MVP to pass the ‘baton’ as PLDT prexy & CEO to Al Panlilio

A major leadership change is about to unfold at the Philippines’ largest telecommunications company PLDT Inc. as its chairman, president, and CEO Manuel V. Pangilinan announced his successor on Thursday.

At a virtual press conference, Pangilinan said that at the telco’s annual shareholders meeting next month, PLDT chief revenue officer Alfredo Panlilio will be named as his successor.

Panlilio also serves as president and CEO of PLDT’s wireless unit Smart Communications Inc.

“I will retire as president and CEO of PLDT and pass the baton over to Al… so I will stay as chairman, of course subject to shareholders’ consent to do that,” he said.

In March, Pangilinan floated the possibility of stepping down from the helm of PLDT.

Also in 2019, he said that he will name his successor if he feels that the telco has achieved a steady state of growth in terms of revenues and profitability.

Last year, despite the presence of COVID-19 pandemic, PLDT managed to grow its net income by 8% to P24.3 billion with revenues hitting an all-time high of P171.5 billion.

“As years pass by, you are physically less effective as you were when you’re young… I simply wish my successor all the best. It’s a great company but it does need a lot of care and feeding,” Pangilinan said.

“It’s a hungry animal and it's hungry for capex which means you have to generate a lot of cash to feed the requirements of the business, particularly on network build,” he added.

Pangilinan’s announcement came amidst a strong competition being faced by the so-called telco “duopoly” of PLDT and Globe Telecom with the arrival of Davao businessman Dennis Uy and China Tel-led DITO Telecommunity Corp.

The new major player is constantly expanding its network coverage since its commercial launch in early March.

First quarter results

In the first quarter of 2021, PLDT reported an attributable net income of P5.80 billion, down 1.84% from  P5.91 billion in the same comparable period in 2020, amid higher expenses which offset increase in revenues.

Despite the decline, Pangilinan said first-quarter results “look pretty good.”

“We are on target in terms of our telco core income for the year of P29 billion to P30 billion,” he said.

Nonetheless, PLDT’s telco core income stood at P7.5 billion, up 9.02% from P6.89 billion year-on-year.

The telco’s total revenues rose by 9.80% to P47.92 billion from the P43.65 billion a year earlier as service revenues grew by 9.28% to P45.68 billion, with data and broadband services contributing around 76% of the total.

PLDT’s expenses, however, increased by 16.05% to P37.75 billion from P32.53 to cover expenses for selling, general and administrative expenses, depreciation and amortization, cost of sales and services, asset impairment, and interconnection costs.

The recently signed Corporate Recovery and Tax Incentives (CREATE), which lowered the corporate income tax rates from 30% to 25%, also supported PLDT’s first quarter results.

“With respect to the current year, the impact of the 25% versus 30% tax rate was close to P400 million for the quarter,” PLDT chief finance officer Anabelle Chua said.—MDM/AOL, GMA News