PLDT Inc. (PHI) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
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.
Key Financial Performance
Service Revenues PHP 145.9 billion, up 1% year-on-year, driven by steady demand across fiber, data, and ICT.
Cash OpEx, Subsidies, and Provisions Down 2%, showing focus on spending control while supporting growth areas.
EBITDA PHP 82.8 billion, up 3% year-on-year, with margin steady at 52%, amidst higher revenues and lower OpEx.
Telco Core Income PHP 25.3 billion, down 5%, mainly due to higher depreciation and financing costs from network and IT investments.
Core Income Stable at PHP 25.8 billion, supported by Maya's sustained profitability.
Maya's Core Net Income PHP 603 million, a PHP 1.5 billion turnaround from last year's loss.
Fiber Revenues Grew 7%, reflecting solid demand for reliable connectivity.
Mobile Data and Fixed Wireless Revenues Up 1%, with usage and 5G adoption continuing to rise.
Enterprise Corporate Data and ICT Revenues Grew 2%, returning to growth in the third quarter as government and public sector projects ramped up after election-related delays.
ICT Revenues Grew 27%, driven by strong demand for managed IT services, data center colocation, and cybersecurity services.
Wireless Consumer Revenues Up 1%, with mobile data and fixed wireless delivering 3% growth year-on-year.
Home Revenues Grew 4% year-on-year to PHP 45.7 billion, driven mainly by continued fiber demand.
Prepaid Fiber Subscriptions Grew 15x since end of 2024, targeting quality subscribers with high probability of regular top-ups.
ARPU (Average Revenue Per User) Held steady at PHP 1,470, the highest in the industry, driven by value-based bundles such as video and gaming.
Churn Rate Remained low at 1.9%, reflecting strong customer loyalty and consistent network quality.
Fixed Wireless Revenues Up 18% year-on-year, driven by expanding 5G base and stronger network coverage.
5G Device Adoption Up 39% year-on-year to 10.5 million, driving higher data usage and improved customer experience.
Total Cash OpEx, Subsidies, and Provisions PHP 63.1 billion, down PHP 1.1 billion or 2% versus last year, with significant savings in compensation, benefits, and marketing costs.
Repairs and Maintenance Rose 4% to PHP 23.6 billion, reflecting ongoing network expansion and site rollouts.
Contract-Specific Services Up 25%, tied to the ramp-up of key enterprise and ICT projects.
CapEx PHP 43 billion, down from PHP 52.3 billion for the same period last year, with CapEx intensity improving to 27% from 33%.
Net Debt PHP 289 billion, translating to a net debt-to-EBITDA ratio of 2.61x, slightly higher than the prior quarter but within target range.
Gross Debt PHP 299 billion, with 60% of maturities falling beyond 2030, providing a long runway and minimal near-term refinancing pressure.
Interest Cost Average interest cost was 5.49%, up slightly from last year's 5.08%.
Free Cash Flow Turned positive as of September 2025, ahead of the forecasted 2026 target.
Maya Deposits Reached PHP 57 billion, up 59% year-on-year.
Maya Loans Disbursed Total loans disbursed since inception hit PHP 187 billion, with PHP 36 billion disbursed in Q3 alone.
Maya Loan Book Stands at PHP 27 billion, with a loan-to-deposit ratio of 48%.
Maya Net Interest Margin Rose to 18.9% for the first 9 months, while maintaining a healthy portfolio with an NPL ratio of 6.3%.
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Operating Highlights
Fiber revenues: Grew 7% year-on-year, reflecting solid demand for reliable connectivity.
Prepaid fiber: Introduced in growth markets targeting quality subscribers with high probability of regular top-ups.
Air Fiber and Laser Internet: Launched to provide fiber-like speeds in hard-to-reach areas at lower cost.
Pilipinas AI: Launched as the country's first sovereign AI platform hosted at VITRO Santa Rosa, enabling enterprises to build and deploy AI models locally.
Maya Black credit card: Launched in Q3 with strong customer response, with 40% of cardholders being first-time credit users.
Personal loans product: Introduced to incentivize periodic savings habits by offering higher rates.
5G adoption: Expanded with 5G devices up 39% year-on-year to 10.5 million, driving higher data usage and improved customer experience.
ICT services: Grew 27% year-on-year, driven by managed IT services (up 115%), data center colocation (up 25%), and cybersecurity services (up 12%).
Maya fintech ecosystem: Continued growth with deposits up 59% year-on-year to PHP 57 billion and total loans disbursed reaching PHP 187 billion since inception.
Cash OpEx, subsidies, and provisions: Reduced by 2% year-on-year, reflecting spending control.
EBITDA: Increased by 3% to PHP 82.8 billion with a steady margin of 52%.
CapEx: Lowered to PHP 60 billion for 2025, down from the original guidance of PHP 68-73 billion, due to favorable pricing and terms.
Shift to growth areas: Continued focus on fiber, data, fixed wireless, and ICT to offset legacy revenue declines.
Sustainability initiatives: Secured PHP 2 billion green loan to accelerate 5G rollout and participated in global sustainability discussions.
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Risk or Challenges
Telco Core Income Decline: Telco core income decreased by 5% year-on-year due to higher depreciation and financing costs from network and IT investments.
Legacy Revenue Decline: Legacy services continue to decline, impacting overall revenue growth despite gains in growth areas like fiber and ICT.
Higher Depreciation and Noncash Charges: PHP 2.6 billion in accelerated depreciation and noncash charges were incurred due to modernization of core and IT systems and retirement of legacy assets.
Debt Levels and Financing Costs: Net debt stood at PHP 289 billion with a net debt-to-EBITDA ratio of 2.61x, slightly higher than the prior quarter. Average interest cost increased to 5.49%.
