PLDT, Inc. · PSE:TEL
PLDT — Q1 2020 Earnings Presentation
53 slides from PLDT's earnings presentation, May 7, 2020
Slide 1: 2020 First Quarter Results
2020 FIRST QUARTER RESULTS 7th May 2020
Slide 2: PLDT: Service Revenues (by Business Segment)
PLDT: Service Revenues (by Business Segment) (in Php) 1Q2020 vs 1Q2019 20.2bn 20% Individual 49% +3.3bn 10.1bn 3% Enterprise 24% +0.3bn 9.6bn 5% Home 23% +0.5bn Consumer and 39.9bn 11% Enterprise 96% of Service Revenues +4.1bn International 1.6bn 25% and Carrier 4% -0.5bn Total Service Revenues 41.5
Slide 3: PLDT Group: 1Q 2020 Financial Highlights
PLDT Group: 1Q 2020 Financial Highlights (in Php) 1Q2020 vs 1Q2019 Service Revenues 9% 41.5bn (net of interconnection costs) +3.5bn Cash Opex, Subsidies, 11% 149.4bn 19.9bn Provisions* (ex-MRP) +2.0bn EBITDA 149.4bn 21.6bn 8% (ex-MRP) Margin: 52% +1.6bn 13% Depreciation & Amortization 10.5bn +1.2bn
Slide 4: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues (Php in bn) 9% 7% 1% +3.5bn +2.4bn +0.3bn Y-o-Y % 39.6 41.4 41.5 37.6 38.0 38.7 2.3 -31% 1.6 -25% 35.3 35.8 36.0 35.6 36.3 36.3 2.3 35.3 2.2 2.2 2.3 4.2 4.0 4.1 3.7 3.5 3.5 2.7 9.6 -- 9.6 +5% 9.1 9.2 9.2 9.1 8.5 8.7 8.8 9.1 9.1 7.8 8.0 9.8 10.0 +1% 10.1 +3%
Slide 5: PLDT Group: Historical Service Revenues
PLDT Group: Historical Service Revenues (Php in bn) Data/broadband SMS/Voice ILD Highest 9% +3.5bn 41.4 41.5 38.0 38.7 39.6 36.0 36.3 36.3 37.6 0.8 1.0 35.3 35.3 35.8 35.6 1.1 1.0 1.4 1.2 2.3 2.2 2.1 1.8 1.7 1.7 1.5 12.1 11.2 12.2 11.9 12.4 12.1 Y-o-Y 13.5 13.0 13.0 % 17.1 16.9 17.0 17.0 +3% +0.8 29
Slide 6: 1Q20 Service Revenues: Data contribution grew to 71%
1Q20 Service Revenues: Data contribution grew to 71% (Php in bn) P41.5bn 149.4bn 9% +3.5bn Data and broadband Domestic voice SMS International voice (fixed and mobile) (fixed and mobile) 149.4bn 19% 149.4bn 5% 22% 18% 29.3bn 9.4bn 1.8bn 1.0bn +4.7bn -0.4bn -0.5bn -0.2bn ✓ Mobile Internet: +39% ✓ Hom
Slide 7: Consolidated EBITDA (ex-MRP) and Telco Core: 1Q20 vs 1Q19
Consolidated EBITDA (ex-MRP) and Telco Core: 1Q20 vs 1Q19 (Php in bn) Higher Cash Lower Higher Cost of Lower Higher EBITDA Svc Rev* Opex Subsidies Services Provisions ➢ Increases in +3.5 -2.1 +0.1 +0.3 -0.2 21.6 service 20.1 revenues fully absorbed rise in costs 8% +1.6bn 1Q 2019 1Q 2020 EBITDA marg
Slide 8: PLDT Group: Consolidated EBITDA (ex-MRP)
PLDT Group: Consolidated EBITDA (ex-MRP) (Php in bn) 8% Highest since 2Q13 +1.6bn -5% 22.8 -1.1 20.4 21.6 20.1 19.9 17.4 17.4 17.1 16.4 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Qtr ave: P20.8bn Margin: 47% 46% 45% 43% 52% 50% 50% 54% 52% Note: PFRS16 starting 1Q19 8
Slide 9: PLDT Group: Telco Core Income
PLDT Group: Telco Core Income (Php in bn) 5% -0.3bn -10% -0.8 7.2 7.7 6.8 6.4 6.0 6.2 6.9 5.9 4.9 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Qtr ave: P6.8bn ➢ In light of ECQ, too early to provide earnings guidance for 2020 ▪ Determination of impact dependent on many variables including: ECQ lifti
Slide 10: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income (in Php) 1Q2020 vs 1Q2019 5% Telco Core 6.9bn -0.3bn Voyager Loss (0.5bn) -0.1bn Telco Core + Voyager 6.4bn 149.4bn 6% -0.4bn Loss on Rocket/iFlix Investment Valuation (0.5bn) 5.9bn 12% Reported Income 149.4bn -0.8bn ➢ On 6 April 2020, Voyager announced tha
Slide 11: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (US$ in billions) (US$ in millions, 31 March 2020) Net Debt Net Debt-to-EBITDA* Gross Debt US$3,388mn 2.03x US$4,055mn Maturities well spread out 1,644 3.4 3.8 3.3 4.1 3.4 2.4 338 368 487 523 275 420 1.0 0.5 0.7 2018 2019 1Q2020 2020 2021
Slide 12: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in billions) Total Capex Investments Capex (1Q2020): (2011 – 1Q20) P19.6bn (vs P12.2bn LY) P407.7bn (P16.9bn Tech/IT; P2.7bn business capex) ➢ Original capex guidance for 2020: P83.0bn consisting of: ▪ Network/IT capex: P64.6bn (to support growing data 25% 60% tra
