PLDT(US:PHI)2025-08-12 08:32Financial 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]