PLDT, Inc. · PSE:TEL
PLDT — FY2018 Earnings Presentation
58 slides from PLDT's earnings presentation, Mar 7, 2019
Slide 1: 2018 Full Year Results
2018 Full Year Results Financial and Operating Results 7th March 2019
Slide 2: PLDT: 2018 Financial Highlights (PAS 18)
PLDT: 2018 Financial Highlights (PAS 18) Service Revenues* Telco Core Income (ex-Voyager) 149.4bn 5% 24.4bn 3% +7.1 +0.8 Home + Enterprise + Individual Core Income** 137.4bn 9% 26.2bn 5% +11.3 -1.5 Telco EBITDA Reported Income (ex-Voyager and MRP) 69.2bn 19.2bn 44% +0.2 +5.9 Margin: 44% * Excluding
Slide 3: PLDT: 2018 Financial Highlights
PLDT: 2018 Financial Highlights PAS18 Adjustments PFRS15 149.4bn 5% Service Revenues* (3.6bn) 145.8bn +2% +7.1 +3.5 69.2bn (0.9bn) 68.3bn -1% Telco EBITDA 45% (ex-Voyager and MRP) 44% -0.7 +0.2 3% (0.3bn) 24.0bn +2% Telco Core 24.4bn (ex-Voyager) +0.8 +0.5 5% (0.3bn) Core Income 26.2bn 25.9bn -7% -1
Slide 4: PLDT: 2018 Service Revenues by service type
PLDT: 2018 Service Revenues By service type 5% 149.4bn +7.1 90.2bn 37%* Data and broadband 60% +24.4 46% in 2017 42.6bn Domestic voice 28% 7% (fixed and mobile) 32% in 2017 -3.4 10.3 53% SMS 7% 15% in 2017 -11.6 International voice 6.2 27% (fixed and mobile) 4% -2.3 6% in 2017 * +18% based on previo
Slide 5: PLDT: 2018 Service Revenues by business segment
PLDT: 2018 Service Revenues By business segment 149.4bn 5% +7.1 P137.4bn 9% 91% of Service Revenues +11.3 62.5bn Individual 41% 7% +4.2 60% data Enterprise 38.4bn 10% 26% +3.6 64% data Home 36.4bn 10% 24% +3.5 75% data International 11.9 26% and carrier 8% -4.1 5
Slide 6: Consolidated EBITDA (ex-MRP): higher year-on-year, margin at 44%
Consolidated EBITDA (ex-MRP): higher year-on-year, margin at 44% (Php in billions) +0.2 Higher Higher Higher cost Higher svc subsidies of cash Voyager’s rev* & provns services opex EBITDA +7.1 -2.6 -0.9 -3.5 68.9 69.2 (2.5) 66.6 FY17 FY18 FY18 (ex-Voyager) (ex-Voyager) Margins: 46% 44% 42% * Net of
Slide 7: Telco Core Income: 3% increase over FY17
Telco Core Income: 3% increase over FY17 (Php in billions) +3% +0.8 Asset Acc. Lower Lower Lower sales, net depn, Non- fin equity in Lower Voyager’s of tax net of tax cash costs earnings misc. core Higher 12.7 EBITDA exp – net and others inc loss 7.9 +1.8 +0.5 -1.3 -0.5 26.2 23.6 +0.2 24.4 3.0 FY17
Slide 8: PLDT Group: Capital Management
PLDT Group: Capital Management Cash dividend to be declared Record Date: Payment Date: (21 March 2019) P36/share 4 April 2019 23 April 2019 Subject to the finalization of the 2018 audited financial statements expected by 21 March 2019 In line with PLDT’s dividend policy: 60% of 2018 core earning
Slide 9: PLDT Group: Debt Profile
PLDT Group: Debt Profile Net debt Net debt-to- Maturities well spread out US$2,357mn EBITDA 64% due after 2021 1.93x Debt Balance Debt Maturities (gross) (US$ in billions) (US$ in millions, 31 December 2018) 1,132 3.7 3.5 3.4 2.9 2.8 2.4 391 380 428 484 1.0 304 243 0.8 0.7 2016 2017 2018 2019 2020 2
Slide 10: PLDT Group: Capex
PLDT Group: Capex (Php in billions) Fixed Line Wireless +20 78.4 58.5 43.2 42.8 40.3 31.2 36.4 34.8 26.2 28.8 12.9 10.7 13.0 13.7 11.7 13.7 11.7 30.3 32.1 32.2 22.1 23.0 27.3 17.2 17.1 2011 2012 2013 2014 2015 2016 2017 2018 2019B % of Capex to total service revenues: 21% 23% 18% 21% 26% 27% 27% 38%
