Summary of PLDT Q2 2026 Earnings Call

1Key Financial Results and Metrics

Gross Service Revenues: PHP 108.7 billion, up 2% year-on-year.

Net Service Revenues: PHP 97.8 billion, up 1% year-on-year.

EBITDA: PHP 56.1 billion, maintaining a margin of 52%.

Telco Core Income: PHP 16.6 billion, down 2% year-on-year; overall core income stabilized at PHP 17.3 billion due to contributions from Maya and asset sales.

Reported Income: PHP 16.4 billion, down 6% year-on-year, impacted by foreign exchange losses.

CapEx: PHP 20.7 billion for H1 2026, down from PHP 27.4 billion in H1 2025; full-year guidance remains in the mid-PHP 50 billion range.

Net Debt: PHP 287.3 billion, with a net debt to EBITDA ratio of 2.57x.

2Strategic Updates and Business Highlights

Wireless Segment: Revenues stable at PHP 42.1 billion; improvement in monthly top-ups from negative to positive growth due to pricing strategies and personalized offers.

Home Business: Revenues at PHP 30 billion, down 1% due to installation constraints; however, signs of recovery with positive net adds and improved installation rates.

Enterprise Segment: Strong growth with revenues up 5% to PHP 24.8 billion, driven by ICT services and corporate data.

Maya: Continued profitability with a deposit balance of PHP 86 billion and loans outstanding of PHP 39 billion; contributed PHP 559 million to PLDT’s core income.

VITRO Data Centers: Positioned for growth with a planned REIT listing in Q4 2026, subject to market conditions.

3Forward Guidance and Outlook

Revenue Growth: Expected to improve in the second half of 2026, particularly in the Home segment as installation volumes increase.

CapEx Strategy: Focus on maintaining lower CapEx intensity while supporting growth and network quality; aiming for a reduction in net debt to EBITDA towards 2x.

Dividends: Interim cash dividend of PHP 46 per share declared, maintaining a payout ratio consistent with policy.

4Bad News, Challenges, or Points of Concern

Declining Metrics: Telco core income and reported income both showed declines due to increased depreciation and amortization costs.

Consumer Spending: Softer consumer spending in the wireless segment remains a concern, although recent trends indicate a recovery.

Competitive Pressures: Increased competition in the mobile segment, with some competitors showing stronger growth; challenges in maintaining subscriber base amid aggressive pricing from rivals.

Operational Constraints: Installation delays in the Home segment have impacted revenue recognition, with a lag expected to continue.

5Notable Q&A Insights

Mobile Top-Up Trends: July showed a positive top-up growth of approximately 3%, indicating a potential structural recovery in consumer spending.

Home Revenue Recovery: Positive indicators suggest revenue improvements may be visible by August or September, contingent upon installation rates.

Maya's Performance: Recent accounting adjustments impacted Maya's contribution, but underlying performance remains strong with room for credit growth.

CapEx and Depreciation: Ongoing investments in network upgrades are driving higher depreciation; management is focused on ensuring returns on new CapEx.

VITRO REIT Transaction: Interest remains strong for the proposed REIT, with a focus on timing based on market conditions. This summary encapsulates PLDT's financial performance, strategic initiatives, and outlook while addressing challenges and insights from the Q&A session.