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]

Financial Performance - Service revenues reached ₱53421 million, a 2% increase year-over-year[81] - EBITDA (ex-MRP) grew by 2% year-over-year to ₱27900 million, maintaining a 52% margin[4, 26] - Depreciation and Amortization increased by 12% year-over-year to ₱13001 million[4, 81] - Net Financing Costs increased by 33% year-over-year to ₱4100 million[4] - Telco Core Income decreased by 6% year-over-year to ₱8800 million[4] Segment Performance - Home Fiber revenues increased by 7% year-over-year to ₱14700 million[12, 13] - Enterprise Corp Data & ICT revenues increased by 1% year-over-year to ₱8800 million[17] - Mobile Data revenues remained broadly flat year-over-year at ₱18800 million[9, 21] Operational Highlights - Home Fiber net adds reached 101k[12] - Maya achieved profitability, contributing positively to earnings growth, with net income attributable to Maya at ₱127 million[7, 29] - 5G data traffic surged 81% year-over-year[23] Investments and Debt - 1Q25 capex stood at ₱10800 million[32] - Debt Balance is ₱270700 million with Net Debt/EBITDA at 248x[36]

PART I – FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=9&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The report includes unaudited consolidated financial statements for Q1 2025 and audited statements as of December 31, 2024 - The report includes unaudited consolidated financial statements for the three months ended March 31, 2025 and 2024, and audited statements as at December 31, 2024[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%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis of Q1 2025 financial performance, including revenue, net income, and key indicators [Financial Highlights and Key Performance Indicators](index=10&type=section&id=Financial%20Highlights%20and%20Key%20Performance%20Indicators) Q1 2025 highlights: 2% revenue growth, 8% net income decline, 2% EBITDA growth, and stable 52% EBITDA margin Q1 2025 Consolidated Financial Highlights (vs Q1 2024) | Metric | Q1 2025 (million Php) | Q1 2024 (million Php) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | 55,277 | 54,224 | 2% | | **Net Income** | 9,064 | 9,893 | (8%) | | **Core Income** | 8,893 | 8,931 | 0% | | **Telco Core Income** | 8,776 | 9,320 | (6%) | | **EBITDA** | 27,865 | 27,315 | 2% | | **EBITDA Margin** | 52% | 52% | 0% | Key Operational Data (as of March 31, 2025 vs March 31, 2024) | Subscriber Type | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Mobile Subscribers** | 58,608,463 | 58,962,966 | (1%) | | - Prepaid | 56,300,981 | 56,785,718 | (1%) | | - Postpaid | 2,307,482 | 2,177,248 | 6% | | **Broadband Subscribers** | 3,945,937 | 3,711,094 | 6% | | - Fixed Line Broadband | 3,507,947 | 3,255,012 | 8% | | - Fixed Wireless Broadband | 437,990 | 456,082 | (4%) | - Net cash from operating activities **increased by 3% to Php24,545 million**, while payments for property and equipment decreased by 14% to Php16,142 million[25](index=25&type=chunk) [Performance Indicators](index=11&type=section&id=Performance%20Indicators) Non-GAAP performance indicators like EBITDA, Core Income, and Telco Core Income are defined for assessing financial performance - **EBITDA:** Measured as net income excluding items like depreciation, financing costs, and taxes. It is used by management to assess business unit performance and is a common metric for comparison in the telecommunications sector[28](index=28&type=chunk) - **Core Income:** Defined as net income attributable to equity holders, adjusted for non-recurring items such as foreign exchange gains/losses, derivative gains/losses, and asset impairments[29](index=29&type=chunk) - **Telco Core Income:** Further refines Core Income by adjusting for the performance of digital platform interests like Maya Innovations Holdings (MIH) and Kayana Solutions. This metric is a key basis for determining shareholder dividend payouts[30](index=30&type=chunk) [Management's Financial Review](index=12&type=section&id=Management%27s%20Financial%20Review) Reconciliation of Q1 2025 consolidated net income to non-GAAP metrics: EBITDA, Core Income, and Telco Core Income Reconciliation of Net Income to EBITDA (Q1 2025 vs Q1 2024) | (in million