PLDT, Inc. · PSE:TEL
PLDT — 9M 2023 Earnings Presentation
61 slides from PLDT's earnings presentation, Nov 7, 2023
Slide 1: Nine Months 2023 Financial and Operating Highlights
Nine Months 2023 Financial and Operating Highlights 7th November 2023
Slide 2: Growth Made Possible
Growth Made Possible SEPTEMBER YTD 2023 PERFORMANCE Telco Core Income Net Service Revenues EBITDA* 26.1B 142.3B 78.4B +2% vs. SPLY 25.6B +1% vs. SPLY 141.2B +4% vs. SPLY 75.5B ALL-TIME 9M HIGH ALL-TIME 9M HIGH EBITDA Margin 52% *EBITDA is ex-MRP CAPEX managed at 55.3B vs 67.3B SPLY CAPEX Intensity a
Slide 3: Continued Countrywide Network Expansion
Continued Countrywide Network Expansion Domestic Fiber Footprint Homes Passed Latched 5G Devices +4% 893.9K vs. SPLY 859.9K ; +34K +3% 17.31M vs. SPLY 16.78M; +529K +74% 3.64M VS. SPLY 2.09M; +1.55M In cable kms Plus International Fiber Footprint of 213K Cable KMS Jupiter Cable Systems continues to
Slide 4: Local Excellence, Global Recognition
Local Excellence, Global Recognition 3-GOLDEN ARROW AWARD Best rated upload speeds, PLDT is the only PH telco named and is ASEAN Corporate Governance download speeds, and latency ranked highest in Sustainability among Scorecard recognition ceremony experience for SMART the six cited Philippine compa
Slide 5: Concerted Efforts for Continuous Growth through Innovation
Concerted Efforts for Continuous Growth through Innovation Empowered digital lifestyles Keeping families safe, connected, Providing innovative solutions through exciting, personalized offers productive, and entertained to digitally transform industries A2P Solutions Fleet Management powered by IOT W
Slide 6: Staying True to the Company's Core
Staying True to the Company’s Core Integrated Sustainability at Building Ecocentric Dribbling for Change PLDT DigiCon 2023 Businesses In-depth sustainability e-Waste collection programs are In full support of sustainability discussions at Digi Hub, School- now integrated in brand initiatives during
Slide 7: Nation-building through Public-private Collaboration
Nation-building through Public-private Collaboration PLDT Group joins the call for Maya, PLDT back GDP, DTI PLDT group launches the creation of a Connectivity Cashless Expo 2023 Philippines' First Sovereign Index Rating to elevate internet championing the government's Cloud with DICT to help fast- q
Slide 8: PLDT Smart Foundation Extending Support to Communities
PLDT Smart Foundation Extending Support to Communities OFW Reintegration Lab for All Public Academe-Industry Support Health Initiative Collaboration Partnered with PLDT Global to aid Extensively supported First Lady Forged strong partnerships with OFW reintegration, providing 4 Liza Marcos' Lab for
Slide 9: Innovations for Tomorrow, Today
Innovations for Tomorrow, Today 9
Slide 10: @PLDT
@PLDT
Slide 11: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php (Php in in bn)bn) 9M23 9M22 9M23 vs 9M22 Gross Service Revenues Service Revenues 142.3bn 141.2bn 1% 149.8bn (net of interconnection costs) +1.1bn 3% Cash Opex, Subsidies, Provisions 63.9bn 65.6bn 3% +4.0bn (ex-MRP) -1.7bn * excl Provisions: ₱60.6bn, -₱1.3bn or -
Slide 12: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues (Php in bn) 9M23 9M22 (1) 9M23 vs 9M22 1% Individual 60.6bn 60.3bn +0.3bn Fiber only 39.3bn 2% Home 45.3bn 44.3bn 10% +1.0bn +3.6bn Enterprise 34.8bn 34.4bn 1% +0.4bn Consumer and Enterprise 140.7bn 139.0bn 1% +1.7bn International and Carrier 2.1bn 25% 1.6bn
Slide 13: Home: Fiber revenues sustain double-digit growth
