SECURITIESAND EXCHANGE COMMISSION

Washington,D.C.  20549

 

FORM6 -K

 

REPORTOF FOREIGN PRIVATE ISSUER

PURSUANTTO RULE 13a-16 or 15d-16 OF

THESECURITIES EXCHANGE ACT OF  1934

 

Report on Form 6-K dated May 5, 2005

(Commission File No. 1-15024)

 

 

PHILIPPINELONG DISTANCE TELEPHONE COMPANY

(Nameof Registrant)

 

RamonCojuangco Building

MakatiAvenue, Makati City

Philippines        0721

(Addressof Principal Executive Officers)

 

 

Indicateby check mark whether the registrant files or will file annual reports undercover of Form 20-F or Form 40-F:

 

| Form 20-F:  y | Form 40-F:  o |
|---------------|---------------|

 

Indicateby check mark if the registrant is submitting the Form 6-K in paper aspermitted by Regulation S-T Rule 101 (b) (1):

 

| Yes:  o | No:  y |
|---------|--------|

 

Indicateby check mark if the registrant is submitting the Form 6-K in paper aspermitted by Regulation by Regulation S-T Rule 101 (b) (7):

 

| Yes:  o | No:  y |
|---------|--------|

 

Indicateby check mark whether the registrant by furnishing the information contained inthis form is also thereby furnishing the information to the Commission pursuantto Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

| Yes:  o | No:  y |
|---------|--------|

 

 

 

 

 

 

 

 

 

 

 

Enclosure:

 

 

 

A copy of the disclosureletter we filed today with the Philippine Stock Exchange and the Securities andExchange Commission regarding the press release in connection with theCompany’s financial condition and results of operations for the three (3)months ended March 31, 2005.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SecurityCode # CM-040
 
 

 

May 5, 2005
 

 

Philippine Stock Exchange

4/F Philippine Stock ExchangeCenter

Exchange Road, Ortigas Center

Pasig City

 

Attention:  Ms. JurisitaQuintos
 SVP– Operations Group
 

Gentlemen:

 

            In accordance with Section 17.1 (b) and Section 17.3 of theSecurities Regulation Code, we submit herewith a copy of SEC Form 17-C with apress release attached thereto regarding the Company’s financial condition andresults of operations for the three (3) months ended March 31, 2005.

 

            This shall also serve as the disclosure letter for thepurpose of complying with PSE Revised Disclosure Rules.

 

 

 

Very truly yours,

 

PHILIPPINE LONG DISTANCE TELEPHONE COMPANY
 

 

 

 

MA. LOURDES C. RAUSA-CHAN
Corporate Secretary

 

 

 

 

 
 
 

 
 

 
 

 

 

 

 
May 5, 2005
 

 

Securities & ExchangeCommission

Money Market OperationsDepartment

SEC Building, EDSA

Mandaluyong City

 

Attention:  Director JustinaCallangan
                                                                 CorporationFinance Department
 

Gentlemen:

 

            In accordance with Section 17.1 (b) of the SecuritiesRegulation Code and SRC Rule 17.1, we submit herewith five (5) copies of SECForm 17-C with a press release attached thereto regarding the Company’sfinancial condition and results of operations for the three (3) months endedMarch 31, 2005.

 

 

Very truly yours,

 

PHILIPPINE LONG DISTANCE TELEPHONE COMPANY
 

 

 

 

MA. LOURDES C. RAUSA-CHAN
Corporate Secretary

 

 

 

 

 

 

 

 

 

 

 

 

COVER SHEET

 

 

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SEC Registration No.

 

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(Business Address: No.Street/City/Town/Province)

 

ATTY. MA. LOURDES C. RAUSA-CHAN

 

814-3552

Contact person

 

Contact Telephone No.

 

 

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SEC FORM 17-C

 

 

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6

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Fiscal Year

 

Annual Meeting

 
 

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N/A

Dept. Requiring this Doc.

 

Amended Articles

Number/Section

 

 

Total Amount of Borrowings

2,198,945

As of March 31, 2005

 

 

NA

 

 

NA

Total No. of Stockholders

 

Domestic

 

Foreign

 

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To be accomplished bySEC Personnel concerned

 

 
 

 

 

 

 

 

 

 

 

 

 

______________________________

File Number

 

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Document I.D.