Php) | 2025 | 2024 | | :--- | :--- | :--- | | **Consolidated net income** | 9,064 | 9,893 | | Add: Depreciation and amortization | 13,001 | 11,642 | | Add: Financing costs – net | 4,336 | 3,377 | | Add: Provision for income tax | 2,740 | 3,299 | | Other adjustments | (1,376) | (296) | | **Consolidated EBITDA** | **27,865** | **27,315** | Reconciliation of Net Income to Core Income and Telco Core Income (Q1 2025) | (in million Php) | 2025 | | :--- | :--- | | **Consolidated net income** | 9,064 | | Adjustments (FX gains, derivatives, etc.) | (171) | | **Consolidated core income** | **8,893** | | Adjustments (Share in MIH/Kayana losses) | (117) | | **Telco core income** | **8,776** | [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Q1 2025 consolidated revenues grew 2%, but net income fell 8% due to higher expenses and segment declines Segment Performance Summary (Q1 2025 vs Q1 2024) | Segment | Revenues Change | Net Income Change | EBITDA Change | | :--- | :--- | :--- | :--- | | **Wireless** | (2%) | (24%) | 7% | | **Fixed Line** | 5% | (24%) | 5% | | **Consolidated** | 2% | (8%) | 2% | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintains solid liquidity, with increased operating cash flow and stable debt ratios Consolidated Cash Flows (Q1 2025 vs Q1 2024) | Cash Flow Activity (in million Php) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | 24,545 | 23,767 | | Net cash used in investing activities | (15,851) | (16,707) | | Net cash used in financing activities | (4,918) | (10,568) | - **Total interest-bearing financial liabilities stood at Php283,066 million** as of March 31, 2025, a slight **1% increase** from year-end 2024[113](index=113&type=chunk)[122](index=122&type=chunk) - The company declared a regular cash dividend of **Php47 per common share** in Q1 2025, totaling **Php10,155 million**[129](index=129&type=chunk) - PLDT confirms **compliance with all debt covenants** as of March 31, 2025[125](index=125&type=chunk) PART II – OTHER INFORMATION [Other Information](index=44&type=section&id=Other%20Information) Updates on significant corporate activities, including PGIH's increased stake in Multisys and ongoing legal matters - On April 2, 2025, PLDT's subsidiary PGIH acquired an additional **5% interest** in Multisys for **Php257.5 million**, increasing its total equity interest to **50.74%**[156](index=156&type=chunk) - The report refers to specific notes for updates on key ongoing matters, including the Sale and Leaseback of Telecom Towers (Notes 9 & 10), the payment demand on Dito (Note 26), the DOLE Compliance Order (Note 26), and the petition against the Philippine Competition Commission (Note 11)[157](index=157&type=chunk) ANNEXES [Aging of Accounts Receivable](index=45&type=section&id=Aging%20of%20Accounts%20Receivable) As of March 31, 2025, gross accounts receivable were Php49,413 million, with 48% over 91 days past due Consolidated Accounts Receivable Aging as of March 31, 2025 | Category (in million Php) | Total | Current | 31-60 Days | 61-90 Days | Over 91 Days | | :--- | :--- | :--- | :--- | :--- | :--- | | **Corporate subscribers** | 21,200 | 7,313 | 3,146 | 973 | 9,768 | | **Retail subscribers** | 16,715 | 6,261 | 978 | 281 | 9,195 | | **Total Gross Receivables** | **49,413** | **19,588** | **4,478** | **1,467** | **23,880** | | Less: Allowance for credit losses | 18,051 | | | | | | **Total Net Receivables** | **31,362** | | | | | [Financial Soundness Indicators](index=46&type=section&id=Financial%20Soundness%20Indicators) PLDT's key financial soundness indicators remained stable as of March 31, 2025, with minor improvements in liquidity and debt ratios Key Financial Ratios | Ratio | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Current Ratio** | 0.36:1.0 | 0.34:1.0 | | **Net Debt to Equity Ratio** | 2.34:1.0 | 2.37:1.0 | | **Net Debt to EBITDA Ratio** | 2.48:1.0 | 2.52:1.0 | | **Interest Coverage Ratio** | 3.65:1.0 | 3.96:1.0 | | **Return on Equity** | 27% | 29% | | **EBITDA Margin** | 52% | 52% | Consolidated Financial Statements [Consolidated Statements of Financial Position](index=49&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2025, total assets were Php626,668 million, total liabilities Php509,872 million, and total equity