PLDT, Inc. · PSE:TEL
PLDT — 9M 2024 Earnings Presentation
52 slides from PLDT's earnings presentation, Nov 12, 2024
Slide 1: Nine Months 2024 Financial and Operating Highlights
Nine Months 2024 Financial and Operating Highlights 12th November 2024 Prresentations Page (IR website)
Slide 2: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights 9M24 9M23 9M24 vs 9M23 (Php in bn) Gross Service 4% Service Revenues 144.9bn 142.3bn 2% Revenues +5.2bn (net of interconnection costs) ₱155.0bn +2.6bn Cash Opex, Subsidies, Provisions 64.2bn 63.9bn (ex-MRP) +0.3bn EBITDA 80.7bn 78.4bn 3% (ex-MRP) Margin: 52% Margin:
Slide 3: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues (Php in bn) 9M24 9M23 9M24 vs 9M23 2% Individual 62.1bn 60.6bn +1.5bn Fiber 6% Home 45.2bn 45.3bn 41.7bn +2.4bn (0.1bn) 4% Enterprise 36.1bn 34.8bn +1.3bn Consumer and Enterprise 143.3bn 140.7bn 2% +2.6bn 2% International 1.5bn 1.6bn --- 2% Total Service Rev
Slide 4: PLDT Group: Advancing in growth from mobile data, fiber and ICT revenues
PLDT Group: Advancing in growth from mobile data, fiber and ICT revenues 88% Excl Legacy Total 9M2024 Service Revenues (1) 144.9bn 2% 5% +2.6bn +6.5bn Individual Home Enterprise 2% 4% ₱62.1bn ₱45.2bn ₱36.1bn +1.5bn -0.1bn +1.3bn Mobile Data 89% Fiber 92% Corp Data/ICT* 72% ₱55.2bn 5% ₱41.7bn 6% ₱26.
Slide 5: Individual: Revitalizing the mobile data playbook
Individual: Revitalizing the mobile data playbook vs 9M23 vs 9M23 Total Total Individual ₱62.1bn 2% Mobile Data ₱55.2bn 5% ➢ Individual service revenues for 9M24 grew by 2% 9M24 9M24 year-on-year +1.5bn +2.8bn ▪ Prepaid grew by 2%; postpaid up by 3% 89% of total Individual ▪ Blended ARPU higher by 6
Slide 6: Home: Sustaining steady rise in fiber revenues
Home: Sustaining steady rise in fiber revenues vs 9M23 vs 9M23 Total Total ➢ Fiber revenues grew by 6% y-o-y in 9M24, now 92% of Home ₱45.2bn Fiber ₱41.7bn 6% total Home revenues 9M24 9M24 +2.4bn ▪ 3Q24 revenues rose 4% vis-à-vis 2Q24 -0.1bn 92% of total Home ➢ Fixed wireless back to growth mode at
Slide 7: Enterprise: Driving growth through enterprise solutions focus
Enterprise: Driving growth through enterprise solutions focus vs 9M23 vs 9M23 Total Total ➢ Wireless revenues continue to grow, driven by A2P and IOT, Enterprise ₱36.1bn 4% Corp Data/ICT* ₱26.0bn 6% powered by modern and robust platforms 9M24 9M24 +1.5bn +1.3bn 72% of total Enterprise ➢ Solutions-fo
Slide 8: Expenses: Extracting operating efficiencies to manage costs
Expenses: Extracting operating efficiencies to manage costs (Php in bn) 9M24 9M23 9M24 vs 9M23 (Php in bn) Repairs and Maintenance 22.7 bn 22.0 bn +0.7 bn Compensation and Benefits (exMRP) 17.4 bn 16.8 bn +0.6 bn Professional and Other Service Fees 5.6 bn 5.7 bn (0.1 bn) Selling and Promotions 4.2 b
Slide 9: Consolidated EBITDA (ex-MRP): Working on margin expansion
Consolidated EBITDA (ex-MRP): Working on margin expansion vs 9M23 EBITDA ₱80.7bn + ₱2.6bn rise in revenues 3% 9M24 Margin: 52% − ₱0.3bn increase in costs +2.4bn (Php in bn) +1% vs 3Q23 27.3 26.6 26.8 +2% 26.0 26.1 26.2 25.9 +0..2bn +0.5bn 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 FY23: ₱104.3bn 9M24: ₱80.7
Slide 10: Telco Core Income: Re-affirming guidance for 2024
