UPDATE 2-Inflation stalks Philippine telecoms, shares drop

(Writes through after Globe results, analyst briefing)

By Carmel Crimmins

MANILA, May 6 (Reuters) - Soaring inflation overshadowed first-quarter earnings from the Philippines' top two telecoms companies on Tuesday, sending shares in PLDT (TEL.PS: Quote, Profile, Research) and smaller rival Globe (GLO.PS: Quote, Profile, Research) sharply into the red.

PLDT, the country's largest listed firm, posted a better-than-expected 11 percent increase in core net profit but signalled that growth could flag as inflation bites.

"Our sustained growth in the first quarter indicates that the teeth of inflation and rising prices have yet to bite deeply into our business," Manuel Pangilinan, chairman of PLDT, said in a statement.

"Nonetheless, we realise that a global slowdown will undoubtedly take its toll on all businesses eventually."

Globe Telecom saw its core net profit drop 4 percent in the first quarter as rising food and fuel prices gobbled up consumer spending power, leaving service revenues flat from a year ago.

Shares in Globe dropped 2.26 percent while PLDT's stock fell 1.92 percent ,helping to drag the general index .PSI down 1.37 percent after data earlier on Tuesday showed annual inflation hitting a near 3-year peak of 8.3 percent in April. (Click on [ID:nMAN226800] for a story on the latest inflation data)

PLDT said it would postpone the listing of its outsourcing unit and call centre business, SPi Global Solutions, till possibly the second half of next year from this year due to weak market conditions and pending a turnaround in its loss-making medical transcription business.