remained stable Consolidated Balance Sheet Highlights (in million Php) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **626,668** | **623,275** | | Property and equipment | 318,342 | 318,069 | | Cash and cash equivalents | 13,759 | 10,011 | | **Total Liabilities** | **509,872** | **506,540** | | Interest-bearing financial liabilities | 283,066 | 281,586 | | **Total Equity** | **116,796** | **116,735** | [Consolidated Income Statements](index=51&type=section&id=Consolidated%20Income%20Statements) For Q1 2025, total revenues increased 2% to Php55,277 million, but net income decreased 8% to Php9,064 million Consolidated Income Statement Summary (in million Php) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | **55,277** | **54,224** | | Service revenues | 53,421 | 52,195 | | **Total Expenses** | 40,549 | 38,621 | | **Income Before Income Tax** | 11,804 | 13,192 | | **Net Income** | **9,064** | **9,893** | | Basic EPS (Php) | 41.71 | 45.40 | [Consolidated Statements of Cash Flows](index=54&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw net cash from operating activities increase 3%, investing activities decrease 5%, and financing activities decrease 53% Consolidated Cash Flow Summary (in million Php) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | **24,545** | **23,767** | | **Net Cash used in Investing Activities** | **(15,851)** | **(16,707)** | | - Purchase of property and equipment | (15,534) | (17,980) | | **Net Cash used in Financing Activities** | **(4,918)** | **(10,568)** | | **Net Increase (Decrease) in Cash** | **3,748** | **(2,120)** | Notes to Consolidated Financial Statements [Note 4. Operating Segment Information](index=116&type=section&id=Note%204.%20Operating%20Segment%20Information) The company operates three segments: Wireless, Fixed Line, and Others, with Fixed Line leading Q1 2025 revenue and profit Segment Results for Q1 2025 (in million Php) | Segment | Total Revenues | Net Income / Segment Profit | | :--- | :--- | :--- | | **Wireless** | 26,117 | 2,249 | | **Fixed Line** | 33,467 | 7,934 | | **Others** | 0 | 113 | | **Inter-segment Transactions** | (4,307) | (1,232) | | **Consolidated** | **55,277** | **9,064** | [Note 9. Property and Equipment](index=130&type=section&id=Note%209.%20Property%20and%20Equipment) This note details PPE composition and movement, with a net book value of Php318,342 million, and updates on telecom tower sales - The net book value of property and equipment was **Php318,342 million** as of March 31, 2025[529](index=529&type=chunk) Cumulative Sale of Telecom Towers (as of March 31, 2025) | Metric | Amount | | :--- | :--- | | **Number of Towers Sold** | 6,726 | | **Cash Consideration** | Php87,319 million | | **Gain on Sale and Leaseback** | Php34,172 million | - Remaining telecom towers with a net book value of **Php4,547 million** are classified as 'Assets held-for-sale'[537](index=537&type=chunk) [Note 11. Investments in Associates and Joint Ventures](index=136&type=section&id=Note%2011.%20Investments%20in%20Associates%20and%20Joint%20Ventures) As of March 31, 2025, investments in associates and joint ventures totaled Php52,854 million, with an update on the PCC legal dispute Carrying Value of Key Investments (as of March 31, 2025) | Investment | Carrying Value (million Php) | | :--- | :--- | | **VTI, Bow Arken and Brightshare (JV)** | 33,653 | | **MediaQuest PDRs (Associate)** | 9,186 | | **MIH (Maya) (Associate)** | 6,875 | - On April 5, 2024, PCEV invested an additional **US$15.3 million (Php857 million)** in MIH (Maya), increasing its ownership to **37.66%**[558](index=558&type=chunk) - The legal petition against the Philippine Competition Commission (PCC) regarding the 2016 acquisition of SMC's telecom assets remains **pending before the Supreme Court**[575](index=575&type=chunk)[592](index=592&type=chunk) [Note 20. Interest-bearing Financial Liabilities](index=167&type=section&id=Note%2020.