PLDT (TEL) Q2 2024 earnings summary

Executive summary

• Consolidated service revenues for H1 2024 reached ₱96.9 billion, up 3% year-over-year, with gross service revenues up 4% to ₱103.4 billion, driven by robust data and ICT growth across all segments.

• EBITDA hit a semestral high of ₱53.9 billion, up 3% year-over-year, with a margin of 52%.

• Telco core income rose 3% to ₱18.0 billion, maintaining guidance for full-year core income north of ₱35 billion.

• Data and broadband accounted for 83% of consolidated revenues, with mobile data, fiber, and corporate ICT as key drivers.

• Interim dividend of ₱50/share declared, representing 60% of Telco Core Income; record date August 27, payment September 11.

Financial highlights

• Operating expenses grew 1% to ₱43.0 billion; net financing costs rose 9% to ₱6.6 billion.

• Net debt to EBITDA stood at 2.38x at end-June 2024; net debt at ₱252.7 billion.

• Gross debt at ₱265.4 billion; 15% dollar-denominated, 5% unhedged; average interest cost 4.9%.

• CapEx for H1 2024 was ₱35.1 billion, with CapEx intensity at 34%, down from 41% last year.

• Basic and diluted EPS at ₱85.09 for H1 2024.

Outlook and guidance

• Mid-single digit top-line and EBITDA growth reaffirmed for 2024, driven by data and broadband.

• CapEx guidance for 2024 maintained at ₱75–78 billion, down from ₱85 billion in 2023.

• Commitment to 60% dividend payout and positive free cash flow after dividends.

• Telco core income guidance maintained at above ₱35 billion for the year.