PLDT(PHI)2022-03-04 07:56Summary of PLDT Inc. Q4 2021 Earnings Conference Call Company Overview - Company: PLDT Inc. (NYSE:PHI) - Date of Call: March 3, 2022 - Key Participants: - Alfredo Panlilio - President and CEO - Anabelle Chua - CFO and Chief Risk Management Officer - Shailesh Baidwan - President, Voyager Innovations, Inc. - Other members of the management team Financial Performance Highlights - Record Revenues: PLDT achieved PHP182.1 billion in revenues for 2021, a growth of 6% from 2020, with an increase of PHP10.6 billion [3][4] - EBITDA: Reached an all-time high of PHP96.2 billion, an 8% growth year-on-year, with EBITDA margins at 52% [3][25] - Core Net Income: Ended at PHP30.2 billion, exceeding guidance of PHP30 billion, representing an 8% growth [4][26] - Segment Performance: - Home Business: Grew by 24% to PHP47.8 billion, with fiber revenues increasing by 82% [4][17] - Individual Segment: Flat at PHP86.2 billion despite challenges [4][17] - Enterprise Segment: Grew by 3% to PHP48.0 billion [4][17] Subscriber Growth and Market Dynamics - Fiber Subscribers: Added 1.13 million new fiber subscribers, totaling 3 million, a 27% increase [5][20] - 5G Subscribers: Reached 1 million, with plans to push further adoption [5][20] - Market Penetration: Overall broadband penetration in the Philippines is still low at around 20%, indicating strong future demand [20] Strategic Initiatives and Future Outlook - Sustainability Goals: Aiming for a 40% reduction in Scope 1 and Scope 2 emissions by 2030 [6] - Installation Targets: Aiming for 4,000 installations per day in the Home business [9] - 2022 Revenue Growth: Expected mid-single-digit growth overall, with broadband anticipated to see double-digit growth [41] - CapEx Guidance: Reduced to PHP76 billion to PHP80 billion for 2022, down from PHP89 billion in 2021 [41] Impact of Typhoon Odette - Estimated impact of PHP1 billion due to revenue loss and repair costs from Typhoon Odette [27] Dividend and Financial Health - Dividends: Final cash dividend of PHP42 per share, totaling PHP84 for the year, up from PHP17 the previous year [29] - Debt Management: Ended 2021 with a net debt of USD 4.5 billion, aiming to reduce the net debt to EBITDA ratio closer to 2x [30] Voyager Innovations and Digital Banking - Maya Bank Launch: Targeting to launch Maya Bank by the end of March 2022, expanding financial services [36][39] - User Base: Expanded to 44 million registered users, with a focus on providing a full suite of financial services [35][36] Key Risks and Challenges - Competition: Monitoring competition from new entrants and existing players, with a focus on maintaining customer value [55] - ARPU Pressure: Anticipating some pressure on Average Revenue Per User (ARPU) due to market competition [56] Conclusion - PLDT Inc. demonstrated strong financial performance in 2021, with significant growth in key segments and a focus on sustainability and digital transformation. The company is well-positioned for future growth, particularly in broadband and enterprise services, while navigating challenges from competition and external factors like natural disasters.