PLDT, Inc. · PSE:TEL
PLDT — Q1 2024 Earnings Presentation
43 slides from PLDT's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Financial and Operating Highlights
First Quarter 2024 Financial and Operating Highlights 9th May 2024
Slide 2: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights 1Q24 1Q23 1Q24 vs 1Q23 (Php in bn) Gross Service 5% Service Revenues 3% 48.7bn 47.1bn Revenues +2.5bn (net of interconnection costs) +1.6bn 52.2bn Cash Opex, Subsidies, Provisions 21.4bn 21.1bn 1% (ex-MRP) +0.3bn EBITDA 27.3bn 26.0bn 5% (ex-MRP) Margin: 52% 52% +1.3b
Slide 3: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues 1Q2024 1Q2023 1Q24 vs 1Q23 (Php in bn) 19.8bn 7% Individual 21.1bn +1.3bn 7% Fiber Home 15.0bn 15.0bn 13.7bn +0.9bn -0.1bn Enterprise 12.1bn 11.8bn 3% +0.3bn Consumer and Enterprise 48.2bn 46.6bn 4% +1.6bn International and Carrier 0.5bn 0.5bn 7% --- Total S
Slide 4: PLDT Group: Boost from growing services in each segment
PLDT Group: Boost from growing services in each segment Excl Legacy Total 1Q2024 Service Revenues (1) 3% 8% 48.7bn 47.1bn +1.6bn +3.1bn Individual Home Enterprise 7% 3% ₱21.1bn ₱15.0bn ₱12.1bn +1.3bn -0.1bn +0.3bn Mobile Data 89% Fiber 92% Corp Data/ICT* 71% ₱18.8bn 11% ₱13.7bn 7% ₱8.6bn 8% +1.8bn +
Slide 5: Individual: Strong quarter driven by data monetization
Individual: Strong quarter driven by data monetization ➢ Service revenues in 1Q24 up by 7% year-on-year due to strong data monetization Total 1Q24: 7% Total 1Q24: 11% ▪ Blended ARPU higher by 21% vis-a-vis 10% rise Individual ₱21.1bn +1.3bn Mobile Data ₱18.8bn +1.8bn in average usage ▪ Quarter-on-qu
Slide 6: Home: Fiber revenues sustained
Home: Fiber revenues sustained ➢ Market opportunities identified by PLDT: ▪ New/unserved markets Total 1Q24: Total 1Q24: 7% ▪ Underserved: lower-end segment Home ₱15.0bn -0.1bn Fiber ₱13.7bn +0.9bn ▪ Niche market: high-end customers ➢ Industry-first: Always-on Broadband Service 92% of total Home ▪ L
Slide 7: Enterprise: Corp Data and ICT propel growth
Enterprise: Corp Data and ICT propel growth ➢ Corporate data/ICT 8%* revenue growth underpinned 1Q24: Total by: Total 3% 1Q24: 8% Corp Data/ ▪ 2% rise in core connectivity due to higher fiber and Enterprise ₱12.1bn +0.3bn ICT* ₱8.6bn +0.6bn managed IT data revenues ▪ 13% increase in ICT revenues due
Slide 8: Expenses: Focus on efficiencies and cost controls remain
Expenses: Focus on efficiencies and cost controls remain (Php in bn) 1Q24 1Q23 1Q24 vs 1Q23 Cash Opex 19.2bn 18.6bn +0.6bn Repairs and Maintenance 7.5bn 7.2bn +0.3bn Compensation and Benefits (exMRP) 6.1bn 6.0bn +0.1bn Professional and Other Service Fees 1.9bn 1.7bn +0.1bn Selling and Promotions 1.3
Slide 9: Consolidated EBITDA (ex-MRP): Setting a new record
Consolidated EBITDA (ex-MRP): Setting a new record vs 1Q23 1Q24: EBITDA ₱27.3bn + ₱1.6bn rise in revenues 5% (Margin) (52%) − ₱0.3bn increase in costs +1.3bn (Php in bn) +5% +1.4bn 27.3 25.5 25.0 25.0 25.1 26.0 26.1 26.2 25.9 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 FY2022: ₱100.6bn FY23: ₱104.3
Slide 10: Telco Core Income: A strong start for 2024
Telco Core Income: A strong start for 2024 vs 1Q23 1Q24: + Higher EBITDA by ₱1.3bn Telco - Increased Financing Costs by ₱0.3bn 8% Core ₱9.3bn - Higher Income Tax Provision by ₱0.2bn +0.7bn +13% (Php in bn) +1.1bn 8.9 8.9 9.3 8.2 8.5 8.6 8.5 8.3 7.7 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 FY2022