Slide 11: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Accelerated Fixed Network Rollout 2018 actual rollout exceeded targets TOTAL HOMES PASSED TOTAL CAPACITY TOTAL FIBER FOOTPRINT (Million Homes) (Million Ports) (Thousand Cable Kilometers Laid) 2018 homes passed surpassed the 2020 target 2018 p
Slide 12: Chief Revenue Office FY 2018 - Financial & Operating Results
CHIEF REVENUE OFFICE FY 2018 - Financial & Operating Results Eric R. Alberto March 7, 2019 12
Slide 13: Service Revenues
SERVICE REVENUES Net of Interconnection Cost | in Billions of PhP 2013 YOY 2014 YOY 2015 YOY 2016 YOY 2017 YOY 2018 YOY GROWTH GROWTH GROWTH GROWTH GROWTH GROWTH 4.8 0 -1.9 -4.6 -4.6 7.1 *Crest and 3% 0% -1% -3% -3% 5% Trough Analysis 148.5 153.2 153.2 151.3 149.2 = (P 15.6B) 146.7 142.1 11.9 27.5 2
Slide 14: Data | Voice | SMS – Total per Segment
DATA | VOICE | SMS – TOTAL PER SEGMENT Net of Interconnection Cost | in Billions of PhP | PAS ‘18 180 37% 160 / +P24 Billion 140 vs 2017 30.3 35.1 41.8 120 50.0 59.5 65.8 90.2 100 Data 80 Voice & SMS 118.2 118.2 & Others 60 112.7 102.6 88.1 40 77.7 60.3 20 0 2012 2013 2014 2015 2016 2017 2018 14
Slide 15: FY 2018 Segment Highlights
FY 2018 SEGMENT HIGHLIGHTS 2018 Net Service 2018 YoY Revenues Growth ENTERPRISE 38.4 B 3.6 B +10% ● Enterprise’s delivering strong growth by its breakthrough performance in Fixed, Wireless, HOME 36.4 B 3.5 B +10% and ICT. INDIVIDUAL 62.5 B 4.2 B +7% ● Consumer Home registers robust growth through st
Slide 16: Enterprise Business
ENTERPRISE BUSINESS Jovy I. Hernandez March 7, 2019 16
Slide 17: 2018: The Year of Breakthroughs
2018: THE YEAR OF ENTERPRISE BUSINESS BREAKTHROUGHS Enterprise Service Revenues QoQ 2017-2018. 2018 Net Service Revenues P38.4B YOY Growth 9.5 9.7 10.0 10% (+P3.6B) 9.2 9.0 8.7 8.6 8.5 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 17
Slide 18: Fixed line fueled by Demand for Data
Fixed line fueled by Demand for Data 18.9B 13% +2.1B 10B Broadband 16%, +1.4B 3Tbps Subscribed Data Bandwidth up 37% The Enterprise Data Super Highway The FUTURE of Enterprise is FIBER. The Lifeblood of Business Robust, Reliable, and Secure. 18
Slide 19: Fixed line fueled by Demand for Data: Enterprise Global Operations
Fixed line fueled by Demand for Data 1B Enterprise Global Operations 36%, +0.3B The Enterprise Data Super Highway PLDT Enterprise Global Network The Lifeblood of Business Connecting Enterprises to the World 19
Slide 20: Enterprise Wireless Growing Like Never Before
Enterprise Wireless Growing Like Never Before 7B 24% +1.4B 100k Net new postpaid subs 21%, +0.9B 100k IoT connections 48%, +0.4B A Keen Eye on Enterprise Mobility Growing Beyond Postpaid. 20
Slide 21: ICT Growing Faster than Market Pace
ICT Growing Faster than Market Pace. 3.7B 14% +0.5B 2B Data center revenue 18%, +0.35B 9K Rack capacity across 10 Data centers nationwide. The Only Full Spectrum ICT services ICT: The Bedrock of Digital provider in the country. Data Center, Cloud, Managed IT, and Cyber Transformation Security. Data
Slide 22: Consumer Home
PLDT A Smart ‘Y CONSUMER hee HOME
Slide 23: PLDT Home All Time High