%20Interest-bearing%20Financial%20Liabilities) As of March 31, 2025, total interest-bearing financial liabilities were Php283,066 million, with new Green and Social Loan facilities Total Long-Term Debt (as of March 31, 2025) | Category | Amount (million Php) | | :--- | :--- | | **Long-term debt (non-current)** | 262,901 | | **Long-term debt (current portion)** | 20,165 | | **Total** | **283,066** | - The company secured a **Php1 billion Green Loan** and a **Php4 billion Green Loan** in March and May 2024, respectively, to fund its fiber network modernization and expansion[681](index=681&type=chunk) - A **Php2 billion Social Loan** was secured in October 2024 to fund network expansion in Geographically Isolated and Disadvantaged Areas (GIDAs)[682](index=682&type=chunk) - PLDT was in **compliance with all of its debt covenants** as at March 31, 2025[692](index=692&type=chunk) [Note 26. Provisions and Contingencies](index=194&type=section&id=Note%2026.%20Provisions%20and%20Contingencies) This note outlines ongoing legal proceedings, including a DOLE order, DITO dispute, and ETPI arbitration - The Supreme Court affirmed a Court of Appeals decision to remand a DOLE order regarding the regularization of **7,344 contractor workers**. The case was sent back to the DOLE Regional Office for further proceedings to determine which workers performing installation, repair, and maintenance services should be regularized. PLDT filed a Motion for Partial Reconsideration, which is **pending**[776](index=776&type=chunk)[783](index=783&type=chunk)[786](index=786&type=chunk) - Regarding DITO's complaints to the NTC and PCC, Smart and DITO have executed a memorandum of agreement on bypass activities, and Smart has provided additional interconnection capacity. The matter is **still under investigation by the PCC**[796](index=796&type=chunk)[798](index=798&type=chunk) - A long-standing arbitration with Eastern Telecommunications Philippines, Inc. (ETPI) over various claims and counterclaims totaling approximately **Php2.9 billion** and **Php2.8 billion**, respectively, remains **suspended pending dismissal** as part of a broader agreement with Globe[774](index=774&type=chunk)[775](index=775&type=chunk) [Note 27. Financial Assets and Liabilities](index=203&type=section&id=Note%2027.%20Financial%20Assets%20and%20Liabilities) This note details financial instruments and risk management policies for liquidity, foreign currency, and interest rate risks - The company manages foreign currency risk as a substantial portion of its capital expenditures and debt is foreign currency-denominated. As of March 31, 2025, **14% of total consolidated debt was in U.S. Dollars**[831](index=831&type=chunk)[835](index=835&type=chunk) - After accounting for hedging instruments and U.S. Dollar cash balances, the unhedged portion of consolidated debt was approximately **5%** as of March 31, 2025[835](index=835&type=chunk) - The company manages interest rate risk through a mix of fixed and variable rate debt. As of March 31, 2025, approximately **60% of consolidated debt was at variable rates**[841](index=841&type=chunk)[848](index=848&type=chunk) Maturity Profile of Financial Liabilities (Undiscounted) as of March 31, 2025 | (in million Php) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | **Debt (Principal & Interest)** | 383,244 | 16,789 | 93,921 | 73,603 | 198,931 | | **Lease obligations** | 77,244 | 16,614 | 20,103 | 15,709 | 24,818 | | **Trade and other obligations** | 135,361 | 133,258 | 276 | 21 | 1,806 | | **Total** | **595,849** | **166,661** | **114,300** | **89,333** | **225,555** |

Financial Data and Key Metrics Changes - Net service revenue increased slightly year on year, with gross revenue reaching $27.9 billion, up 2% from last year [4] - EBITDA grew by 2% to $7.9 billion, driven by strength in fiber and ICT segments, along with prudent cost management [4][11] - Telco core income was recorded at $8.8 billion, down 6% year on year due to increased depreciation linked to strategic investments [4][12] - Core income remained steady year on year, supported by Maya's positive contribution, which turned profitable this quarter [12][13] Business Line Data and Key Metrics Changes - Home segment revenue rose by 4% year on year to $15.2 billion, with fiber now accounting for 97% of home revenues, up from 92% in 2024 [5][8] - Enterprise segment total revenue remained steady at $11.9 billion, with corporate data and ICT revenues slightly up by 1% [5][9] - ICT revenue grew by 16% year on year, now accounting for over 22% of