PLDT (TEL) Q2 2026 earnings summary

Executive summary

• H1 2026 net service revenue rose 1% to PHP 97.8 billion, supported by enterprise, ICT, data and broadband growth amid softer consumer demand and Home installation delays.

• EBITDA increased 1% to PHP 56.1 billion at a stable 52% margin, while positive free cash flow and lower CapEx supported deleveraging priorities.

• Telco core income fell 2% to PHP 16.6 billion; core income was PHP 17.3 billion and reported net income was PHP 16.4 billion, down 6%.

• Wireless trends improved in Q2, Home operating indicators recovered, and Enterprise remained the strongest growth business.

Financial highlights

• Gross service revenue rose 2% to PHP 108.7 billion; net service revenue increased 1% to PHP 97.8 billion. Data and broadband totaled PHP 84.0 billion, or 86% of service revenue.

• Cash OpEx, subsidies and provisions were broadly flat at PHP 41.7 billion; EBITDA was PHP 56.1 billion, up 1%, with a 52% margin.

• D&A increased 6% to PHP 27.9 billion; reported net income was PHP 16.4 billion, down 6%, while core income was PHP 17.3 billion and telco core income was PHP 16.6 billion.

• H1 CapEx declined to PHP 20.7 billion from PHP 27.4 billion; CapEx intensity fell to 19% of service revenue from 26%.

• Net financing costs were PHP 8.4 billion; net debt was PHP 287.3 billion at June-end, and average pre-tax borrowing cost improved to 5.05% from 5.43% at end-2025.

Outlook and guidance

• FY 2026 CapEx guidance remains in the mid-PHP 50 billion range, with ROI-driven investment and continued positive free cash flow; higher H2 spending is expected to support network coverage and quality.

• 2027 CapEx could be below PHP 55 billion, subject to investment discipline and returns; specific guidance remains under review.

• Home revenue is expected to improve as postpaid installations rebuild the recurring base, with the usual three-to-four-month revenue lag; management expects improved H2 performance.

• Leverage priorities remain positive free cash flow and reducing net debt/EBITDA toward 2.0x; dividend payout intent remains 60% of core income.

• VITRO targets activation of the next 10 MW at Santa Rosa by year-end; identified expansions could bring total IT-ready capacity to 62.4 MW.