PLDT Home 2018 Home Service Revenues at ALL TIME HIGH! P36.4B, growing at 10% YOY NET SERVICE 2018 Home Data Service Revenues REVENUES In Billions of PhP YOY Growth P27.5B 33% (+P6.9B) 36.4B 33.0B FY 2017 FY 2018 23
Slide 24: Fastest fixed broadband with the widest coverage
Fastest fixed broadband with the widest coverage in the Philippines! 2.6M Fiber-fast Broadband Ports (+1.6M, +162% YOY Growth) 6.3M Homes Passed (+2.3M, +57% YOY Growth) 244k km Total Fiber Footprint (+69k, +39% YOY Growth) 24
Slide 25: Bringing the BEST In-Home Experience with branded partnerships
Bringing the BEST In-Home Experience with branded partnerships in Whole Home WiFi and Smart TV 25
Slide 26: Consumer Individual
Get a chance to win amazing prizes with SMART'S BIGGEST PROMO EVER! S pate | rt CONSUMER INDIVIDUAL Dial *121# to JOIN NOW! For more info, visit smart.com.ph/amazing25
Slide 27: Clear turn around, 2018 posting 7% YOY growth
2018 NET SERVICE REVENUE In Billions of PHP Clear turn around, 2018 posting 7% 62.5 YOY growth +4.2B YoY 58.3 +7.1% -7.5B YoY -11.4% 17.1 15.6 15.0 14.6 14.7 14.5 14.5 14.8 Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 QoQ Growth +2% +1% +4% +9% 27
Slide 28: 2.1 Million more subscribers in 2018
2.1 Million more subscribers in 2018 2018 TOTAL SUBSCRIBERS In Millions +2.1M +4% 60.0 57.9 57.7 58.1 57.6 YE ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 28
Slide 29: Fast building the country's BEST Mobile Data Network
Fast building the country’s BEST Mobile Data Network Expanded LTE/3G base stations by 49% YoY, ending the year with 25,566 BTS 29
Slide 30: Successfully launched new data products and consumer engagement promos
Successfully launched new data products and consumer engagement promos 30
Slide 31: Built consumer habits of mobile data usage and drove monetization
Built consumer habits of mobile data usage and drove monetization Up 14.9X! 824 37.6 (60%) 22.0 23.1 (33%) (40%) 395 287 Apr 17 Jul 9 Oct 31 2016 2017 2018 2016 2017 2018 YOUTUBE USAGE DATA USAGE DATA REVENUE In TB per Day In Millions of PB In Billions of PhP 31
Slide 32: PLDT Group: Guidance for 2019
PLDT Group: Guidance for 2019 Telco Core Income: P26bn Capex: up to P78.4bn After breakthrough year in 2018 PLDT kicking into To increase by up to P20bn from P58.5bn in 2018 high gear in 2019 Focus on: Momentum in top line growth from 2018 to carry into Expansion of LTE/3G mobile coverag
Slide 33: Other details
Other details 33
Slide 34: PLDT Group: FY18 vs FY17 Financial Highlights
PLDT Group: FY18 vs FY17 Financial Highlights (Php in billions) Telco Operations Voyager* Conso Conso FY2018 FY2018 FY2018 PFRS15 FY2018 (Pro-forma) (Pro-forma) Impact (PFRS 15) (Pro-forma) 149.4 1.1 150.5 146.9 Service Revenues -12% (3.6) (Net of interconnection costs) +5% l +7.1 +5% l +7.0 +2% l +
Slide 35: PLDT Group: Core and Reported net income recon
PLDT Group: Core and Reported net income recon (Php in billions) FY2018 FY2018 Change FY2018 Change (Pro-forma) FY2017 (Y-o-Y) PFRS15 (PFRS 15) (Y-o-Y) Impact +3% +2% Telco Core Income 24.4 23.6 +0.8 24.0 +0.5 (0.3) Voyager Loss (3.0) (1.2) Gain on loss of control – Voyager, net of tax 10.9 --- Real
Slide 36: Home: Strong performance despite minor setback from DOLE Order
