Core Insights - PLDT's Smart Communications has partnered with Amdocs to implement an AI-driven solution called Store Genie to enhance retail operations and customer engagement [1][4] - Store Genie utilizes Amdocs' Cognitive Core and operates on AWS cloud infrastructure, embedding telco-specific AI into frontline workflows for improved efficiency [2][3] Company Overview - Amdocs is a leading provider of software and services for communications and media companies, focusing on delivering exceptional customer experiences and operational efficiency [5] - The company reported a revenue of $4.53 billion for fiscal 2025, showcasing its strong market position and operational scale [5] Technology Implementation - Store Genie is currently deployed across all Smart retail stores, achieving over 90% resolution of customer requests through the platform [3] - The solution is designed to operate in high-volume, multilingual environments while ensuring governance and control typical of telecom operations [2][3] Strategic Goals - The collaboration aims to integrate AI capabilities into retail workflows, enabling real-time resolution of customer requests and enhancing overall customer engagement [4] - Amdocs emphasizes the importance of contextual intelligence in telecom customer engagement, differentiating its AI solutions from traditional automation methods [4]

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Group 1 - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - The core telecommunications operations of the company are experiencing growth, which is a positive indicator despite uninspiring FY25 results [1] - The company is actively working on strengthening its balance sheet and aims to realize the value of certain assets [1]

Financial Data and Key Metrics Changes - Gross service revenues reached PHP 212.2 billion, up 2% or PHP 3.8 billion year-on-year [4] - Net service revenues reached PHP 196.2 billion, marking a record [4] - EBITDA, excluding MRP costs, rose 3% to PHP 111.2 billion, with margins steady at 52% [4] - Telco core income was PHP 33.9 billion, down 3%, mainly due to higher financing costs and depreciation [4][16] - Core income improved to PHP 34.6 billion, up 1%, supported by Maya's swing to profitability [4][16] Business Line Data and Key Metrics Changes - Wireless consumer revenues were PHP 85 billion, steady year-on-year [5] - Fiber revenues grew 6% to PHP 59.4 billion, accounting for 98% of Home revenues [6] - Enterprise revenues grew to a record PHP 48.4 billion, with corporate data and ICT growing 3% to PHP 36.3 billion [6][12] - Fixed wireless revenues were up 22% year-on-year, supported by the shift from 4G to 5G [11] Market Data and Key Metrics Changes - Mobile data traffic grew 7% to 5,900 petabytes in 2025, with active data users reaching 43.2 million [10] - 5G devices were up 35% to 11.2 million, while 5G data traffic rose 88% [10] - Total loans disbursed by Maya reached PHP 256 billion since 2022, with deposit balances at approximately PHP 68 billion, up 72% year-on-year [20] Company Strategy and Development Direction - The company is focusing on maintaining positive free cash flow and reducing CapEx, with guidance for 2026 in the mid PHP 50 billion range [17][19] - Continued investment in digital infrastructure and the development of Maya as a leading digital financing platform [20][23] - The launch of the country's first operational hyperscale facility through VITRO, aimed at supporting enterprise and public sector workloads [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in market position supported by improving operational fundamentals and strategic investments [26] - The Philippine telco industry was described as anemic in 2025, with PLDT's revenues growing by 1% compared to a slight decline for competitors [86] - Management anticipates improvement in the industry in 2026, with hopes for better performance alongside competitors [87] Other Important Information - Total cash OPEX came in at PHP 84.9 billion, down 1% year-on-year, reflecting disciplined spending [15] - PLDT continues to be rated investment grade by S&P and Moody's, with stable outlooks [18] - The company is making notable gains in sustainability, being included in the S&P Global Sustainability Yearbook for the second consecutive year [24] Q&A Session Summary Question: What drove the difference in mobile growth between PLDT and Globe? - The growth for PLDT was driven by hyper-personalization offers that allowed upselling, while Globe saw subscriber growth [28][30] Question: What influenced the flat broadband growth and ARPU softness? - The flat growth was impacted by major calamities that diverted resources to repairs, affecting installation activity [31][32] Question: Update on Konektadong Pinoy and Maya's IPO? - The implementation of the KP Act is ongoing, with eligibility criteria released [37][38] - No comments on Maya's IPO at this time [40] Question: What is the update on the data center stake sale? - A late IPO for the data center is being considered, with an international bank assisting [42] Question: What is driving the increase in interest expense? - The increase is attributed to interest rates, loan balances, and accretion on liabilities [68]

