PLDT(US:PHI)2020-08-10 03:58Financial Data and Key Metrics Changes - For Q2 2020, the company reported revenues of PHP 41.3 billion, a slight decline from the all-time high of PHP 41.5 billion in Q1, but a 7% increase year-on-year [11][30] - First half revenues reached PHP 82.8 billion, an 8% increase year-on-year, driven by strong performance across all segments [12][30] - EBITDA for the first half grew by 8% to PHP 43.2 billion, maintaining a healthy EBITDA margin of 52% [32][37] - The company's telco core income for the first half was PHP 13.9 billion, a 5% increase year-on-year [32][40] Business Line Data and Key Metrics Changes - The Individual segment (Wireless business) grew by 12% year-on-year to PHP 19.6 billion in Q2 [11][30] - The Home segment saw an 8% increase to PHP 10 billion, while the Enterprise segment grew by 7% to PHP 9.1 billion despite pandemic challenges [12][30] - Data revenues accounted for 71% of total revenues in the first half, growing by 18% year-on-year to PHP 59 billion [35] Market Data and Key Metrics Changes - Mobile internet revenues increased by 34% year-on-year to PHP 29.3 billion, driven by demand for mobile video services and social media [35] - The company reported a mobile traffic usage of 1.4 exabytes, more than double the traffic from the previous year [49] Company Strategy and Development Direction - The company aims to continue expanding its integrated fixed and wireless network to support growing data demands [10][15] - A focus on improving customer experience through a nationwide fiber migration program for ADSL customers was initiated [17] - The company is also enhancing its digital solutions for the Enterprise segment, including offerings for e-commerce and online payments [18] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism for the second half of 2020, acknowledging the economic contraction and health concerns due to COVID-19 [53][55] - The company aims to maintain its revenue momentum and expects telco core income to be stable compared to 2019 [55] Other Important Information - The company increased its CapEx projections for 2020 to PHP 70 billion, focusing on network quality and customer experience [23][45] - The company has been recognized for having the fastest mobile and fixed network in the Philippines according to third-party analytics [14][51] Q&A Session Summary Question: How do your July trends compare against May and June levels? - Management noted that July top-ups were similar to June levels, with improvements in installation capacity expected [57][58] Question: What percentage of broadband subscribers are on fiber versus copper? - Approximately two-thirds of subscribers are on fiber, with a migration program for 600,000 ADSL customers to fiber underway [60][61] Question: How do you plan to increase the utilization of existing fiber ports? - Utilization has increased by 10 percentage points this year, with targets set for further improvement by year-end [68][70] Question: Can you share insights on competition in mobile and broadband? - Management acknowledged competition but emphasized their strong performance and network capabilities [74][76] Question: What are the expectations for Voyager's breakeven? - Voyager is expected to reach EBITDA neutrality by 2023 and EBITDA positivity by 2024 [92][93]