Home: Strong performance despite minor setback from DOLE Order (Php in billions) PAS18 (Pro-forma) FY18: 36.4 +10% FY17: 33.0 +3.5 +6% +0.5 1% +3% +2% -0.1 - +3% +2% 9.3 +3% +2% +2% +3% +5% 8.9 +0.3 9.1 +0.2 9.2 +4% 8.5+0.2 8.7+0.2 +0.3 +0.2 +0.2 7.6 +0.2 7.8 +0.2 8.0+0.4 7.2 7.5 7.0 1Q16 2Q16 3Q16
Slide 37: Enterprise: Double digit topline increases continue
Enterprise: Double digit topline increases continue (Php in billions) PAS18 (Pro-forma) FY18: 38.4 +10% FY17: 34.8 +3.6 +12% +1.1 +2% +4% +3% +7% 2% +3% +3% +3% +0.3 +0.2 9.7 +0.3 10.0 - +1% +1% - +3% +0.2 +0.3 9.2 9.5 +0.6 -0.2 +0.2 9.0 +0.1 -- +0.3 8.6 8.5 8.7 7.8 7.8 8.1 7.7 1Q16 2Q16 3Q16 4Q16 1
Slide 38: Individual: Growth trajectory in 2018 shows healthy recovery
Individual: Growth trajectory in 2018 shows healthy recovery (Php in billions) PAS18 (Pro-forma) FY18: 62.5 +7% FY17: 58.3 +4.2 +17% +2.5 3% 9% +4% +9% +2% +1% 17.9 -0.5 17.3 -1.6 5% 2% - +1% 2% +1% +0.3 +0.2 +0.6 15.6 +1.4 17.0 15.7 -0.7 15.0 -0.4 +0.1 -0.2 +0.1 15.0 14.6 14.7 14.5 14.5 14.8 1Q16 2
Slide 39: International/Carrier: Declines persist
International/Carrier: Declines persist (Php in billions) FY18: 11.9 26% FY17: 16.0 -4.1 42% -1.5 6% 7% 1% 12% 4% -0.3 - +1% 8% 7% 5.5 5.2 -0.4 --- -0.6 -0.2 4.8 4.8 --- -0.3 -0.3 21% 4.2 4.0 4.1 3.7 21% 3.5 3.5 -0.7 2.7 -0.6 2.2 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Internat
Slide 40: Consolidated Service Revenues: Consistent sequential growth starting 2017
Consolidated Service Revenues: Consistent sequential growth starting 2017 (Php in billions) PAS18 ex-ILD/NLD (Pro-forma) ILD/NLD FY18: 150.5 +5% FY17: 143.5 +7.0 +7% +2.4 1% +1% 4% 1% 1% +1% +1% +2% +2% -0.6 +0.5 +0.7 37.5 +0.2 37.7 +0.9 38.6 38.2 -1.5 -0.3 -0.2 +0.5 +0.1 36.7 37.6 36.1 35.8 35.6 35
Slide 41: Revenue Allocation: Comparison
Revenue Allocation: Comparison Effective 2018, allocation of Fixed Line and Wireless service revenues were updated to reflect current consumption trends of bundles based on network usage study Due to new +52% Due to new +78% allocation 35.5 Fixed Home allocation Mobile +15.6 +9.2 27.0 8.2 Internet
Slide 42: Appendix
@PLOT Bsmart Appendix
Slide 43: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers (1) by Category: Dec-18 Dec-17 Net Adds % (1) Mobile Subscriber Base Prepaid 58,178,978 55,776,646 2,402,332 4% Smart Prepaid 20,532,174 20,433,351 98,823 - Sun Prepaid 5,753,163 6,535,331 (782,168) (12%) TNT 31,893,641 28,807,964 3,085,677 11% Postpaid 2,3
Slide 44: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Dec-18 Dec-17 Net Adds % Fixed Line Subscribers 2,710,972 2,663,210 47,762 2% Broadband Subscribers Dec-18 Dec-17 Net Adds % BROADBAND Fixed Line Broadband (1) 1,812,037 1,713,527 98,510 6% Fixed Wireless Broadband 213,526 237,354 (23,
Slide 45: ARPU
ARPU Mobile ARPU, Net(1) : 2018 (2) 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Smart Postpaid 809 813 810 843 965 985 975 961 Smart Prepaid (3) 112 116 120 123 104 109 108 110 TNT (3) 73 73 71 69 71 77 74 75 Sun Postpaid 382 403 406 414 413 412 421 428 Sun Prepaid (3) 80 82 82 82 78 82 82 85 (1) Includes Mobile B
Slide 46: FY2018: Consolidated Financial Highlights
