PLDT (TEL) Q2 2025 earnings summary

Executive summary

• Service revenues for the first half of 2025 reached PHP 97.1 billion, up slightly year-on-year, with gross service revenues at PHP 106.3 billion and stable performance across key segments, especially fiber and digital banking.

• EBITDA rose 3% year-on-year to PHP 55.5 billion, maintaining a 52% margin, supported by disciplined cost management and a stronger mix of fiber and ICT revenues.

• Maya, the digital banking and payments platform, delivered its first profitable semester, contributing PHP 406 million to core income and posting a Q2 net income of PHP 582 million, with strong growth in deposits and customer base.

• Home fiber revenues grew 7% year-on-year, with ARPU at PHP 1,485 and fiber now accounting for 97% of home revenues.

• Innovations such as the launch of KiQ Mobile, a Gen Z-focused brand, and the inauguration of VITRO Santa Rosa, the largest AI-ready data center in the Philippines, are positioning the company for future growth.

Financial highlights

• Service revenues (net of interconnection) at PHP 97.1 billion, up slightly year-on-year; gross service revenues at PHP 106.3 billion, up 3%.

• EBITDA at PHP 55.5 billion, up 3% year-on-year; EBITDA margin steady at 52%.

• Telco core income at PHP 17.2 billion, down 4% due to higher depreciation and financing costs; consolidated core income at PHP 17.6 billion, up 1% with Maya's contribution.

• Reported income at PHP 18.1 billion, slightly lower due to reduced forex and derivative gains.

• CapEx for H1 2025 at PHP 27.4 billion, with capex intensity at 26% and full-year guidance lowered to PHP 63 billion due to favorable vendor terms.

Outlook and guidance

• Full-year CapEx guidance lowered to PHP 63 billion from PHP 68–73 billion, reflecting better vendor terms, not reduced investment.

• Positive free cash flow targeted by 2026; net debt to EBITDA ratio targeted at 2.0x medium term.

• Expecting additional upside in the second half from delayed enterprise deal closures and new product launches.

• Maya expects continued momentum in financial inclusion and profitability in H2 2025.

• Focus remains on profitability and maintaining last year’s core income.