Slide 13: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Rollout TOTAL HOMES PASSED TOTAL CAPACITY TOTAL FIBER FOOTPRINT (Million Homes) (Million Ports) (Thousand Cable Kilometers Laid) ➢ 1.1mn fiber + 0.5mn VVDSL ports ➢ 16.1kms of fiber laid from end 2019 available at end Mar
Slide 14: Superior mobile network supports growing data traffic and CX
Superior mobile network supports growing data traffic and CX March 2020 Wireless Payload • 5.0x April 2018 +12% 7,509 • +120% Y-o-Y TB/day 6,695 6,367 5,944 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2018 2019 2020 ➢ Exponential growth
Slide 15: 2020 Q1 Press and Investors Briefing
2020 Q1 PRESS AND INVESTORS BRIEFING 15
Slide 16: Creating Meaningful Connections
Q1 KEY PROGRAMS CREATING MEANINGFUL CONNECTIONS I N D I V I D UA L HOME ENTERPRISE • Allowed ease of LTE SIM • Provided Speedboost for • Flourished installation of and Device Upgrades subscribers Fixed Lines through Broadband and Data • Enabling subscribers • Introduced Wireless Networking, through
Slide 17: Dependable Connectivity When It Matters the Most
Q2 KEY PROGRAMS DEPENDABLE CONNECTIVITY WHEN IT MATTERS THE MOST INDIVIDUAL HOME ENTERPRISE • Continuously engaging with • Persistently installing and • Being the partner that subscribers, attending to repairing connections in the businesses can depend on their existing needs midst of ECQ through th
Slide 18: Keeping Everyone Connected
COVID-19 RESPONSE Keeping Everyone Connected Payment extension for Postpaid until Free Speed boost Free Data boost to May 31 with 6- to at least 25mbps select Smart subs month auto for subs below payment extension 25mbps Discounted Free access to Continued Install Products and information – Govt. an
Slide 19: Engaging Customers Through Data
INDIVIDUAL Q1 KEY PROGRAMS ENGAGING CUSTOMERS THROUGH DATA SMART LTE Upgrade to LTE Push for Fastest Network SIMS and Devices GIGA Stories Heightened support for social Push story across all brands, on On-ground to 160 key provinces media pack for equity and ATL and BTL and school communities revenu
Slide 20: Productivity Made Possible Through Digital Solutions
INDIVIDUAL Q2 KEY PROGRAMS PRODUCTIVITY MADE POSSIBLE THROUGH DIGITAL SOLUTIONS SMART BRO LTE SMART GIGA CASH-BACK AND DRIVE TO ONLINE WORK AND GIGA REWARD FOR LTE-ADVANCE WORK+ TNT’S 20TH ANNIV POCKET WIFI 20
Slide 21: Starting the Year Right
HOME Q1 KEY PROGRAMS STARTING THE YEAR RIGHT 21
Slide 22: Enabling Everyone to Stay Home
HOME Q2 KEY PROGRAMS ENABLING EVERYONE TO STAY HOME Shift to online selling StayHome Campaign Ops preparations for and servicing Fibr speedboost, prepaid Wi-Fi double increased demand data and installment payment Online PLDT, Distributors and programs Operations, Smart Home and Digital Barangay Sell
Slide 23: Productivity Made Simple
ENTERPRISE Q1 KEY PROGRAMS PRODUCTIVITY MADE SIMPLE Introduction of New Ignite SUPPORT OF O365 Products Campaign Launch Webex as part of collaboration suite, We are one with SMEs to help them Introduction of O365 for PLDT Smart Telecommute using Meraki, Fibrbiz grow with Meraki 23
Slide 24: Equipping Businesses for the New Normal
ENTERPRISE Q2 KEY PROGRAMS EQUIPPING BUSINESSES FOR THE NEW NORMAL ENABLING THE POSITIVE IMPACT Virtual Learning Series ON EVERY SINGLE BUSINESS NEW NORMAL New Offerings Speedboost & Bill Reprieve STAY CONNECTED Launch: BizLTE Work From Home Get 3 months FREE CONNECTIVITY Microsoft Salesforce Azure
Slide 25: PLDT Group: Latest views for 2020
PLDT Group: Latest views for 2020 ➢ Too early to have a clear full year picture of 2020 ▪ Many variables to consider, some unknown at this point ➢ Based on limited visibility to-date and certain assumptions, below are some updated views for the year: Capex: up to P83.0bn Deferment of 20-25% to 2021
Slide 26: Other Details
APLDT Other Details 26
Slide 27: Individual
Individual (Php in bn) 149.4bn 20% +3.3bn +4% +0.7 19.4 20.2 17.6 18.2 16.5 16.9 14.6 14.7 14.5 14.5 14.2 14.4 15.1 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2017: P58.3bn 2018: P60.3bn 2019: P72.1bn Note: Net of interconnection costs ➢ Upward momentum in daily top-ups and dat