Home: Fiber revenues sustain double-digit growth Total Home Total Fiber ➢ Quarter-on-quarter rise of P0.6bn in fiber 10% revenues was the highest in the last five 2% 9M23: ₱39.3bn 9M23: ₱45.3bn quarters +1.0bn +3.6bn ➢ Fiber net adds re-accelerate with 88K in 3Q23: 9M22: ₱44.3bn 9M22: ₱35.7bn highes
Slide 14: Enterprise: Data and ICT are key revenue drivers
Enterprise: Data and ICT are key revenue drivers ➢ 9M23 revenues grew 1% year-on-year: 1% 9M23: ₱34.8bn ▪ Corporate data revenues rose 6% due to higher +0.4bn fiber and managed IT data revenues 9M22: ₱34.4bn ▪ ICT higher by 10% mainly from data center, cloud services and Multisys +2% ➢ 3Q23 revenues
Slide 15: Individual: Positive trends manifesting
Individual: Positive trends manifesting Total Individual ➢ Revenues in 3Q23 were the highest in the last 1% 9M23: ₱60.6bn seven quarters +0.3bn ▪ Year-on-year improvement underpinned by 9M22: ₱60.3bn ✓ 2% rise in prepaid ✓ 6% growth in postpaid ▪ 3Q23 better quarter-on-quarter despite SIM 3Q23 vs 3Q
Slide 16: Data/broadband: 82% of Consolidated Revenues
Data/broadband: 82% of Consolidated Revenues 2023 vs 2022 (Php in bn) ILD (1%) 4.0 1.2 3% Mobile Data ₱55.2bn 20.3 • ₱18.7bn in 3Q23 is an all-time high +1.4bn 9M23 4% Home Broadband ₱39.3bn ₱142.3bn +1.4bn 1% +1.1bn Data/Broadband 6% (82%*) 4% Corporate Data ₱ 18.9bn +1.0bn 116.9 +4.1bn 10% % of da
Slide 17: PLDT Group: Expenses
PLDT Group: Expenses (Php ininin (Php bn) bn) (Php bn) 9M23 9M22 9M23 vs 9M22 Cash Opex 56.3bn 58.3bn (2.0bn) Repairs and Maintenance 22.0bn 21.1bn +0.9bn Compensation and Benefits (exMRP) 16.8bn 18.8bn (2.0bn) Professional and Other Service Fees 5.7bn 6.2bn (0.4bn) Selling and Promotions 4.6bn 4.7b
Slide 18: Consolidated EBITDA (ex-MRP): Five consecutive quarters of improvement
Consolidated EBITDA (ex-MRP): Five consecutive quarters of improvement 9M23: ₱78.4bn 4% + ₱1.1bn rise in revenues (Margin: 52%) + ₱1.7bn reduction in costs +2.8bn 9M22: ₱75.5bn (Margin: 52%) 3Q23 vs 3Q22 +5% (Php in bn) 25.5 25.0 25.0 25.1 26.0 26.1 26.2 +1.2bn 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 9M2
Slide 19: Telco Core Income: In-line with guidance
Telco Core Income: In-line with guidance + Higher EBITDA by ₱2.8bn 9M23: ₱26.1bn 2% - Higher depreciation by ₱0.3bn +0.5bn - Increase in Financing Costs by ₱1.3bn 9M22: ₱25.6bn - Higher Provision for Income Taxes by ₱1.2bn 3Q23 vs 3Q22 (Php in bn) 8.9 8.5 8.6 8.9 8.5 8.2 7.7 1Q22 2Q22 3Q22 4Q22 1Q23
Slide 20: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income 9M23 9M22 2023 vs 2022 2% Telco Core Income 26.1bn 25.6bn +0.5bn 3Q23: P0.5bn Share in Maya Innovations Holdings (MIH) / Bank Hold Co Loss (1.7bn) (2.4bn) +0.7bn 3Q22: P0.6bn --- 0.5bn -0.5bn MIH Gain on Dilution, net of tax 24.4bn 23.7bn 3% Telco Core Inco
Slide 21: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (PHP in billions) (PHP in billions, 30 September 2023) Net Debt Net Debt-to-EBITDA* Gross Debt ₱ 252.1bn 2.44x ₱ 274.5bn (1H23: 2.48x) 156.6 255.4 228.7 251.9 225.7 274.5 252.1 26.8 26.2 22.3 19.6 12.0 23.3 15.3 27.0 20.7 2021 2022 Sep-23
Slide 22: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Business Capex 24% 9% ➢ Capex guidance for 2023: ₱80-85bn, including: Network/IT +7.8bn 96.8 ▪ Fresh capex and impact of carry over capex Data Center and 89.0 Subsidiaries ▪ Investment in capacity to drive revenue growth and -5.3 12.2 support continuing ris
Slide 23: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Reach Presence TOTAL HOMES PASSED 69% FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Million Cable Kilometers Laid) *excluding VVDSL of 0.93mn (1H23) Internationa
Slide 24: Smart: 5G Highlights
