PLDT(PHI) - 2025 Q2 - Quarterly Report

FORM 6-K Report 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] 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][5] SEC Filing Information 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] PART I – FINANCIAL INFORMATION 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 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] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 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 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 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] - 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] - 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] 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] - 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] Management's Financial Review 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 On a Consolidated Basis 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] - 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] 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 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] 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 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] 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] 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 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] - Expenses related to the 'Others' business segment decreased by Php40 million (87%) to Php6 million[112] - 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] - 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] - 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] Liquidity and Capital Resources Operating Activities 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] - 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] Investing Activities 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] - Payment for purchase of property and equipment, including capitalized interest, decreased by Php3,379 million (9%) to Php34,078 million[123] - 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] Financing Activities 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] - Proceeds from availment of long-term and short-term debts amounted to Php18,900 million and Php1,022 million, respectively[126] - Consolidated long-term and short-term debts increased by Php10,227 million (4%) to Php291,813 million as of June 30, 2025[127] - PLDT, Smart, and Vitro Inc. were in compliance with all debt covenants as of June 30, 2025 and December 31, 2024[129][130] Changes in Financial Conditions 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] - 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][136][137][138] - Total liabilities decreased by Php2,332 million to Php504,208 million as of June 30, 2025[139] - 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][141][142] Off-Balance Sheet Arrangements 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] Equity Financing 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][146] - The company may consider returning additional cash to shareholders through special dividends or share buybacks, depending on business funding requirements and investment opportunities[146] - 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] Contractual Obligations and Commercial Commitments 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] - 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][151][152] Quantitative and Qualitative Disclosures about Market Risks 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] 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 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] - The BSP estimates average inflation to be within the government's target of 2.0% to 4.0% for 2025 and 2026[155] PART II – OTHER INFORMATION 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 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] - Following the acquisition, PGIH's equity interest in Multisys increased to 50.74%[157] Related Party Transactions 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] ANNEX – Aging of Accounts Receivable 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 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) 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][168]