Fitch Ratings-Singapore-
Fitch expects strategic execution to take centre stage amidst the pandemic challenges, as incumbent operators strive to boost revenues. Our projections envisage PLDT's revenue growing by a low- to mid-single-digit percentage in 2020 (2019: 3%), slightly ahead of Globe's low-single-digit rate decline (2019: 10% growth). We consider PLDT's broader service diversification and entrenched fixed-line position to be advantageous in mitigating revenue pressure in its wireless business, compared with Globe. However, the investments needed to support PLDT's expansion in mobile revenue and broadband installations are likely to moderate EBITDA growth and delay deleveraging.
Continued restrictions imposed by the government to curb the spread of the pandemic will delay infrastructure network rollout, including new competition from third mobile network operator, Dito Telecommunity. Domestic telecoms capex accounts for above 40% of total revenue, amongst the highest within Fitch's
The report, "Spotlight: Globe Versus PLDT", is available on www.fitchratings.com or by clicking on the link in this media release.
Link to Fitch Ratings' Report(s): Spotlight: Globe Versus PLDT http://cdn.roxhillmedia.com/production/email/attachment/810001_820000/Fitch%20Ratings%20-%20Spotlight_%20Globe%20Versus%20PLDT%20-%2009%20June%202020.pdf
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