First Pacific Company Ltd. (OTCMKTS:FPAFF) reported PLDT Inc. unaudited operating and financial report for 9M2016, in which First Pacific Group owns an economic stake of approximately 25.6%. Consolidated revenue declined 2% to Php125.4 billion over the same period in FY2015. Excluding national and international long distance, and interconnection expenses, consolidated service revenues came at Php101 billion, stable compared to the same period, a year earlier. On the same terms, fixed line revenues jumped 9% to Php42.2 billion whereas wireless revenues dropped 6% to Php64.7 billion.
The management speaks
Manuel V. Pangilinan, the CEO and Chairman of PLDT, said that this year has been an exceptionally challenging period for company, as they grappled with intense price competition and the ongoing shift from SMS/ voice services to data demand affecting adversely their wireless revenues, and internal adjustments in senior ranks and in processes which the company is undertaking. Having said that, the digital transformation continues to remains on track. They remain focused on the major measures that will definitively define company’s businesses to the new space where growth is led by digital innovation and data. This update coming from PLDT definitely seems positive for First Pacific.
The continuing move to digital services is noted in the changing service revenue mix. Digital services/Data/broadband and platforms set the platform for growth, recording Php44.6 billion in service revenues in 9M2016, up 19% from same period of FY2015. This has increased its share of service revenues to 40% from 33% a year ago. Conversely, the share of Domestic Voice/ SMS and others dropped to 50% from 56%, whereas that of International Voice dropped to 10% from 11%.
In unrelated news, First Pacific reported that their November 16h, 2016 presentation from John Ryan, the Head of Investor Relations is now accessible for on-demand broadcasting in the dbVIC Deutsche Bank ADR Virtual Investor Conference.
In the last trading session, the stock price of First Pacific Company traded in a narrow range and closed absolutely flat at $0.675.