PLDT seen raising 2023 spending due to strong dollar

Industry giant PLDT may raise its capital expenditures (capex) next year amid the current development in the foreign exchange.

File photo: PLDT logo

PLDT to hike 2023 capex?

This was according to a report of BusinessMirror issued Monday.

During its interview with PLDT Chairman Manuel V. Pangilinan, the tycoon said that the group was "still in the budgeting process."

Just speaking about 2023, we will try to stay within the capex, but it’s going to be pushed up by foreign exchange, Pangilinan said.

This, as PLDT's foreign spend was almost half of its capex with some network infrastructure are being imported.

The Philippine peso has been losing its ground against the US dollar, with its all-time low reaching PHP 59. Economists have been saying that the local unit is affected by outside forces, including the US government's aggressive approach to temper inflation, as well as the Ukraine-Russia war.

PLDT's core telco income in the first half of 2022 climbed 17 percent to PHP 17 billion. Consolidated service revenues also went up 5 percent to PHP 94.3 billion.

As of end-June, PLDT already spent PHP 46 billion. It earlier earmarked PHP 85 billion capital expenditure for this year.

What do you guys think?

Source: BusinessMirror