Group 1: Market Overview - U.S. investors are facing challenges including high tech stock valuations, hawkish Federal Reserve commentary, and unpredictable tariff policies from the Trump administration [1] - Despite Nvidia's strong earnings, the market experienced a sell-off, indicating potential volatility ahead [2] - High-quality international stocks have emerged as a refuge from U.S. market fluctuations [2] Group 2: Shinhan Financial Group - Shinhan Financial Group, a South Korean banking conglomerate, has a market cap of $25.5 billion and reported strong growth in interest income and net interest margins in Q3 2025 [3][5] - The company is trading at a Price-to-Earnings (P/E) ratio of 7.94 and a Price-to-Book (P/B) value of 0.5, with a dividend yield exceeding 3% [5] Group 3: POSCO Holdings - POSCO Holdings, valued at $16 billion, is transitioning from traditional steel manufacturing to lithium battery production, which offers higher margins [6][8] - The company has secured deals for lithium extraction in the U.S. and mining operations in Australia and Argentina, yet it trades at 14 times forward earnings and 0.4 times book value [6] Group 4: PLDT Inc. - PLDT Inc., the largest telecommunications company in the Philippines, offers a range of services and has developed the popular PayMaya app, now rebranded as Maya [9] - The stock trades at 7.5 times forward earnings and 1.2 times sales, with a dividend yield over 7%, presenting a potential buying opportunity after a recent drop [11] Group 5: United Microelectronics Corp. - United Microelectronics Corp. is a key player in the semiconductor foundry market, with a market share of 5% and major clients including Texas Instruments and Intel [12][14] - The stock is trading at 14 times forward earnings and 2.4 times sales, below industry averages, and has shown improved earnings performance in Q3 2025 [14]

Financial Performance - Consolidated revenues for the nine months ended September 30, 2025, were Php 163,283 million, an increase of 1% from Php 160,942 million in 2024[25]. - Net income decreased by 11% to Php 25,135 million in 2025 from Php 28,224 million in 2024[25]. - EBITDA for the nine months ended September 30, 2025, was Php 82,845 million, a 3% increase from Php 80,718 million in 2024[25]. - Core income for the period was Php 25,823 million, slightly up from Php 25,793 million in 2024[25]. - Consolidated net income for the nine months ended September 30, 2025, was Php 25,135 million, compared to Php 28,224 million in the same period in 2024[37]. - Consolidated EBITDA increased by Php 2,127 million, or 3%, to Php 82,845 million for the nine months ended September 30, 2025, compared to Php 80,718 million in the same period in 2024[48]. - Total comprehensive income for the nine months ended September 30, 2025, was 25,534 million pesos, down from 27,370 million pesos in 2024, reflecting a decline of 6.7%[182]. - Earnings per share attributable to common equity holders for the nine months ended September 30, 2025, decreased to 115.83 pesos from 129.71 pesos in 2024, a decline of 10.7%[179]. Subscriber Metrics - The number of total subscribers decreased by 1% to 67,099,341 as of September 30, 2025, compared to 67,857,250 in 2024[25]. - Mobile subscribers decreased by 2% to 59,282,637 in 2025 from 60,271,009 in 2024[25]. - Fixed line broadband subscribers increased by 7% to 4,122,521 in 2025 from 3,858,368 in 2024[25]. - The total mobile subscriber base decreased by 988,372, or 2%, to 59,282,637 as of September 30, 2025[71]. - Average monthly churn rates for Smart Prepaid subscribers increased to 2.5% in 2025 from 1.8% in 2024[72]. Revenue Breakdown - Consolidated service revenues increased to Php 158,903 million for the nine months ended September 30, 2025, up Php 3,908 million, or 3%, from Php 154,995 million in the same period in 2024[41]. - Wireless segment revenues for the nine months ended September 30, 2025, were Php 76,468 million, while fixed line segment revenues were Php 100,248 million[39]. - Total revenues from the Wireless business segment decreased by Php 2,067 million, or 3%, to Php 76,468 million for the nine months ended September 30, 2025, from Php 78,535 million in the same period in 2024[54]. - Mobile service revenues accounted for 98% of wireless service revenues, totaling Php 71,007 million for the nine months ended September 30, 2025, a decrease of Php 747 million, or 1%, from Php 71,754 million in the same period in 2024[57]. - Fixed Line business segment revenues increased by Php 4,813 million, or 5%, to Php 100,248 million for the nine months ended September 30, 2025[88]. Expenses and Costs - Consolidated expenses rose by Php 4,298 million, or 4%, to Php 123,385 million for the nine months ended September 30, 2025, from Php 119,087 million in the same period in 2024[44]. - General operating costs for the nine months ended September 30, 2025, decreased to 56,869 million pesos from 58,564 million pesos in 2024, a reduction of 2.9%[179]. - Depreciation and amortization expenses increased to 41,820 million pesos for the nine months ended September 30, 2025, compared to 37,333 million pesos in 2024, reflecting an increase of 12.5%[179]. Cash Flow and Investments - Net cash from operating activities increased by 11% to Php 75,765 million in 2025 from Php 68,118 million in 2024[25]. - Consolidated net cash flows from operating activities increased by Php 7,647 million, or 11%, to Php 75,765 million for the nine months ended September 30, 2025, compared to Php 68,118 million in the same period in 2024[121]. - Consolidated net cash flows used in investing activities amounted to Php 49,584 million for the nine months ended September 30, 2025, an increase of Php 2,377 million, or 5%, from Php 47,207 million in the same period in 2024[123]. - The company reported a net cash flow used in financing activities of Php 26,164 million for the nine months ended September 30, 2025, compared to Php 26,132 million in the same period of 2024, indicating a marginal increase of 0.1%[191]. Debt and Liabilities - Long-term debt increased by 6% to Php 297,536 million as of September 30, 2025, from Php 281,586 million as of December 31, 2024[25]. - Total interest-bearing financial liabilities increased by Php 15,950 million, or 6%, to Php 297,536 million as of September 30, 2025, from Php 281,586 million as of December 31, 2024[128]. - Noncurrent liabilities rose to Php 344,682 million in 2025 from Php 318,078 million in 2024, indicating increased long-term financial obligations[177]. - The company is in compliance with all debt covenants as of September 30, 2025[131]. Asset Management - Total assets as of September 30, 2025, increased by 1% to Php 629,556 million from Php 623,275 million as of December 31, 2024[25]. - Cash and cash equivalents and short-term investments totaled Php 10,102 million as of September 30, 2025, with principal sources including cash flows from operating activities of Php 75,765 million[119]. - Noncurrent assets increased by Php 8,164 million, with property and equipment rising by Php 7,241 million or 2% due to higher capital expenditures[135][136]. Dividends and Shareholder Returns - Consolidated cash dividend payments were Php 20,576 million for the nine months ended September 30, 2025, compared to Php 20,744 million in the same period of 2024[148]. - The company declared dividends totaling Php 20,570 million charged to retained earnings for the nine months ended September 30, 2025[148]. - The company’s cash dividends paid were Php 20,576 million for the nine months ended September 30, 2025, slightly down from Php 20,744 million in the same period of 2024, a decrease of 0.8%[191]. Strategic Investments - PLDT invested Php 840 million in Kayana, representing 60% equity interest, to enhance digitalization initiatives within the MVP Group[217]. - PLDT's investment strategy includes acquiring stakes in companies to enhance its digital capabilities and market presence[216]. - PGIH acquired an additional 5.01% interest in Multisys for Php 257.5 million, increasing its total ownership to 50.74%[160]. - PLDT's subsidiaries prepare financial statements for the same reporting period, ensuring uniform accounting policies[213].