enterprise revenues, up from 19% a year ago [6][9] - Mobile revenues decreased slightly due to lower packet Wi-Fi usage, but 5G adoption and data traffic are on the rise, indicating potential for future growth [6][11] Market Data and Key Metrics Changes - Mobile data, fiber, corporate data, and ICT now account for 89% of total revenues, up from 88% in 2024 [7] - 5G data traffic surged by 81% year on year, with 5G device adoption growing by 60% quarter on quarter [11] - The churn rate remains below 2%, one of the lowest in the industry, reflecting effective customer retention strategies [8][59] Company Strategy and Development Direction - The company aims to pursue steady revenue growth, disciplined expense management, asset monetization, and prudent capital allocation [5] - PLDT is focusing on expanding its fiber footprint and enhancing its digital infrastructure, including the launch of the Asia Direct Cable to improve international connectivity [22][24] - Maya, the fintech driver, is positioned for sustainable growth with its all-in-one ecosystem combining payment, banking, and lending services [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position despite near-term challenges, supported by strong operational fundamentals and strategic investments [33] - The company anticipates continued growth in the home segment and is optimistic about the enterprise segment recovering as new capacities come online [36][40] - Management highlighted the importance of maintaining a strong focus on customer experience and product innovation to drive future growth [72] Other Important Information - PLDT's net debt stood at $270.7 billion, with a net debt to EBITDA ratio of 2.48 times, slightly improved from the previous year [15] - The company retains investment-grade credit ratings, underscoring investor confidence in its financial health [17] - PLDT is committed to generating positive free cash flow by 2026 and reducing leverage to around a 2.0x net debt to EBITDA ratio over the medium term [17] Q&A Session Summary Question: What is the outlook for the enterprise segment regarding Pogo-related revenue pressures? - Management indicated that the impact from Pogo cancellations is expected to continue until at least Q3, but efforts are being made to mitigate revenue loss [38] Question: Can you provide updates on VITRO's capacity take-up and profitability contributions? - A significant hyperscale customer has already signed for 4 megawatts of capacity, with ongoing discussions for further capacity fill [40] Question: What is the profit momentum expected for Maya for the rest of the year? - Management expects steady and gradual margin improvement rather than a sharp increase, as operating leverage continues to strengthen [42] Question: How is the mobile business expected to perform in the second quarter? - Management noted that while the market has softened, they continue to see growth in traffic, which is expected to help monetize demand [44] Question: What is the current water usage rate for VITRO Santa Rosa? - Water usage is currently at normal levels, with expectations for an increase as AI workloads ramp up [47] Question: What is the target loan to deposit ratio for Maya? - There is no specific target, but the company aims to maintain a conservative loan to deposit ratio compared to traditional banks [50] Question: How does the company plan to improve working capital efficiency? - Strategies include asset monetization, consolidation of central offices, and seeking strategic partners in data centers [82]

Financial Data and Key Metrics Changes - Net service revenue increased by 2% year on year, reaching R27.9 billion, with EBITDA also growing by 2% [4][12] - Telco core income decreased by 6% year on year, primarily due to increased depreciation from network investments [4][13] - Core income remained steady, supported by Maya's positive contribution, which turned profitable this quarter [4][13] Business Line Data and Key Metrics Changes - Home segment revenue rose by 4% year on year, driven by fiber demand, which now accounts for 97% of home revenues, up from 92% in 2024 [5][8] - Enterprise segment total revenue remained stable at R11.9 billion, with ICT revenues growing by 16% year