PHI — PLDT Inc.

Summary of PLDT Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Gross Service Revenues: PHP 212.2 billion, up 2% year-on-year.
• Net Service Revenues: PHP 196.2 billion, a record high.
• Cash Operating Expenses: PHP 84.9 billion, down 1% year-on-year.
• EBITDA: PHP 111.2 billion, up 3% with a margin of 52%.
• Telco Core Income: PHP 33.9 billion, down 3% due to higher financing costs and depreciation.
• Core Income: PHP 34.6 billion, up 1%, aided by Maya's profitability.
• Free Cash Flow: Positive through 2025, with CapEx at PHP 60.3 billion, down from PHP 78.2 billion.
• Net Debt: PHP 284.7 billion, with a net debt-to-EBITDA ratio of 2.56x.

2. Strategic Updates and Business Highlights

• Digital Business Growth: Continued shift towards fiber, wireless data, and ICT, contributing to revenue growth.
• Home Business: Fiber revenues grew 6%, with total Home revenues reaching PHP 61 billion, up 3%.
• Enterprise Business: Achieved record revenues of PHP 48.4 billion, with ICT revenues up 25% year-on-year.
• Maya: Closed 2025 with PHP 1.7 billion in net income, marking its first full year of profitability.
• Data Center Expansion: VITRO launched a new hyperscale facility, enhancing PLDT's position in the data center market.

3. Forward Guidance and Outlook

• CapEx Guidance for 2026: Expected to be in the mid-PHP 50 billion range.
• Sustained Positive Free Cash Flow: Expected to continue into 2026, with plans to reduce net debt.
• Dividend: Total dividends for 2025 amount to PHP 94 per share, with a final dividend of PHP 46 declared.

4. Bad News, Challenges, or Points of Concern

• Telco Core Income Decline: Down 3% year-on-year, primarily due to increased depreciation and financing costs.
• Impact of Natural Disasters: Calamities in Q4 affected installation activities, leading to flat Home revenues quarter-on-quarter.
• Competitive Pressures: While PLDT's revenues grew, the overall Philippine telco market remained weak, with competitors experiencing more significant declines.

5. Notable Q&A Insights

• Mobile Growth Drivers: PLDT's growth in mobile was attributed to hyper-personalization and improved network resilience, despite a weak GDP environment.
• Broadband Performance: Flat quarter-on-quarter growth in broadband was influenced by resource allocation towards restoration efforts post-calamities.
• Maya's IPO Potential: Discussions are ongoing regarding Maya's potential IPO, with no definitive timeline provided.
• Data Center REIT: PLDT is considering a REIT IPO for its data centers, primarily to pay off debt.
• Interest Expense Growth: Driven by higher interest rates and lease liabilities, with negotiations ongoing to reduce future costs.

This summary encapsulates the key points from PLDT's Q4 2025 earnings call, highlighting financial performance, strategic initiatives, and challenges faced by the company.