Core Insights - Amdocs has launched the connectX SaaS platform for Smart Communications, enabling fully customizable mobile plans for Gen Z subscribers [1] - The initiative aims to enhance the digital mobile experience and support the growth of mobile virtual network operators (MVNOs) in the Philippines [1] Company Overview - Smart Communications is a subsidiary of PLDT, a major telecommunications and digital service provider in the Philippines [1] - The collaboration with Amdocs focuses on delivering hyper-personalized mobile services through the KiQ app [1] Industry Impact - The introduction of the connectX platform is expected to empower Gen Z users by allowing them to design their own mobile plans, providing greater flexibility and control [1] - This move is part of a broader strategy to accelerate the launch of new MVNOs in the region, indicating a shift towards more personalized mobile service offerings [1]

Financial Data and Key Metrics Changes - Service revenues net of interconnection reached $145.9 billion, up 1% year on year, driven by steady demand across fiber, data, and ICT [4][6] - Cash operating expenses, subsidies, and provisions decreased by 2%, reflecting the company's focus on spending control [4][16] - EBITDA rose 3% to $82.8 billion with margins steady at 52% amidst higher revenues and lower operating expenses [4][17] - Telco core income was $5.3 billion, down 5% mainly due to higher depreciation and financing costs from network and IT investments [5][18] - Core income remained stable at $25.8 billion, supported by Maya's sustained profitability [5][19] Business Line Data and Key Metrics Changes - Fiber revenues grew 7%, reflecting solid demand for reliable connectivity [6][10] - Mobile data and fixed wireless revenues were up 1%, with fixed wireless showing strong momentum with an 18% year-on-year increase [6][15] - Corporate Data and ICT revenues grew 2%, with ICT services alone growing 27% year on year [7][13] - Home revenues grew 4% year on year, driven mainly by continued fiber demand [10][12] Market Data and Key Metrics Changes - The enterprise segment returned to growth in the third quarter, with corporate data and ICT up 5% year on year [9][13] - Government and public sector projects began to ramp up after election-related delays, contributing to the growth in enterprise revenues [7][13] - The number of 5G devices increased by 39% year on year, driving higher data usage and improved customer experience [15] Company Strategy and Development Direction - The company continues to invest in new cell sites, LTE and 5G upgrades, home fiber ports, data center development, and submarine cables to strengthen network quality and support growth [20] - PLDT launched Filipinas AI, the country's first sovereign AI platform, to enable enterprises to build and deploy AI models locally [14][89] - The company is focused on asset monetization programs, including a potential REIT listing for its data center [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive free cash flow into 2026, supported by lower CapEx and asset monetization [22][70] - The government is expected to continue investing in digital connectivity, which is seen as a priority for future growth [46] - Management highlighted the importance of maintaining profitability amidst a competitive environment, with a focus on disciplined growth [17][18] Other Important Information - Maya's net income for the third quarter was $532 million, with significant growth in deposits and loans [24][25] - The company recorded a $1.1 billion in proceeds from tower sales and completed a $20.5 billion final dividend payment for 2024 [22] Q&A Session Summary Question: What were the main drivers for the drop in Maya's net income for the period? - The drop was attributed to the removal of gaming links and the launch of new credit products, which will have some provision impact in the near term [33][34] Question: How do you see the KPA and IRRs impacting profitability and investment profile? - The law aims for cheaper internet and wider coverage, but lacks obligations for new entrants to build infrastructure, raising concerns about its effectiveness [36][54] Question: What is driving the difference in performance in the mobile segment? - Smart Wireless Group achieved flattish growth year to date, with improved ARPU due to targeted customer acquisition strategies [39][40] Question: Are you seeing sustained uptick in government projects into the fourth quarter? - Continued demand from government agencies is expected, with investments in digital connectivity prioritized [42][46] Question: What is the status of the asset monetization programs? - The company is in talks for a 49% stake sale in its data center and exploring a REIT listing [71][92]

Financial Performance - Service revenues reached ₱158.9 billion, a 3% increase, or +₱3.9 billion[3] - EBITDA (ex-MRP) grew by 3% to ₱82.8 billion with a 52% margin[3], a +₱2.1 billion increase[3] - Core income remained stable at ₱25.8 billion[3] - Maya contributed ₱603 million to PLDT's core earnings[5] Revenue Breakdown - Total Home revenues reached ₱45.7 billion, a 4% increase, or +₱1.6 billion[11] - Total Fiber revenues reached ₱44.5 billion, a 7% increase, or +₱2.8 billion[11] - Enterprise revenues reached ₱35.6 billion, a 2% increase, or +₱0.5 billion[14] - Wireless Consumer revenues reached ₱63.2 billion, a 1% decrease, or -₱0.3 billion[17] - Mobile data revenues reached ₱57.3 billion, a 1% increase, or +₱0.7 billion[17] Subscriber and Network Growth - Fiber net adds increased by 67% year-over-year to 265,000[12] - Total broadband subscribers increased by 6% to 4,122,521[142] - 5G individual devices increased to 10.5 million[17], representing 18% of devices[17] - Total data traffic reached 4,393 petabytes[17], a 6% increase[17] Cost Management and Investments - Total cash expenses, subsidies, and provisions decreased by 2% to ₱63.1 billion[20], a -₱1.1 billion decrease[20] - Compensation and benefits (ex MRP) decreased by 7% to ₱16.1 billion[20], a -₱1.3 billion decrease[20] - Selling and promotions expenses decreased by 18% to ₱3.5 billion[20], a -₱0.8 billion decrease[20] - 9M2025 capex stood at ₱43.0 billion[28] Debt and Sustainability - Net debt-to-EBITDA ratio is 2.61x[32] - PLDT received an MSCI ESG Rating of BBB[57] - Smart secured a 10-year ₱2 billion green loan[68]

