PLDT, Inc. · PSE:TEL
PLDT — FY2023 Earnings Presentation
49 slides from PLDT's earnings presentation, Mar 7, 2024
Slide 1: Full Year 2023 Financial and Operating Highlights
Full Year 2023 Financial and Operating Highlights 7th March 2024
Slide 2: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php (Php in in bn)bn) FY23 FY22 FY23 vs FY22 Service Revenues 191.4bn 1% Gross Service 3% 189.2bn Revenues (net of interconnection costs) +2.2bn +6.5bn 201.8bn Cash Opex, Subsidies, Provisions 87.1bn 88.7bn 2% (ex-MRP) -1.5bn EBITDA 104.3bn 100.6bn 4% (ex-MRP) Margi
Slide 3: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues (Php in bn) FY23 FY22 FY23 vs FY22 81.8bn 80.3bn 2% Individual +1.5bn 9% 1% Fiber Home 60.4bn 59.5bn 53.0bn +4.5bn +0.9bn Enterprise 47.1bn 46.6bn 1% +0.5bn Consumer and Enterprise 189.4bn 186.5bn 2% +2.9bn International and Carrier 2.7bn 25% 2.0bn -0.7bn To
Slide 4: PLDT Group: Robust growth from data revenue streams underpin each segment
PLDT Group: Robust growth from data revenue streams underpin each segment Excl Legacy Total 2023 Service Revenues (1) 191.4bn 1% 6% 189.2bn +2.2bn +9.4bn Individual Home Enterprise 2% 1% 1% ₱81.8bn ₱60.4bn ₱47.1bn +1.5bn +0.9bn +0.5bn Mobile Data 87% Fiber 88% Corp Data/ICT 65% ₱71.1bn 6% ₱53.0bn 9%
Slide 5: Individual: Sustained quarterly growth in 2023 signals recovery
Individual: Sustained quarterly growth in 2023 signals recovery ➢ Sequential improvement in quarterly revenues Total Total FY23: 2% FY23: 6% maintained from 1Q23 Mobile Individual ₱81.8bn ₱71.1bn ▪ Improving macro (easing inflation) and modest +1.5bn Data +4.1bn market repair 87% of total Individual
Slide 6: Home: Fiber continues to deliver quarter-on-quarter revenue growth
Home: Fiber continues to deliver quarter-on-quarter revenue growth ➢ Market opportunities identified by PLDT: ▪ New/unserved markets Total FY23: 1% Total FY23: 9% ▪ Underserved: lower-end segment Home ₱60.4bn Fiber ₱53.0bn ▪ Niche market: high-end customers +0.9bn +4.5bn 88% of total Home ➢ Unique t
Slide 7: Enterprise: Corporate data, ICT and data center support growth
Enterprise: Corporate data, ICT and data center support growth ➢ Excluding impact of pre-terminated/non-renewed Total contracts, Enterprise revenues grew by P1.3bn or 3% Total FY23: 1% FY23: 6% Corp Data/ year-on-year Enterprise ₱47.1bn ₱30.4bn +0.5bn ICT +1.6bn ➢ Corporate data/ICT 6% revenue growt
Slide 8: Expenses: Tight management and control
Expenses: Tight management and control (Php in bn) FY23 FY22 FY23 vs FY22 Cash Opex 76.7bn 77.7bn (1.0bn) Repairs and Maintenance 30.1bn 28.9bn +1.2bn Compensation and Benefits (exMRP) 22.6bn 24.1bn (1.5bn) Professional and Other Service Fees 8.5bn 8.0bn +0.5bn Selling and Promotions 5.9bn 6.6bn (0.
