PLDT (NYSE:PHI) Q4 2025 Earnings call February 26, 2026 02:30 AM ET Company ParticipantsBlums Pineda - SVP and Enterprise and International Group HeadDanny Yu - Senior VP, CFO, and Chief Risk Management OfficerJeremiah de la Cruz - Senior Vice President, Head of Consumer Business - HomeJinggay Nograles - Head of Investor RelationsJoan De Venecia-Fabul - First VP and Chief Legal CounselLloyd Dennis R. Manaloto - Co-Officer-in-ChargeManuel V. Pangilinan - Chairman and CEOMarjorie C. Garchitorena - Co-Officer- ...

PLDT (NYSE:PHI) Q4 2025 Earnings call February 26, 2026 02:30 AM ET Speaker4Good afternoon, everyone, and thank you for joining us today. I'm Jinggay Nograles, Head of Investor Relations here at PLDT, and it's my pleasure to welcome you to our full year financial and operating results briefing. Joining us today to share insights into PLDT's performance and strategic direction, we have PLDT's CFO, Mr. Danny Yu; PLDT's Chief Operating Officer, Mr. Manny Jimenez; our Chief Legal Counsel, Attorney Joan De Venec ...

Presentations Page (IR website) FY2025 Analysts Briefing 1 Financial Highlights Stable expansion reflected in record service revenues and EBITDA; Maya gains supported core uptick | | FY25 | FY24 | Change | % Change | | --- | --- | --- | --- | --- | | Service Revenues [net of interconnection costs] | 196.2bn | 194.7bn | +1.5bn | +1% | | Cash Opex, Subsidies, Provisions (ex-MRP) | 84.9bn | 86.1bn | -1.2bn | -1% | | EBITDA (ex-MRP) | 111.2bn 52% margin | 108.5bn 52% margin | +2.7bn | +3% | | Depreciation & Amo ...

Core Insights - 8x8, Inc. has launched 8x8 Silent Mobile Authentication in the Philippines to address mobile fraud [1] Company and Industry Summary - The launch is in partnership with PLDT Enterprise, indicating a strategic collaboration to enhance mobile security [1] - The initiative aims to combat the increasing issue of mobile fraud, which is a growing concern in the telecommunications industry [1]

Group 1: Market Overview - U.S. investors are facing challenges including high tech stock valuations, hawkish Federal Reserve commentary, and unpredictable tariff policies from the Trump administration [1] - Despite Nvidia's strong earnings, the market experienced a sell-off, indicating potential volatility ahead [2] - High-quality international stocks have emerged as a refuge from U.S. market fluctuations [2] Group 2: Shinhan Financial Group - Shinhan Financial Group, a South Korean banking conglomerate, has a market cap of $25.5 billion and reported strong growth in interest income and net interest margins in Q3 2025 [3][5] - The company is trading at a Price-to-Earnings (P/E) ratio of 7.94 and a Price-to-Book (P/B) value of 0.5, with a dividend yield exceeding 3% [5] Group 3: POSCO Holdings - POSCO Holdings, valued at $16 billion, is transitioning from traditional steel manufacturing to lithium battery production, which offers higher margins [6][8] - The company has secured deals for lithium extraction in the U.S. and mining operations in Australia and Argentina, yet it trades at 14 times forward earnings and 0.4 times book value [6] Group 4: PLDT Inc. - PLDT Inc., the largest telecommunications company in the Philippines, offers a range of services and has developed the popular PayMaya app, now rebranded as Maya [9] - The stock trades at 7.5 times forward earnings and 1.2 times sales, with a dividend yield over 7%, presenting a potential buying opportunity after a recent drop [11] Group 5: United Microelectronics Corp. - United Microelectronics Corp. is a key player in the semiconductor foundry market, with a market share of 5% and major clients including Texas Instruments and Intel [12][14] - The stock is trading at 14 times forward earnings and 2.4 times sales, below industry averages, and has shown improved earnings performance in Q3 2025 [14]

