PLDT Inc (PHI) Q2 2025 Earnings Call Highlights: Strong Fiber Growth and Digital Innovations ...

Release Date: August 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

PLDT Inc (NYSE:PHI) reported a 3% increase in EBITDA to 55.5 billion, maintaining a steady margin of 52%. Fiber revenues grew by 7% year on year, now comprising 97% of total home revenues, driven by strong subscriber momentum. Maya, PLDT's fintech arm, achieved its first profitable semester with a core income of 406 million, marking a significant turnaround. The company launched Vitro Santa Rosa, the Philippines' first AI-ready hyperscale data center, enhancing its digital infrastructure. PLDT Inc (NYSE:PHI) continues to innovate with new digital initiatives, including the launch of the Philippines' first app-based mobile service targeting Gen Z.

Negative Points

Enterprise revenues declined by 1% due to headwinds from legacy businesses and delays in public sector deal closures. Individual revenues fell by 1%, impacted by weaker legacy offerings and competitive pressures. Higher depreciation and financing costs led to a slight decrease in telco core income. The company faces regulatory uncertainties with the potential passage of the Conectadam Pen bill, which could impact operations. Interest rates remain high, affecting refinancing activities for maturing debt, despite efforts to negotiate better terms.

Q & A Highlights

Warning! GuruFocus has detected 5 Warning Signs with PHI.

Q: What is driving the softness in mobile trends for wireless revenues, and what is the outlook for the third quarter? A: The dip in mobile trends is seen as a normal fluctuation, and PLDT expects revenues to recover in the second half, driven by innovations and a focus on delivering value for money to customers. (Answered by Smart COO, Mr. Boy Marquerez)

Q: Can you provide an update on the Conectadam Pen bill and its potential impact on PLDT? A: If the President does not veto the bill by August 24th, it will become law. PLDT hopes for a veto to allow for a new bill that considers stakeholder input. If passed, PLDT plans to challenge the bill's constitutionality, citing issues like discriminatory treatment and the lack of a franchise requirement for satellite providers. (Answered by PLDT Chief Legal Counsel, Attorney Joan De Venesia Paul)

Q: What are PLDT's plans for refinancing maturing debt, and do you expect any changes in interest rates? A: PLDT is negotiating for lower spreads on refinancing and is using long-term facilities with floating rates to take advantage of potential declining interest rates. The current cost of debt is approximately 30%. (Answered by PLDT Treasurer, Leo Posadas)

Story Continues

Q: Are there any updates on PLDT's 5G cities initiative and its impact on ARPU? A: Following the successful launch in BGC, PLDT is expanding 5G cities to provinces, starting with Iloilo. The ARPU for 5G users is significantly higher at 300 pesos compared to 101 pesos for LTE users, indicating potential revenue growth. (Answered by Smart COO, Mr. Boy Marquerez)

Q: What are the plans for asset monetization, particularly regarding the data center and legacy assets? A: PLDT is receiving inquiries for its data center and is considering various options. There is also a robust program to monetize legacy assets, starting with copper and eventually including 3G equipment and other assets. (Answered by PLDT CFO, Mr. Danny Yu)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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