PLDT (TEL) Q2 2026 earnings summary

Executive summary

• Gross service revenues increased 2% to PHP 108.7B, with net service revenues up 1% to PHP 97.8B, driven by enterprise and ICT growth, while consumer and home segments remained soft.

• EBITDA rose 1% to PHP 56.1B, maintaining a 52% margin, reflecting effective cost management.

• Net income attributable to equity holders declined 6% to PHP 16.4B, with core income down 2% to PHP 16.6B, but stabilized at PHP 17.3B due to Maya and asset sales.

• Maya's contribution to core income increased, with deposit balances up 71% and loans up 56% year-over-year.

• Interim dividends declared at PHP 46/share, representing a 60% payout of telco core income.

Financial highlights

• Consolidated service revenues up 1% to PHP 97.8B; excluding legacy, up 2% to PHP 89.2B (91% of total).

• EBITDA margin steady at 52%; reported income down 6% to PHP 16.4B due to FX and derivatives losses.

• CapEx for H1 at PHP 20.7B, down from PHP 27.4B last year; CapEx intensity reduced to 19% of service revenues.

• Net debt as of June 2026 was PHP 287.3B, with a net debt/EBITDA ratio of 2.6x.

• Dividend yield at 8% (trailing 12 months, as of June 30).

Outlook and guidance

• CapEx guidance for 2026 remains mid-PHP 50B, with focus on ROI-driven investments and sustaining positive free cash flow.

• Home segment expects revenue recovery as installation volumes and net adds improve, with compounding effect in H2.

• Targeting further deleveraging, aiming for a net debt/EBITDA ratio of 2.0x.

• Dividend policy maintained at 60% core income payout; H1 dividend at PHP 46/share.

• Management expects improved performance in H2 2026, building on current momentum and disciplined execution.