Financial Performance - Consolidated revenues for the nine months ended September 30, 2025, were Php 163,283 million, an increase of 1% from Php 160,942 million in 2024[25]. - Net income decreased by 11% to Php 25,135 million in 2025 from Php 28,224 million in 2024[25]. - EBITDA for the nine months ended September 30, 2025, was Php 82,845 million, a 3% increase from Php 80,718 million in 2024[25]. - Core income for the period was Php 25,823 million, slightly up from Php 25,793 million in 2024[25]. - Consolidated net income for the nine months ended September 30, 2025, was Php 25,135 million, compared to Php 28,224 million in the same period in 2024[37]. - Consolidated EBITDA increased by Php 2,127 million, or 3%, to Php 82,845 million for the nine months ended September 30, 2025, compared to Php 80,718 million in the same period in 2024[48]. - Total comprehensive income for the nine months ended September 30, 2025, was 25,534 million pesos, down from 27,370 million pesos in 2024, reflecting a decline of 6.7%[182]. - Earnings per share attributable to common equity holders for the nine months ended September 30, 2025, decreased to 115.83 pesos from 129.71 pesos in 2024, a decline of 10.7%[179]. Subscriber Metrics - The number of total subscribers decreased by 1% to 67,099,341 as of September 30, 2025, compared to 67,857,250 in 2024[25]. - Mobile subscribers decreased by 2% to 59,282,637 in 2025 from 60,271,009 in 2024[25]. - Fixed line broadband subscribers increased by 7% to 4,122,521 in 2025 from 3,858,368 in 2024[25]. - The total mobile subscriber base decreased by 988,372, or 2%, to 59,282,637 as of September 30, 2025[71]. - Average monthly churn rates for Smart Prepaid subscribers increased to 2.5% in 2025 from 1.8% in 2024[72]. Revenue Breakdown - Consolidated service revenues increased to Php 158,903 million for the nine months ended September 30, 2025, up Php 3,908 million, or 3%, from Php 154,995 million in the same period in 2024[41]. - Wireless segment revenues for the nine months ended September 30, 2025, were Php 76,468 million, while fixed line segment revenues were Php 100,248 million[39]. - Total revenues from the Wireless business segment decreased by Php 2,067 million, or 3%, to Php 76,468 million for the nine months ended September 30, 2025, from Php 78,535 million in the same period in 2024[54]. - Mobile service revenues accounted for 98% of wireless service revenues, totaling Php 71,007 million for the nine months ended September 30, 2025, a decrease of Php 747 million, or 1%, from Php 71,754 million in the same period in 2024[57]. - Fixed Line business segment revenues increased by Php 4,813 million, or 5%, to Php 100,248 million for the nine months ended September 30, 2025[88]. Expenses and Costs - Consolidated expenses rose by Php 4,298 million, or 4%, to Php 123,385 million for the nine months ended September 30, 2025, from Php 119,087 million in the same period in 2024[44]. - General operating costs for the nine months ended September 30, 2025, decreased to 56,869 million pesos from 58,564 million pesos in 2024, a reduction of 2.9%[179]. - Depreciation and amortization expenses increased to 41,820 million pesos for the nine months ended September 30, 2025, compared to 37,333 million pesos in 2024, reflecting an increase of 12.5%[179]. Cash Flow and Investments - Net cash from operating activities increased by 11% to Php 75,765 million in 2025 from Php 68,118 million in 2024[25]. - Consolidated net cash flows from operating activities increased by Php 7,647 million, or 11%, to Php 75,765 million for the nine months ended September 30, 2025, compared to Php 68,118 million in the same period in 2024[121]. - Consolidated net cash flows used in investing activities amounted to Php 49,584 million for the nine months ended September 30, 2025, an increase of Php 2,377 million, or 5%, from Php 47,207 million in the same period in 2024[123]. - The company reported a net cash flow used in financing activities of Php 26,164 million for the nine months ended September 30, 2025, compared to Php 26,132 million in the same period of 2024, indicating a marginal increase of 0.1%[191]. Debt and Liabilities - Long-term debt increased by 6% to Php 297,536 million as of September 30, 2025, from Php 281,586 million as of December 31, 2024[25]. - Total interest-bearing financial liabilities increased by Php 15,950 million, or 6%, to Php 297,536 million as of September 30, 2025, from Php 281,586 million as of December 31, 2024[128]. - Noncurrent liabilities rose to Php 344,682 million in 2025 from Php 318,078 million in 2024, indicating increased long-term financial obligations[177]. - The company is in compliance with all debt covenants as of September 30, 2025[131]. Asset Management - Total assets as of September 30, 2025, increased by 1% to Php 629,556 million from Php 623,275 million as of December 31, 2024[25]. - Cash and cash equivalents and short-term investments totaled Php 10,102 million as of September 30, 2025, with principal sources including cash flows from operating activities of Php 75,765 million[119]. - Noncurrent assets increased by Php 8,164 million, with property and equipment rising by Php 7,241 million or 2% due to higher capital expenditures[135][136]. Dividends and Shareholder Returns - Consolidated cash dividend payments were Php 20,576 million for the nine months ended September 30, 2025, compared to Php 20,744 million in the same period of 2024[148]. - The company declared dividends totaling Php 20,570 million charged to retained earnings for the nine months ended September 30, 2025[148]. - The company’s cash dividends paid were Php 20,576 million for the nine months ended September 30, 2025, slightly down from Php 20,744 million in the same period of 2024, a decrease of 0.8%[191]. Strategic Investments - PLDT invested Php 840 million in Kayana, representing 60% equity interest, to enhance digitalization initiatives within the MVP Group[217]. - PLDT's investment strategy includes acquiring stakes in companies to enhance its digital capabilities and market presence[216]. - PGIH acquired an additional 5.01% interest in Multisys for Php 257.5 million, increasing its total ownership to 50.74%[160]. - PLDT's subsidiaries prepare financial statements for the same reporting period, ensuring uniform accounting policies[213].

