PLDT open to selling business process unit SPi Global Holdings
- Details
- Category: Companies
- Published on Tuesday, 04 September 2012 20:26
- Written by Lenie Lectura / Reporter
PHILIPPINE Long Distance Telephone Co. (PLDT) on Tuesday said it is open to selling its business process outsourcing unit SPi Global Holdings but clarified that it has not made a final decision yet.
“As part of its continual strategic review of its portfolio, PLDT regularly evaluates and explores potential options with regard to acquisitions and divestitures of specific subsidiaries and business units including SPi,” said the phone giant in a statement yesterday.
There had been several postings on social media networking site Twitter that mentioned PLDT is seeking buyers for SPi.
“However at this time, no decision has been made with regard to any sale or other disposition of SPi,” PLDT added.
For now, the company said the SPi management remains focused on continuing the strong performance of its business and investing to support its ambitious business plan.
“PLDT remains very confident in the long-term prospects of SPi given the strength of the business model and management team and believes it is well positioned to capitalize on significant market opportunities for further growth,” added the telecom giant.
PLDT earlier said it expects sustained revenue growth from SPi given the bright prospects for the BPO industry in the country.
SPi Global reported service revenues of P2.4 billion in the first quarter this year, an increase of 20 percent compared with the same period last year. This accounts for 5 percent of the total consolidated revenues of the PLDT group.
“The prospect for our BPO business continues to improve buoyed by the double-digit growth forecast for the outsourcing industry,” PLDT president and chief executive officer Napoleon Nazareno said.
SPi Global recently signed new clients for both its customer relationship management and knowledge processing solutions businesses, including the expansion of existing contracts. It has also fully integrated Laserwords with its content solutions business.
“We also see continued margin growth as SPi Global leverages fixed costs and infrastructure over a higher revenue base that increases seat share ratio over stable operating expenses,” said SPi Global president Maulik Parekh, who added that a strong sales pipeline is also developing for 2013.
