By Ashley Erika O. Jose, Reporter
THE SURGING demand for connectivity, digitalization, and data center expansion would continue to boost growth, though muted, in the telecommunications and information and communications technology (ICT) sector in 2025, analysts said.
“We may see only single-digit revenue and earnings growth for the industry as a whole in 2025,” Juan Paolo E. Colet, managing director at Chinabank Capital Corp., said in a Viber message on Sunday. “Rising demand for data, expansion of product offerings and contributions from segments like fintech and data centers are favorable drivers for positive performance, though at varying extents across the major players.”
Jayniel Carl S. Manuel, a Seedbox Securities, Inc. equity trader, expects surging demand for robust connectivity and cloud-based services to drive the ICT sector’s profitability.
“Consumers and enterprises alike are gravitating toward data-intensive applications ranging from high-speed internet and 5G (fifth generation)-enabled solutions to more sophisticated digital finance and cybersecurity offerings, and this trend should underpin revenue growth for major players,” he said in a Facebook Messenger chat on Dec. 27.
“The profitability outlook for Philippine telecommunications and ICT companies in 2025 appears promising but faces several challenges that could impact growth prospects,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message on Friday.
PLDT Inc. posted a 2.4% increase in its attributable net income in the third quarter, driven by higher revenue that rose 1.98% to P53.36 billion from a year earlier. This brought its nine-month income to P28.07 billion, a 0.68% increase.
Listed fiber internet provider Converge ICT Solutions’ attributable net income in the third quarter climbed 40.4% to P2.92 billion from a year earlier, while Globe Telecom, Inc.’s net income climbed 21.1% to P6.02 billion.
Meanwhile, DITO CME Holdings Corp., which operates DITO Telecommunity Corp., posted an attributable net income of P998.05 million during the period from a net loss of P4.29 billion a year earlier.
Sam Jacoba, founding president of the National Association of Data Protection Officers, said cyberattacks would continue to threaten ICT companies and their financial technology arms. “Cyberattacks will continue and will focus on where the online assets are managed,” he said in a Viber message on Sunday.
“Cyberattacks will continue to be a major hindrance in the public’s acceptance of digitalization,” Ronald B. Gustilo, national campaigner for Digital Pinoys, said in a Viber message.
Electronic wallet giant GCash earlier reported missing funds and unauthorized transactions for some of its users. GCash said these were due to its system reconciliation process.
Mr. Gustilo said hacking and data breaches hinder digitalization growth because many still view it as a risky path.
Mr. Arce said the continued digital transformation across sectors and the evolving consumer preference for digitalization suggest steady revenue streams for telecommunication and ICT companies.
PLDT through its wireless unit Smart Communications, Inc. and Globe have been expanding their 5G coverage in the country.
“Globe Telecom, for instance, is poised to benefit from ongoing 5G network expansion and its deepening investments in digital platforms,” Mr. Manuel said.
But intense competition and technological evolution could be a problem for many companies. “Keeping pace with global technology trends requires significant capital investment, which could strain profitability,” Mr. Arce said.
Mr. Manuel said PLDT should focus on further modernization of legacy infrastructure and leverage its fiber enterprise segments to sustain steady revenue, while DITO Telecommunity has an optimistic outlook driven by the expansion of its subscriber base.
“Converge ICT Solutions stands to remain a key contender in the fiber broadband space, especially in underserved regions, although high capital expenditures for network rollouts will pose a challenge to profit margins,” he said.
“Stringent data privacy regulations and heightened consumer awareness around cybersecurity will compel telecommunication and ICT firms to invest heavily in compliance measures and digital safeguards,” Mr. Manuel said.
Mr. Colet said data centers would be a key driver for companies’ positive performance in 2025.
PLDT through unit ePLDT, Inc. plans to build its next data center in Southern Luzon to position its 11th and largest data center, VITRO Sta. Rosa, as a data center hub while also maintaining a strong market presence in the data center business.
Meanwhile, ST Telemedia Global Data Centres Philippines has completed the structural framework of its 124-megawatt (MW) data center in Fairview, Quezon City, paving the way for its initial activation by the second quarter of 2025.
Converge ICT is also planning to open two data centers with a combined capacity of 13 MW in 2025.