Core Insights - PLDT Inc. is a leading telecommunications company in the Philippines, recognized for its dominance in both the fixed-line broadband and mobile broadband markets [1] Company Strategy - The company focuses on leadership economics associated with its business model, aiming for growth through competitive advantages that yield superior returns on capital [1] Investment Approach - The investment philosophy emphasizes value investing, targeting strong companies with trustworthy management and a reasonable price for permanent ownership [1]

[FORM 6-K Report](index=1&type=section&id=FORM%206-K) This report confirms PLDT Inc.'s status as a foreign issuer, filed on August 12, 2025 - PLDT Inc. filed Form 6-K on August 12, 2025, confirming its status as a foreign issuer filing annual reports under Form 20-F[1](index=1&type=chunk) [Signatures](index=2&type=section&id=SIGNATURES) Key executives signed the report on August 12, 2025, confirming its official submission - Key executives, including Chairman, President and CEO Manuel V. Pangilinan, CFO Danny Y. Yu, and Principal Accounting Officer Gil Samson D. Garcia, signed the report on August 12, 2025[4](index=4&type=chunk)[5](index=5&type=chunk) [SEC Filing Information](index=3&type=section&id=SEC%20Filing%20Information) This section details PLDT Inc.'s SEC filing information, including company specifics and compliance confirmation Company Filing Details | Field | Value | | :--- | :--- | | SEC Identification Number | PW-55 | | Company's Full Name | PLDT Inc. | | Company's Address | Ramon Cojuangco Building, Makati Avenue, Makati City | | Period Ended Date | June 30, 2025 | | Form Type | SEC Form 17-Q | | Number of Stockholders (as at June 30, 2025) | 11,329 | | Fiscal Year End | December 31 | - PLDT Inc. confirmed compliance with all required SEC reports under Section 17 of the Code and SRC Rule 17 thereunder for the preceding **12 months** and the past **90 days**[14](index=14&type=chunk) [PART I – FINANCIAL INFORMATION](index=9&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part presents the unaudited consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Consolidated Financial Statements](index=9&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section states that the unaudited consolidated financial statements for the six months ended June 30, 2025, and related notes are filed as part of this Form 17-Q report - Unaudited consolidated financial statements for the **six months** ended June 30, 2025, and related notes (pages F-1 to F-126) are included in this report[18](index=18&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the PLDT Group's financial condition and operational results, prepared in accordance with Philippine Financial Reporting Standards (PFRS Accounting Standards), which are largely converged with IFRS. It also includes cautionary statements regarding forward-looking information [Financial Highlights and Key Performance Indicators](index=10&type=section&id=Financial%20Highlights%20and%20Key%20Performance%20Indicators) This section presents key consolidated financial highlights and performance indicators for the reporting period Consolidated Income Statement Highlights (Six Months Ended June 30) | Indicator | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | 109,574 | 107,583 | 1,991 | 2 | | Expenses | 81,028 | 79,466 | 1,562 | 2 | | Other expenses – net | (4,868) | (3,814) | (1,054) | (28) | | Income before income tax | 23,678 | 24,303 | (625) | (3) | | Net income | 18,178 | 18,517 | (339) | (2) | | Core income | 17,569 | 17,321 | 248 | 1 | | Telco core income | 17,220 | 18,014 | (794) | (4) | | EBITDA | 55,532 | 53,936 | 1,596 | 3 | | EBITDA margin | 52% | 52% | 0% | 0 | | Basic EPS | 83.81 | 85.09 | (1.28) | (2) | | Core Basic EPS | 81.18 | 80.03 | 1.15 | 1 | Consolidated Statements of Financial Position Highlights (June 30) | Indicator | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | 629,619 | 623,275 | 6,344 | 1 | | Property and equipment | 326,937 | 318,069 | 8,868 | 3 | | Cash and cash equivalents and short-term investments | 10,847 | 10,147 | 700 | 7 | | Total equity attributable to equity holders of PLDT | 124,268 | 115,419 | 8,849 | 8 | | Long-term debt, including current portion | 291,813 | 281,586 | 10,227 | 4 | | Net debt to equity ratio | 2.27x | 2.37x | — | — | Consolidated Statements of Cash Flows & Operational Data (Six Months Ended June 30) | Indicator | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities (Php million) | 46,705 | 51,029 | (4,324) | (8) | | Net cash used in investing activities (Php million) | (32,470) | (37,936) | 5,466 | 14 | | Net cash used in financing activities (Php million) | (13,324) | (18,841) | 5,517 | 29 | | Total number of subscribers | 66,809,371 | 68,245,451 | (1,436,080) | (2) | | Mobile subscribers | 59,095,304 | 60,759,624 | (1,664,320) | (3) | | Broadband subscribers | 4,019,145 | 3,753,304 | 265,841 | 7 | | Fixed line voice subscribers | 3,694,922 | 3,732,523 | (37,601) | (1) | | Number of employees | 14,727 | 15,115 | (388) | (3) | [Performance Indicators](index=11&type=section&id=Performance%20Indicators) This section defines key financial performance metrics such as EBITDA, Core Income, and Telco Core Income - EBITDA is measured as net income excluding depreciation and amortization, asset impairment, financing costs, interest income, equity share in net earnings/losses of associates and joint ventures, foreign exchange gains/losses, derivative financial instruments gains/losses, provision for income tax, and other income/expenses[27](index=27&type=chunk) - Core income