PLDT (TEL) Q2 2026 earnings summary

Executive summary

• Gross service revenues grew 2% to PHP 108.7B; net service revenues up 1% to PHP 97.8B, driven by enterprise, ICT, and data/broadband growth, offsetting softness in consumer and home segments.

• EBITDA reached PHP 56.1B with a stable 52% margin, reflecting effective cost management.

• Core income stabilized at PHP 17.3B, while reported net income declined 6% to PHP 16.4B.

• Maya's contribution to core income increased, partially offsetting lower telco core earnings.

• Cost discipline preserved margins; CapEx intensity reduced to 19% of service revenues, supporting positive free cash flow.

Financial highlights

• Consolidated gross service revenues: PHP 108.7B (+2% YoY); net service revenues: PHP 97.8B (+1% YoY).

• EBITDA: PHP 56.1B (+1% YoY); EBITDA margin steady at 52%.

• Core income: PHP 17.3B; telco core income: PHP 16.6B; reported net income: PHP 16.4B.

• CapEx for H1 at PHP 20.7B, down from PHP 27.4B last year; CapEx intensity at 19%.

• Positive free cash flow sustained.

Outlook and guidance

• CapEx guidance for 2026 remains mid-PHP 50B; focus on reducing CapEx intensity and sustaining positive free cash flow.

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

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

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

• Expecting continued enterprise and ICT growth to offset consumer headwinds.