PLDT doubles first-half net to $54M


PLDT is in the midst of an ownership struggle involving First Pacific

Staff and wires

MANILA, Philippines -- The Philippines' biggest telco, Philippine Long Distance Telephone Co, said Thursday it doubled its first half net profit to 2.75 billion pesos ($54 million).

The result was above market expectations.

Shares in the telco, known as PLDT, are up 0.8 percent at 317.5 pesos in early trade Thursday.

PLDT said total revenue for the June first half was 39.73 billion pesos ($776 million), up from 36.72 billion pesos for the same period last year.

Ownership struggle

The strong result comes as PLDT is in the midst of an ownership struggle that involves major shareholder First Pacific.

The Hong Kong-based conglomerate, which is controlled by Indonesia's Salim Group, has unveiled a controversial plan to sell two-thirds of its 24.4 percent stake to the Gokongwei group for $616.7 million(Full Story).

The sale is opposed by PLDT's management, led by its president (and First Pacific executive chairman) Manuel Pangilinan.

Most market analysts had been expecting PLDT's first half income to come in at around or slightly above 2.5 billion pesos, Reuters news agency reported.

Last year, PLDT reported first-half net income of 1.37 billion pesos.

In the first quarter of 2002, the company reported net income of 1.30 billion pesos, up 107 percent from 628.9 billion in the same period last year.

PLDT is the largest and oldest telecom firm in the Philippines, providing fixed line, wireless, and data services.

Reuters contributed to this report.