Core Insights - Amdocs has launched the connectX SaaS platform for Smart Communications, enabling fully customizable mobile plans for Gen Z subscribers [1] - The initiative aims to enhance the digital mobile experience and support the growth of mobile virtual network operators (MVNOs) in the Philippines [1] Company Overview - Smart Communications is a subsidiary of PLDT, a major telecommunications and digital service provider in the Philippines [1] - The collaboration with Amdocs focuses on delivering hyper-personalized mobile services through the KiQ app [1] Industry Impact - The introduction of the connectX platform is expected to empower Gen Z users by allowing them to design their own mobile plans, providing greater flexibility and control [1] - This move is part of a broader strategy to accelerate the launch of new MVNOs in the region, indicating a shift towards more personalized mobile service offerings [1]

Financial Data and Key Metrics Changes - Service revenues net of interconnection reached $145.9 billion, up 1% year on year, driven by steady demand across fiber, data, and ICT [4][6] - Cash operating expenses, subsidies, and provisions decreased by 2%, reflecting the company's focus on spending control [4][16] - EBITDA rose 3% to $82.8 billion with margins steady at 52% amidst higher revenues and lower operating expenses [4][17] - Telco core income was $5.3 billion, down 5% mainly due to higher depreciation and financing costs from network and IT investments [5][18] - Core income remained stable at $25.8 billion, supported by Maya's sustained profitability [5][19] Business Line Data and Key Metrics Changes - Fiber revenues grew 7%, reflecting solid demand for reliable connectivity [6][10] - Mobile data and fixed wireless revenues were up 1%, with fixed wireless showing strong momentum with an 18% year-on-year increase [6][15] - Corporate Data and ICT revenues grew 2%, with ICT services alone growing 27% year on year [7][13] - Home revenues grew 4% year on year, driven mainly by continued fiber demand [10][12] Market Data and Key Metrics Changes - The enterprise segment returned to growth in the third quarter, with corporate data and ICT up 5% year on year [9][13] - Government and public sector projects began to ramp up after election-related delays, contributing to the growth in enterprise revenues [7][13] - The number of 5G devices increased by 39% year on year, driving higher data usage and improved customer experience [15] Company Strategy and Development Direction - The company continues to invest in new cell sites, LTE and 5G upgrades, home fiber ports, data center development, and submarine cables to strengthen network quality and support growth [20] - PLDT launched Filipinas AI, the country's first sovereign AI platform, to enable enterprises to build and deploy AI models locally [14][89] - The company is focused on asset monetization programs, including a potential REIT listing for its data center [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive free cash flow into 2026, supported by lower CapEx and asset monetization [22][70] - The government is expected to continue investing in digital connectivity, which is seen as a priority for future growth [46] - Management highlighted the importance of maintaining profitability amidst a competitive environment, with a focus on disciplined growth [17][18] Other Important Information - Maya's net income for the third quarter was $532 million, with