excludes foreign exchange gains/losses, derivative financial instruments gains/losses (excluding hedge costs), impairment on noncurrent assets, and other non-recurring gains/losses, net of tax effects[28](index=28&type=chunk) - Telco core income further adjusts core income for the effect of share in Maya Innovations Holdings (MIH) and Kayana Solutions, Inc. income/losses, asset sales, and depreciation due to changes in accounting estimates, serving as a basis for dividend payouts and employee incentives[29](index=29&type=chunk) [Overview](index=12&type=section&id=Overview) PLDT is a leading Philippine telecommunications and digital services provider, operating across Wireless, Fixed Line, and Other segments - PLDT is a leading telecommunications and digital services provider in the Philippines, serving **66.8 million** customers as of June 30, 2025[31](index=31&type=chunk) - Wireless segment: Drives data services growth, offering mobile, fixed wireless broadband, and other services - Fixed Line segment: Leading provider of fixed line services, offering data, voice, and miscellaneous services, including secure multi-cloud, cybersecurity, data, and AI solutions through ePLDT Inc - Others segment: Primarily comprises interests in digital platforms and other technologies, including MIH and Kayana[32](index=32&type=chunk) [Management's Financial Review](index=13&type=section&id=Management's%20Financial%20Review) This section provides management's financial review, including segmented EBITDA and Core Income analysis Consolidated EBITDA and EBITDA Margin by Segment (Six Months Ended June 30, 2025) | Segment | Net Income (Php million) | Total Adjustments (Php million) | EBITDA (Php million) | Service Revenues (Php million) | EBITDA Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wireless | 4,996 | 22,120 | 27,116 | 48,387 | 56 | | Fixed Line | 14,255 | 18,568 | 32,823 | 66,810 | 49 | | Others | 225 | (231) | (6) | — | — | | Elims | (1,298) | (3,103) | (4,401) | (8,889) | — | | Consolidated | 18,178 | 37,354 | 55,532 | 106,308 | 52 | Consolidated Core Income and Telco Core Income by Segment (Six Months Ended June 30, 2025) | Segment | Net Income (Php million) | Total Adjustments (Php million) | Core Income (Php million) | Telco Core Income (Php million) | | :--- | :--- | :--- | :--- | :--- | | Wireless | 4,996 | (759) | 4,237 | 4,237 | | Fixed Line | 14,255 | 128 | 14,383 | 14,383 | | Others | 225 | 48 | 273 | (76) | | Elims | (1,298) | (26) | (1,324) | (1,324) | | Consolidated | 18,178 | (609) | 17,569 | 17,220 | [Results of Operations](index=15&type=section&id=Results%20of%20Operations) [On a Consolidated Basis](index=15&type=section&id=On%20a%20Consolidated%20Basis) Consolidated revenues for the six months ended June 30, 2025, increased by 2% to Php109,574 million, driven by service revenues, while non-service revenues decreased. Expenses rose by 2% due to higher interconnection costs and depreciation. Net income decreased by 2% to Php18,178 million, impacted by higher other expenses, while EBITDA increased by 3% to Php55,532 million. Core income grew by 1%, but Telco Core Income declined by 4% Consolidated Revenues (Six Months Ended June 30) | Revenue Type | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 109,574 | 107,583 | 1,991 | 2 | | Service Revenues | 106,308 | 103,443 | 2,865 | 3 | | Non-Service Revenues | 3,266 | 4,140 | (874) | (21) | - Consolidated expenses increased by **Php1,562 million** (**2%**) to **Php81,028 million**, mainly due to higher interconnection costs and depreciation and amortization[46](index=46&type=chunk) - Consolidated other expenses – net increased by **Php1,054 million** (**28%**) to **Php4,868 million**, mainly due to losses on derivative financial instruments (**Php718 million** in 2025 vs. gains of **Php3,404 million** in 2024) and higher net financing costs (up **Php1,671 million**)[48](index=48&type=chunk) Consolidated Income Metrics (Six Months Ended June 30) | Metric | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | 18,178 | 18,517 | (339) | (2) | | Basic and Diluted EPS | 83.81 | 85.09 | (1.28) | (2) | | EBITDA | 55,532 | 53,936 | 1,596 | 3 | | Core Income | 17,569 | 17,321 | 248 | 1 | | Telco Core Income | 17,220 | 18,014 | (794) | (4) | [Wireless](index=19&type=section&id=Wireless_Segment) The Wireless segment's revenues decreased by 3% to Php51,372 million, primarily due to lower mobile service revenues and non-service revenues, despite growth in fixed wireless broadband. Expenses decreased by 5% due to lower operating costs and device sales, but depreciation increased. Net income for the segment decreased by 9% to Php4,996 million, while EBITDA increased by 8% to Php27,116 million, and core income rose by 5% Wireless Segment Revenues by Service (Six Months Ended June 30) | Service Type | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Mobile | 47,457 | 48,308 | (851) | (2) | | Fixed Wireless broadband | 905 | 739 | 166 | 22 | | Other services | 25 | 26 | (1) | (4) | | **Total Wireless Service Revenues** | **48,387** | **49,073** | **(686)** | **(1)** | | Sale of devices and accessories | 2,985 | 3,926 | (941) | (24) | | **Total Wireless Revenues** | **51,372** | **52,999** | **(1,627)** | **(3)** | Wireless Mobile Service Revenues by Type (Six Months Ended June 30) | Service Type | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- |\n| Data | 39,470 | 39,465 | 5 | — | | Voice | 4,344 | 4,857 | (513) | (11) | | SMS | 3,064 | 3,362 | (298) | (9) | | Others | 579 | 624 | (45) | (7) | | **Total Mobile Services** | **47,457** | **48,308** | **(851)** | **(2)** | Wireless Segment Expenses Breakdown (Six Months Ended June 30) | Expense Type | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | General operating costs | 19,658 | 22,064 | (2,406) | (11) | | Depreciation and amortization | 17,914 | 16,252 | 1,662 | 10 | | Cost of devices, accessories and contract-specific services | 3,918 | 5,151 | (1,233) | (24) | | Interconnection costs | 460 | 