A significant shift occurred within the company during the third quarter, as attributable net income decreased to P6.93 billion – a notable drop from the P9.66 billion reported during the same period last year. This downturn stemmed from a surge in operational expenses that overshadowed modest revenue gains, signaling a challenging financial landscape.
Despite the decline, the company’s chairman and CEO emphasized a commitment to enduring principles. He articulated a steadfast dedication to discipline and long-term value creation, qualities he believes are essential for navigating cyclical economic pressures and ensuring future stability.
Revenue for the quarter reached P53.71 billion, a slight increase compared to the P53.36 billion recorded in the previous year. However, this growth was countered by a substantial rise in expenses, climbing from P39.62 billion to P42.36 billion, ultimately impacting profitability.
Looking at the broader picture, the company’s total revenues for the first nine months of the year increased by 1.45% to P163.28 billion. Simultaneously, expenses rose by 3.61% to P123.39 billion, continuing the trend of increased costs outpacing revenue growth.
Service revenues remained the primary driver of income, contributing P145.9 billion to the topline. This figure represents a slight increase from the P144.9 billion generated during the same period last year, demonstrating the continued importance of core service offerings.
Over the nine-month period, attributable net income experienced a 10.69% decline, falling to P25.07 billion from P28.07 billion. Telco core income, a key indicator excluding one-time gains or losses, also decreased, albeit at a smaller rate of 4.97%.
The company’s diverse revenue streams remained relatively stable, with wireless contributing P63.2 billion, home services P45.7 billion, and enterprise solutions P35.6 billion. This balanced portfolio provides a degree of resilience against fluctuations in any single segment.
A deliberate approach to capital expenditure was evident, with spending totaling P43 billion for the first nine months – a decrease from the P52.3 billion invested in the same period last year. This reflects a focused effort to prioritize investments and maintain financial prudence.
Looking ahead, the company intends to maintain its current level of capital spending for the coming year, signaling a continuation of this disciplined investment strategy. This measured approach aims to balance growth initiatives with financial responsibility.
A promising development emerged from the company’s digital bank, which sustained profitability and demonstrated significant growth. Deposit balances reached P57 billion by the end of September, and total loan disbursements since launch surpassed P187 billion.
Investor confidence appeared to rebound, as the company’s shares experienced a notable increase in value on the local bourse. The stock price rose by P52, or 4.65%, closing at P1,170 apiece, indicating renewed optimism in the company’s prospects.