significant growth in deposits and loans [24][25] - The company recorded a $1.1 billion in proceeds from tower sales and completed a $20.5 billion final dividend payment for 2024 [22] Q&A Session Summary Question: What were the main drivers for the drop in Maya's net income for the period? - The drop was attributed to the removal of gaming links and the launch of new credit products, which will have some provision impact in the near term [33][34] Question: How do you see the KPA and IRRs impacting profitability and investment profile? - The law aims for cheaper internet and wider coverage, but lacks obligations for new entrants to build infrastructure, raising concerns about its effectiveness [36][54] Question: What is driving the difference in performance in the mobile segment? - Smart Wireless Group achieved flattish growth year to date, with improved ARPU due to targeted customer acquisition strategies [39][40] Question: Are you seeing sustained uptick in government projects into the fourth quarter? - Continued demand from government agencies is expected, with investments in digital connectivity prioritized [42][46] Question: What is the status of the asset monetization programs? - The company is in talks for a 49% stake sale in its data center and exploring a REIT listing [71][92]

Financial Performance - Service revenues reached ₱158.9 billion, a 3% increase, or +₱3.9 billion[3] - EBITDA (ex-MRP) grew by 3% to ₱82.8 billion with a 52% margin[3], a +₱2.1 billion increase[3] - Core income remained stable at ₱25.8 billion[3] - Maya contributed ₱603 million to PLDT's core earnings[5] Revenue Breakdown - Total Home revenues reached ₱45.7 billion, a 4% increase, or +₱1.6 billion[11] - Total Fiber revenues reached ₱44.5 billion, a 7% increase, or +₱2.8 billion[11] - Enterprise revenues reached ₱35.6 billion, a 2% increase, or +₱0.5 billion[14] - Wireless Consumer revenues reached ₱63.2 billion, a 1% decrease, or -₱0.3 billion[17] - Mobile data revenues reached ₱57.3 billion, a 1% increase, or +₱0.7 billion[17] Subscriber and Network Growth - Fiber net adds increased by 67% year-over-year to 265,000[12] - Total broadband subscribers increased by 6% to 4,122,521[142] - 5G individual devices increased to 10.5 million[17], representing 18% of devices[17] - Total data traffic reached 4,393 petabytes[17], a 6% increase[17] Cost Management and Investments - Total cash expenses, subsidies, and provisions decreased by 2% to ₱63.1 billion[20], a -₱1.1 billion decrease[20] - Compensation and benefits (ex MRP) decreased by 7% to ₱16.1 billion[20], a -₱1.3 billion decrease[20] - Selling and promotions expenses decreased by 18% to ₱3.5 billion[20], a -₱0.8 billion decrease[20] - 9M2025 capex stood at ₱43.0 billion[28] Debt and Sustainability - Net debt-to-EBITDA ratio is 2.61x[32] - PLDT received an MSCI ESG Rating of BBB[57] - Smart secured a 10-year ₱2 billion green loan[68]

Core Insights - PLDT Inc. is a leading telecommunications company in the Philippines, recognized for its dominance in both the fixed-line broadband and mobile broadband markets [1] Company Strategy - The company focuses on leadership economics associated with its business model, aiming for growth through competitive advantages that yield superior returns on capital [1] Investment Approach - The investment philosophy emphasizes value investing, targeting strong companies with trustworthy management and a reasonable price for permanent ownership [1]