PHI — PLDT Inc.

Summary of PLDT's Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Service Revenues: PHP 145.9 billion, up 1% year-on-year.
• Cash Operating Expenses: Down 2% to PHP 63.1 billion, reflecting spending control.
• EBITDA: Increased 3% to PHP 82.8 billion, maintaining a margin of 52%.
• Telco Core Income: PHP 25.3 billion, down 5% due to higher depreciation and financing costs.
• Core Income: Stable at PHP 25.8 billion, supported by contributions from Maya.
• CapEx: PHP 43 billion for the first 9 months, with full-year guidance lowered to PHP 60 billion.
• Net Debt: PHP 289 billion, with a net debt-to-EBITDA ratio of 2.61x.

2. Strategic Updates and Business Highlights

• Growth Segments: Excluding legacy services, total revenues rose 3%, with fiber revenues up 7% and ICT revenues up 27%.
• Maya Performance: Contributed PHP 603 million to core net income; sustained profitability for three consecutive quarters.
• Enterprise Growth: Corporate data and ICT revenues grew 2%, with ICT services up 51% as government projects resumed.
• New Initiatives: Launched Pilipinas AI, a sovereign AI platform, and SmartSafe, enhancing security for mobile transactions.
• Sustainability Efforts: Secured a PHP 2 billion green loan for 5G rollout; improved ESG ratings.

3. Forward Guidance and Outlook

• Leverage Reduction: Aiming to reduce net debt-to-EBITDA to around 2.0x in 3-4 years, supported by asset monetization and lower CapEx.
• Positive Cash Flow: Achieved positive free cash flow as of September 2025, ahead of 2026 targets.
• Continued Investment: Focus on expanding digital services and infrastructure, particularly in AI and data centers.

4. Bad News, Challenges, or Points of Concern

• Core Income Decline: Telco core income decreased due to rising depreciation and financing costs.
• Competitive Pressures: Wireless revenues slightly declined, trailing competitors in mobile performance.
• Regulatory Risks: Concerns regarding the Konektadong Pinoy law's impact on profitability and investment, with no clear obligations for new entrants to build infrastructure.
• Interest Expense Increase: Interest costs rose due to higher average rates and increased debt levels.

5. Notable Q&A Insights

• Maya's Net Income Drop: Attributed to the removal of gaming links and the launch of new credit products, which may require time to mature.
• Wireless Performance: Despite trailing competitors, Smart's ARPU improved, and growth in fixed wireless is strong.
• Government Spending: Continued demand for enterprise services is expected, driven by government projects focusing on digital connectivity.
• Asset Monetization: Ongoing discussions for potential stake sales in data centers and copper assets.
• IPO Speculation: Management remains focused on operational execution, with any IPO decisions for Maya to be led by shareholders.

Overall, PLDT's Q3 2025 results reflect a stable financial position with ongoing investments in growth areas, despite facing challenges in core income and competitive pressures in the wireless segment. The company is optimistic about future cash flow and strategic initiatives while navigating regulatory uncertainties.