Smart: 5G Highlights Connected Unique Devices Data Traffic In ‘000 In TB (Total for the Quarter) +1,629 +18,973% +12% 3,891 4,350 56,055 3,492 46,532 45,002 3,072 39,781 31,166 2,114 2,511 22,735 1,583 16,098 1,176 9,752 759 376 520 5,686 252 294 944 2,627 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q2
Slide 25: Maya: Leading Fintech Ecosystem in the Philippines
Maya: Leading Fintech Ecosystem in the Philippines Digital bank Most number of depositors, largest deposit base among digital banks in PH #1 Merchant acquirer Largest merchant acquirer, QR PH leader Rated finance app Among local finance apps in PH 25
Slide 26: Maya: Next-gen Banking Experience for Consumers
Maya: Next-gen Banking Experience for Consumers Convenient High Engagement Inclusive Accessible Payments Savings Credit Investments 26
Slide 27: Maya: Embedded banking across enterprise platform
Maya: Embedded banking across enterprise platform Omnichannel Up to 2.5% p.a. Point of Sale Credit payments Business Deposit SME/MSME Credit 27
Slide 28: Maya: Leader in Digital Banking
Maya: Leader in Digital Banking Cumulative # of Depositors Deposit Balance Loans Disbursed* 2.6 M Php23.5 B ~Php16 B *Past 12 months Figures as of end-September 2023 28
Slide 29: PLDT Group: 2023 Outlook/Guidance
PLDT Group: 2023 Outlook/Guidance ➢ Low-teen growth in fiber revenues ➢ Momentum for Enterprise revenues to continue, underpinned by ICT Service Revenue Growth Low-single digit growth ➢ Challenging but improving environment for mobile industry ➢ Supported by top line growth and EBITDA Low-single dig
Slide 30: @PLDT Other Details
@PLDT Other Details
Slide 31: ePLDT Data Center Business: Key Highlights
ePLDT Data Center Business: Key Highlights 10 4 600+ Gbps sites TIA-942* rated 3 certified facilities Premium access to Smart and PLDT strategically spread across PH eyeballs 8,930 27.9MW 500GB Full capacity racks Peak local peering traffic Aggregated IT power Host to 4 of PH’s top IXs 7,519 ready c
Slide 32: Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income
Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income Higher Lower Lower Lower Svc Rev Cash Opex, Provisions Subsidies EBIT Depn (net of IC) net +0.4 +0.2 78.4 +1.1 +1.1 36.2 75.5 6% 42.2 EBITDA 4% +2.5bn (ex-MRP) +2.8bn (Php in bn) 9M 2022 9M 2023 9M 2023 EBITDA margin EBIT margin 52% 52% 28% (v
Slide 33: PLDT Group: Subscriber Base
PLDT Group: Subscriber Base (in ‘000) (in ‘000) Broadband Fixed Line Mobile 8% 1% 17% 3,690 3,992 3,792 3,825 55,246 66,305 -303K -33K -11,059K Cellular 54,372 65,215 -17% Fixed 3,280 +32K 3,248 +1% Prepaid 52,280 63,263 -17% Postpaid 2,092 +140K 1,952 7% Fiber 3,144 +210K 2,934 +7% Mobile Broadband
Slide 34: PLDT Group: Broadband Subscriber Base
PLDT Group: Broadband Subscriber Base Fiber Only: Gross Connects and Migrations 2022 2023 Subscribers (Monthly ave. per qtr, in ‘000) (in '000) 1Q 2Q 3Q 4Q FY2022 1Q 2Q 3Q YTD 2023 Fixed Broadband Gross 281 272 287 278 1,118 225 197 166 588 20 35 Churn (114) (205) (246) (272) (837) (192) (184) (179)
Slide 35: Sustainability Highlights: 3Q23
Sustainability Highlights: 3Q23 Purpose: 1Q2023 ESG highlights 2Q2023 ESG highlights We are a Filipino company inspiring innovation and meaningful connections through generations 35
Slide 36: PLDT: Recognized in Time Magazine's World Best Companies 2023
PLDT: Recognized in Time Magazine’s World Best Companies 2023 Only Philippine Telco In Time Magazine’s World’s Best Companies 2023 ➢ PLDT is one of six Philippine companies recognized in TIME Magazine’s list of World’s Best Companies 2023 ➢ PLDT ranked highest among the six cited Philippine companie
Slide 37: PLDT: Leader status in the 2023 GCF's Corporate Sector and Children's Rights Benchmark