471 | (11) | (2) | | Provisions | 325 | 410 | (85) | (21) | | **Total** | **42,275** | **44,348** | **(2,073)** | **(5)** | - Wireless segment's other expenses – net increased by **Php1,092 million** (**71%**) to **Php2,620 million**, mainly due to losses on derivative financial instruments (**Php358 million** in 2025 vs. gains of **Php1,420 million** in 2024) and higher net financing costs, partially offset by higher net foreign exchange gains and increased gain on sale and leaseback of telecom towers[81](index=81&type=chunk) Wireless Segment Profitability (Six Months Ended June 30) | Metric | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | 4,996 | 5,476 | (480) | (9) | | EBITDA | 27,116 | 25,015 | 2,101 | 8 | | EBITDA margin | 56% | 51% | 5% | 10 | | Core Income | 4,237 | 4,050 | 187 | 5 | [Fixed Line](index=29&type=section&id=Fixed%20Line_Segment) The Fixed Line segment's revenues increased by 5% to Php67,092 million, driven by higher voice and data services, particularly wholesale international voice and home broadband. Expenses rose by 3% due to increased interconnection costs and device sales, partially offset by lower operating costs and depreciation. Net income decreased by 20% to Php14,255 million, impacted by a significant shift from other income to other expenses, while EBITDA increased by 3% to Php32,823 million, and core income decreased by 21% Fixed Line Segment Revenues by Service (Six Months Ended June 30) | Service Type | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Data | 49,891 | 49,396 | 495 | 1 | | Voice | 16,887 | 14,463 | 2,424 | 17 | | Miscellaneous | 32 | 33 | (1) | (3) | | **Total Fixed Line Service Revenues** | **66,810** | **63,892** | **2,918** | **5** | | Sale of devices and accessories | 282 | 214 | 68 | 32 | | **Total Fixed Line Revenues** | **67,092** | **64,106** | **2,986** | **5** | Fixed Line Data Service Revenues (Six Months Ended June 30) | Data Service Type | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Home broadband | 26,528 | 25,474 | 1,054 | 4 | | Corporate data and ICT | 23,363 | 23,922 | (559) | (2) | | **Total Data Service Revenues** | **49,891** | **49,396** | **495** | **1** | - ICT revenues increased by **Php469 million** (**13%**) to **Php4,087 million**, driven by data center, cyber security, and data and AI services[94](index=94&type=chunk) Fixed Line Segment Expenses Breakdown (Six Months Ended June 30) | Expense Type | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | General operating costs | 21,991 | 23,258 | (1,267) | (5) | | Depreciation and amortization | 12,614 | 12,824 | (210) | (2) | | Interconnection costs | 9,377 | 6,889 | 2,488 | 36 | | Cost of devices, accessories and contract-specific services | 2,203 | 1,764 | 439 | 25 | | Provisions | 1,543 | 1,572 | (29) | (2) | | Impairment on non-current assets | — | 67 | (67) | (100) | | **Total** | **47,728** | **46,374** | **1,354** | **3** | - Fixed Line segment's other expenses – net amounted to **Php1,014 million** in 2025, a change of **Php4,901 million** from other income – net of **Php3,887 million** in 2024, primarily due to lower dividend income, net losses on derivative financial instruments, and higher net financing costs, partially offset by net foreign exchange gains[105](index=105&type=chunk) Fixed Line Segment Profitability (Six Months Ended June 30) | Metric | 2025 (Php million) | 2024 (Php million) | Change (Php million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | 14,255 | 17,780 | (3,525) | (20) | | EBITDA | 32,823 | 31,989 | 834 | 3 | | EBITDA margin | 49% | 50% | (1%) | (2) | | Core Income | 14,383 | 18,108 | (3,725) | (21) | [Others](index=35&type=section&id=Others_Segment) The 'Others' business segment reported nil revenues for both periods. Expenses decreased significantly by 87% to Php6 million. The segment recorded a net income of Php225 million in 2025, a substantial improvement from a net loss of Php753 million in 2024, primarily driven by equity share in net income of MIH - Revenues generated from the 'Others' business segment amounted to nil for each of the **six months** ended June 30, 2025 and 2024[111](index=111&type=chunk) - Expenses related to the 'Others' business segment decreased by **Php40 million** (**87%**) to **Php6 million**[112](index=112&type=chunk) - The 'Others' segment's other income – net amounted to **Php218 million** in 2025, a change of **Php932 million** from other expenses – net of **Php714 million** in 2024, primarily due to equity share in net income of MIH[113](index=113&type=chunk) - The 'Others' business segment registered a net income of **Php225 million** in 2025, a change of **Php978 million** from a net loss of **Php753 million** in 2024[114](index=114&type=chunk) - The 'Others' business segment's core income amounted to **Php273 million** in 2025, a change of **Php1,033 million** from a core loss of **Php760 million** in 2024[115](index=115&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) [Operating Activities](index=37&type=section&id=Operating%20Activities) Consolidated net cash flows from operating activities decreased by **Php4,324 million** (**8%**) to **Php46,705 million** - Consolidated net cash flows provided by operating activities decreased by **Php4,324 million** (**8%**) to **Php46,705 million** for the **six months** ended June 30, 2025[120](index=120&type=chunk) - Wireless segment's operating cash flows decreased by **42%** to **Php21,622 million** - Fixed Line segment's operating cash flows increased by **51%** to **Php30,161 million** - Others segment's operating cash flows decreased by **75%** to **Php256 million**[121](index=121&type=chunk) [Investing Activities](index=38&type=section&id=Investing%20Activities) Consolidated net cash flows used in investing activities decreased by **Php5,466 million** (**14%**) to **Php32,470 million** - Consolidated net cash flows used in investing activities decreased by **Php5,466 million** (**14%**) to **Php32,470 million** for the **six