PLDT, Inc. Q1 FY2025 earnings call

Financial Performance - Net revenue reached PHP 53.4 billion, up 2% year-on-year. EBITDA grew 2% to PHP 27.9 billion. Telco Core income was PHP 8.8 billion, down 6% year-on-year. Core income was steady at PHP 8.9 billion, supported by Maya's profitable contribution. - ### Key Initiatives - VITRO Santa Rosa data center, a 50-megawatt AI-ready facility, was inaugurated. The Asia Direct Cable, a 9,400 km subsea cable, enhances international connectivity. Maya, the fintech unit, turned profitable with 6.8 million bank customers, 1.8 million borrowers, PHP 44 billion in deposits, etc. - ### Infrastructure - CapEx for Q1 2025 was PHP 10.8 billion, with CapEx guidance adjusted to PHP 68-70 billion. Net debt at end of March was PHP 270.7 billion, net debt-to-EBITDA ratio 2.48x.

Home segment revenue rose 4% year-on-year to PHP 15.2 billion, with fiber accounting for 97% of Home revenues, up from 92% in 2024. Enterprise total revenue was steady at PHP 11.9 billion year-on-year, with ICT growing 16% to PHP 2.2 billion, now over 22% of enterprise revenues. Mobile revenues were down slightly to PHP 21.3 billion due to lower packet Wi-Fi usage, but 5G adoption and data traffic showed growth. Mobile data, fiber, corporate data, and ICT now account for 89% of total revenues.

• CapEx guidance for 2025 adjusted to PHP 68 to PHP 70 billion. - Aim to generate positive free cash flow by 2026 and reduce net debt-to-EBITDA ratio to around 2.0x over the medium term.

• POGO-related revenue pressures in Enterprise segment continuing until at least Q3. - Foreign currency exposure with just 5% of total debt unhedged.

Q: On the Enterprise segment, any further downturn from POGO cancellations?

A: Still some drag until at least Q3 due to POGO shutdown impact.

Q: Take-up levels for VITRO Santa Rosa?

A: Have a big hyperscale customer taking 4 megawatts, with ongoing discussions with other hyperscalers and enterprises.

Q: Profit momentum for Maya?

A: Steady and gradual margin improvement, not a hockey stick growth.

Q: 5G monetization strategy?

A: Focus on 5G coverage and building dense network, with 5G traffic growth and device adoption up.

Q: Guidance for 2025 net income?

A: Unable to provide at this point due to fluid environment.

Q: Plans to increase PLDT stake in Maya?

A: Not solid from PLDT side yet.

Q: OpEx further reduction?

A: Nearing optimal levels.