Telco Core Income: Re-affirming guidance for 2024 at “north of ₱35.0bn” vs 9M23 Telco Core + Higher EBITDA by ₱2.4bn ₱26.6bn 2% - Higher Depreciation by ₱1.1bn 9M24 - Increased Financing Costs by ₱0.9bn +0.5bn (Php in bn) 8.9 9.3 8.6 8.5 8.3 8.7 8.6 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 FY23: ₱34.3bn 9
Slide 11: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income 9M24 9M23 9M24 vs 9M23 2% Telco Core Income 26.6bn 26.1bn +0.5bn Maya losses continue to decline: • ₱0.2bn (3Q24), ₱0.3bn (2Q24), Share in Maya Innovations Holdings (MIH)/Bank Hold Co Losses (0.9bn) (1.7bn) +0.8bn ₱0.4bn (1Q24) ▪ 3Q24 losses 55% lower vs 3Q
Slide 12: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (Php in billion) (Php in billion, as of end September 2024) Net Debt Net Debt-to-EBITDA* Gross Debt ₱259.8bn 2.44x ₱ 272.6bn 158.6 251.9 225.7 256.9 239.7 272.6 259.8 2.0 23.5 15.7 27.3 21.0 24.5 26.2 17.2 12.8 2024 2025 2026 2027 2028 20
Slide 13: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Network/IT Data Center and Subsidiaries Others Business Capex ➢ At the end of September 2024, capex stood at P52.3bn ▪ Two-thirds for Network/IT spend 12% ➢ Guidance for 2024: ₱75-78bn 96.8 -11.7bn ▪ Includes investment in capacity to drive revenue Business
Slide 14: 5G Highlights: Growth to continue as prices of 5G devices trend lower
5G Highlights: Growth to continue as prices of 5G enabled devices trend lower vs YE 2020: +2,700% Connected Unique Devices vs YE 2023: +34% In ‘000 +9% 7,044 6,450 5,780 5,250 4,350 3,492 3,891 2,511 3,072 1,583 2,114 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 * Dai
Slide 15: 3Q 2024 Highlights
3Q 2024 Highlights Maya: #1 Fintech Ecosystem #1 #1 Digital Bank(1) Merchant Acquirer 4.5 M 1.4 M Largest Market Share in Bank Customers(2) Borrowers (+127% YoY)(2) Card Acquiring & QRPH (3) Php36 B Php67 B Best Digital Bank Loans Disbursed LTD FinanceAsia Awards, Retail Banking Awards, World Deposi
Slide 16: Unmatched Speed to Market
Unmatched Speed to Market Maya Personal Loan & Maya Savings & Maya Advance Maya Easy Credit High Engagement Banking Time Deposit Embedded Banking for SMEs Device Financing Personal Goals (Micro Enterprise Loan) SME Business SME Flexi Deposit Loan Within 2.5 years of Maya Bank Launch, we deliver mult
Slide 17: Groundbreaking Partnership Delivering the First Digital Bank Credit Card
Groundbreaking Partnership Delivering the First Digital Bank Credit Card in the Market Credit Card is THE most searched financial product in the Philippines Financial Products 2021 H1 2024 Credit Card 23% 38% Insurance 22% 20% Wallet 19% 13% Savings 12% 11% Crypto 15% 7% Short term / Personal 3% 4%
Slide 18: PLDT Group: Sustainability Highlights
PLDT Group: Sustainability Highlights Recorded a +13 point increase in the S&P Secured a ₱2.0bn Social Loan Facility from Global CSA HSBC 2024: 71* vs 2023: 58 Supporting PSAC’s digital infrastructure pillar’s priority of connecting Geographically Isolated and Disadvantaged Areas (GIDAs) L-R: HSBC P
Slide 19: PLDT Group: 2024 Outlook/Guidance
PLDT Group: 2024 Outlook/Guidance ➢ Robust increases in data/broadband Consolidated Service Mid-single digit growth revenue streams of the various business Revenue excl legacy revenues segments ➢ Supported by top line growth and tight Mid-single digit growth management of costs/expenses EBITDA ➢ Pus
Slide 20: Other Details
Other Details 20
Slide 21: Data/broadband: 83% of Consolidated Revenues
