Pilipino Telephone Corp. (Piltel) reported a net income of P2.5 billion for the first three months of the year, representing a 32-percent growth from the same period in 2008.

The company attributed the growth to stronger service revenues, which grew 10 percent to P4.2 billion from P3.9 billion in the first quarter of 2008.

Piltel's service revenues from January to March already reflect the new 70-30 revenue sharing ratio with affiliate Smart Communications Inc. Prior to the amendment, the ratio was at 80-20, also in favor of Piltel.

Piltel is 92.81-percent owned by Smart, which in turn is a wholly-owned subsidiary of Pangilinan-led Philippine Long Distance Telephone Co. (PLDT).

"We are pleased with the performance of Piltel for the first quarter of 2009, despite the economic uncertainties," said Piltel president and chief executive officer Napoleon Nazareno.

Despite the ongoing economic downturn, Nazareno expressed optimism that Piltel will continue to do well this year. "But as you know by now, Piltel will soon be moving into a new direction with its acquisition of Meralco shares. As we await the conclusion of this transaction and complete another transformation of Piltel, we see no reason to diminish our efforts in enhancing Talk 'N Text's position as the second leading cellular brand in the country," he said.

Piltel's cellular subscribers reached 15.6 million at the end of the first quarter, with Talk 'N Text recording some 1.25 million net subscriber additions from January to March this year.

The company's data revenues grew 7 percent to P2.8 billion this year from P2.6 billion as bucket-priced text messaging revenues rose 11 percent, partly offset by the 3-percent decrease in standard text messaging revenues. Data revenues make up 65 percent of GSM service revenues.

Voice revenues, on the other hand, were up 15 percent to P1.5 billion from P1.3 billion in the first quarter this year, owing to higher revenues on both local and international calls.

Provision for income tax fell by P530 million, while net income from continuing operations increased to P3.2 billion from P2.4 billion on higher revenues and lower expenses.

Piltel has earlier acquired a 22-percent stake of power distributor Manila Electric Co. (Meralco) from First Philippine Holdings Inc. and First Philippine Utilities Corp.

The PLDT group said its investment in Meralco could lead to significant opportunities for operational and business synergies as well as better revenue streams and cost savings.