PLDT Inc., the Philippines’ biggest phone company by revenue, said intense competition and years of underinvestment led to a 48-billion peso ($870 milion) overspending that prompted investigations by the securities regulator and the stock exchange.
(Bloomberg) — PLDT Inc., the Philippines’ biggest phone company by revenue, said intense competition and years of underinvestment led to a 48-billion peso ($870 milion) overspending that prompted investigations by the securities regulator and the stock exchange.
The company said there was “no fraud, no anomalies, no evidence of overpricing, and no unrecorded transactions” in relation to what it calls a capital spending budget overrun that covered four years from 2019.
PLDT said its overspending was spurred by several factors including intense market competition and that PLDT had to regain market leadership after years of underinvestment.
The Covid-19 pandemic led to lockdowns and quarantines, detaining most people in their homes and requiring faster internet connections that “pushed network teams to fast-track rollouts”, PLDT said in a statement to the stock exchange Thursday, citing CEO Alfredo Panlilio.
PLDT also said it expects its earnings before interest, taxes, depreciation this year to remain unaffected by the overspending and to hit 100 billion pesos.
It also sees its telco core income this year at 32.6 billion pesos to 33 billion pesos, in line with its guidance.
PLDT shares rose as much as 2.8% in early trading, extending Wednesday’s rebound that followed a days-long rout as its budget overrun raised questions about corporate governance and fiscal controls at the company.
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