Data/broadband: 83% of Consolidated Revenues 2024 vs 2023 (Php in bn) ILD % to total Service (1%) Revenues 4.8 1.0 5% Mobile Data ₱57.9bn 40% 18.6 +2.7bn 9M24 Home Broadband ₱39.6bn 1% 27% ₱144.9bn +0.3bn 2% +2.6bn Data/Broadband (83%*) 3% Corporate Data ₱18.9bn 13% +3.5bn 120.4 17% % of data/broadb
Slide 22: Vitro (Data Center) business: Key Highlights
Vitro (Data Center) business: Key Highlights Data Centers Sustainable Operations (9M24) 11 sites 4 ➢ 0.90 CUE (Carbon Usage Effectiveness) vs 0.95 in 2023 TIA-942* rated 3 certified facilities ➢ ISO 14001:2015 (Environmental Management) strategically spread across PH (*Telecommunications infrastruct
Slide 23: Fixed and Wireless Network: Selected Highlights
Fixed and Wireless Network: Selected Highlights FTTH Presence Fiber: Extensive Network Reach 72% TOTAL HOMES PASSED FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Million Cable Kilometers Laid) *excluding non-fiber of 0.73mn International D
Slide 24: 3Q2024 Sustainability Updates
3Q2024 Sustainability Updates
Slide 25: PLDT ESG Ratings: 13-point improvement in 2024 S&P Global CSA score
PLDT ESG Ratings: Achieved a 13-point improvement in 2024 S&P Global CSA score ➢ PLDT’s Environmental, Social and Governance and Economic scores surpassed the industry mean for each category: PLDT Industry Category Weight score Mean Environmental 23% 66 44 Social 41% 82 43 Governance and Economic 36
Slide 26: Environment: Advancing environmental stewardship with clean energy
Environment: Advancing environmental stewardship with clean energy 24 PLDT and Smart sites converted to 100% RE 6 Mindanao Facilities Transition to 100% RE with ACEN RES partnership with First Gen Partnership (August 2024) (September 2024) ➢ Agreement with ACEN is to power a total of 33 PLDT and Sma
Slide 27: Championing responsible waste management and circularity
Environment Championing responsible waste management and circularity and Social: Over 170 locations and 2024 Target Scale up e-Waste Collection points nationwide Collection points events nationwide Promoting e-waste management and circularity in schools PLDT/Smart showcased its “Be Kind. Recycle” (B
Slide 28: Aligning with international standards and promoting biodiversity conservation
Environment Aligning with international standards and promoting biodiversity conservation and Social: PLDT received ISO certifications on #ConnectedwithNature: Quality Management, OHS management, and Business Continuity Nature-based solutions for Climate Change (July 2024) ➢ As part of the Environme
Slide 29: Operating responsibly and promoting environmental stewardship
Environment Operating responsibly and promoting environmental stewardship and Social: DENR’s Peatland Summit cum National Consultation Workshop (August 2024) ➢ PLDT/Smart participated as speaker during the summit that focused peatland conservation ▪ Session Topic: PLDT, Smart and DENR Partnership on
Slide 30: Social: Upholding human rights of customers and children
Social: Upholding human rights of customers and children PLDT/Smart shared best practices on the adoption of the Cybersecurity in Action UNICEF Child Rights and Business Principles (CRBP) framework 108B 1.5M 759K access to malicious OSAEC URLs and access attempts domains contents to OSAEC URLs (June
Slide 31: Social: Narrowing the digital divide and connecting underserved communities
