PLDT (TEL) Q4 2023 earnings summary

Executive summary

• FY23 gross service revenue rose 3% to P201.8bn; net service revenue reached a record P191.4bn, up 1%, with data and broadband contributing 82% of consolidated service revenue.

• EBITDA ex-MRP rose 4% to a record P104.3bn at a 52% margin; telco core income increased 3% to P34.3bn, its highest level since 2015 and ahead of guidance.

• Reported net income attributable to equity holders rose 154% to P26.6bn; data-related net service revenue grew 6% excluding legacy businesses.

Financial highlights

• Data and broadband revenue rose 4% to P157.6bn, representing 82% of consolidated service revenue.

• Reported net income was P26.6bn versus P10.5bn in FY22; EBIT increased 8% to P57.4bn, with a 28% margin, while depreciation and amortization declined 2% to P46.9bn.

• Cash opex, subsidies and provisions ex-MRP declined 2% to P87.1bn; cash opex was P76.7bn versus P77.7bn in FY22. Broad-based cost management lowered expenses by P1.5bn.

Outlook and guidance

• FY24 consolidated service revenue and EBITDA are targeted to grow at mid-single-digit rates; telco core income guidance is above P35.0bn.

• FY24 capex guidance is P75–78bn, the second consecutive annual decline; positive free cash flow is targeted as soon as practicable.

• Guidance includes a 2.0x leverage target, a 60% dividend payout and an EBITDA margin above 52%.