Economic and Regulatory Risks: Government and public sector projects experienced delays earlier in the year, impacting enterprise revenue growth.
Supply Chain and Cost Pressures: Repairs and maintenance costs rose 4% due to ongoing network expansion and site rollouts. Contract-specific services increased by 25% tied to enterprise and ICT projects.
Market Competition: The competitive environment remains intense, requiring disciplined monetization and cost management to maintain profitability.
5G and Technology Adoption Risks: While 5G adoption is growing, it requires significant investment in infrastructure and customer acquisition, which could strain resources.
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Guidance & Outlook
Revenue Growth: PLDT expects continued revenue growth driven by fiber, data, fixed wireless, and ICT services. Fiber revenues are projected to grow further, supported by strong demand and the introduction of prepaid fiber in growth markets.
Capital Expenditures (CapEx): CapEx guidance for 2025 has been lowered to PHP 60 billion, down from the original PHP 68-73 billion, due to favorable pricing and terms. Investments will focus on new cell sites, LTE and 5G upgrades, home fiber ports, data center development, and submarine cables.
Debt Management: PLDT aims to reduce leverage to around 2.0x net-debt-to-EBITDA, supported by asset monetization and lower CapEx.
Enterprise Growth: Enterprise revenues are expected to grow, driven by ICT services, including managed IT services, data center colocation, and cybersecurity services. The launch of Pilipinas AI positions PLDT as a leader in AI and digital transformation.
Wireless Business: Wireless revenues are projected to grow, supported by increasing 5G adoption, higher data usage, and disciplined monetization strategies. Fixed wireless revenues are expected to sustain strong momentum.
Maya Fintech Platform: Maya is expected to continue its growth trajectory, with strong performance in deposits, loans, and payments. The platform aims to expand its ecosystem through product innovation and partnerships, targeting underserved segments and younger users.
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Shareholder Return Plan
Dividend Payment: PLDT completed a PHP 20.5 billion final dividend payment for 2024 during the period.
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Key Q&A
Q:What were the main drivers for the drop in Maya's net income for 3Q '25?
A:The drop was due to the removal of gaming links as per BSP's direction starting August 2023 and the launch of Maya Bank Black Credit card and personal loans, which led to excess provision impact in the near to medium term.
Q:How do the KPA and IRRs impact profitability and investment profile?
A:Management highlighted concerns about the lack of obligations for new entrants to build infrastructure or ensure coverage and quality under the Konektadong Pinoy law. They questioned whether the law would achieve its goals of cheaper internet, wider coverage, and more infrastructure.
Q:Why has the mobile business been trailing competitors for the third straight quarter?
A:Smart Wireless achieved flattish growth year-to-date 2025 compared to Globe's negative growth. Smart's ARPU improved by 2.5% versus Globe's -5.5%. Investments in 5G and hyper-targeting tools have helped secure higher-quality subscribers.
Q:Is there sustained uptake in government projects for the enterprise business?
A:Yes, there is continued momentum into Q4 and early Q1, with demand from national government agencies and LGUs for connectivity and ICT services. The government is prioritizing digital connectivity investments.
Q:What are the opportunities and challenges with the Konektadong Pinoy law?
A:Opportunities include potential partnerships with new players to improve connectivity. Challenges include unclear wholesale access pricing mechanisms and spectrum management provisions, which lack clarity and could impact the business.
Q:What is the timeline for reducing net-debt-to-EBITDA to 2x?
A:It is expected to be achieved in 3 to 4 years, supported by lower CapEx and asset monetization programs.
Q:What drove the strong fixed broadband net adds in Q3?
A:The increase was driven by a threefold growth in prepaid subscriptions and targeted acquisitions in Tier C municipalities, while maintaining high ARPUs.
Q:Why did depreciation and interest expenses increase?
A:Depreciation increased due to the retirement of legacy assets and IT modernization. Interest expenses rose due to a 49 basis point increase in weighted average rates and a PHP 19 billion increase in weighted loan average.
Q:How will SmartSafe and Pilipinas AI contribute to revenues?
A:SmartSafe offers secure, seamless app transactions without OTPs, targeting B2B companies. Pilipinas AI provides a platform for enterprises to run AI use cases, leveraging NVIDIA H200 GPUs.
Q:Why has debt increased despite lower CapEx guidance?
A:The increase in debt is primarily due to refinancing.
Q:Are there any updates on Maya's potential IPO or spin-off?
A:Management is focused on scaling the business, and any IPO decisions will be led by shareholders.
Q:Review of Unclear Management Responses
A:Management avoided providing direct answers or lacked clarity on the following: 1. The specific impact of the Konektadong Pinoy law and IRRs on profitability and investment profile, as they questioned the law's ability to achieve its goals. 2. The wholesale access pricing mechanism and spectrum management provisions under the Konektadong Pinoy law, which remain unclear. 3. Details on Maya's potential IPO or spin-off, as management deferred to shareholders for decisions.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Aquino PLDT
CEO Viboy
Chief Financial
Consumer Mr
Enterprise Mr
Fabul Head
Genuino OICs
Head Consumer
Head afternoon
ICT Cash
Instructions Chief
Lloyd Manaloto
Manaloto Ms
Marilyn Victorio
Mr Head
Mr PLDT
Mr ePLDT
Ms QA
OICs Smart
PHP demand
PLDT Corporate
PLDT highlight
President Investor
Relations Head
Secretary Marilyn
Smart Lloyd
Viboy Genuino
Victorio Aquino
cost PHP
demand fiber
ePLDT President
highlight month
interconnection cost
month result
month service
net interconnection
pleasure month
today 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
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
