year for PLDT and the fact that its planning to expand its service means the company is seeking a brighter future ahead.