Slide 11: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income 1Q24 1Q23 1Q24 vs 1Q23 8% Telco Core Income 9.3bn 8.6bn +0.7bn Continued reduction in Share in Maya Innovations Holdings (MIH) / Bank Hold Co Loss (0.4bn) (0.6bn) +0.2bn Maya’s losses Telco Core Income + Maya 8.9bn 8.0bn 12% +0.9bn 1Q24: 111 sites 1Q23: 382
Slide 12: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (Php in billion) (Php in billion, as of end March 2024) Net Debt-to-EBITDA* Net Debt Gross Debt 2.29x ₱ 242.2bn (FY23: 2.30x) ₱ 257.0bn 251.9 225.7 256.9 239.8 257.0 242.2 139.9 26.2 17.2 14.8 7.3 23.2 15.4 27.0 20.7 23.5 2022 Dec-23 Mar-
Slide 13: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Business Capex Network/IT Data Center and Subsidiaries Others ➢ Guidance for 2024: ₱75-78bn ▪ Includes investment in capacity to drive revenue 12% growth and support continuing rise in network traffic ✓ Re-acceleration of roll out to expand fixed and 96.8 -
Slide 14: Smart: 5G Highlights
Smart: 5G Highlights Connected Unique Devices Data Traffic In ‘000 (Total for the Quarter) vs Dec. 2020: +2,197% In TB +19% +10% 77,668 5,780 65,183 5,250 56,055 4,350 46,563 46,381 3,492 3,891 39,781 2,511 3,072 31,166 2,114 16,098 22,735 1,5… Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23
Slide 15: Maya: #1 Fintech Ecosystem in the Philippines
Maya: #1 Fintech Ecosystem in the Philippines 3.4 M Php 29 B ~ 1M ~Php 34 B Depositors Deposit Balance Borrowers Loans Disbursed1 # 1 Digital Bank +95% YoY +40% YoY LTD as of Mar-24 More enterprises More consumers Ranked- #1 consumer app Top Rated Finance App Data More More deposits Transactions Ent
Slide 16: Empowering Enterprises with all-in-one Digital Banking
Empowering Enterprises with all-in-one Digital Banking Comprehensive Payments Product Suite Embedded Banking to Businesses Payment Gateway Card Vaulting E-commerce plug-ins Online Dynamic or Maya Maya One Static QR Business Offline Business Deposit & Micro SME Loans Unsecured SME Loans Cards Payment
Slide 17: Next-gen Savings and Credit Experience for Consumers
Next-gen Savings and Credit Experience for Consumers Key Partnerships 85% 59% 3x of Bank Customers are of Borrowers have sole Consumer Millennials and Gen Z Banking Relationship with Loans Disbursed Maya YoY, 1Q24 vs 1Q23 Device Financing Loan Channeling High Engagement Time Deposit Easy Credit Flex
Slide 18: PLDT Group: 2024 Outlook/Guidance
PLDT Group: 2024 Outlook/Guidance ➢ Robust increases in data/broadband Consolidated Service revenue streams of the various business Mid-single digit growth Revenue segments ➢ Supported by top line growth and tight Mid-single digit growth management of costs/expenses EBITDA ➢ Push to expand EBITDA ma
Slide 19: Other Details
Other Details 19
Slide 20: Data/broadband: 83% of Consolidated Revenues
Data/broadband: 83% of Consolidated Revenues 2024 vs 2023 (Php in bn) ILD (1%) 1.6 0.4 9% Mobile Data ₱19.7bn +1.6bn 6.3 1% 1Q24 Home Broadband ₱13.1bn +0.1bn ₱48.7bn 3% +1.6bn 2% Data/Broadband 5% Corporate Data ₱ 6.2bn (83%*) +0.1bn +2.0bn 40.5 13% ICT ₱ 1.2bn % of data/broadband per segment inclu
Slide 21: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights FTTH Presence Fixed: Extensive Network Reach 70% 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 0.79mn Internati
