“PLDT is the dominant integrated telecommunications and digital services provider in the Philippines with the largest fixed broadband network and the largest, most modern, and most sophisticated wireless network in the country.”
A good friend and compadre, Manuel V. Pangilinan, turned 76 on July 14.
MVP is chairman of PLDT, Inc., the Philippines’ largest telco. Its market value is P376.585 billion.
In the first half 2022, PLDT profits rose 30 percent to P16.92 billion despite revenues rising only 6 percent to P101.39 billion over the first semester of 2021.
PLDT credits “higher revenues from data and voice services from our Fixed Line business segment, partially offset by lower revenues from mobile and fixed wireless broadband services in our Wireless business segment.”
Manny is managing director and CEO of First Pacific Company Limited of Hongkong. First Pacific acquired PLDT from the Tonyboy Cojuangco family in 1998.
By 2000, FP had also acquired PLDT’s wireless company, Smart. During 2009 to 2011, MVP acquired control of power distribution monopoly Meralco (valued at P360.44 billion as of Aug. 9, 2022).
With PLDT and Meralco, Manny is the owner/controlling stockholder of the two biggest utility companies in the Philippines. His impact on the lifestyle of Filipinos is tremendous.
A Wharton MBA holder, MVP has built First Pacific into one of the largest, most diversified, and most profitable investment holding companies in Asia.
Its Philippine operations have been among the biggest contributors to First Pacific’s growth since 1981 when MVP founded FP.
FP focuses on four major areas: agriculture and consumer food products, telecommunications, infrastructure, and natural resources, with world-class ESG (environmental, social, and governance) a crucial element to better manage risk and generate sustainable returns.
FP’s major investments are: 50.1 percent economic interest in Indofood; a controlling 25.6 percent in PLDT; 44.6 percent in MPIC; 31.2 percent, in Philex; 35.7 percent in PXP; 68.1 percent in FPM Power Holdings Ltd.; and 80.8 percent in FP Natural Resources Ltd.
These companies have a strong or dominant market position in their respective sectors and potential for substantial cash flows.
PT Indofood Sukses Makmur Tbk is the largest vertically integrated food company in Indonesia.
PLDT is the dominant integrated telecommunications and digital services provider in the Philippines with the largest fixed broadband network and the largest, most modern, and most sophisticated wireless network in the country.
MPIC is a leading infrastructure investment management and holding company in the Philippines, with holdings in the country’s largest electricity distributor, toll road operator, water distributor, and hospital group.
MPIC also holds assets in the storage of petroleum products.
Philex is one of the largest metal mining companies in the Philippines, producing gold, copper and silver.
PXP is an upstream oil and gas company with a number of service contracts in the Philippines. PLP is the operator of one of Singapore’s most efficient gas-fired power plants and RHI runs a sugar and ethanol business in the Philippines.
Celebrating FP’s 40th year in 2021, FP companies are firing on cylinders, says MVP, adding, “turnover and recurring profit reached record highs – peaks that we expect to be surpassed in the years ahead.”
Sums up FP Chair Anthoni Salim: “As the Philippines gradually lifted movement restrictions, MPIC’s several businesses returned to growth. PLDT benefitted from continuing strong growth in demand for data services, led by the residential broadband offered by its Home business. Philex benefitted from surging metal prices.”
In 2021, PLDT delivered record service revenues by dominating in customer experience across both wireless and fixed-line businesses. Its three engines of earnings growth—Individual, Home, and Enterprise—continue to perform strongly, taking turns leading the way.
After over a decade of robust capital expenditures, MVP says the gap in quality of customer experience between PLDT and its competitors now seems insurmountable.
PLDT’s fintech investment, Voyager, saw its PayMaya digital payments business become the first and only telecommunications company to receive a Philippine digital banking license.
This, says MVP, suggests strong potential growth in valuations of its parent PLDT on the promise of strong earnings from an economy where more than two thirds of people lack a formal bank account. Continuing earnings growth is seen in the years ahead.
MPIC saw its two biggest businesses—electricity and toll roads—deliver double-digit earnings growth while its water business Maynilad saw flat earnings on lower volumes of water consumption.
MPIC’s core profit nearly doubled from the low set in 2020 as the Philippines began climbing out of pandemic-inspired movement restrictions.
MVP expects continuing demand growth for all three main businesses even as new investments add potential catalysts to MPIC’s earnings.
Philex rode on sharply higher copper prices. Core profit more than doubled despite decline gold and copper volume produced.
Philex is excited about its new mining project in Mindanao, Silangan—the future for the company.
Enthuses MVP: “I have not been more optimistic for our prospects at any time in the past four decades than I am now.”
Futurely, MVP seeks huge potential in agriculture. Expect the group to vigorously pursue big aggie deals.
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