Social: Narrowing the digital divide and connecting unserved and underserved communities PLDT connecting Geographically Isolated and Disadvantaged Areas Connection for Students and Underserved Secured 5-year ₱2.0 Social Loan Facility areas with HSBC ➢ Since 2022, PLDT Group has activated 1,000 ➢ PLD
Slide 32: Social: Leveraging innovations in AI to enhance customer experience
Social: Leveraging innovations in AI to enhance customer experience ₱ Enhance TinBo’s Customer Experience for Filipinos Overseas Conversational Chatbot to ➢ TinBo (Tindahan ni Bossing): ▪ An online marketplace that enables Filipinos overseas Improve PLDT and Smart to avail of telco services and othe
Slide 33: Social: Enabling digitalization of the country's vital institutions
Social: Enabling digitalization of the country’s vital institutions PLDT supports Commission on Election (COMELEC) for 2025 National Elections PLDT and Smart support ARTA’s eBOSS ➢ PLDT Group has been selected as COMELEC’s trusted digital ➢ PLDT and Smart signed Memorandum of Agreement with Anti-Red
Slide 34: Social: Cultivating a strong and innovative culture
Social: Cultivating a strong and innovative culture Zero Tolerance on Gender-Based Sexual Harassment Empowering Employees in Environmental, Health, and Safety Practices (GBSH) ➢ Training employees on: ▪ Basic Safety training, including road safety, and animal bite safety ✓ These are the identified r
Slide 35: Social: Capacitating the youth, women and new employees
Social: Capacitating the youth, women and new employees Future-proofing the Youth Empowering Women ➢ Internship program is open to graduating students ▪ Capacitate students through ➢ PLDT, Smart, and PLDT-Smart Foundation partnered with “For The coaching, mentoring, and exposure Women (FTW) Foundati
Slide 36: Governance: Strengthening our commitment to good governance
Governance: Strengthening our commitment to good governance PLDT awarded with 3-Golden Arrow award at the Annual Training of Directors and Officers 2024 Golden Arrow Awards (27 September 2024) ➢ Session Topics: ▪ Become an Insurgent: Re-focus and Re- energize your business strategy, organization, an
Slide 37: Governance: Highlighting the PLDT Group's best practices on sustainability
Governance: Highlighting the PLDT Group’s best practices on sustainability Roundtable discussion on Sustainability at ADB’s Supplier Forum Shared insights on Sustainability and AI in Business operations (8 October 2024) ➢ PLDT/Smart were one of the panelists at the 23rd Strategic Marketing Conferenc
Slide 38: Appendix
Appendix 38
Slide 39: Subscriber Base
Subscriber Base End-September 2024 End 2023 4% Total Subscribers 67,857 65,303 +2.6mn Net Adds Mobile 3Q2024 2Q2024 1Q2024 4Q2023 3Q2023 3Q2024 vs YE2023 Mobile Subscriber Base Prepaid 58,061,522 58,574,596 56,785,718 55,667,880 53,105,076 2,393,642 4% Smart Prepaid 22,416,116 22,550,066 21,856,044
Slide 40: ARPU
ARPU 2024 2023 Mobile ARPU, Net 1Q 2Q 3Q 1Q 2Q 3Q 4Q Postpaid 703 688 690 674 687 697 693 Smart Prepaid 125 119 115 107 109 128 129 TNT 106 100 98 86 92 109 109 f Fiber ARPU, Net 2024 2023 1Q 2Q 3Q 1Q 2Q 3Q 4Q * Home: Fiber 1,496 1,500 1,492 1,489 1,476 1,511 1,506 40 40
Slide 41: Consolidated Financial Highlights
