PLDT, Inc. · PSE:TEL
PLDT — Q1 2011 Earnings Presentation
30 slides from PLDT's earnings presentation, May 10, 2011
Slide 1: First Quarter 2011 Financial and Operating Results
We’re changing lives. First Quarter 2011 Financial and Operating Results 10 May 2011
Slide 2: PLDT Group: 1Q2011 Financial Highlights
PLDT Group: p 1Q2011 Financial Highlights g g 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Y-o-Y Service Revenues P34.6bn P36.0bn -4% Expenses P20.9bn P21.8bn -4% EBITDA P21.0bn P21.2bn -1% EBITDA Margin 61% 59% Reported Net Income P10.7bn P11.4bn -6% Core Net Income P10.6bn P10.5bn 1% Core EPS P55.91
Slide 3: PLDT Group: Core and Reported Net Income
PLDT Group: Core and Reported Net Income Core and Reported Net Income (PhP in billions) ¾ Core net income for 1Q11 grew by 1% year-on-year Core Income Reported Income to P10.6bn primarily due to the pro-active management of expenses across the different 10 5 +1% 10.5 1% 10 6 10.6 11 4 -6% 10.7 11.4
Slide 4: PLDT Group: Service Revenues and EBITDA
PLDT Group: Service Revenues and EBITDA Consolidated Service Revenues ¾ Consolidated service revenues for the first three months of 2011 (PhP in billions) declined by P1.4bn or 4% to P34.6bn due to: 36.0 -4% Growth in new revenue sources not able to fully offset declines 34.6 Data & ICT in traditi
Slide 5: PLDT Group: Free Cash Flow and Capex
PLDT Group: Free Cash Flow and Capex F Free Cash C h Flow Fl ¾ Free cash flow for 1Q11 grew by 17% to P15.0bn, an (PhP in billions) improvement of P2.2bn over last year due to: 1Q10 1Q11 19.6 20.8 3.1 + Higher cash from operations of P1.2bn 5.2 0.9 1.8 + Lower capex by P2.1bn 1.1 15.0 + Decrease in
Slide 6: PLDT Group: Debt Profile
PLDT Group: Debt Profile ¾ From US$1.3bn at YE10, net debt at the end of March Debt Balance 2011 decreased to US$0.9mn, with net debt/EBITDA at (US$ in billions) 0.5x 2.2 2.1 2.2 Net debt/EBITDA at 0.8x after dividend payment in 1.8 1.6 1.6 April 1.2 1.3 1.3 1.3 0.7 0.8 0.8 0.8 0.9 0.9 0.9 05 0.5
Slide 7: Broadband: Moving forward
Broadband: Moving forward ¾ PLDT group b broadband db d subscriber b ib base b grew by b 4% to t Broadband Subscribers 2.1mn at the end of March 2011 registering net adds of over ( in thousands) 80,000 in the first quarter of 2011 WeRoam +4% 2,117 Smartbro 2,036 SmartBro, the most widely available
Slide 8: SMART: Pro-actively managing Margins
SMART: Pro-actively managing Margins Service Revenues Others ¾ Combined C bi d Smart S t Buddy, B dd TNT and d Red R d Mobile M bil subscriber b ib base b (PhP in billions) reached 46.6mn, registering 1.0mn net adds from end 2010 Broadband – 25.7mn, 19.4mn, and 1.1mn subscribers of Smart Buddy prepa
Slide 9: Fixed Line: Dealing with challenges
Fixed Line: Dealing with challenges Service Revenues ¾ 1Q11 fixed line service revenues of P11.5bn were lower by (PhP in billions) P1.3bn or 10% year-on-year due to: M iscellaneous − Data and other network services lower by P0.6bn or 11% Data 12.9 -10% NLD ILD • DSL revenues higher by P0.2bn or 12%
Slide 10: ICT: Gaining momentum with Higher Revenues and Stronger Margins
ICT: Gaining momentum with Higher Revenues and Stronger Margins ¾ ICT service revenues, which account for approximately ICT Service Revenues 7% off PLDT group service i revenues, higher hi h byb 3% tot (PhP in billions) P2.7bn as a result of: Data Center and + 21% growth in data center revenues prim
Slide 11: Meralco: Growing the business
Meralco: Growing the business ¾ Meralco’s consolidated service revenues for 1Q11 declined by Energy Sales and Service Revenues 6% year-on-year to P57.4bn largely due to: (in ‘000 GWh and PhP in Billions) + Higher customer count Energy Sales Revenues = Energy sales for the first 3 months of 2011 were
Slide 12: PLDT's investment in Digitel
PLDT’s investment in Digitel ‣ For the issuance of up to 29.65mn PLDT common shares as payment of (i) the PLDT shareholders’ approval purchase price off the Digitel Shares, S C Convertible Bonds, and Advances to be sought during PLDT’s (collectively, the “Enterprise Assets”) from the JG Summit group
Slide 13: PLDT Group Guidance (without Digitel)
PLDT Group Guidance (without Digitel) Service Revenues 2010 lower by 2% vs Lower by 4%in 2011 vs 2010 2009 2010 lower by 3% vs EBITDA Flat in 2011 vs 2010 2009 P40.5 billion in 2011 and 2012, 2010 higher by 2% vs Core Net Income g 2013 back to 2010 levels starting 2009 P34 billion in 2011 and P33 bi
Slide 14: Forward-looking statements disclaimer
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 15: Appendix
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Slide 16: Subscriber Data