months** ended June 30, 2025[122](index=122&type=chunk) - Payment for purchase of property and equipment, including capitalized interest, decreased by **Php3,379 million** (**9%**) to **Php34,078 million**[123](index=123&type=chunk) - Smart's payment for property and equipment decreased by **34%** to **Php14,220 million** - PLDT's payment for property and equipment increased by **17%** to **Php15,039 million**[123](index=123&type=chunk) [Financing Activities](index=38&type=section&id=Financing%20Activities) Consolidated cash flows used in financing activities decreased by **Php5,517 million** (**29%**) to **Php13,324 million** - Consolidated cash flows used in financing activities decreased by **Php5,517 million** (**29%**) to **Php13,324 million** for the **six months** ended June 30, 2025[125](index=125&type=chunk) - Proceeds from availment of long-term and short-term debts amounted to **Php18,900 million** and **Php1,022 million**, respectively[126](index=126&type=chunk) - Consolidated long-term and short-term debts increased by **Php10,227 million** (**4%**) to **Php291,813 million** as of June 30, 2025[127](index=127&type=chunk) - PLDT, Smart, and Vitro Inc. were in compliance with all debt covenants as of June 30, 2025 and December 31, 2024[129](index=129&type=chunk)[130](index=130&type=chunk) [Changes in Financial Conditions](index=40&type=section&id=Changes%20in%20Financial%20Conditions) Total assets increased by **Php6,344 million** (**1%**) to **Php629,619 million**, while total liabilities decreased by **Php2,332 million** - Total assets increased by **Php6,344 million** (**1%**) to **Php629,619 million** as of June 30, 2025[134](index=134&type=chunk) - Property and equipment increased by **Php8,868 million** (**3%**) - Right-of-use assets increased by **Php1,362 million** (**3%**) - Investments in associates and joint ventures increased by **Php227 million** - Deferred income tax assets decreased by **Php3,737 million** (**26%**) - Cash and cash equivalents increased by **Php826 million** (**8%**) - Inventories and supplies decreased by **Php833 million** (**25%**)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - Total liabilities decreased by **Php2,332 million** to **Php504,208 million** as of June 30, 2025[139](index=139&type=chunk) - Noncurrent and current interest-bearing financial liabilities increased by **Php10,227 million** (**4%**) - Accounts payable decreased by **Php6,324 million** (**9%**) - Other current liabilities decreased by **Php7,243 million** (**7%**)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) The company reports no material off-balance sheet arrangements likely to significantly impact its financial position - There are no material off-balance sheet arrangements that are reasonably likely to have a significant current or future effect on PLDT Group's financial position, results of operations, cash flows, or capital resources[143](index=143&type=chunk) [Equity Financing](index=42&type=section&id=Equity%20Financing) PLDT's dividend policy targets **60%** of telco core income, with **Php10,213 million** paid in cash dividends - PLDT's dividend payout rate is **60%** of its telco core income, considering working capital, capital expenditures, and debt servicing requirements[145](index=145&type=chunk)[146](index=146&type=chunk) - The company may consider returning additional cash to shareholders through special dividends or share buybacks, depending on business funding requirements and investment opportunities[146](index=146&type=chunk) - Consolidated cash dividend payments amounted to **Php10,213 million** for the **six months** ended June 30, 2025, compared to **Php10,032 million** in the same period of 2024[148](index=148&type=chunk) [Contractual Obligations and Commercial Commitments](index=44&type=section&id=Contractual%20Obligations%20and%20Commercial%20Commitments) Total contractual obligations and commercial commitments amounted to approximately **Php122,576 million** as of June 30, 2025 - Total obligations under various agreements (suppliers, contractors, carriers, shareholders, employees) amounted to approximately **Php122,576 million** as of June 30, 2025[149](index=149&type=chunk) - Commitment to major network vendors was reduced to **Php3,600 million** as of June 30, 2025, net of advances and deliveries - New purchase commitments relating to major network vendors issued in 2023, 2024, and 2025 amounted to **Php15,500 million** - Commitments related to non-major capital expenditure vendors amounted to **Php14,800 million** as of June 30, 2025[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) [Quantitative and Qualitative Disclosures about Market Risks](index=46&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) This section outlines market risks, including liquidity, foreign currency, interest rate, and credit risks, with estimated fair values of financial instruments - The main risks arising from PLDT Group's financial instruments are liquidity risk, foreign currency exchange risk, interest rate risk, and credit risk[153](index=153&type=chunk) Estimated Fair Values of Noncurrent Financial Assets and Liabilities (June 30, 2025) | Category | Fair Value (Php million) | | :--- | :--- | | Noncurrent Financial Assets | 2,898 | | Noncurrent Financial Liabilities | 262,882 | [Impact of Inflation and Changing Prices](index=46&type=section&id=Impact%20of%20Inflation%20and%20Changing%20Prices) The average inflation rate in the Philippines was **1.8%** for the **six months** ended June 30, 2025 - The average inflation rate in the Philippines was **1.8%** for the **six months** ended June 30, 2025, compared to **3.5%** in the same period of 2024[155](index=155&type=chunk) - The BSP estimates average inflation to be within the government's target of **2.0%** to **4.0%** for 2025 and 2026[155](index=155&type=chunk) [PART II – OTHER INFORMATION](index=47&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers other significant information not included