PLDT again cuts capex but eyes more cell sites as Globe ahead
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PLDT again cuts capex but eyes more cell sites as Globe ahead
MANILA - PLDT announced a lower capital expenditure (capex) guidance for 2024 but is looking to build more cell sites as rival Globe edges ahead in cell site deployment.
MANILA - PLDT announced a lower capital expenditure (capex) guidance for 2024 but is looking to build more cell sites as rival Globe edges ahead in cell site deployment.
The telco giant said it is looking at P75-78 billion in capex for 2024, marking the second year in a row that capex dropped. Last year’s capex was P85.1 billion, while in 2022 it was P96.8 billion.
The telco giant said it is looking at P75-78 billion in capex for 2024, marking the second year in a row that capex dropped. Last year’s capex was P85.1 billion, while in 2022 it was P96.8 billion.
PLDT Chairman and CEO Manny Pangilinan explained that the company continues to keep control of operating costs.
PLDT Chairman and CEO Manny Pangilinan explained that the company continues to keep control of operating costs.
“There will have to be cutbacks on other elements of our capex spend so that we stay within the guidance numbers in the capex we are telling the public,” said Pangilinan.
“There will have to be cutbacks on other elements of our capex spend so that we stay within the guidance numbers in the capex we are telling the public,” said Pangilinan.
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In 2022, the company was hit by a P33 billion ‘budget overrun’ issue, impacting its capex last year, and also triggering a shakeup in the management board. For 2023, PLDT reported that expenses fell 2 percent last year from "broad-based cost management."
In 2022, the company was hit by a P33 billion ‘budget overrun’ issue, impacting its capex last year, and also triggering a shakeup in the management board. For 2023, PLDT reported that expenses fell 2 percent last year from "broad-based cost management."
The company will be more careful on what it spends on, Pangilinan added.
The company will be more careful on what it spends on, Pangilinan added.
“We must be judicious in terms of where we put our capex spend on. There are some imperatives like this year we have to accelerate the buildup of cell sites because we’re behind Globe,” he added.
“We must be judicious in terms of where we put our capex spend on. There are some imperatives like this year we have to accelerate the buildup of cell sites because we’re behind Globe,” he added.
PLDT SVP Butch Jimenez asserted that the company wants to make sure that the budget goes to where it will have a more positive impact for the telco.
PLDT SVP Butch Jimenez asserted that the company wants to make sure that the budget goes to where it will have a more positive impact for the telco.
“Maybe before we would put a lot of money also on what we call ‘shiny toys’, maybe those days kinda have to slow down,” Jimenez said.
“Maybe before we would put a lot of money also on what we call ‘shiny toys’, maybe those days kinda have to slow down,” Jimenez said.
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PLDT Chief Financial Officer Danny Yu added that the company already made substantial investments over the last 5 years.
PLDT Chief Financial Officer Danny Yu added that the company already made substantial investments over the last 5 years.
For 2024, capex will be for investments in the upgrade of cell sites, adding home broadband ports, building data centers, and investing in submarine cables.
For 2024, capex will be for investments in the upgrade of cell sites, adding home broadband ports, building data centers, and investing in submarine cables.
Pangilinan also mentioned there are potential foreign firms to buy a stake in their data centers, which could also increase income for the year.
Pangilinan also mentioned there are potential foreign firms to buy a stake in their data centers, which could also increase income for the year.
PLDT's telco core net income rose 3 percent to P34.3 billion in 2023, while gross service revenues grew by 3 percent to P201.8 billion.
PLDT's telco core net income rose 3 percent to P34.3 billion in 2023, while gross service revenues grew by 3 percent to P201.8 billion.
The company's reported net income rose bounced back to P26.6 billion, up 154 percent, after falling almost 60 percent in 2022.
The company's reported net income rose bounced back to P26.6 billion, up 154 percent, after falling almost 60 percent in 2022.
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