Slide 22: ePLDT Data Center Business: Key Highlights
ePLDT Data Center Business: Key Highlights Sustainable Operations 10 sites 4 (2023) TIA-942* rated 3 certified facilities ➢ PUE (Power Usage Effectiveness): strategically spread across PH (*Telecommunications infrastructure standard for DCs) 4% improvement vs 2022 ➢ ISO 14001:2015 (Environmental Man
Slide 23: Sustainability Highlights: First Quarter 2024
Diversity and Inclusion Human Rights Sustainability Highlights: First Quarter 2024 Purpose: We are a Filipino company inspiring innovation and meaningful connections through generations Operational Efficiency Health and Safety Environmental Stewardship 23
Slide 24: Decarbonization Roadmap: Moving forward on the chosen path
Decarbonization Roadmap: Moving forward on the chosen path Decarbonization Roadmap 40% reduction in Scope 1 and Scope 2 by 2030 (2019 baseline) Agreement with ACEN for 100% RE Climate Action Initiatives (February 26, 2024) ➢ Partnership with MSpectrum for Solar Rooftop ➢ Objectives of the transition
Slide 25: Business Continuity: ISO Certifications
Business Continuity: ISO Certifications ISO 22301: 2019 (Business Continuity Management Systems) ISO 9001: 2015 (Quality Management Systems) 24 certified sites in 2023 2024 Additional sites in Visayas will PLDT: 15 sites Target be certified Smart: 9 sites 22 certified 2022: 22 sites 2021: 18 sites ➢
Slide 26: Environmental Stewardship: Partnering for Biodiversity Conservation
Environmental Stewardship: Partnering for Biodiversity Conservation Protecting the Rainforest using Communications Technology (March 2024) ➢ PLDT/Smart partnership with Huawei, Rainforest Connection (RFCx), DICT and DENR ➢ Objective of the Project: ▪ Deploy RFCx’s Guardians which use IoT solution to
Slide 27: PLDT/Smart “Be Kind. Recycle” (e-waste) Program: Gaining momentum
PLDT/Smart “Be Kind. Recycle” (e-waste) Program: Gaining momentum 2024 Target Scale up e-waste collection points nationwide 2024 Partnerships Employee Training Community Awareness e-Waste Management training for e-Waste Management awareness employees in the community (April 2024) (April 2024) ➢ Atte
Slide 28: Social Pillar: Commitment to Cybersecurity and Data Privacy
Social Pillar: Commitment to Cybersecurity and Data Privacy PLDT and Smart received PLDT and Smart Cybersecurity in Action NPC (National Privacy Commission) Seal of Registration in 1Q2024 23 B 5B 197 K 13.4 M Cyber-attacks and Attempts to Mobile numbers linked SMShing data breach access malicious to
Slide 29: Social Pillar: Nurturing and empowering vulnerable sectors
Social Pillar: Nurturing and empowering vulnerable sectors Disability Sensitivity and Neurodiversity Workshop Driving digital inclusion through digital upskilling of vulnerable sectors for PLDT and Smart frontliners Supporting Overseas Filipino Workers Digital training for persons with (OFWs) throug
Slide 30: Appendix
@ PLDT APPENDIX
Slide 31: Subscriber Base
Subscriber Base End-March 2024 End 2023 2% Total Subscribers 66,415 65,303 +1.1mn Net Adds Mobile 1Q2024 4Q2023 3Q2023 2Q2023 1Q2023 1Q2024 vs YE2023 Mobile Subscriber Base Prepaid 56,785,718 55,667,880 53,105,076 60,891,135 62,999,637 1,117,838 2% Smart Prepaid 21,856,044 21,530,993 20,494,009 23,4
Slide 32: ARPU