in the financial statements, such as acquisitions and related party transactions [Acquisition of Additional Interest in Multisys](index=47&type=section&id=Acquisition%20of%20Additional%20Interest%20in%20Multisys) On April 2, 2025, PGIH acquired an additional 5% interest in Multisys for Php257.5 million, increasing its total equity interest to 50.74%. This transaction was completed on April 5, 2025 - On April 2, 2025, PGIH purchased **228** common shares of Multisys, representing a **5%** interest, for **Php257.5 million**[157](index=157&type=chunk) - Following the acquisition, PGIH's equity interest in Multisys increased to **50.74%**[157](index=157&type=chunk) [Related Party Transactions](index=47&type=section&id=Related%20Party%20Transactions) Detailed information on related party transactions is provided in Note 24 of the consolidated financial statements - Detailed discussion of related party transactions can be found in Note 24 to the accompanying unaudited consolidated financial statements[159](index=159&type=chunk) [ANNEX – Aging of Accounts Receivable](index=48&type=section&id=ANNEX%20%E2%80%93%20Aging%20of%20Accounts%20Receivable) This annex provides a detailed aging analysis of consolidated accounts receivable as of June 30, 2025 Aging of Consolidated Accounts Receivable (June 30, 2025) | Type of Accounts Receivable | Total (Php million) | Current (Php million) | 31-60 Days (Php million) | 61-90 Days (Php million) | Over 91 Days (Php million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Corporate subscribers | 21,253 | 5,797 | 2,161 | 1,256 | 12,039 | | Retail subscribers | 18,785 | 7,765 | 910 | 232 | 9,878 | | Foreign administrations | 1,443 | 564 | 225 | 105 | 549 | | Domestic carriers | 218 | 142 | 59 | 14 | 3 | | Dealers, agents and others | 8,522 | 5,227 | 102 | 45 | 3,148 | | **Total** | **50,221** | **19,495** | **3,457** | **1,652** | **25,617** | | Less: Allowance for expected credit losses | 19,006 | | | | | | **Total Receivables – net** | **31,215** | | | | | [Financial Soundness Indicators](index=49&type=section&id=Financial%20Soundness%20Indicators) This section presents key financial soundness indicators and ratios for the periods ended June 30, 2025, and 2024 Financial Soundness Indicators (June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Current Ratio | 0.37:1.0 | 0.34:1.0 | | Acid Test Ratio | 0.24:1.0 | 0.22:1.0 | | Solvency Ratio | 0.32:1.0 | 0.33:1.0 | | Net Debt to Equity Ratio | 2.27:1.0 | 2.37:1.0 | | Net Debt to EBITDA Ratio | 2.57:1.0 | 2.52:1.0 | | Total Debt to EBITDA Ratio | 2.67:1.0 | 2.61:1.0 | | Asset to Equity Ratio | 5.07:1.0 | 5.40:1.0 | | Total Debt to Equity Ratio | 80:20 | 81:19 | | Interest Coverage Ratio | 3.52:1.0 | 3.96:1.0 | | Net Profit Margin | 15% | 15% | | Return on Assets | 5% | 5% | | Return on Equity | 27% | 29% | | EBITDA Margin | 52% | 52% | [Signatures (Annex S-1)](index=50&type=section&id=SIGNATURES_S-1) Key executives signed the report for the first half of 2025 on August 12, 2025, confirming its official submission - The report for the first half of 2025 was signed by Chairman, President and CEO Manuel V. Pangilinan, Senior Vice President and PLDT Group Chief Financial Officer Danny Y. Yu, and First Vice President Gil Samson D. Garcia on August 12, 2025[166](index=166&type=chunk)[168](index=168&type=chunk)

Financial Data and Key Metrics Changes - Service revenues net of interconnection costs reached PHP 97.1 billion, slightly higher year on year [5] - EBITDA came in at PHP 55.5 billion, up 3% from last year, with an EBITDA margin steady at 52% [5][26] - Telco core income decreased by 4% due to higher depreciation and financing costs, while core income rose to PHP 17.6 billion, up 1% [6][26] - Consolidated core income rose to PHP 17.6 billion, reflecting a 1% increase compared to the same period last year [27] Business Line Data and Key Metrics Changes - Home segment revenues grew 4% year on year to PHP 30.4 billion, driven by strong fiber demand [7][10] - Enterprise revenues slightly declined by 1% due to legacy business declines, but ICT revenues grew by 15% [12][13] - Individual revenues reached PHP 37.4 billion, down 1% from last year, with mobile data revenues stable [15] Market Data and Key Metrics Changes - Mobile data traffic grew 5% year on year to 2,766 petabytes, with 5G traffic surging 84% [15][16] - Fiber revenues in the Home segment increased by 7% year on year, now making up 97% of total home revenues [10] - Data center colocation grew by 36%, while cybersecurity services expanded by 24% [13] Company Strategy and Development Direction - The company is focused on disciplined cost management and optimizing spending while supporting growth areas like fiber and mobile data [25][26] - PLDT aims to position the Philippines as a regional hub for digital services and AI innovation through investments in AI-ready data centers [14] - The launch of the Kik mobile service targets the Gen Z market, emphasizing personalized digital experiences [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in market position despite near-term challenges, supported by strong operational fundamentals and strategic investments [39] - The company anticipates a better outlook in the second half of the year, driven by innovations and customer-centric strategies [47][48] - Management highlighted the importance of customer delight through innovations to drive revenue growth [48] Other Important Information - CapEx for 2025 is guided at PHP 63 billion, lower than the original guidance due to favorable pricing [29] - The company declared an interim cash dividend of PHP 48 per share, reflecting a commitment to stable shareholder returns [32] - PLDT's net debt stood at PHP 282.6 billion, with a net debt to EBITDA ratio of 2.57x, indicating healthy financial management [30][31] Q&A Session Questions and Answers Question: What is driving the softness in mobile revenues? - Management noted that the dip is a normal fluctuation and expects revenues to rebound in the second half [47][48] Question: Can we get an update on the Connectatum Cranoe Bill? - The bill will become law by August 24 if not signed by the president, and there are concerns about its constitutionality [51][53] Question: What guidance can be provided regarding refinancing activities for maturing debt? - Current interest rates are high, but the company has negotiated better spreads for refinancing [62] Question: Are there updates on 5G city expansions? - The company is expanding 5G services to provinces, starting with Cebu, and is testing the network there [64] Question: What are the plans for asset monetization? - The company is negotiating the sale of legacy assets, including copper, and has a robust program for monetizing other legacy assets [71][72]

