PLDT(US:PHI)2025-08-12 08:30Financial 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]