PLDT(PHI)2024-05-13 01:00Financial Data and Key Metrics Changes - Consolidated service revenue for Q1 2024 grew by 3% year-on-year to 48.7 billion [6] - Consolidated EBITDA rose by 5% to 27.3 billion, with an EBITDA margin of 52% [6][22] - Telco core income, excluding asset sales impact, expanded by 8% to 9.3 billion [6][22] - Total cash operating expenses increased by 1% to 21.4 billion [6][15] - Net debt to EBITDA improved to 2.29x, better than the end of 2023 [23] Business Line Data and Key Metrics Changes - Individual or Mobile business revenue grew by 7% to 21.1 billion [7] - Enterprise segment revenue increased by 3% to 12.1 billion, with corporate data and ICT revenues up by 8% [7][14] - Home segment revenue remained stable at 15 billion, while Fiber revenues rose by 7% to 13.7 billion [7][12] Market Data and Key Metrics Changes - Mobile data revenues grew by 11%, with mobile data users increasing to 39.4 million [10][11] - Fiber-Only revenues accounted for 92% of Home segment revenues, with a 7% rise year-on-year [12] - The Enterprise segment's growth was driven by core connectivity and higher ICT revenues from cloud services [14] Company Strategy and Development Direction - PLDT aims to address unserved and underserved markets in home broadband, leveraging its integrated network [13] - The company is focused on operational efficiencies and cost management to improve profitability [15][33] - CapEx guidance for 2024 is set at 75 billion to 78 billion, with a commitment to reduce CapEx intensity over time [17][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, anticipating mid-single digit growth driven by data and broadband revenues [33] - The competitive landscape in the wireless space is intensifying, with a focus on service quality and customer relevance [38] - Management highlighted the importance of addressing customer needs and behavioral shifts in mobile data usage [39] Other Important Information - Total CapEx for Q1 2024 was 15.7 billion, with a CapEx intensity of 30% [17] - The company reported a share in losses from Maya of about 400 million, consistent with expectations for breakeven by late 2024 [16] - PLDT's balance sheet remains healthy, with gross debt at 257 billion, of which 15% is dollar-denominated [23] Q&A Session Summary Question: Can you characterize the competitive landscape in the wireless space? - Management noted increased competition in service quality and the need to remain relevant to customers [38][39] Question: Can you tighten the guidance for telco core income? - Management indicated that while they aim for north of 35 billion, seasonality of revenues must be considered [41][43] Question: Will PLDT be free cash flow positive before dividends in 2024? - Management suggested that it is likely to achieve free cash flow before dividends for the whole year [53] Question: What drove the increase in mobile data traffic in Q1? - The increase was attributed to a rise in installed devices, particularly 5G, and efforts to alleviate LTE congestion [65][66] Question: What is the rationale for the Radius acquisition? - The acquisition aims to leverage strategic synergies between PLDT and Radius to enhance customer experiences and operational efficiency [81] Question: Any updates on the data center sale? - Management discussed ongoing discussions with potential investors, emphasizing the importance of maintaining control over data centers [88][89]