Consolidated Financial Highlights 9M2024 Y-o-Y 9M2023 Wireless Fixed Line Others Consolidated % Change (Php in millions) Service Revenues (1) 72,905 95,118 - 154,995 149,752 4% (2) Cash Operating Expenses 32,068 44,177 102 68,666 66,186 4% Subsidies and Cost of Services 1,933 2,202 - 4,072 4,298 (5%
Slide 42: Consolidated Service Revenues
Consolidated Service Revenues 2024 2023 % Change 9M2024 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2023 Fixed Line 27,627 27,160 27,914 82,701 26,541 26,032 26,769 79,342 27,496 106,838 4% Home Broadband 12,690 12,774 12,988 38,452 12,568 12,691 12,795 38,054 12,798 50,852 1% Corporate Dat
Slide 43: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2024 2023 % Change 9M2024 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2023 Data and Broadband 40,643 40,115 39,978 120,736 38,602 39,052 39,473 117,127 40,827 157,954 3% Home Broadband 13,069 13,134 13,362 39,565 12,976 13,120 13,200 39,296 13,185 52
Slide 44: Wireless Service Revenues
Wireless Service Revenues 2024 2023 % Change 9M2024 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY 9M2023 (Php in millions) Data/Broadband 20,181 19,633 19,361 59,175 18,604 18,841 19,158 56,603 20,016 76,619 5% Mobile Data 19,802 19,273 18,987 58,062 18,196 18,412 18,753 55,361 19,629 74,990 5% Fixed Wireless Br
Slide 45: Fixed Line Service Revenues
Fixed Line Service Revenues 2024 2023 % Change 9M2024 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2023 Data/Broadband 24,183 25,015 23,517 72,715 22,981 23,249 23,203 69,433 23,779 93,212 5% Home Broadband 12,695 12,779 12,992 38,466 12,574 12,698 12,801 38,073 12,803 50,876 1% Corp. Data a
Slide 46: Expenses
Expenses 9M2024 9M2023 Y-o-Y (Php in millions) Consolidated Consolidated % Change Operating Expenses Repairs and Maintenance 22,749 22,046 3% Compensation and Employee Benefits 18,869 18,719 1% Professional and Other Contracted Services 5,609 6,111 (8%) Others 21,439 19,310 11% Cash Operating Expens
Slide 47: Other Income (expenses)
Other Income (expenses) 9M2024 9M2023 Y-o-Y Consolidated Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Vega (58) 44 (232%) Maya (918) (1,766) (48%) Others (143) (581) (75%) Total Equity Share in Net Losses (1,119) (2,303) (51%) Financ
Slide 48: Earnings Per Share (EPS)
Earnings Per Share (EPS) 9M2024 9M2023 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 28,070 28,070 27,879 27,879 Dividends on Preferred Shares (44) (44) (44) (44) Net Income for the Period Attributable to Common
Slide 49: Balance Sheet
Balance Sheet Consolidated (Php in millions) September 30, 2024 December 31, 2023 Total Assets 619,995 609,519 Nominal Value of Total Debt 272,589 256,927 Less: Unamortized Debt Discount 2,006 2,129 Total Debt 270,583 254,798 (1) Cash and Short-Term Investments 12,803 17,163 (2) Net Debt 259,786 239
Slide 50: Debt Profile
Debt Profile September 30, 2024 December 31, 2023 Unamortized Debt Change Carrying Discount/Debt Face Value Face Value Value (Php in millions) Issuance Debt PLDT ₱164,604 ₱1,186 ₱165,790 ₱157,071 ₱8,719 Smart 99,580 776 100,356 94,856 5,500 ePLDT 6,399 44 6,443 5,000 1,443 Total Debt ₱270,583 ₱2,006
Slide 51: forward-looking statements
Except for historical financial and operating data and other information in respect of historical matters, the statements contained herein are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchang
Slide 52: PLDT
& PLDT