Philippine Long Distance Telephone Co. (PLDT) plans to change its business strategy after three years of falling profits. The company’s shares fell 17.7 percent to P1,830 per share,

PLDT Chairman Manuel V. Pangilinan said core profit will reach P28 billion this year, a level not seen since 2004 Philippine Daily Inquirer reported. 

“We have come to the realization that we have to reset the dials of the company as you move from legacy to digital. It won’t happen without any pain,” Pangilinan said.

Pangilinan said a turnaround could take up to three years. He said that the company intends to accelerate its transformation by increasing its capital expenditures and halting special dividends.

Earnings sank to P22.1 billion in 2015 from P34.09 billion in 2014, according to the financial statement the company released yesterday. Due to more consumers shifting to online platforms that offer free calls and messaging, the revenue for its legacy business that offers traditional landline service, also declined by 1 percent to P162.9 billion.

Pangilinan said its prepaid market share in mobile units is also affected by the downtrend. He said that last year, Smart Communications lost five-million pre-paid subscribers, ending the year with 65 million subscribers.

The planned entry of San Miguel Corp. will also put pressure to the company.