PLDT: Leader status in the 2023 GCF's Corporate Sector and Children's Rights Benchmark Average scores Sector 5.7 Industry 5.8 +3.6 from 2022 Region 4.4 ➢ PLDT has achieved a Leader status in the 2023 Global Child Forum’s (GCF) Corporate Sector and Children’s Rights Benchmark ▪ Higher than the Sector
Slide 38: Environment: Embedding Sustainability in our Business
Environment: Embedding Sustainability in our Business With waste management and circularity as one of the PLDT Group’s area of material focus, e-Waste collection programs are now being implemented by our Business Units e-Waste collections during e-Waste bins during the PLDT e-Waste bins deployed in
Slide 39: Environment: Partnering to Promote Circularity in the Community-level
Environment: Partnering to Promote Circularity in the Community-level PLDT and Smart are partnered with various groups for a Treatment, Storage, Disposal (TSD) Facility at Bgy. Bakakeng, Baguio City (Inauguration: September 25, 2023) ➢ PLDT/Smart’s project partners for the TSD Facility: ▪ Department
Slide 40: Environment: Partnering for Biodiversity Conservation
Environment: Partnering for Biodiversity Conservation PLDT and Smart support Enabling Conservation of one of the Maynilad’s Tree Planting Initiative Nature-based Climate Solutions (Peatlands) (2023) (August 30 – 31, 2023) Reforestation site in Ipo Dam, Supports Maynilad’s Norzagaray, Bulacan “Plant
Slide 41: Environment: Partnering for the Planet
Environment: Partnering for the Planet UNGC/GCNP’s Planet Pillar: Community Engagement, Webinar and Plastic Collection Pilot Program GCNP’s Planet Pillar Education Program (PLDT/Smart as co-lead) Water Stewardship and EPR Webinars GCNP’s Planet Pillar Community-level Pilot Program Private sector par
Slide 42: Social: Enabling Child Safety and Protection
Social: Enabling Child Safety and Protection PLDT and Smart share Best Practices on the Fight Against Child Sexual Abuse and Exploitation Materials (CSAEM) (September 7, 2023) ➢ PLDT/SMART (c/o Chief Information Security Officer A. Redoble) highlighted the Group’s advocacy and initiatives to fight O
Slide 43: Social: Championing the Responsible Use of Technology and AI
Social: Championing the Responsible Use of Technology and AI “Family Perspectives on Smart Home and Artificial Intelligence” at the DigiCon (October 12, 2023) ➢ PLDT Enterprise’s 2023 Philippine Digital Convention (DigiCon) “Vision” – first Digicon with a dedicated session that formally included sus
Slide 44: Social: Creating an Inclusive and Strong Organization
Social: Creating an Inclusive and Strong Organization PLDT Group empowers its employees through various learning programs (2023) ➢ PLDT Group signed strategic partnership with LinkedIn ▪ LinkedIn learnings for employees ✓ Aims to help build a workforce that will deliver more innovations to customers
Slide 45: Governance: Strengthening Commitment to Good Governance
Governance: Strengthening Commitment to Good Governance PLDT received the “Three Golden Arrows” at the Fr. Roberto “Bobby” Yap joins ASEAN Corporate Governance Scorecard (ACGS) PLDT Advisory Board ➢ PLDT is a consistent recipient of Golden Arrow Awards ➢ Holds a PhD in Environmental Economics from t
Slide 46: Appendix
@PLDT APPENDIX
Slide 47: Subscriber Base: Mobile
Subscriber Base: Mobile (1) (1) (1) Net Adds (Reductions) Sep-23 Jun-23 Mar-23 Dec-22 Sep-22 9M2023 vs YE2022 (2) Mobile Subscriber Base Prepaid 53,105,076 60,891,135 62,999,637 64,287,019 65,972,119 (11,181,943) (17%) Smart Prepaid 20,494,009 23,486,725 24,044,239 24,394,379 25,103,659 (3,900,370)
