PLDT sets 2024 capex at P75B-P78B

Telecommunications giant PLDT Inc. is reducing its capital expenditure (capex) this year as part of a cost-cutting initiative to free up the telco’s cash flows.

At a briefing in Makati City on Thursday, PLDT chief finance officer Danny Yu said the telco is setting aside P75 billion to P78 billion for capex in 2024, about 12% lower than its P85-billion capex in 2023.

This is also the second year in a row that PLDT lowered its capex.

“This is in line with the goal of reducing capex spend in the near to medium term and attaining positive free cash flow as soon as practicable,” Yu said.

He said PLDT’s corporate budget for 2024 will be “evenly distributed” across four areas of interest, namely mobile, port rollout, data centers, and submarine cables.

PLDT chairman, president and CEO Manuel Pangilinan said the company is aiming to set its budget spending below P80 billion.

“We aim for total capex to be [under] P80 billion,” Pangilinan said, adding it ''likely will be sub 40% capex-to-revenue intensity in 2024.”

“There’s a good chance that we can generate free cash flow for 2024,” he said.

PLDT saw its reported net income grow by 154% to P26.6 billion in 2023 from P10.49 billion in 2022 due to strong revenue growth, managed costs, and one-time gains from the sale of its assets.

Service revenues increased by 3% to P201.83 billion from P195.34 billion.

Meanwhile, expenses eased by 24% to P158.47 billion from P209.43 billion year-on-year.

PLDT’s telco core income grew 3% year-on-year to P34.34 billion in 2023 from P33.3 billion in 2022.

Pangilinan said PLDT is targeting to grow its revenues by “mid-single digit” this year, while its telco core income is projected to be “north of P35 billion.” — VBL, GMA Integrated News