PLDT, Inc. Highlights Growth and Challenges in Earnings Call

PLDT, Inc. ((PHI)) has held its Q1 earnings call. Read on for the main highlights of the call.

PLDT, Inc. Reports Positive Growth Amidst Challenges in Latest Earnings Call

The recent earnings call of PLDT, Inc. showcased a positive sentiment overall, with notable growth in revenue and EBITDA, alongside advancements in key segments such as Home, ICT, and Maya. The company also emphasized strategic digital infrastructure developments, including VITRO Santa Rosa and the Asia Direct Cable. However, the call also highlighted some challenges, such as a decline in Telco Core income and mobile revenues, as well as pressures in the enterprise segment.

Revenue and EBITDA Growth

PLDT reported a revenue increase to PHP 53.4 billion, marking a 2% rise from the previous year. This growth was mirrored in the company’s EBITDA, which also grew by 2% to reach PHP 27.9 billion. The strength in the fiber and ICT segments was a significant driver of this positive performance.

Home Segment Success

The Home segment experienced a 4% revenue increase year-on-year, totaling PHP 15.2 billion. This growth was primarily fueled by a 7% rise in fiber revenues, which now make up 97% of the Home segment’s total revenues, up from 92% last year.

ICT Segment Growth

ICT revenues saw a substantial 16% year-on-year growth, reaching PHP 2.2 billion. This segment now accounts for over 22% of PLDT’s enterprise revenues, up from 19% a year ago, highlighting its increasing importance to the company’s overall financial health.

5G Adoption and Data Traffic

There was a significant surge in 5G data traffic, which increased by 81% year-on-year. Additionally, 5G device adoption grew by 60% quarter-on-quarter, indicating improved monetization opportunities and growth potential for PLDT.

Maya’s Profitability

Maya, PLDT’s digital financial service, achieved positive net income for the first time, contributing PHP 127 million. This was driven by robust growth in loans, deposits, and increased payment volume, marking a milestone in its financial journey.

VITRO Santa Rosa and Asia Direct Cable

The inauguration of VITRO Santa Rosa, the first AI-ready hyperscale data center in the Philippines, along with the Asia Direct Cable, positions PLDT to enhance its competitive edge in the digital infrastructure space.

Telco Core Income Decline

PLDT’s Telco Core income declined by 6% year-on-year to PHP 8.8 billion. This decrease was attributed to increased depreciation and financing costs, which are linked to the company’s network infrastructure investments.

Mobile Revenue Decline

Mobile revenues saw a slight decline to PHP 21.3 billion, primarily due to reduced packet Wi-Fi usage and adjustments in prepaid packages, reflecting a shift in consumer behavior.

Enterprise Segment Challenges

While enterprise revenue remained steady, the segment faced challenges due to POGO-related revenue pressures. These challenges are expected to persist until the third quarter, impacting the segment’s performance.

Forward-Looking Guidance

Looking ahead, PLDT aims to continue its growth trajectory by expanding its fiber footprint and leveraging emerging technologies. The company plans to pursue asset monetization and maintain disciplined capital allocation. Despite the challenges, PLDT remains committed to enhancing its financial performance and competitive positioning.

In conclusion, PLDT, Inc.’s latest earnings call reflected a generally positive outlook, with significant growth in several key areas. However, the company also faces challenges, particularly in its Telco Core income and mobile revenue segments. As PLDT moves forward, its strategic initiatives and focus on digital infrastructure are expected to play a crucial role in overcoming these hurdles and driving future growth.