 

Cashier

 

 

STAMPS

   

 

 

 

 

Remarks: Please use black ink for scanning purposes

 

 

 

 

 

SECURITIES AND EXCHANGE COMMISSION

 

 

SEC FORM 17-C UNDER SECTION 17

OF THE SECURITIES REGULATION CODE

AND SRC RULE 17.1

 

 

1.                 5 May 2005

Date of Report (Date of earliest event reported)

 

2.                 SEC Identification Number PW-55

 

3.                 BIR Tax Identification No. 000-488-793

 

4.                 PHILIPPINELONG DISTANCE TELEPHONE COMPANY

Exact name of issuer as specified in its charter

 

5.         PHILIPPINES                                                 6._____________ (SEC Use Only)  

Province, country or other jurisdiction                   IndustryClassification Code

of Incorporation

 

7.         RamonCojuangco Building, Makati Avenue, Makati City                          1200 

Address of principal office                                                                  PostalCode

 

8.         (632)814-3664 

Issuer's telephone number, including area code
 

9.         NotApplicable 

Former name or former address, if changed since last report

 

10.             Securities registered pursuant toSections 8 and 12 of the Securities Regulation Code and Sections 4 and 8 of theRevised Securities Act

 

Title of Each Class

Number of Shares of Common Stock

Outstanding and Amount of Debt Outstanding

 

______________________________________________________________

______________________________________________________________

______________________________________________________________

 

 

 

 

 

**Press release**

** **

**PLDT GROUP CONSOLIDATED NETINCOME UP 65%;**

**EARNINGS REACH P9.4 BILLIONFOR FIRST QUARTER 2005**

**DIVIDEND OF P21/SHAREDECLARED**

** **

•        PLDT reports consolidated net income of P9.4 billion for thefirst quarter 2005; adjusted net income at P7.0 billion, taking into accounteffects of foreign exchange gains and derivative transactions

•        PLDT declares initial2005 dividend to common shareholders of P21/share

•        Cellular servicerevenues increase 11% as combined subscriber base surpasses 20 million  

•        Consolidated EBITDAreaches P18.5 billion; consolidated EBITDA margin improves to 63% of revenues 

•        Consolidated free cashflow surges to P11.3 billion, up from P9.7 billion in the same period in 2004 

•        PLDT Fixed Linereduces debt by US$155 million; consolidated debt declines by US$165 million

•        Smart to distributeP20.0 billion to PLDT in 2005

***MANILA, Philippines, 5th May2005*** –– PhilippineLong Distance Telephone Company (“PLDT”) (PSE: TEL) (NYSE: PHI) today announcedits financial results for the first quarter of 2005, reporting a consolidatednet profit of P9.4 billion.  In addition, the Company’s Board of Directors alsoapproved the payment of a P21/share initial 2005 dividend to commonshareholders with the target of achieving a 30% payout level of 2005 EPS.Payment will be made on 14th July 2005 to shareholders of record asof 3rd June 2005.  This follows the dividend of P14/share declaredin respect of 2004 which is scheduled to be paid on 12th May 2005. 

 

Cellular subsidiaries, SmartCommunications, Inc. (“Smart”) and Pilipino Telephone Corporation (“Piltel”),contributed significantly to the rise in PLDT’s consolidated net income.Without the impact of the peso’s appreciation on foreign exchange translationand derivative transactions, adjusted consolidated net income rose to P7.0billion in the first quarter of 2005, 14% over the adjusted and restated netincome of P6.1 billion reported in the first quarter of 2004.  Service revenuesfor the PLDT Group increased by 4% to P29.4 billion while consolidated EBITDAimproved to P18.5 billion. 

Consolidated free cash flow grew by 17%, from P9.7 billion in thefirst quarter of 2004 to P11.3 billion in the same period in 2005, enabling theGroup to declare an initial 2005 dividend as well as reduce debts by US$165million and remaining well on track to meet the 2005 debt reduction target ofUS$500 million.

** **

** **

**Cellular: Adapting to Market Changes**

Consolidated cellular service revenuesincreased to P17.4 billion in the first quarter of 2005, 11% higher than theP15.7 billion realized in the first quarter last year. 

Consolidated cellular EBITDA grew by 7% toP11.1 billion from P10.3 billion.  The EBITDA margin stood at 64% in the firstquarter of 2005 from 66% in the same period in 2004. Net income, as adjustedfor the effects of the Peso’s appreciation on foreign exchange movements andderivative transactions, increased to P5.8 billion from P5.2 billion in thesame period last year. 

