PLDT (PHI) investor relations material

Executive summary

• Gross service revenues grew 3% year-over-year to PHP 54.9 billion, with net service revenues stable at PHP 48.9 billion; data and broadband accounted for 86% of service revenues.

• EBITDA improved 2% to PHP 28.3 billion, with a margin of 52%, driven by cost control and lower cash expenses.

• Core income rose 2% to PHP 9.1 billion, supported by Maya's profitability and asset sales.

• Enterprise segment was the main growth driver, with revenues up 4% to PHP 12.4 billion, led by ICT and data center services.

• Home and wireless revenues declined 1% year-over-year, impacted by system migration and consumer wallet pressures, but recovery is underway.

Financial highlights

• Gross service revenues: PHP 54.9 billion (+3% YoY); net service revenue: PHP 48.9 billion (flat YoY); total revenues: PHP 56.5 billion (+2% YoY).

• EBITDA: PHP 28.3 billion (+2% YoY); EBITDA margin: 52%.

• Core income: PHP 9.1 billion (+2% YoY); reported net income: PHP 8.9 billion (-2% YoY); telco core income: PHP 8.58 billion (-2% YoY).

• CapEx: PHP 10 billion (down from PHP 10.8 billion YoY); CapEx intensity at 18%.

• Expenses rose 5% to PHP 42.8 billion; depreciation and amortization increased 7% to PHP 13.9 billion.

Outlook and guidance

• CapEx guidance for 2026 remains in the mid PHP 50 billion range, with a focus on sustaining positive free cash flow and reducing CapEx intensity.

• Targeting net debt to EBITDA of around 2.0 times in the medium term, supported by asset monetization.

• Positive free cash flow and a 60% dividend payout are targeted for the year.

• Cautious on margin compression due to external risks like the US-Iran war and inflation; cost management measures in place.