FY2018: Consolidated Financial Highlights FY2018 FY2018 FY2018 (PFRS (PFRS15) Y-o-Y (Pro-forma) Y-o-Y FY2017 15) vs Pro- % Change % Change Wireless forma Fixed Line Others Consolidated Consolidated (Php in millions) Service Revenues (1) 83,001 81,648 1,094 154,207 151,165 2% 157,845 (3,638) 4% (2) C
Slide 47: Consolidated Service Revenues
Consolidated Service Revenues 2018 2018 FY2018 2017 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Fixed Line 17,592 18,243 18,307 18,716 72,858 15,556 15,620 15,979 16,656 63,811 14% 17,588 18,252 18,620 18,784
Slide 48: Consolidated Service Revenues
Consolidated Service Revenues 2018 2018 FY2018 2017 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Data/Broadband/Digital Platforms 18,735 19,668 25,938 23,799 88,140 16,221 16,608 16,948 17,422 67,199 31% 19,35
Slide 49: Wireless Service Revenues
Wireless Service Revenues 2018 2018 2017 FY2018 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Data/Broadband 6,720 7,167 13,514 11,104 38,505 6,963 7,302 7,230 7,342 28,837 34% 7,301 7,744 14,507 11,544 41,096
Slide 50: Fixed Line Service Revenues
Fixed Line Service Revenues 2018 2018 FY2018 2017 Y-o-Y Y-o-Y (PFRS15) (Pro-forma) (PFRS15) vs % Change % Change Pro-forma (Php in millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Data/Broadband 13,187 13,234 14,019 14,330 54,770 10,574 10,885 11,111 11,724 44,294 24% 13,224 13,286 14,418 14,4
Slide 51: Expenses
Expenses FY2018 FY2018 FY2018 Y-o-Y Y-o-Y (PFRS15) FY2017 (Pro-forma) (PFRS 15) vs % Change % Change (Php in millions) Wireless Fixed Line Others Consolidated Consolidated Pro-forma Operating Expenses Compensation and Employee Benefits 7,164 15,418 979 23,543 22,782 3% 23,543 - 3% Repairs and Mainte
Slide 52: Other Income (expenses)
Other Income (expenses) FY2018 FY2018 FY2018 Y-o-Y Y-o-Y (PFRS15) FY2017 (Pro-forma) (PFRS 15) vs % Change % Change Pro-forma ( Php in millions) Wireless Fixed Line Others Consolidated Consolidated Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Beacon - - - - 886 (100%) - - (
Slide 53: Earnings Per Share (EPS)
Earnings Per Share (EPS) 2018 2017 (PFRS 15) (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 18,916 18,916 13,371 13,371 Dividends on Preferred Shares (59) (59) (59) (59) Net Income for the Period Attributable to
Slide 54: Balance Sheet
Balance Sheet Consolidated (Php in millions) December 31, 2018 December 31, 2017 Total Assets 482,750 459,444 Nominal Value of Total Long-Term Debt 176,694 173,136 in US$ $3,362 $3,466 Less: Unamortized Debt Discount 418 525 Total Long-Term Debt 176,276 172,611 Cash and Short-Term Investments 52,819
Slide 55: Debt Profile
Debt Profile (US$ in millions) 2016 2017 2018 Debt Balance 3,730 3,466 3,362 Cash and Short-Term Investments 833 668 1,005 Net Debt 2,897 2,798 2,357 Interest-Bearing liabilities December 31, December 31, 2018 2017 Unamortized Debt Change Carrying Discount/Debt Face Value Face Value Value (US$ in mi
Slide 56: Foreign Exchange Risk
Foreign Exchange Risk Forex Impact on Core Income Forex Impact of B/S Revaluation Forex sensitivity for every P1 change Forex sensitivity for every P1 change on B/S (in US$ millions) Conso - net of Elim Revaluation (in US$ millions) Conso US$ Revenues* 462.1 Debt (net of LT hedges & ST Forwards/opti
Slide 57: 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 58: PLDT Smart
A PLDT ASmart