Financial Data and Key Metrics Changes - Gross service revenues reached PHP 212.2 billion, up 2% or PHP 3.8 billion year-on-year [3] - Net service revenues reached PHP 196.2 billion, marking a record [3] - Cash OPEX decreased to PHP 84.9 billion, down 1%, reflecting spending control [3][14] - EBITDA, excluding MRP costs, rose 3% to PHP 111.2 billion, with margins steady at 52% [3][15] - Telco core income was PHP 33.9 billion, down 3%, mainly due to higher financing costs and depreciation [3][15] - Core income improved to PHP 34.6 billion, up 1%, supported by Maya's swing to profitability [3][15] Business Line Data and Key Metrics Changes - Wireless consumer revenues were PHP 85 billion, steady year-on-year [4] - Fiber revenues grew 6% to PHP 59.4 billion, accounting for 98% of Home revenues [5] - Enterprise revenues grew to a record PHP 48.4 billion, with corporate data and ICT growing 3% to PHP 36.3 billion [5][11] - Fixed wireless revenues were up 22% year-on-year, supported by the shift from 4G to 5G [10] Market Data and Key Metrics Changes - Mobile data traffic grew 7% to 5,900 petabytes in 2025, with active data users reaching 43.2 million [9] - 5G devices were up 35% to 11.2 million, while 5G data traffic rose 88% [9] - The shift towards fiber, wireless data, and ICT is driving growth and offsetting declines in legacy services [5] Company Strategy and Development Direction - The company is focused on maintaining positive free cash flow and reducing CapEx intensity while supporting growth [16][18] - PLDT is investing in digital infrastructure and expanding its digital financial services through Maya [18][19] - The company aims to strengthen its position in data centers and AI with the launch of VITRO and Pilipinas AI [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in market position supported by improving operational fundamentals and strategic investments [25] - The company anticipates a stable top line and resilient EBITDA, with a focus on digital business growth [3][15] - Management noted that the Philippine telco industry was anemic in 2025, but PLDT outperformed competitors in revenue growth [91] Other Important Information - Total dividends for 2025 amount to PHP 94 per share, reflecting a 16% regular dividend payout [18] - PLDT was included in the S&P Global Sustainability Yearbook for the second consecutive year, indicating progress in sustainability efforts [22][23] Q&A Session Summary Question: What drove the difference in mobile growth between PLDT and Globe? - The growth for PLDT was driven by hyper-personalization offers that increased ARPU, while Globe saw subscriber growth [28][29] Question: What influenced the flat broadband growth and ARPU softness? - The flat growth was impacted by major calamities that diverted resources to repairs, affecting installations [32][33] Question: Update on Konektadong Pinoy and Maya's IPO? - The implementation of Konektadong Pinoy is underway, with eligibility criteria released [37] - No comments on Maya's IPO timing were provided [40] Question: What is the update on the data center stake sale? - A late IPO for the data center is being considered, with an international bank assisting [42] Question: What is driving the increase in interest expense? - The increase is attributed to interest rates, loan balances, and accretion on liabilities [69][70] Question: What is the outlook for mobile growth in a slow economy? - Mobile growth was supported by improved network resiliency and hyper-personalization offers [78] Question: Can you provide guidance on revenue and EBITDA for 2026? - No specific guidance was provided, but CapEx is expected to be in the mid PHP 50 billion range [98][99]

Presentations Page (IR website) FY2025 Analysts Briefing 1 Financial Highlights Stable expansion reflected in record service revenues and EBITDA; Maya gains supported core uptick | | FY25 | FY24 | Change | % Change | | --- | --- | --- | --- | --- | | Service Revenues [net of interconnection costs] | 196.2bn | 194.7bn | +1.5bn | +1% | | Cash Opex, Subsidies, Provisions (ex-MRP) | 84.9bn | 86.1bn | -1.2bn | -1% | | EBITDA (ex-MRP) | 111.2bn 52% margin | 108.5bn 52% margin | +2.7bn | +3% | | Depreciation & Amo ...

Core Insights - 8x8, Inc. has launched 8x8 Silent Mobile Authentication in the Philippines to address mobile fraud [1] Company and Industry Summary - The launch is in partnership with PLDT Enterprise, indicating a strategic collaboration to enhance mobile security [1] - The initiative aims to combat the increasing issue of mobile fraud, which is a growing concern in the telecommunications industry [1]

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]