Slide 48: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds Sep-23 Jun-23 Mar-23 Dec-22 Sep-22 9M2023 vs YE2022 Fixed Line Subscribers 3,792,278 3,823,629 3,828,445 3,825,424 3,835,305 (33,146) (1%) Broadband Subscribers Net Adds Sep-23 Jun-23 Mar-23 Dec-22 Sep-22 9M2023 vs YE2022 BROA
Slide 49: ARPU
ARPU Mobile ARPU, Gross(1) : 2023 2022 1Q 2Q 3Q 1Q 2Q 3Q 4Q Postpaid 716 726 736 733 732 728 736 Smart Prepaid 124 124 145 116 123 125 128 TNT 96 102 121 94 99 97 98 (1) Includes Mobile Broadband subscribers Broadband ARPU, Gross: 2023 2022 1Q 2Q 3Q 1Q 2Q 3Q 4Q Fixed Line Broadband (2) 1,441 1,446 1
Slide 50: Consolidated Financial Highlights
Consolidated Financial Highlights 9M2023 Y-o-Y 9M2022 Wireless Fixed Line Others Consolidated % Change (Php in millions) (1) Service Revenues 70,921 89,436 - 149,752 145,715 3% (2) Cash Operating Expenses 28,335 41,380 15 66,186 69,134 (4%) Subsidies and Cost of Services 2,560 1,755 - 4,298 3,640 18
Slide 51: Consolidated Service Revenues
Consolidated Service Revenues 2023 2022 % Change 9M2023 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2022 Fixed Line 26,541 26,032 26,769 79,342 24,183 24,796 25,443 74,422 25,862 100,284 7% LEC 3,459 3,317 3,244 10,020 3,492 3,491 3,388 10,371 3,475 13,846 (3%) Fixed Line Voice - Internatio
Slide 52: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2023 2022 % Change 9M2023 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2022 Data and Broadband 38,602 39,052 39,473 117,127 36,374 38,145 38,392 112,911 38,993 151,904 4% Home Broadband 12,976 13,120 13,200 39,296 12,022 12,862 13,037 37,921 13,051 50
Slide 53: Wireless Service Revenues
Wireless Service Revenues 2023 2022 % Change 9M2023 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY 9M2022 (Php in millions) Data/Broadband 18,604 18,841 19,158 56,603 18,129 18,782 18,610 55,521 18,676 74,197 2% Mobile Data 18,196 18,412 18,753 55,361 17,556 18,255 18,132 53,943 18,226 72,169 3% Mobile Internet 1
Slide 54: Fixed Line Service Revenues
Fixed Line Service Revenues 2023 2022 % Change 9M2023 vs 1Q 2Q 3Q 9M 1Q 2Q 3Q 9M 4Q FY (Php in millions) 9M2022 Data/Broadband 22,981 23,249 23,203 69,433 22,781 24,246 26,584 73,611 16,457 90,068 (6%) Home Broadband 12,574 12,698 12,801 38,073 11,457 12,344 12,566 36,367 12,608 48,975 5% Corp. Data
Slide 55: Expenses
Expenses 9M2023 (1) Y-o-Y 9M2022 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Repairs and Maintenance 11,662 11,353 - 22,046 21,110 4% Compensation and Employee Benefits 5,134 13,736 - 18,719 23,866 (22%) Professional and Other Contracted Services 3,179 3,724
Slide 56: Other Income (expenses)
Other Income (expenses) 9M2023 (1) Y-o-Y 9M2022 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - - - (147) 100% Vega - - 44 44 71 (38%) Maya - - (1,766) (1,766) (2,005) 12% Others - (585) 4 (581) 1
Slide 57: Earnings Per Share (EPS)
Earnings Per Share (EPS) 9M2023 9M2022 (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 27,892 27,892 27,624 27,624 Discontinued Operations (13) (13) (125) (125) Net Income Attributable to Equ
Slide 58: Balance Sheet
Balance Sheet Consolidated (Php in millions) September 30, 2023 December 31, 2022 Total Assets 632,713 624,162 Nominal Value of Total Debt 274,464 251,859 Less: Unamortized Debt Discount 2,210 2,279 Total Debt 272,254 249,580 (1) Cash and Short-Term Investments 22,339 26,190 Net Debt (2) 252,125 225
Slide 59: Debt Profile
Debt Profile December 31, September 30, 2023 2022 Change Carrying Unamortized Debt Face Value Face Value Value Discount/Debt Issuance (Php in millions) Debt PLDT ₱166,896 ₱1,246 ₱168,142 ₱158,052 ₱10,090 Smart 102,380 942 103,322 93,807 9,515 ePLDT 2,978 22 3,000 - 3,000 Total Debt ₱272,254 ₱2,210 ₱
Slide 60: 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 61: PLDT
(PLDT