PLDT, Inc. ((PHI)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for PLDT, Inc. painted a generally positive picture, highlighting consistent revenue growth and strong EBITDA improvements. The company also celebrated significant achievements in its fintech and sustainability efforts. However, challenges such as the decline in legacy revenues and slower-than-average growth in Fiber broadband were also acknowledged.
Consistent Revenue Growth
PLDT reported a 2% year-on-year increase in service revenue, reaching PHP 194.7 billion. This growth was primarily driven by the Fiber, Mobile data, and Enterprise ICT segments. Overall, gross revenue saw a 3% rise, totaling PHP 208.4 billion, showcasing the company’s ability to maintain a steady upward trajectory.
Strong EBITDA Improvement
The company’s EBITDA expanded by 4% to PHP 108.5 billion, achieving an impressive EBITDA margin of 52%. This improvement underscores PLDT’s strong operational efficiency and its ability to effectively manage costs while driving revenue growth.
Enterprise ICT Growth
Enterprise revenues grew by 3% to PHP 48.4 billion, with ICT services emerging as the fastest-growing segment, posting a 15% increase. This highlights the company’s successful focus on expanding its enterprise solutions and capitalizing on the growing demand for ICT services.
Fintech Milestones
PLDT’s fintech arm, Maya Innovations, achieved its first profitable month in December 2024. Additionally, Maya Bank has been profitable since September 2024, marking significant milestones in the company’s fintech journey and demonstrating the potential of its digital financial services.
Sustainability Achievements
The company’s commitment to sustainability was evident as its S&P Corporate Sustainability Assessment score rose by 14 points to 72, the highest among Philippine corporates. This achievement reflects PLDT’s dedication to integrating sustainable practices into its operations.
Legacy Revenue Decline
Despite the positive trends, PLDT continues to face challenges with declining legacy revenues, which impact overall revenue growth. However, the company expects this decline to moderate as customers transition to newer segments.
Subscriber Cleanup Impact
The year-end cleanup led to losses in prepaid mobile subscribers, a necessary step to maintain an accurate subscriber base and improve service quality.
Challenges in Fiber Broadband Growth
While there were improvements in Fiber broadband, growth was slower than the industry average. Net additions decreased from 100,000 in Q3 to 40,000 in Q4, indicating a need for strategic adjustments to enhance competitiveness in this segment.
Forward-Looking Guidance
Looking ahead, PLDT anticipates stable financial performance with continued growth across various segments. The company projects service revenue to increase by 2% year-on-year, driven by Fiber, Mobile Data, and Enterprise ICT. EBITDA is expected to grow by 4%, maintaining a strong margin. The company plans to continue its asset monetization strategy, including tower and copper asset sales, and has set its CapEx guidance for 2025 between PHP 68 billion and PHP 73 billion.
In summary, PLDT’s earnings call highlighted a generally positive outlook with consistent revenue growth and strong operational efficiency. The company is making strides in fintech and sustainability, although challenges remain in legacy revenue decline and Fiber broadband growth. Looking forward, PLDT aims to maintain its growth trajectory while addressing these challenges strategically.