Financial Data and Key Metrics Changes - Service revenues net of interconnection costs reached PHP 97.1 billion, slightly higher year on year [3][4] - EBITDA was PHP 55.5 billion, up 3% from last year, with an EBITDA margin steady at 52% [4][24] - Telco core income decreased by 4% primarily due to higher depreciation and financing costs, while core income rose to PHP 17.6 billion, up 1% [5][25] - Cash operating expenses decreased by PHP 1.4 billion or 3% year on year, reflecting disciplined cost management [22][24] Business Line Data and Key Metrics Changes - Home segment revenues grew 4% year on year to PHP 30.4 billion, driven by strong fiber demand [6][8] - Enterprise revenues slightly declined by 1% due to legacy business declines, but Corporate Data and ICT revenues remained stable, with ICT growing 15% year on year [10][11] - Individual revenues were down 1%, with mobile data revenues stable at PHP 37.4 billion, making up 89% of the segment [13][14] Market Data and Key Metrics Changes - Fiber revenues in the Home segment increased by 7% year on year, now accounting for 97% of total home revenues [8] - Data center colocation grew by 36%, and cybersecurity services expanded by 24% [11] - Five G traffic surged 84% year on year, with five G devices now making up 70% of the base [14] Company Strategy and Development Direction - The company is focused on disciplined cost management while continuing to innovate in product offerings, particularly targeting younger consumers with new mobile services [15][17] - PLDT aims to position the Philippines as a regional hub for digital services and AI innovation through investments in AI-ready data centers [12][29] - The company is also exploring asset monetization strategies for legacy assets, including copper and 3G equipment [66][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market position despite near-term challenges, supported by strong operational fundamentals and strategic investments [37] - The outlook for the second half is positive, with expectations for improved enterprise deal closures and new product traction [24][75] - Management highlighted the importance of customer-centric innovations to drive revenue growth [45] Other Important Information - The company declared an interim cash dividend of PHP 48 per share, reflecting a commitment to stable shareholder returns [30] - Maya, the fintech arm, reported its first profitable semester, contributing significantly to PLDT's core income [25][31] Q&A Session Summary Question: What is driving the softness in mobile revenues? - Management indicated that the dip is a normal fluctuation and expects revenues to rebound in the second half [44][45] Question: Update on the Connectatum Cranoe Bill? - The bill will become law by August 24 if not signed by the president, with concerns raised about its constitutionality [48][50] Question: Guidance on refinancing activities for maturing debt? - Interest rates are currently high, but the company has negotiated better terms for refinancing [60][62] Question: Updates on 5G cities? - The company is expanding 5G services to provinces, starting with Cebu, and expects ARPU for 5G users to be significantly higher than LTE users [63][65] Question: Updates on asset monetization plans? - The company is actively negotiating the sale of legacy assets, including copper and 3G equipment [66][69] Question: Plans for prepaid services? - Prepaid services are seen as a strategic entry point into price-sensitive markets and are not expected to cannibalize postpaid offerings [70][71] Question: Anticipated return to growth in enterprise revenues? - Management expects a return to growth in the second half, particularly in the public sector following election delays [72][74] Question: Insights on Maya's loan disbursement growth? - Maya is focusing on a diversified product suite to drive loan growth, targeting millennials and Gen Z customers [96][98]

Financial Performance - Service revenues reached ₱97.1 billion, a slight increase from ₱96.9 billion in 1H24[4] - Cash Opex decreased by 3% from ₱43.0 billion to ₱41.6 billion[4] - EBITDA grew by 3% to ₱55.5 billion with a 52% margin, compared to ₱53.9 billion in 1H24[4] - Depreciation & Amortization increased by 7% to ₱26.2 billion[4] - Net Financing Costs increased significantly by 27% to ₱8.4 billion[4] - Telco Core Income decreased by 4% to ₱17.2 billion[4] - Core Income increased slightly by 1% to ₱17.6 billion[4] Segment Performance - Home broadband revenues totaled ₱30.4 billion, a 4% increase[8] - Fiber revenues within the home segment grew by 7% to ₱29.5 billion[8] - Enterprise revenues totaled ₱23.5 billion, impacted by headwinds[8, 14] - Individual revenues totaled ₱42.3 billion[8] - Mobile data revenues accounted for 89% of individual revenues, totaling ₱37.4 billion[8] Key Growth Areas - Home fiber net adds reached 169,000, a 3X increase compared to 1H24[11, 12] - Over 80% of new home accounts opted for higher-value plans[11] - Total active data users reached 41.6 million[22] - Total mobile data traffic increased by 5% to 2,766 petabytes[22] - Data Center Colocation revenue increased by 36%[17] - Cyber Security Services revenue increased by 24%[17]