MANILA -- Philippine Long Distance Telephone, the country's largest telecommunications firm, reported Monday that 2005 net pro

fits rose to a record P34 billion, up 22 percent from 2004. The earnings, ahead of analysts' forecasts, benefited from "foreign exchange translations gains and certain deferred tax assets," the company said in a statement.

Analysts were expecting full-year net profit to come in between 30.73 billion and P32.4 billion.

Consolidated service revenues rose five percent in 2005 to P121 billion, the PLDT statement said.

Revenues from the company's consolidated wireless services were up eight percent over 2004 to P74.7 billion with the PLDT group's total cellular subscriber base growing by 1.2 million to 20.4 million.

Fixed line revenues rose 2.47 percent to $49.7 billion, compared with the previous year. Increases in data revenues offset the downturn in local exchange and international and national long distance calls, PLDT said.

The appreciation of the local currency last year had a negative impact on PLDT's revenues from long-distance calls, it said.

Core net profit, which excludes gains from foreign exchange and derivative transactions, rose nine percent over 2004 to P31 billion.

PLDT chairman Manuel Pangilinan said in the statement that the company would continue to invest in technological innovations and a "next generation infrastructure," combining broadband and 3G with PLDT's existing systems.

"Because we expect a more challenging operating environment, we have chosen to take a prudent view of our 2006 prospects. Growth in core earnings will be benign as revenue growth moderates," the company statement said.

It forecast that "cash flows will remain robust despite higher capital expenditures," and described 2006 as "a year of transition... for future growth."*AFP

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