PLDT(PHI)2021-11-06 20:20Financial Data and Key Metrics Changes - For Q3 2021, PLDT reported a net service revenue of PHP46 billion, an increase of PHP2.3 billion or 5% year-on-year, marking an all-time high for the quarter [3][4] - Adjusted EBITDA reached PHP24.5 billion for Q3 2021, up PHP1.7 billion or 8% from the same period last year, maintaining a margin of 51% [3][4][28] - For the first nine months, Telco Core income was PHP23.1 billion, reflecting a growth of PHP2.1 billion or 10% compared to the previous year [4][17] Business Line Data and Key Metrics Changes - The Home business saw a revenue increase of 25% year-to-date, with fiber-only revenue growing by 17% year-on-year [5][22] - The Enterprise segment achieved a record high revenue of PHP10.7 billion in Q3, driven by ICT business, cloud, and colocation revenues, which increased by 26% [7][14] - Wireless revenue faced challenges due to lockdowns, but data revenue grew by 14% year-on-year, accounting for 76% of total service revenues [15][21] Market Data and Key Metrics Changes - PLDT's fiber network expanded to 615,000 kilometers, a 17% increase from June, with homes passed reaching 12.7 million, covering about 50% of total households in the Philippines [9][10] - The company reported 40 million data users by the end of September, with an average data usage of 7.9 GB per month [21] - The mobile data traffic increased by 16% year-on-year, driven by strong LTE adoption and early 5G adoption [21] Company Strategy and Development Direction - PLDT aims to build a digital ecosystem, integrating its services with PayMaya and Maya Bank to enhance financial inclusion [11][12] - The company is focusing on expanding its fiber network and improving customer experience through enhanced connectivity and service offerings [8][10] - PLDT is planning to launch Maya Bank in early 2022, targeting 1 million customers for deposit and loan services [59][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of mobile revenues with the easing of lockdowns, noting an uplift in top-ups and postpaid activations [58] - The company anticipates strong demand for home broadband services to continue, even as mobility increases [23] - Management affirmed the full-year guidance of PHP30 billion for Telco Core income and PHP96 billion for EBITDA, indicating a growth of over 10% [51] Other Important Information - PLDT's net debt stood at approximately 1 billion, with significant growth expected following the acquisition of a digital bank license [55] Q&A Session Summary Question: Can you provide any color on how mobile revenues have trended on a monthly basis in July, August, and September? - Management noted a slight uplift in top-ups due to increased mobility, with more postpaid activations as malls reopened [58] Question: Are there any targets on the digital bank front that can be disclosed? - The target is to launch Maya Bank in early 2022, aiming for 1 million customers for deposit and loan services [59] Question: What is the dollar amount of expected GTV for PayMaya in 2020? - Management refrained from sharing specific numbers but indicated a growth trajectory of 50% over the previous year [61] Question: What is PLDT's stake in PayMaya? - PLDT holds a 38.5% stake in PayMaya [63] Question: Is the group looking at Starlink or low satellite as an option to enhance the data network? - Management confirmed ongoing discussions with various satellite companies, including Starlink, for potential solutions in underserved areas [64][65] Question: Does the company have a target date to complete the migration from copper to fiber? - The completion of the copper to fiber migration is anticipated in the first quarter of 2022 [66] Question: What is your outlook for CapEx for next year? - Management is still undergoing the budget process and will provide figures in December [73] Question: How much larger can the Home broadband margin be? - Management indicated significant growth potential for fixed broadband penetration in the Philippines, which is currently low compared to other ASEAN markets [68]