Slide 9: Consolidated EBITDA (ex-MRP): A new record high
Consolidated EBITDA (ex-MRP): A new record high EBITDA FY23: ₱104.3bn 4% + ₱2.2bn rise in revenues (Margin) (52%) + ₱1.5bn reduction in costs +3.7bn (Php in bn) 4Q23 vs 4Q22 25.5 25.0 25.0 25.1 26.0 26.1 26.2 25.9 +3% +0.9bn 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 FY2022: ₱100.6bn FY23: ₱104.3bn (Ma
Slide 10: Telco Core Income: Exceeds 2023 guidance
Telco Core Income: Exceeds 2023 guidance Telco + Higher EBITDA by ₱3.7bn FY23: ₱34.3bn 3% Core + Lower depreciation by ₱0.8bn +1.0bn - Increase in Financing Costs by ₱1.6bn - Higher Provision for Income Taxes by ₱1.4bn (Php in bn) 4Q23 vs 4Q22 8.9 8.5 8.6 8.9 8.5 +8% 8.2 7.7 8.3 +0.6bn 1Q22 2Q22 3Q2
Slide 11: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income FY23 FY22 2023 vs 2022 3% Telco Core Income 34.3bn 33.3bn +1.0bn Losses decreasing in line Share in Maya Innovations Holdings (MIH) / Bank Hold Co Loss (2.2bn) (3.2bn) +1.1bn with expectation of Maya break-even by 4Q24 --- 0.7bn -0.7bn MIH Gain on Dilution,
Slide 12: PLDT Group: Capital Management
PLDT Group: Capital Management Final Regular Declaration Date: Record Date: Payment Date: Cash Dividend 7 March 2024 21 March 2024 5 April 2024 ₱46/share Telco Core EPS (2023) ₱159 2022: ₱153 Dividend Payout 60% (Regular) FY2023 Dividend per Share 2022: ₱92 regular ₱95 ₱42 special from tower sales C
Slide 13: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (PHP in billions) (PHP in billions, 31 December 2023) Net Debt Net Debt-to-EBITDA Gross Debt ₱ 239.8bn 2.30x ₱ 256.9bn (9M23: 2.44x*) 135.2 255.4 228.7 251.9 225.7 256.9 239.8 26.8 26.2 17.2 23.2 15.4 27.0 20.7 23.4 12.0 2021 2022 Dec-23
Slide 14: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Business Capex 9% 12% ➢ Capex of ₱85.1bn for 2023 in line with guidance Network/IT 24% +7.8bn 96.8 -11.7bn Data Center and Subsidiaries 89.0 ➢ Guidance for 2024: ₱75-78bn 85.1 -5.3 12.2 ▪ Includes investment in capacity to drive revenue -4.8 17.5 7.4 growth
Slide 15: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Fixed: Extensive Network Reach Presence TOTAL HOMES PASSED 70% FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Million Cable Kilometers Laid) *excluding non-fiber of 0.83mn International
Slide 16: Smart: 5G Highlights
Smart: 5G Highlights Connected Unique Devices Data Traffic In ‘000 (Total for the Quarter) In TB +1,987 95% Avg: 53,545 +21% Avg: 27,445 65,183 5,250 56,055 3,891 4,350 46,563 46,381 3,492 3,072 39,781 31,166 2,114 2,511 22,735 1,583 16,098 1,176 9,752 759 5,686 252 376 520 944 2,627 294 Dec-20 Mar-
Slide 17: Leveraging Strong Ecosystem to Build the Leading Digital Bank
Leveraging Strong Ecosystem to Build the Leading Digital Bank in less than 2 years # 1 Digital Bank Data Enterprise Consumer 3M Analytics Consumer Depositors +2.1x YoY Products Php25 B Deposit Balance +1.7x YoY Merchant Ranked- #1 acquirer1 #1 consumer app Largest merchant Top Rated Finance App in ~
Slide 18: 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 QRPH Gr
Slide 19: Best Customer Experience Driving Multi-Product Adoption
Best Customer Experience Driving Multi-Product Adoption #1 Ranked • High Quality Bank Customers who transact 2 to 3 times more than payments-only users consumer app • Borrowers with Savings Account Are More Engaged 4.8 4.5 and Have Lower Default Rates App Store Google Play • +80% YoY Growth Consumer
Slide 20: 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 21: Other Details
Other Details
Slide 22: Data/broadband: 82% of Consolidated Revenues
Data/broadband: 82% of Consolidated Revenues 2023 vs 2022 (Php in bn) ILD (1%) 5.5 1.5 4% Mobile Data ₱74.7bn • ₱19.6bn in 4Q23 is an all-time high +2.8bn 26.8 3% FY23 Home Broadband ₱52.5bn +1.5bn ₱191.4bn 1% +2.2bn 4% Data/Broadband 4% Corporate Data ₱25.1bn (82%*) +0.9bn +5.9bn 157.6 15% ICT ₱ 5.
