PLDT Inc. (PHI) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals mixed signals: strong revenue growth in certain segments, Maya's profitability, and strategic expansion plans are positive. However, the lack of guidance on key metrics, concerns over broadband, and increased interest expenses pose challenges. The Q&A highlights uncertainties, particularly around Maya's IPO and provisioning levels, which tempers optimism. The absence of revenue and EBITDA guidance adds to the uncertainty, leading to a neutral sentiment overall.
Key Financial Performance
Gross Service Revenues PHP 212.2 billion, up 2% or PHP 3.8 billion year-over-year. The increase was driven by growth in service areas.
Net Service Revenues PHP 196.2 billion, marking a record. This was supported by a focus on spending control and growth areas.
Cash OpEx Subsidies and Provisions PHP 84.9 billion, down 1%. This reflects a focus on spending control while supporting growth areas.
EBITDA (excluding MRP costs) PHP 111.2 billion, up 3% with a steady margin of 52%. This was driven by increased service revenues and reduced operating costs.
Telco Core Income PHP 33.9 billion, down 3% year-over-year. The decline was due to higher financing costs and depreciation from network upgrades.
Core Income PHP 34.6 billion, up 1%. This was supported by Maya's swing to profitability.
Consolidated Service Revenues PHP 196.2 billion, up 1% or PHP 1.5 billion year-over-year. Excluding legacy services, revenue grew 3% or PHP 5.5 billion to PHP 176.9 billion.
Wireless Consumer Revenues PHP 85 billion, steady year-over-year. Mobile data and fixed wireless revenues reached PHP 77.2 billion, up 1%.
Home Revenues PHP 61 billion, up 3%. Fiber revenues grew 6% to PHP 59.4 billion, accounting for 98% of Home revenues.
Enterprise Revenues PHP 48.4 billion, up 3%. Corporate data and ICT grew 3% to PHP 36.3 billion, now 75% of Enterprise revenues.
ICT Revenues Grew 25% year-over-year, led by managed IT services (211% growth) and data center colocation (15% growth).
Mobile Data Traffic 5,900 petabytes, up 7% year-over-year. This was supported by increased 5G adoption and better targeting.
5G Devices 11.2 million, up 35%. 5G data traffic rose 88%, supporting higher revenues.
Fixed Wireless Revenues Up 22% year-over-year, driven by the shift from 4G to 5G fixed wireless access.
CapEx PHP 60.3 billion, down from PHP 78.2 billion last year. CapEx intensity improved to 28% from 38%, reflecting tighter discipline and better pricing.
Net Debt PHP 284.7 billion, with a net debt-to-EBITDA ratio of 2.56x. Gross debt was PHP 296.9 billion.
Maya Group Net Income PHP 1.7 billion, marking its first full year of profitability. Deposit balances reached PHP 68 billion, up 72% year-over-year.
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Operating Highlights
Fiber Revenue Growth: Fiber revenues grew 6% to PHP 59.4 billion, accounting for 98% of Home revenues versus 92% a year ago.
5G Adoption: 5G devices were up 35% to 11.2 million, while 5G data traffic rose 88%. 5G devices now make up 19% of the total base.
Maya Digital Bank Profitability: Maya achieved full year profitability with PHP 1.7 billion in net income for 2025, marking its first profitable year.
ICT Revenue Growth: ICT revenues grew 25% for the full year, led by managed IT services (211% growth) and data center colocation (15% growth).
VITRO Expansion: Launched the country's first operational hyperscale facility, VITRO Santa Rosa, designed for enterprise, hyperscalers, and public sector workloads.
Maya Partnerships: Expanded partnerships with private and public sectors, including Cebuana Lhuillier, Pepsi-Cola Philippines, and the Department of Education.
Cost Management: Operating expenses came in lower for the third consecutive year, with total cash CapEx subsidies provisions at PHP 84.9 billion, down 1% year-on-year.
EBITDA Margin: EBITDA margin held steady at 52% for the year, reflecting disciplined cost management and steady revenue growth.
AI and Data Center Leadership: Introduced Pilipinas AI, the country's first sovereign AI solution stack, and strengthened PLDT's position in data center and AI services.
Sustainability Initiatives: Included in the S&P Global Sustainability Yearbook for the second straight year and earned a B rating from CDP for climate and water.
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Risk or Challenges
Higher financing costs and depreciation: Telco core income decreased by 3% due to higher financing costs and depreciation, which could impact profitability as the company continues to invest in network upgrades.
Natural disasters: Multiple major calamities, including two earthquakes and four super typhoons in Q4, disrupted installation activities and diverted resources to repair and restoration, affecting Home revenues.
