IN FOCUS: PHILIPPINE LONG DISTANCE TELEPHONE COMPANY (PLDT)

PHILIPPINE LONG DISTANCE TELEPHONE CO., abbreviated PLDT, is the largest and the most diversified telecommunications company in the Philippines and the largest company in the country. PLDT was ranked as 1138th company on the 2009 Forbes' Global 2000 list. The company was established in 1928 by means of a merger of four telephone companies under common US ownership. During the 1970s, PLDT was nationalized by the government of Ferdinand Marcos and in 1981 it became the country's telephone monopoly. The company was re-privatized alter his removal from power in 1986. By 1995 the company had been de-monopolized. The Company has more then 29,000 of employees and it is based in Makati City, the Philippines.

Taking in account that Phillipines is a very populous nation with about 92 millions of inhabitants and its numerous islands which are to be connected and comunicated, it is obvious that the growing potential of the PHILIPPINE LONG DISTANCE TELEPHONE CO. is enormous. The middle class population is increasing constantly. There is a lots of space for the company growth in the following years and the company has great growing potential.

PHILIPPINE LONG DISTANCE TELEPHONE CO., main business segments are:

1. Fixed Phone.

2. Wireless.

3. Information and communication technology.

PHILIPPINE LONG DISTANCE TELEPHONE CO. fixed line segment offers fixed line telecommunication services as well as infrastructure and related services. As a fixed line service provider, PHILIPPINE LONG DISTANCE TELEPHONE CO. counts with over 60% of the total fixed line subscribers in the Philippines. In the 1Q 2010 PLDT has increased 1% service revenues year-on-year. Subsidiaries and affiliates companies in this business segment are:

PLDT CLARK TELECOM INC.,

PLDT SUBIC TELECOMMUNICATIONS COMPANY INC.,

PLDT-MARATEL INC.,

PLDT-PHILCOM CORPORATION,

SMART-NTT MULTIMEDIA INC.,

PLDT GLOBAL CORPORATION,

BONIFACIO COMMUNICATIONS CORPORATION.

PLDT’s wireless segment provides: cellular mobile services, mobile applications development services, mobile commerce solutions and marketing services, mobile commerce platforms and software development and sale, maintenance and support services. The company is engaged in Internet broadband distribution business. Also, the company oferrs satellite communications services and satellite information and messaging services. This segment also delivers global system for mobile communication (GSM) capability for the maritime sector and trades in satellites and GSM enabled global telecommunication markets. As a cellular service provider, PHILIPPINE LONG DISTANCE TELEPHONE CO. counts with approximately 55% of total reported cellular subscribers in the country. PLDT’s wireless division reported 1% decrease of 1Q 2010 revenues compared with the last year. Subsidiaries and affiliates companies in this business segment are:

TELESAT PHILIPPINES INC.,

SMART COMMUNICATIONS, INC. AND SUBSIDIARIES,

PILIPINO TELEPHONE CORPORATION,

MABUHAY SATELLITE CORPORATION,

ACeS PHILIPPINES CELLULAR SATELLITE CORPORATION.

The company is involved in the information and communications technology sectors offering broad-based integrated information and communications technology services focusing on infrastructure and solutions for Internet applications, IP-based solutions, and multimedia content delivery. PLDT also resells software licenses, server solutions, networking products, storage products and data security products. This segment also provides knowledge processing and customer interaction solutions, as well as operates Internet data center under the Vitro brand name, and offers Internet and online gaming services. The company has strategic agreements with First Pacific Company Limited, NTT DoCoMo, Inc., and NTT Communications Corporation while subsidiaries and affiliates companiess are:

SPi TECHNOLOGIES INC.,

ePLDT VENTUS INC.,

ePLDT, INC. AND SUBSIDIARIES.

PHILIPPINE LONG DISTANCE TELEPHONE CO. is listed and traded on the Philippine Stock Exchange (PSE: TEL) and on the New York Stock Exchange (NYSE: PHI). There are 187.48M of ADR shares with 10.03B US$ market capitalization and offering 6,39% high dividend. The company reported 19% net income increase for the first quarter 2010 while total revenues marked a 1% decrease. EBITDA margin was 59%, being unchanged. The twelve-month profit margins of the company is 26.88%. while the twelve-month ROE is 38.98% .

TICKERS:

New York Stock Exchange NYSE: PHI

Philippine Stock Exchange PSE:TEL

COMPANY LINK http://www.pldt.com.ph/

OTHER LINKS

http://www.pldt.com.ph/investor/Documents/PLDT_1Q2010-Presentation-final.pdf

http://www.forbes.com/lists/2009/18/global-09_The-Global-2000_Counrty_11.html