PT&T's FY2023 Financial Results Indicate a Notable Turnaround with a Staggering 155% Net Income Gain

For the fiscal year that ends on December 31, 2023, Philippine Telegraph and Telephone Corporation (PT&T) announced a major turnaround aimed at bolstering its financial foundation. This improvement is a result of the company's conversion of debt to equity, which is an essential part of its continuous execution of important rehabilitation orders.

Key Highlights of FY2023 Performance

• Notable decrease in liabilities attributed to the successful P8.7 billion debt-to-equity conversion into preferred shares approved by the Securities and Exchange Commission (SEC).
• Wiped out nearly P10 billion in capital deficiency, representing a remarkable turnaround of over 100%.
• Attained profitability with a remarkable 155% YoY surge in net income, marking significant growth.
• Garnered several industry accolades from Growth Champions by Statista, Gawad Maestro Awards, and Asian Management Excellence Awards.
• Implemented expansion initiatives to achieve incremental connectivity targets, including digital infrastructure network enhancement and service diversification through strategic partnerships.

Successful Debt-to-Equity Conversion

In November 2023, the Securities and Exchange Commission (SEC) greenlit the Company’s increase in its authorized capital stock from P3.8 billion to P12.6 billion. This increase facilitated the P8.9 billion debt-to-equity conversion, paving the way for the issuance of preferred shares (Series “A”, “B”, and “C”) as outlined in the Rehabiltation Plan. Furthermore, it enabled the partial settlement of statutory obligations, salaries, wages, and other employee benefits from the escrow accounts as of December 2023. The successful debt-to-equity conversion enabled the Company to eliminate a total of P9.3 billion capital deficiency, resulting in a substantial decrease in its liabilities and strengthening its capital position, achieving an impressive turnaround of over 100% year-on-year. PT&T remains steadfast to financial recovery and sustainability. Through prudent financial management practices, the Company has been able to partially address its statutory obligations and employee-related expenses.

Attained Substantial Profitability since 2017, Signaling a Notable Operational Turnaround

PT&T announced a 5% increase in gross sales from the previous year. Even with higher labor expenditures in 2023—which were necessary to fund the company's expansion plans—PT&T managed to achieve an exceptional 26% increase in its core EBITDA while keeping a solid 22% margin.

PT&T saw notable net income growth overall, with a noteworthy 155% year-over-year gain for the year ending December 31, 2023.

Mr. James Velasquez, President and CEO of PT&T, expressed his confidence in the Company's financial trajectory, stating, “We are delighted to report PT&T’s impressive shift, which demonstrates our dedication to financial resilience and growth. We take pride in eliminating our capital deficiency through a successful debt-to-equity conversion and significantly strengthening our capital position." 

Management Strategies are in Place

​In order to keep up its position as the trusted name in broadband connections and to lead the way in digital transformation solutions for its target market, PT&T is dedicated to developing its network infrastructure.

Considerable progress has been made to strengthen the company's financial position in order to achieve this aim. Along with an ongoing application to expand NTC licenses for larger service coverage in line with the company's nationwide network deployment strategy, this also involves the completion of infrastructure enhancements in 2023.
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PT&T has also enlisted the aid of one of the biggest financial advice groups in the world to help with these initiatives. This tactical alliance demonstrates PT&T's proactive commitment to capital structure optimization and value creation for shareholders.

"With our fundraising initiative, we anticipate a substantial enhancement of our capacity to deliver reliable, streamlined, and sustainable broadband and IT services. This enhancement will not only benefit the CALABARZON region but also extend nationwide over the next few years, meeting the growing demand for connectivity in the country,” Mr. Velasquez said.

Additionally, PT&T is making a concerted effort to get trading back on the PSE. Notwithstanding the PSE's acknowledgement that the company is no longer in capital deficiency, PT&T's rehabilitation plan still has unresolved issues.

“While we cannot provide a specific date at this time, we are diligently fulfilling the requirements outlined in our Rehabilitation Plan. By adhering to the requirements set forth in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange. Our immediate goal is to secure the necessary approvals from the PSE to resume trading as soon as possible,” Mr. Velasquez added.

In order to meet the changing needs of its customers and shareholders, PT&T is committed to delivering innovative solutions, growing its network infrastructure, and promoting sustainable growth. The company hopes to regain its ranking as one of the top telecommunications companies in the nation.