Competitive market pressures: Wireless consumer revenues remained steady but faced challenges in a highly competitive market, which could pressure margins and growth.
Decline in legacy services: Legacy services revenue declined, requiring the company to offset this with growth in fiber, wireless data, and ICT services.
Debt levels and interest rate exposure: Net debt stood at PHP 284.7 billion with a net debt-to-EBITDA ratio of 2.56x. Additionally, 67% of debt is floating rate, exposing the company to interest rate fluctuations.
Operational costs and provisions: While operating expenses decreased, contract-specific services and repairs and maintenance costs increased, reflecting ongoing network rollout and ICT project ramp-ups.
Regulatory and security challenges: The company is aligning with regulatory pushes for stronger digital authentication and enhancing its security stack, which could require additional investments.
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Guidance & Outlook
CapEx Guidance for 2026: CapEx is projected to be in the mid PHP 50 billion range, focusing on growth and quality. The company aims to steadily reduce CapEx and CapEx intensity while maintaining positive free cash flow.
Debt Management and Financial Outlook for 2026: PLDT plans to maintain positive free cash flow and work towards a net debt-to-EBITDA ratio of around 2.0x, supported by asset monetization plans. The company anticipates lower interest rates in 2026 and aims to sustain its investment-grade ratings.
Dividend Policy: For 2025, total dividends amounted to PHP 94 per share, with a final dividend of PHP 46 per share declared. PLDT aims to remain an attractive dividend play with a focus on deleveraging and generating positive free cash flows.
Maya's Growth and Profitability: Maya achieved full-year profitability in 2025, with net income of PHP 1.7 billion. The platform plans to continue expanding its digital financial services, credit products, and partnerships across private and public sectors in 2026.
Enterprise Growth and ICT Expansion: Enterprise revenues are expected to grow further, driven by ICT services, managed IT services, and data center colocation. The company plans to scale its VITRO and Pilipinas AI initiatives to strengthen its position in data center and AI markets.
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Shareholder Return Plan
Total Dividends for 2025: PHP 94 per share, reflecting a 16% regular dividend payout aligned with policy.
Final Dividend for 2025: PHP 46 per share declared.
Dividend Yield: 12-month trailing dividend yield stood at 8%, positioning PLDT as one of the most attractive dividend plays in the market.
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Key Q&A
Q:What drove the 5% growth in PLDT's mobile segment quarter-on-quarter?
A:The growth was driven by high personalization offers that allowed upselling, leading to increased ARPUs. Gross activations increased by roughly 10-15%, while churn remained stable, resulting in an increase in the subscriber base.
Q:Why was broadband flat quarter-on-quarter, and what influenced ARPU?
A:Broadband was impacted by calamities such as typhoons and earthquakes, which required resource redeployment for customer restoration. ARPU softening was due to a price-sensitive environment, with growth driven by entry-level tiers. Prepaid expanded the market but was approached selectively to maintain margins.
Q:What is the update on Konektadong Pinoy and its implications?
A:The IRR of the KP Act was implemented, and eligibility criteria for data transmission industry participants were released. However, the TWG has not been constituted, and the industry has not been invited to draft the access list. The spectrum management policy framework is expected by the end of 2026.
Q:What is the status of Maya's IPO and data center REIT?
A:Management could not comment on Maya's IPO timing. For the data center REIT, an international bank is assisting, and proceeds will primarily be used to pay off debt. The REIT will cover 8 data centers, excluding VITRO Santa Rosa.
Q:What caused the Q4 decline in Maya's share of earnings despite increased loans disbursed?
A:The decline was due to non-operating and one-time items such as fair value adjustments, foreign exchange movements, and investments in new products like credit cards and AI capabilities. The impact of delinking gaming applications was minimal.
Q:What are the provisioning levels and loan breakdown for Maya?
A:Exact provisioning levels and loan breakdown were not disclosed. Provisions were related to the launch of new credit cards, and the difference in provisions was attributed to this new business line.
Q:What is the drag in growth for the Home broadband line despite fiber growth?
A:The drag was due to legacy services like copper facilities and voice-only lines, which are being migrated to fiber. Legacy services revenue decreased from PHP 3.2 billion in 2024 to PHP 1.5 billion in 2025.
Q:What is the capacity take-up for VITRO data centers?
A:Of the 9 data centers, 8 older sites have a capacity utilization of close to 80%. VITRO Santa Rosa, with a total capacity of 36 MW, has sold 6 MW so far.
Q:What is driving the increase in interest expense faster than the rise in total debt?
A:The increase is due to higher interest rates, loan balances, and accretion on lease liabilities. Negotiations with local banks for smaller spreads and reduced repricing periods are underway to achieve savings.