ARPU Mobile ARPU, Net 2024 2023 1Q 1Q 2Q 3Q 4Q Smart Postpaid 703 674 687 697 693 Smart Prepaid 125 107 109 128 130 TNT 106 86 92 109 109 32
Slide 33: Consolidated Financial Highlights
Consolidated Financial Highlights 1Q2024 Y-o-Y 1Q2023 Wireless Fixed Line Others Consolidated % Change (Php in millions) Service Revenues (1) 24,735 31,747 - 52,195 49,726 5% (2) Cash Operating Expenses 11,158 14,668 31 22,711 22,814 - Subsidies and Cost of Services 543 739 - 1,224 1,411 (13%) Provi
Slide 34: Consolidated Service Revenues
Consolidated Service Revenues 2024 2023 % Change 1Q2024 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2023 Fixed Line 27,627 26,541 26,032 26,769 27,496 106,838 4% Fixed Line Voice 7,052 6,473 5,753 6,385 6,549 25,160 9% Home Broadband 12,690 12,568 12,691 12,795 12,798 50,852 1% Fixed Line 12,688 12,565
Slide 35: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2024 2023 % Change 1Q2024 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2023 Data and Broadband 40,643 38,602 39,052 39,473 40,827 157,954 5% Home Broadband 13,069 12,976 13,120 13,200 13,185 52,481 1% Fixed Line 12,688 12,565 12,687 12,741 12,795 50,788 1% Fixed
Slide 36: Wireless Service Revenues
Wireless Service Revenues 2024 2023 % Change 1Q2024 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2023 Data/Broadband 20,181 18,604 18,841 19,158 20,016 76,619 8% Mobile Data 19,802 18,196 18,412 18,753 19,629 74,990 9% Mobile Internet 18,899 17,173 17,451 17,877 18,767 71,268 10% Mobile Broadband 683 80
Slide 37: Fixed Line Service Revenues
Fixed Line Service Revenues 2024 2023 % Change 1Q2024 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2023 Data/Broadband 24,183 22,981 23,249 23,203 23,779 93,212 5% Home Broadband 12,695 12,574 12,698 12,801 12,803 50,876 1% Corp. Data and Other Network Services 9,675 8,790 8,848 8,854 8,712 35,204 10% I
Slide 38: Expenses
Expenses 1Q2024 1Q2023 Y-o-Y (Php in millions) Consolidated Consolidated % Change Operating Expenses Repairs and Maintenance 7,481 7,160 4% Compensation and Employee Benefits 6,078 7,456 (18%) Interconnection Costs 3,491 2,619 33% Professional and Other Contracted Services 1,876 1,893 (1%) Taxes and
Slide 39: Other Income (expenses)
Other Income (expenses) 1Q2024 1Q2023 Y-o-Y Consolidated Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Vega (19) 20 (195%) Maya (376) (722) (48%) Others - (3) (100%) Total Equity Share in Net Earnings (Losses) (395) (705) (44%) Financ
Slide 40: Earnings Per Share (EPS)
Earnings Per Share (EPS) 1Q2024 1Q2023 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT Continuing Operations 9,824 9,824 9,040 9,040 Discontinued Operations - - (25) (25) Net Income Attributable to Equity Holders
Slide 41: Balance Sheet
Balance Sheet Consolidated (Php in millions) March 31, 2024 December 31, 2023 Total Assets 621,785 609,519 Nominal Value of Total Debt 257,012 256,927 Less: Unamortized Debt Discount 2,073 2,129 Total Debt 254,939 254,798 (1) Cash and Short-Term Investments 14,828 17,163 (2) Net Debt 242,184 239,764
Slide 42: Debt Profile
Debt Profile March 31, 2024 December 31, 2023 Unamortized Debt Change Carrying Discount/Debt Face Value Face Value Value (Php in millions) Issuance Debt PLDT ₱152,159 ₱1,162 ₱153,321 ₱157,071 (₱3,750) Smart 97,840 876 98,716 94,856 ₱3,860 ePLDT 4,940 35 4,975 5,000 (₱25) Total Debt ₱254,939 ₱2,073 ₱
Slide 43: PLDT
4 PLDT