Net cellular activations totaled 1.04million subscribers in the first quarter of 2005, bringing the PLDT Group’stotal cellular subscriber base to just over 20 million and maintaining itsmarket share of about 58%.   Smart added approximately 915,000 subscriberswhile *Talk ‘N Text*added approximately 130,000 subscribers to end thequarter with 15.5 and 4.7 million subscribers, respectively.  Net activationsin the first quarter of 2004 were 26% higher at 1.4 million and it is expectedthat subscriber growth will decelerate compared to prior years’ growth. 

On 11th March 2005, Smartlaunched, for thirty days, the *Smart 25**8**Unlimited Call and Text*promo wherein Smart and *Talk ‘N Text*prepaid subscribers could avail of unlimited on-network calls or text. Thepromotion was reinstituted on 21st April for another 30 days withsome modifications. 

Smart’s cellular network has expanded to 36switches and over 5,400 base stations covering 97% of the country’s population.Capital expenditures were P1.8 billion in the first quarter of 2005. 

Free cash flow nearly doubled to P9.0 billion in the first quarterof 2005 from P4.6 billion in the first quarter of 2004. Smart intends to make atotal distribution of P20 billion to PLDT for 2005 

- Smart paid a cash dividend of P6.0billion to PLDT in the first quarter of 2005; in addition, it will pay anotherP8 billion in June and the balance in the second half of the year. 

“As we had previously indicated, wehave begun to see a slowing down of subscriber growth and we expect this trendto continue; a reflection, we believe of changing market dynamics as well asthe effects of SIM-swap activities. Smart has in fact commenced winding downits SIM-swap activities and it is anticipated that although the industry willexperience a temporary correction phase in terms of subscriber count, thisshould not, however, impact usage and our underlying revenues. It should, infact, result in cost savings. Our mandate, therefore, as the industry leader,is to be responsive to these evolving conditions and find ways to activelydevelop new market segments whilst controlling costs. Our competitiveadvantage, in addition to our strong cash flows, is that we can do so not justwithin the wireless sphere but also in conjunction with the fixed and ICTbusinesses,” explained **Napoleon L. Nazareno, President and CEO of PLDT andSmart.**

** **

** **

**PLDT Fixed Line:  Looking Ahead**

Fixed Line service revenues decreased by 2% to P11.8billion in the first quarter of 2005, as the appreciation of the peso dampenedlocal exchange and ILD revenues and the introduction of the “P10 per callpromotion” adversely affected NLD revenues.  Launched in February 2005, thepromotion offered a rate of P10 per call to any PLDT landline number nationwideas well as to all Smart and *Talk ‘N Text* subscribers. The declines inthese segments were partially offset, however, by an increase in data revenueswith the continued growth of broadband services and the introduction of newservice offerings. On 10th March 2005, PLDT Fixed launched *PLDTWeRoam*, a wireless broadband service running on Smart’s nationwide wirelessnetwork and utilizing GPRS/EDGE/Wi-Fi technologies. Aimed at the corporatemarket, *PLDT WeRoam*provides laptop-carrying employees with wirelessdata connectivity to their corporate Intranets and to the global Internet. DSLsubscribers jumped to 72,700 at the end of the period, from 28,000 a year agowhile other relatively new offerings such as *High Bandwidth Optical Service*and*Shops.work* have started to make headway and are expected to register astrong performance for the rest of the year. 

Cash operating expenses were down 2% reflecting thecontinued focus on various cash control initiatives. EBITDA was stable at P6.8billion as the decline in revenues was matched by a corresponding decline incash operating expenses. EBITDA margin improved slightly to 58% in the firstquarter this year from 57% in the same period last year. 

Capital expenditures for the first quarter of 2005were at P2.4 billion with the ongoing upgrade to an IP-based core network. 

PLDT’s free cash flow in the first three months of2005 increased significantly by 61% to P8.0 billion, mainly on account of theP6.0 billion dividend from Smart.  Accordingly, PLDT Fixed Line reduced itsdebts by US$155 million during the period, thus lowering its debt balance toUS$1.8 billion as of the end of the first quarter of 2005.  PLDT Fixed Line willcontinue to deleverage aggressively in 2005, thus saving on interest andfinancing costs and reducing its risk profile as well. 

"Given the geographic coverage and bandwidthcapabilities of our various networks, we feel we are well positioned to deploythe resources of the Group in a well-coordinated manner. We are looking to anew generation of services for PLDT, services such as *PLDT WeRoam* thatbring together the strong corporate business of PLDT Fixed and the superiornetwork capability of Smart, " concluded **Nazareno.**

 

**ePLDT:  Holding Its Own**

ePLDT, the Group’s information and communicationstechnology arm, reported a profit of P40 million for the first quarter of 2005.