Slide 23: 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 24: Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income
Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income Higher Lower Lower Svc Rev Provisions Subsidies Depn EBIT (net of IC) +2.2 +1.3 +0.2 104.3 46.9 100.6 8% 57.4 EBITDA 4% +4.5bn (ex-MRP) +3.7bn (Php in bn) FY2022 FY2023 FY2023 EBITDA margin EBIT margin 51% 52% 28% (vs 2022: 27%) Higher Higher
Slide 25: PLDT Group: Subscriber Base
PLDT Group: Subscriber Base (in ‘000) (in ‘000) Broadband Fixed Line Mobile 7% 2% 13% 3,710 3,992 3,766 3,825 57,827 66,305 -283K -59K -8,478K Cellular 56,929 65,215 -13% Fixed 3,269 +21K 3,248 +1% Prepaid 54,817 63,263 -13% Postpaid 2,112 +160K 1,952 8% Fiber 3,168 +234K 2,934 +8% Mobile Broadband
Slide 26: 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 4Q FY2023 Fixed Broadband Gross 281 272 287 278 1,118 225 197 166 173 760 # 20 35 Churn (114) (205) (246) (272) (837) (192) (184
Slide 27: Sustainability Highlights: 4Q23
Sustainability Highlights: 4Q23 1Q2023 ESG 2Q2023 ESG 3Q2023 ESG highlights highlights highlights Purpose: We are a Filipino company inspiring innovation and meaningful connections through generations 27
Slide 28: Environment: Scaling up the PLDT/Smart "Be Kind. Recycle" Program
Environment: Scaling up the PLDT/Smart “Be Kind. Recycle” (e-waste) Program 2023 Target Raising awareness among stakeholders and embedding the e-Waste Program in the operations 2024 Target Scale up e-Waste Collection points nationwide e-Waste bins deployed in various Smart Stores and 2023 Progress P
Slide 29: Environment: Promoting Waste Management and Biodiversity Protection
Environment: Promoting Waste Management and Biodiversity Protection Biodiversity Protection with use of Technology Waste Management: Proper handling of hazardous wastes ➢ PLDT Group continuously (used oil) pursues partnerships and promotes the use of technology for biodiversity protection ▪ To learn
Slide 30: Social: Leading the Industry on Cyber Security, Customer Welfare, and Child Protection
Social: Leading the Industry on Cyber Security, Customer Welfare, and Child Protection PLDT and Smart at the ASEAN ICT Forum PLDT and Smart Cybersecurity in Action on Child Online Protection (Bangkok, November 23, 2023) in 2023 ➢ Organized by UNICEF, Thailand’s Ministry of Digital Economy and Societ
Slide 31: Social: Nurturing and Empowering Vulnerable Sectors
Social: Nurturing and Empowering Vulnerable Sectors Employee Training on Effective Engagement with PLDT Home’s Madiskarte Moms PH Wins at the United Nations - Global Compact Network Indigenous Peoples and Local Communities (IPLCs) Philippines Sustainable Development Goals (SDG) Awards – Prosperity C
Slide 32: Social: Connecting MSMEs to Efficiency and Productivity
Social: Connecting MSMEs to Efficiency and Productivity GCNP’s Planet Pillar Education Program PLDT Enterprise’s MSME “Speed Dating”: Business Edition Webinar on Green Energy for MSMEs (November 23, 2023) ➢ Through the event, MSMEs are paired up with various digital service ➢ Highlighted: providers
Slide 33: Governance: Reinforcing Commitment to Governance and Sustainability
Governance: Reinforcing Commitment to Governance and Sustainability Focus: Artificial Intelligence (AI) Annual Training of Directors and Officers Incentive-based Human Rights Policy (November 9, 2023) Compensation Clawback Policy ➢ The articulation and declaration of the company’s recognition of int
Slide 34: Governance: Sharing best practices to achieve UN Sustainable Development Goals
Governance: Sharing best practices to achieve UN Sustainable Development Goals PLDT and Smart at PLDT and Smart joined GCNP’s “Sustainability in Action: HSBC’s 1st-ever Sustainability Forum Insights, Trends, Practices and Reporting” panel (October 24, 2023) (November 15, 2023) ➢ One of the panelists
Slide 35: Appendix
