Philippine phone company reports lower profit

Philippine Long Distance Telephone Co., the country's top telecommunications company, said Tuesday its net profit fell 4 percent in 2008 due to investment and foreign exchange losses.

PLDT attributed the drop in net profit compared with the year before to write downs of earlier investments in its information and communications technology business, and losses from the foreign exchange revaluation of the company's financial assets and liabilities.

The 2008 net profit was 34.6 billion pesos ($706 million), while core net income, which excludes foreign exchange movements and changes in the value of derivatives, rose 8 percent to 38.1 billion pesos ($777.5 million) from a year earlier, the company said.

PLDT Chairman Manuel Pangilinan said core profit was expected to reach 40 billion pesos in 2009 with the forecast reflecting a "cautious impression" of the company's prospects.

"We do expect that it will be only a matter of time before the tide of global recession reaches our shores and exerts pressure on all businesses," he said.

The company has Internet, fixed line and mobile telephone businesses.

On the Net:

PLDT: http://www.pldt.com.ph