Consolidatedcall center revenues grew by 53% to P408 million as a result of continuedgrowth in transaction volumes and increased capacity utilization. Combined callcenter seats grew to 2,870, an 81% increase over the same period last year. Athird center call center in Iloilo commenced commercial operations in April2005 with 400 seats.

Aside from the call centers, ePLDT’s other businesssegments, which include *Netopia*TM, *Vitro*TMData Center and other Internet-related services, registered significant revenueimprovements resulting in consolidated service revenues of P652 million, a 50%increase compared to P435 million in the same period last year. 

“The significant revenue growth across all ourbusiness segments is extremely encouraging and we foresee this positive trendcontinuing for the rest of the year. We also expect ePLDT to play a strategicrole not only in content development and aggregation for the Group but in theGroup’s transition to next generation services as well”, said **Ray C.Espinosa, ePLDT Managing Director**. 

 

**PLDT Group: Transformation Underway**

“At the end of 2004, the PLDT Group set for itself anumber of financial and operational objectives – this early, I am pleased thatwe are well on our way to achieving a number of these goals. We have justannounced an initial dividend to our common shareholders of P21/share whichshould allow us to achieve our revised target of a 30% dividend payout level of2005 EPS.  The debt reduction of US$165 million in the first quarter of 2005 isa good start to achieving our goal of paying down US$500 million for the year.Most importantly, the transformation of the PLDT Group into a functionallyintegrated communications business has begun.  Among other initiatives, theupgrading of our copper and fiber optic network into an IP-based one isunderway as we prepare ourselves for the next wave of so-called “disruptivetechnologies”.  Certainly, we at PLDT have no intention of allowing thesetechnologies to be self-fulfilling and disrupt our plans – the future isarriving fast and we are determined to be at the center of it,” said **ManuelV. Pangilinan, PLDT Chairman**. 

### 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

** **

** **

**PLDT Consolidated**

*(in million pesos, except EPS)*

**For the first quarter ended March 31,**

** **

**2005**

**2004****(a)**

**Service revenues**

**29,361**

**28,107**

**Non-service revenues**

**815**

**2,631**

**Other income**

**75**

**85**

 

**30,251**

**30,823**

**Expenses**

**17,325**

**23,107**

**Income before income tax**

**12,926**

**7,716**

**Provision for income tax**

**3,543**

**2,036**

**Net income - As Reported**

**9,361**

**5,686**

**Net income before FX and derivatives****(b)**

**6,997**

**6,145**

**EPS, Basic**

**52.78**

**31.30**

**EPS, Diluted**

**47.57**

**31.30**

 

*(a) As restated to reflect adoption ofInternational Accounting Standards*

*(b) Net income excluding the netimpact of gains/losses on FX and derivative transactions*

 

*This press release may contain some statements whichconstitute “forward-looking statements” that are subject to a number of risksand uncertainties that could affect PLDT’s business and results of operations.Although PLDT believes that expectations reflected in any forward-lookingstatements are reasonable, it can give no guarantee of future performance,action or events.*

**For further information, please contact:**

 

**AnabelleL. Chua                  Anna V. Bengzon                          Ramon R.Isberto**

Tel No:816-8213                    Tel No: 816-8024                            Tel No:511-3101

Fax No: 844-9099                   Fax No: 810-7138                           FaxNo: 893-5174 

 

**About PLDT**

PLDT is the leading telecommunications provider in thePhilippines. Through its three principal business groups – fixed line, wirelessand information communications technology – PLDT offers a wide range oftelecommunications services across the Philippines’ most extensive fiber opticbackbone and fixed line, cellular and satellite network. 

PLDT is listed on the Philippine Stock Exchange(PSE:TEL) and its American depositary shares are listed on the New York StockExchange (NYSE:PHI) and the Pacific Exchange. PLDT has one of the largestmarket capitalizations among Philippine listed companies. 

 

Furtherinformation can be obtained by visiting the web at www.pldt.com.ph. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

 

 

 

Pursuant to the requirements of the Securities Exchange Actof 1934, the registrant had duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized.

 

 

 

PHILIPPINE LONGDISTANCE TELEPHONE COMPANY

 

 

 

 

By:MA. LOURDES C. RAUSA-CHAN

Corporate Secretary

 

 

 

Date:May 5, 2005