PLDT Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics:

Gross Service Revenues: PHP 54.9 billion, up 3% year-on-year.

Net Service Revenues: PHP 48.9 billion, stable year-on-year.

EBITDA: PHP 28.3 billion, up 2%, with a margin of 52%.

Telco Core Income: PHP 8.6 billion, down 2% due to higher depreciation.

Core Income: PHP 9.1 billion, up 2%, supported by Maya's profitability and asset sales.

Net Debt: PHP 282.3 billion, with a net debt to EBITDA ratio of 2.53x.

CapEx: PHP 10 billion, down from PHP 10.8 billion year-on-year.

2Strategic Updates and Business Highlights:

Enterprise Segment: Revenues grew by 4% to PHP 12.4 billion, driven by corporate data and ICT services.

Maya: Continued growth with a loan portfolio of PHP 33 billion and a net interest margin of 17.1%. The NPL ratio improved to 4.9%.

Home Segment: Revenues slightly down to PHP 15 billion, impacted by a migration to a new operational support system (OSS), which is expected to stabilize in Q2.

Wireless Segment: Wireless revenues declined 1% to PHP 21 billion, with data revenues growing 1% but affected by consumer spending pressures.

Sustainability Initiatives: PLDT is focused on embedding sustainability within its operations and has been recognized for its efforts.

3Forward Guidance and Outlook:

Revenue Guidance: Expected to remain stable with a focus on maintaining positive free cash flow and reducing net debt to EBITDA to around 2.0x.

CapEx Guidance for 2026: Expected to be in the mid-PHP 50 billion range, with continued focus on disciplined spending.

Maya's Growth: Anticipated to continue, with no immediate pressures noted from macroeconomic conditions.

4Challenges and Points of Concern:

Consumer Spending Pressure: Higher fuel prices and inflation are affecting consumer wallets, leading to reduced top-up frequency in wireless services.

Operational Challenges: The OSS migration has temporarily constrained fiber installations, impacting net adds and ARPU.

Legacy Services Decline: Continued decline in legacy services such as voice and SMS is offsetting growth in newer segments.

Market Competition: The competitive landscape remains challenging, with potential pricing pressures as competitors may implement price hikes.

5Notable Q&A Insights:

Consumer Spending Trends: There has been a noted slowdown in top-up frequency since March, attributed to inflationary pressures.

Maya's Performance: Despite economic pressures, Maya has not observed significant negative impacts on performance, with strong loan growth and stable asset quality.

OSS Migration Impact: The OSS migration is now stabilized, and improvements in order fulfillment are expected to enhance customer service in subsequent quarters.

International Voice Revenue: The increase in international voice revenues correlates with higher interconnection costs, reflecting the nature of PLDT Global’s operations.

Asset Monetization: Plans for a REIT listing remain a priority, with proceeds aimed at debt reduction, although specific timelines are not disclosed. This summary encapsulates PLDT's financial performance, strategic initiatives, and outlook while addressing challenges and insights from the Q&A session.