Financial Data and Key Metrics Changes - Consolidated service revenues for the first half of 2024 reached 96.9 billion, a 3% increase year-on-year, with gross service revenues up by 4% [3] - Operating expenses grew by 1% to 43 billion, while consolidated EBITDA rose by 3% to 53.9 billion, achieving an EBITDA margin of 52% [3][9] - Telco core income, excluding asset sales impact, expanded by 3% to 18 billion [3][9] Business Segment Data and Key Metrics Changes - Individual business revenues grew by 4% to 41.9 billion, with mobile data accounting for 89% of total segment revenues, increasing by 8% year-on-year [4][5] - Enterprise segment recorded a 4% revenue increase to 24 billion, driven by corporate data and ICT, which grew by 7% [3][8] - Home segment revenues slightly declined by 1% to 30 billion, but fiber-only revenues increased by 7% to 1.8 billion [3][4] Market Data and Key Metrics Changes - The overall market for mobile revenues saw a slowdown, with industry growth dropping from 6%-7% in Q1 to 3%-4% in Q2, attributed to limited customer mobility and seasonal factors [20] - PLDT's fiber business achieved a 7% year-on-year growth, with fiber now representing 92% of Home revenues [6][7] Company Strategy and Development Direction - The company is focusing on operational efficiencies and cost rationalization, aiming for mid-single-digit top-line growth driven by data and broadband revenues [13] - PLDT is actively pursuing monetization plans for its data center business, with ongoing discussions for investment [19] - The company plans to maintain a 60% dividend payout while targeting a net debt-to-EBITDA ratio of 2.0 times [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, expecting continued growth in data and broadband revenues, with EBITDA anticipated to grow by mid-single-digit [13] - The company noted that Maya Bank is on track to achieve breakeven by December 2024, with significant improvements in losses [18][37] Other Important Information - PLDT's balance sheet remains healthy, with gross debt at 265.4 billion and an average interest cost of 4.9% [10] - The company reported a significant increase in fiber installations, with a 20% rise from May to June [6] Q&A Session Summary Question: Clarification on Maya Bank's cash flow positive status - Management confirmed that Maya Bank is cash flow positive but not the entire Maya entity, indicating profitability on a standalone basis [15][16] Question: Data center monetization plans - Ongoing discussions are in place for monetizing the data center business, with an agreement on valuation and share structure [19] Question: Slowdown in mobile revenues - Management attributed the slowdown to industry trends and seasonal factors, with expectations for recovery in Q3 [20] Question: Home broadband growth despite legacy business decline - The decline in legacy business is impacting overall performance, but fiber business is showing strong growth [22][23] Question: Prepaid fiber unit economics - The company is selectively rolling out prepaid fiber in areas with capacity, focusing on maximizing value from existing infrastructure [30][32]
PLDT(PHI) - 2024 Q2 - Earnings Call Transcript