Philippine Long Distance and Telephone Co. (PLDT) reported Tuesday annual net income rose 14.9 percent to P39.781 billion in 2009, slightly below analysts' estimates of P40.4 billion according to Thomson Reuters I/B/E/S.

PLDT, with a market value of $10.9 billion, said it had 41.3 million mobile phone subscribers at the end of 2009, up 17 percent from a year earlier. Mobile penetration stands at around 80 percent in the country of around 92 million people.

The company expected its service revenues to climb to P150 billion in 2010 from P145.6 billion. Mobile phone revenues account for nearly two-thirds of the group's total.

PLDT, the country's most valuable firm, reported a 15.5 percent increase in fourth quarter profit on higher mobile phone usage over the Christmas holidays.

Analysts expect telecoms firms to get a boost this year from more spending related to national elections in May, countering the impact of aggressive promotions on bottomline amid stiff competition in a mature mobile phone market.

PLDT, owned by Hong Kong's First Pacific Co. Ltd., Japan's NTT Communications and NTT DoCoMo, said Tuesday it expected this year's core earnings to be just over P41 billion ($889 million), flat from 2009.

Core earnings, which strip out currency and derivatives-related items, fell by 1 percent to P10.187 billion in the fourth quarter of 2009, bringing PLDT's annual core net income to P41.1 billion, largely in line with the company's outlook for 2009.

Corporate data and home Internet services boosted fixed line revenue, which increased by 4 percent, PLDT said.

Earnings from the 20 percent equity share that PLDT acquired last June in power distributor Manila Electric Co. amounted to P398 million, the company said. Meralco's net income in 2009 increased to P6 billion compared to P2.8 billion in 2008.

PLDT's net income in October-December, usually its strongest quarter, rose to P9.763 billion from P8.456 billion a year earlier.

PLDT announced its earnings after the market closed. (Reuters)