Q:What is the recurring income for Maya in 2025?
A:Maya posted a profit of PHP 1.7 billion in 2025, a turnaround from a PHP 2.5 billion loss in 2024. Management indicated that the PHP 1.7 billion could be considered recurring income.
Q:What is driving the improvement in Mobile's performance in the second half of 2025?
A:The improvement was driven by consistent subscriber growth, stable churn, and hyper-targeting offers that increased ARPU levels.
Q:What are the earnings trends in the Philippine telco industry, and how does PLDT compare to Globe?
A:The industry was anemic in 2025. PLDT's net service revenues grew by 1%, while Globe's were flat. PLDT's core income was down 3% (excluding fintech), compared to Globe's 15-17% decline.
Q:What is the guidance for revenue, EBITDA, and CapEx for 2026?
A:Management could not provide revenue and EBITDA guidance but indicated CapEx would be in the mid PHP 50 billion range (PHP 53-57 billion).
Q:What is the sustainability of positive free cash flows into 2026?
A:Positive free cash flow is sustainable with moderated CapEx and asset monetization programs. Management expects to start reducing debt by at least PHP 10 billion in the second half of 2026.
Q:What is the potential for further ARPU growth in Mobile?
A:Management expects a further 2% ARPU growth, with hyper-personalization targeting 40 million subscribers.
Q:What is driving the momentum in the Enterprise business?
A:The momentum is a mix of large one-time deals and recurring revenues, such as the emergency 911 national contract, which will deliver recurring revenues in 2026.
Q:Review of Unclear Management Responses
A:Management avoided providing direct answers on Maya's IPO timing, the exact provisioning levels and loan breakdown for Maya, and recurring net income excluding one-offs. Additionally, they did not provide revenue and EBITDA guidance for 2026, citing it as too early to tell.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Aquino unit
Attorney Marilyn
CFO Mr
Chief Financial
Communications Ms
Consumer Home
Corporate Secretary
Enterprise Mr
Fabul Corporate
Genuino Instructions
Head Consumer
Head Enterprise
Head afternoon
Home Mr
Instructions Chief
Marilyn Victorio
Mr Chief
Mr Head
Mr OICs
Mr PLDT
Mr ePLDT
Ms Mr
OICs Smart
PLDT CFO
President Investor
President Viboy
Relations Head
Secretary Attorney
Smart Communications
Viboy Genuino
Victorio Aquino
direction PLDT
ePLDT President
head Head
pleasure result
result briefing
unit head
PHI Transcript
PLDT Inc. (PHI) Q4 2025 Earnings Call Transcript
Unknown2-26
The earnings call reveals mixed signals: strong revenue growth in certain segments, Maya's profitability, and strategic expansion plans are positive. However, the lack of guidance on key metrics, concerns over broadband, and increased interest expenses pose challenges. The Q&A highlights uncertainties, particularly around Maya's IPO and provisioning levels, which tempers optimism. The absence of revenue and EBITDA guidance adds to the uncertainty, leading to a neutral sentiment overall.
PLDT Inc. (PHI) Q3 2025 Earnings Call Transcript
Positive11-11
The earnings call highlights robust growth in key areas such as 5G adoption, enterprise and ICT revenues, and Maya's financial performance. Despite some concerns about Maya's net income drop and mobile business performance, the overall outlook remains positive with strong financial metrics, improved cash flow, and strategic investments in AI and digital infrastructure. The Q&A session revealed optimism about government projects and potential partnerships, though some regulatory uncertainties persist. Overall, the company's strategic initiatives and financial health suggest a positive stock price movement over the next two weeks.
PLDT Inc. (PHI) Q2 2025 Earnings Call Transcript
Unknown8-12
The earnings call shows mixed signals. Basic financial performance is stable, with fiber and fixed wireless revenues growing, but overall revenue is down. Product development and market strategies are promising, with 5G and AI services expanding. However, there are concerns about wireless revenue softness and unclear management guidance. The Q&A highlights potential legal challenges and refinancing concerns, but also growth in Maya and 5G. Without clear guidance and given mixed financial results, the stock is likely to remain neutral in the short term.
PLDT Inc. (NYSE:PHI) Q1 2025 Earnings Call Transcript
Unknown5-16
The earnings call presents a mixed picture. Financial performance shows stable core income and revenue growth in fiber and ICT, but a decline in telco core income and mobile revenue. The Q&A reveals ongoing challenges, such as POGO revenue pressures and a lack of guidance for 2025 net income. However, there are positive aspects like the signing of a large hyperscale customer for VITRO and sustainable subscriber growth. The lack of guidance and ongoing depreciation costs offset some positives, resulting in a neutral sentiment.
PHI Report
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