Subscriber Data y-o-y change Net adds Mar-11 Dec-10 Sep-10 Jun-10 Mar-10 Amount % 1Q11 % CELLULAR Smart 26,165,650 25,715,018 25,594,008 26,204,136 25,479,359 686,291 3% 450,632 2% Buddy 25,735,090 25,293,443 25,175,430 25,764,292 25,033,946 701,144 3% 441,647 2% Postpaid 430,560 421,575 418,578 439
Slide 17: 1Q 2011: Consolidated Financial Highlights
1Q 2011: Consolidated Financial Highlights 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Change (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Service Revenues 22,768 11,532 2,697 34,571 36,006 -4% Cash operating expenses 7,460 5,610 2,194 12,780 13,612 -6% EBITDA(1) 14,549 5,907 4
Slide 18: Reconciliation of Core and Reported Net Income
Reconciliation of Core and Reported Net Income 1Q11 1Q10 Difference (in billion pesos) Reported net income 10.7 11.4 (0.7) Core net income 10.6 10.5 0.1 0.1 0.9 (0.8) Accounted for by: Forex Net 0.3 0.7 (0.4) Gain on Derivatives 0.5 0.6 (0.1) Others (0.1) - (0.1) Asset Impairment - - - Adjustment in
Slide 19: Consolidated Revenues
Consolidated Revenues First Quarter (in billion pesos) 2011 2010 % Change Voice 15.8 17.0 -7% Data and ICT 18.8 19.0 -1% 34.6 36.0 -4% 19
Slide 20: Revenues by Segment
Revenues by Segment 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Change (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Service Revenues Wireless Cellular 20,997 20,997 21,790 -4% Broadband 1,582 1,582 1,589 - Satellite and other services 189 189 315 -40% Fixed line Local exchange
Slide 21: Wireless Net ARPU
Wireless Net ARPU 1Q10 2Q10 3Q10 4Q10 1Q11 Postpaid 1,286 1,257 1,229 1,256 1,205 Smart Prepaid 184 179 163 171 163 TNT 115 116 112 116 106 Red Mobile 8 3 5 18 27 21
Slide 22: Expenses
Expenses 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Change (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Operating expenses Compensation and employee benefits 1,499 2,343 1,504 5,341 5,542 -4% Repairs and maintenance 1,283 1,031 177 2,307 2,369 -3% Selling and promotions 895 24
Slide 23: Other Income (Expenses)
Other Income (Expenses) 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Change (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Gains (losses) on derivative financial instruments instruments, net - 511 - 511 632 -19% Interest income 199 115 9 321 366 -12% Equity share in net earnings (
Slide 24: EBITDA
EBITDA 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Change (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Income before tax 11,159 2,880 319 14,358 15,041 -5% Add (deduct): Depreciation and amortization 3,374 3,040 189 6,603 6,361 4% Financing costs, net 667 848 17 1,530 1,874 -18
Slide 25: Core Income
Core Income 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Change (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Reported net income 8,397 2,058 279 10,734 11,421 -6% Add (deduct): Foreign exchange losses (gains), net (190) (122) 1 (311) (708) -56% Losses (gains) on derivatives fina
Slide 26: Earnings Per Share
Earnings Per Share 1Q 2011 1Q 2010 (Unaudited) (Unaudited) (in million pesos) Basic Diluted Basic Diluted Net income (loss) attributable to equity holders of PLDT 10,734 10,734 11,421 11,421 Dividends on preferred shares (114) (12) (114) (12) Net Income applicable to common shares 10,620 10,722 11,3
Slide 27: Cash Flows
Cash Flows 1Q 2011 1Q 2010 (Unaudited) (Unaudited) % Change (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Net cash from operations 13,533 6,395 904 20,830 19,566 6% Add(Deduct): Capital expenditures (1,233) (1,714) (165) (3,112) (5,206) -40% Other investing activities 189 282
Slide 28: Balance Sheet
Balance Sheet Consolidated March 31, 2011 December 31, 2010 (in million pesos) (Unaudited) (Audited) Total Assets 292,299 277,815 Nominal Value of Total Debt 96,533 92,590 in US$ $2,224 $2,113 Less: Unamortized Debt Discount 2,692 2,944 Total Debt 93,841 89,646 Cash and short-term investments 56,613
Slide 29: Debt Profile
Debt Profile (in million US$) 2006 2007 2008 2009 2010 1Q11 Debt D bt Balance B l 1 756 1,756 1 585 1,585 1 625 1,625 2 210 2,210 2 113 2,224 2,113 2 224 Cash and short-term investments 514 745 847 908 853 1,304 Net Debt 1,242 840 778 1,302 1,261 920 Debt Maturities as of March 31, 2011 (in million
Slide 30: Interest-bearing Liabilities
Interest-bearing Liabilities March 31, 2011 December 31, (Unaudited) 2010 Change Unamortized (Audited) (in millions) Carrying Value Debt Discount Face Value Face Value Debt PLDT $1,218.3 $4.2 $1,222.4 $1,123.4 $99.0 Smart $941.1 $57.8 $998.9 $987.4 $11.5 2014 Debt 227.2 53.0 280.1 280.1 - Others 713