on year [6][10] - Mobile revenues declined slightly due to lower packet Wi-Fi usage, but 5G adoption and data traffic are increasing [6][12] Market Data and Key Metrics Changes - Mobile data, fiber, corporate data, and ICT now account for 89% of total revenues, up from 88% in 2024 [7] - 5G data traffic surged by 81% year on year, with 5G device adoption growing by 60% quarter on quarter [12][63] Company Strategy and Development Direction - The company aims for steady revenue growth, disciplined expense management, and prudent capital allocation [5][14] - PLDT is focusing on expanding its fiber footprint and enhancing its digital infrastructure, including the launch of the Asia Direct Cable to improve international connectivity [23][24] - Maya, the fintech driver, is positioned for sustainable growth with its integrated ecosystem of payment, banking, and lending services [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges near-term challenges but remains confident in market position supported by strong operational fundamentals [35] - The company is committed to generating positive free cash flow by 2026 and reducing leverage to around a 2.0x net debt to EBITDA ratio [17][18] Other Important Information - PLDT's CapEx for Q1 2025 was R10.8 billion, lower than the previous year, with a guidance adjustment for 2025 [14][15] - The company maintains investment-grade credit ratings, reflecting investor confidence in its financial health [16][17] - Sustainability initiatives include commitments to no net deforestation and enhancing online safety for customers [32][33] Q&A Session Summary Question: Impact of Pogo-related revenue pressures on the enterprise segment - Management anticipates continued impact from Pogo cancellations until Q3, but efforts are being made to mitigate revenue loss [40] Question: Take-up levels for VITRO Santa Rosa's new capacities - A significant hyperscale customer has already signed for four megawatts, with ongoing discussions for additional capacity [42] Question: Profit momentum for Maya for the remainder of the year - Management expects steady and gradual margin improvement rather than a hockey stick growth pattern [45] Question: Trends in the mobile business for Q2 - The market has softened, but traffic growth year on year gives confidence in monetizing demand [47] Question: Water usage for VITRO Santa Rosa - Current water usage is normal, with expectations for increased usage as AI workloads ramp up [49][50] Question: Interest income on loans and cost of funds for Maya - Specific numbers on loan yields and cost of funds were not disclosed, but receivables include credit card business [51] Question: Target loan to deposit ratio for Maya - No specific target is set, but a conservative approach will be maintained [53] Question: Subscriber growth in the home segment - Management anticipates sustained growth in subscriber additions throughout 2025 [55] Question: Guidance for 2025 net income - No guidance is provided due to the fluid environment [81] Question: Strategies to improve working capital efficiency - Focus on asset monetization and consolidation of central offices is planned over the next three years [85] Question: Competition in the mobile business - Management does not foresee the same trend of softness as the rest of the industry, citing continued traffic growth [86] Question: Revenue uplift from VITRO Santa Rosa - The facility is expected to generate significant enterprise revenue once fully operational, with current AI workloads already recognized [88]

Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a favored strategy that seeks to find undervalued companies in the market [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category [3] Company Analysis: PLDT (PHI) - PLDT (PHI) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock has a Forward P/E ratio of 7.67, significantly lower than the industry average of 9.34, with historical fluctuations between 6.91 and 10.14 over the past year [4] - The P/B ratio for PHI is 2.44, which is attractive compared to the industry average of 4.05, with a historical range of 2.20 to 3.18 [5] - These valuation metrics suggest that PLDT is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [6]