PLDT, Inc. Earnings Call: Steady Growth Amid Challenges

PLDT, Inc. ((PHI)) has held its Q3 earnings call. Read on for the main highlights of the call.

PLDT, Inc. Reports Steady Growth Amidst Challenges

PLDT, Inc. recently held its earnings call, revealing a stable revenue growth trajectory and maintained profitability despite facing several challenges. The sentiment during the call was cautiously optimistic, with significant growth in the company’s digital and fiber segments, alongside a positive turnaround for Maya. However, the company acknowledged declines in telco core income and rising depreciation and interest costs as hurdles. Notably, PLDT achieved positive free cash flow earlier than anticipated, showcasing effective financial management.

Revenue Growth and Cost Control

PLDT’s service revenues, net of interconnection costs, reached PHP 145.9 billion, marking a 1% increase year-on-year. The company’s EBITDA rose by 3% to PHP 82.8 billion, maintaining a steady margin of 52% amidst higher revenues and reduced operating expenses. This growth underscores PLDT’s strategic focus on revenue enhancement and cost control.

Digital Business and Maya’s Profitability

The digital segment, particularly Maya, played a crucial role in stabilizing PLDT’s core income at PHP 25.8 billion. Maya’s core net income saw a significant turnaround, reaching PHP 603 million, a stark contrast to last year’s loss of PHP 1.5 billion. This highlights the successful strategies implemented in the digital business.

Fiber and ICT Growth

PLDT’s fiber revenues experienced a 7% growth, while ICT revenues surged by 27% year-on-year. This growth was fueled by increasing demand for managed IT services, data center colocation, and cybersecurity services, reflecting the company’s strong position in the ICT sector.

Prepaid Fiber Expansion

The prepaid fiber segment witnessed a remarkable expansion, with the subscriber count growing 15 times since the end of 2024. The average revenue per user (ARPU) remained steady at PHP 1,470, driven by value-based bundles, indicating robust customer engagement.

Government Project Momentum

Enterprise revenue saw a 5% increase compared to the second quarter, with corporate data and ICT services up by 7%. A notable 40% rise in ICT services led this growth, demonstrating PLDT’s strong foothold in government projects and enterprise solutions.

Positive Free Cash Flow

PLDT achieved positive free cash flow as of September 2025, ahead of its forecasted target for 2026. This early achievement underscores the company’s effective financial management and strategic planning.

Telco Core Income Decline

Despite the overall positive performance, PLDT’s telco core income declined by 5% year-on-year to PHP 25.3 billion. This decline was primarily attributed to higher depreciation and financing costs resulting from network and IT investments.

Wireless Revenue Slight Decline

The wireless business segment experienced a slight revenue decline, reaching PHP 63.2 billion for the first nine months, down by PHP 0.3 billion from the previous year. This decline was mainly due to legacy brands.

Increased Depreciation and Interest Costs

PLDT faced increased depreciation and interest costs this quarter, with PHP 2.6 billion in accelerated depreciation and non-cash charges related to the modernization of core and IT systems. The average interest cost rose to 5.49%.

Debt Levels and Net Debt-to-EBITDA

The company’s net debt stood at PHP 289 billion, resulting in a net debt-to-EBITDA ratio of 2.61x, slightly higher than the previous quarter. Despite this, PLDT remains within its target range, indicating sound financial health.

Forward-Looking Guidance

Looking ahead, PLDT provided comprehensive guidance on its financial performance for the first nine months of 2025. The company aims to maintain its growth trajectory with a focus on spending control, as evidenced by a 2% decrease in cash operating expenses, subsidies, and provisions. PLDT plans to reduce CapEx to PHP 43 billion, with a full-year CapEx guidance lowered to PHP 60 billion. The company is also targeting a reduction in leverage to around 2.0x net-debt-to-EBITDA through asset monetization and lower CapEx.

In conclusion, PLDT, Inc.’s earnings call highlighted a stable growth path with effective cost management and strategic investments in digital and fiber segments. Despite challenges such as declining telco core income and increased costs, the company remains optimistic about its future, supported by strong digital business performance and positive cash flow achievements.