@ PLDT APPENDIX
Slide 36: Subscriber Base
Subscriber Base (1) (1) (1) (1) Net Adds (Reductions) Mobile Dec-23 Sep-23 Jun-23 Mar-23 Dec-22 YE2023 vs YE2022 (2) Mobile Subscriber Base Prepaid 55,667,880 53,105,076 60,891,135 62,999,637 64,287,019 (8,619,139) (13%) Smart Prepaid 21,530,993 20,494,009 23,486,725 24,044,239 24,394,379 (2,863,386
Slide 37: ARPU
ARPU Mobile ARPU, Net (1) 2023 2022 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Smart Postpaid 678 691 700 694 786 723 699 705 Smart Prepaid 107 109 128 130 99 104 106 109 TNT 86 92 109 109 82 86 85 86 Sun Postpaid 547 514 534 630 440 580 458 581 (1) Includes Mobile Broadband subscribers 2023 2022 Broadband ARPU, Net 1
Slide 38: Consolidated Financial Highlights
Consolidated Financial Highlights 2023 Y-o-Y 2022 Wireless Fixed Line Others Consolidated % Change (Php in millions) (1) Service Revenues 95,677 120,336 - 201,832 195,344 3% (2) Cash Operating Expenses 38,477 58,564 18 92,073 90,352 2% Subsidies and Cost of Services 3,294 2,716 - 5,971 5,154 16% Pro
Slide 39: Consolidated Service Revenues
Consolidated Service Revenues 2023 2022 % Change FY2023 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2022 Fixed Line 26,541 26,032 26,769 27,496 106,838 24,183 24,796 25,443 25,862 100,284 7% LEC 3,459 3,317 3,244 3,248 13,268 3,492 3,491 3,388 3,475 13,846 (4%) Fixed Line Voice - Internatio
Slide 40: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2023 2022 % Change FY2023 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2022 Data and Broadband 38,602 39,052 39,473 40,827 157,954 36,374 38,145 38,392 38,993 151,904 4% Home Broadband 12,976 13,120 13,200 13,185 52,481 12,022 12,862 13,037 13,051 50,
Slide 41: Wireless Service Revenues
Wireless Service Revenues 2023 2022 % Change FY2023 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2022 Data/Broadband 18,604 18,841 19,158 20,016 76,619 18,129 18,782 18,610 18,676 74,197 3% Mobile Data 18,196 18,412 18,753 19,629 74,990 17,556 18,255 18,132 18,226 72,169 4% Mobile Internet 1
Slide 42: Fixed Line Service Revenues
Fixed Line Service Revenues 2023 2022 % Change FY2023 vs 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (Php in millions) FY2022 Data/Broadband 22,981 23,249 23,203 23,779 93,212 22,781 24,246 26,584 16,457 90,068 3% Home Broadband 12,574 12,698 12,801 12,803 50,876 11,457 12,344 12,566 12,608 48,975 4% Corp. Data a
Slide 43: Expenses
Expenses 2023 (1) Y-o-Y 2022 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Repairs and Maintenance 16,047 15,406 - 30,186 28,923 4% Compensation and Employee Benefits 6,780 17,941 - 24,644 29,256 (16%) Interconnection Costs 834 11,130 - 10,418 6,104 71% Profes
Slide 44: Other Income (expenses)
Other Income (expenses) 2023 (1) Y-o-Y 2022 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Vega - - 66 66 74 (11%) Maya - - (2,273) (2,273) (3,026) (25%) Others - (595) (4) (599) (352) 70% Total Equity Share
Slide 45: Earnings Per Share (EPS)
Earnings Per Share (EPS) 2023 2022 (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 26,655 26,655 11,085 11,085 Discontinued Operations (41) (41) (600) (600) Net Income Attributable to Equity
Slide 46: Balance Sheet
Balance Sheet Consolidated (Php in millions) December 31, 2023 December 31, 2022 Total Assets 609,477 624,162 Nominal Value of Total Debt 256,927 251,859 Less: Unamortized Debt Discount 2,129 2,279 Total Debt 254,798 249,580 (1) Cash and Short-Term Investments 17,163 26,190 Net Debt (2) 239,764 225,
Slide 47: Debt Profile
Debt Profile December 31, 2023 December 31, 2022 Unamortized Debt Change Carrying Discount/Debt Face Value Face Value Value (Php in millions) Issuance Debt PLDT ₱155,872 ₱1,199 ₱157,071 ₱158,052 (₱981) Smart 93,962 894 94,856 93,807 ₱1,049 ePLDT 4,964 36 5,000 - ₱5,000 Total Debt ₱254,798 ₱2,129 ₱25
Slide 48: 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 49: PLDT
4 PLDT