PLDT to slash spending plan by 20-25% in 2020 amid ECQ

Pangilinan-led PLDT Inc. is looking at reducing its capital expenditure program for 2020 due to network roll-out activity constraints amid the enhanced community quarantine (ECQ).

In March, PLDT announced a record high P83-billion capex program to support its data business and information technology projects.

PLDT chairman, president and CEO Manuel Pangilinan said that the company saw a slowdown in spending momentum as the ECQ resulted in mobility restriction of most of its teams on the network and IT side.

He said the spending will probably be pared down, with anywhere between 20% to 25% of the budget deferred, suggesting that capex levels will be in the P60-plus billion level.

“Best estimate as of now, from P83 billion it will drop to around P63 billion unless we gain much of the momentum loss due to ECQ,” Pangilinan said.

Metro Manila, along with several "high-risk" areas, has been on lockdown since mid-March, with the enhanced community quarantine in the area extended twice until May 15.

“Our network roll out activities have been constrained by the reduced mobility of our network teams since the ECQ was imposed,” Pangilinan said.

The network roll-out for the balance of 2020 will prioritize projects that support the changing demand profile of customers, and to help corporates revive their business under these new conditions.

“Moving forward, there will be likely some softening of revenue growth in the second quarter this year. But overall, we expect revenues to stay on the growth path versus last year,” Pangilinan said.

“Moreover, by focusing on helping companies, communities, families and individuals find the digital solutions that put them back on-track to prosperity, we will ensure that our services are maintained at a superior level across all sectors. This is the most sustainable way for PLDT to build a future in this New Normal,” he said. -MDM, GMA News