PLDT, Inc. ((PHI)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The recent earnings call of PLDT, Inc. conveyed a mixed sentiment, reflecting stable financial performance and growth in key areas such as fiber, ICT, and Maya’s turnaround. However, the overall sentiment was tempered by concerns over regulatory challenges, slight declines in some revenue segments, and increased costs.
Stable Core Results and Revenue Growth
PLDT reported service revenues net of interconnection costs reaching PHP 97.1 billion, marking a slight year-on-year increase. The company’s EBITDA rose by 3% to PHP 55.5 billion, maintaining a stable EBITDA margin of 52%. This stability underscores PLDT’s resilience in a challenging market environment.
Maya’s Turnaround
A significant highlight of the call was Maya’s financial performance, achieving PHP 406 million in core income. This marks its first profitable semester and a remarkable PHP 1.1 billion turnaround from a PHP 693 million loss last year, showcasing the successful execution of its strategic initiatives.
Growth in Fiber and ICT Segments
PLDT’s fiber revenues experienced a 7% year-on-year growth, reaching PHP 29.5 billion, while ICT revenues increased by 15% to PHP 3.2 billion. These segments continue to be pivotal in driving the company’s revenue growth.
Launch of AI-Ready Data Center
The inauguration of VITRO Santa Rosa, the country’s first operational AI-ready hyperscale facility, marks a significant milestone for PLDT. This development enhances its digital infrastructure capabilities and positions the company as a leader in technological innovation.
Innovative Offerings and 5G Expansion
PLDT introduced KiQ, an app-based mobile service targeting Gen Z, and expanded its 5G services, achieving an 84% increase in 5G traffic year-on-year. These initiatives highlight PLDT’s commitment to innovation and adapting to changing consumer demands.
Sustainability Initiatives
The company continued its efforts in sustainability, signing agreements to source additional renewable energy and receiving several recognitions for its initiatives. This reflects PLDT’s dedication to environmental responsibility.
Decline in Telco Core Income
Despite positive developments, PLDT faced a 4% decrease in telco core income due to higher depreciation and financing costs. This decline highlights the financial challenges the company is navigating.
Enterprise Revenues Slightly Down
Enterprise revenues saw a slight decline of 1% year-on-year to PHP 23.5 billion, attributed to declines in legacy businesses and delayed public sector deals. This segment remains an area of concern for PLDT.
Challenges with Konektadong Pinoy Bill
The earnings call also addressed potential constitutional issues with the Konektadong Pinoy Bill, including concerns over discriminatory treatment of telcos and infrastructure access. These challenges could impact PLDT’s operations.
Softness in Individual Revenues
Individual revenues dropped by 1% year-on-year to PHP 42.3 billion, primarily due to weaker legacy offerings. This softness indicates a need for strategic adjustments in this segment.
Forward-Looking Guidance
Looking ahead, PLDT provided comprehensive guidance for the first half of 2025. The company expects continued growth in service revenues and EBITDA, driven by fiber demand and disciplined cost management. Despite a dip in telco core income, Maya’s positive earnings and strong fiber demand are expected to support overall financial performance. PLDT is focused on network quality and expansion, particularly in 5G and fiber developments, while also pursuing cost optimization and digital innovations.
In summary, PLDT’s earnings call reflected a balanced mix of achievements and challenges. While the company demonstrated growth in key areas like fiber and ICT, concerns over regulatory issues and revenue declines in certain segments were evident. The forward-looking guidance suggests a focus on strategic growth and innovation, positioning PLDT for future success.