Slide 28: Home
Home (Php in bn) DOLE Order 5% +0.5bn 9.1 9.1 9.2 9.2 9.6 9.6 8.5 8.7 8.8 9.1 9.1 7.8 8.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2017: P33.0bn 2018: P36.1bn 2019: P37.2bn Note: Net of interconnection costs ➢ Home revenues in 1Q20 stable quarter-on-quarter ▪ Acceleration in
Slide 29: Enterprise
Enterprise (Php in bn) 3% +0.3bn +1% +0.1 9.8 9.8 9.5 9.8 10.0 10.1 8.6 9.0 9.0 9.2 9.3 8.5 8.7 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2017: P34.8bn 2018: P37.4bn 2019: P39.1bn Note: Net of interconnection costs ➢ Four quarters of sequential growth, with last two quarters h
Slide 30: International/Carrier
International/Carrier (Php in bn) 25% -0.5bn 4.19 4.01 4.06 3.73 3.47 -31% 3.48 2.74 2.18 2.16 2.31 2.31 2.34 -0.7 1.61 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2017: P16.0bn 2018: P11.9bn 2019: P9.0bn ➢ Mobile interconnection charges removed starting January 2020 (P0.7bn imp
Slide 31: PLDT Group Subscriber Base
PLDT Group Subscriber Base (in mn) 1Q2020 1Q20 vs YE19 Total Subscribers 78.2mn Mobile 73.1mn Prepaid 70.6mn Postpaid 2.5mn +4% Fixed Line 2.8mn 1% Broadband 2.3mn 6% Fixed 2.0mn +3% Fixed Wireless 0.3mn +29% Note: Subscriber count impacted by NTC directive to extend prepaid load validity to 1-year
Slide 32: PayMaya: Enabling End-to-End Cashless Solutions
PayMaya: Enabling End-to-End Cashless Solutions for the “New Normal” PayMaya Enterprise: PayMaya App: Smart Padala: Payments as fastest track to DX Conduit for essential transactions Last mile financial services • Growth in previously cash-heavy sectors • Strong growth in user registrations, Send •
Slide 33: Updates on COVID-19/ECQ Impact
Updates on COVID-19/ECQ Impact 33
Slide 34: Anticipated Impact of COVID-19/Extended Community Quarantine (ECQ)
Anticipated Impact of COVID-19/Extended Community Quarantine (ECQ) ➢ ECQ implemented in Luzon (including Metro Manila) on 17 March 2020, extended to 15 May 2020 ▪ Work-from-home (WFH) implemented for most businesses, malls closed ▪ Schools/classes suspended ▪ Limited mobility, curfew from 8pm – 5am
Slide 35: Anticipated Impact of COVID-19/Extended Community Quarantine (ECQ)
Anticipated Impact of COVID-19/Extended Community Quarantine (ECQ) ➢ ECQ impact on Network ▪ Traffic grew 15-20% ✓ Shift in traffic from CBDs to residential areas ✓ Some congestion in international links → already decongested ✓ Repurposed some 2G spectrum for LTE use ▪ Advantage of PLDT fixed/wirele
Slide 36: PLDT Group: Looking beyond ECQ
PLDT Group: Looking beyond ECQ ➢ What can we monetize? What are areas of focus going forward? ▪ Recognition of the importance of data/broadband ✓ WFH works: likely to gain greater adoption ✓ Fiber/fixed line advantage ✓ Capitalize on demand for fixed wireless for areas that do not yet have fixed lin
Slide 37: Appendix
APLDT Appendix
Slide 38: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: Net Adds (Reductions) Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 1Q20 vs 1Q19 1Q20 vs YE19 (1) Mobile Subscriber Base Prepaid 70,590,758 70,721,789 69,012,106 65,151,418 61,585,197 9,005,561 15% (131,031) - Smart Prepaid 24,830,033 25,866,195 25,240,17
Slide 39: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds (Reductions) Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 1Q20 vs 1Q19 1Q20 vs YE19 Fixed Line Subscribers 2,801,187 2,765,209 2,727,035 2,711,411 2,707,077 94,110 3% 35,978 1% Broadband Subscribers Net Adds (Reductions) Mar-20 Dec-19 S
Slide 40: ARPU
ARPU Mobile ARPU, Net(1) : 2020 2019 1Q 1Q 2Q 3Q 4Q Smart Postpaid 804 796 813 809 806 Smart Prepaid 112 118 118 114 114 TNT 71 67 67 67 74 Sun Postpaid 377 423 418 401 403 Sun Prepaid 66 77 73 76 75 (1) Includes Mobile Broadband subscribers Broadband ARPU, Net : 2020 2019 1Q 1Q 2Q 3Q 4Q (2) Fixed L
Slide 41: 1Q2020: Consolidated Financial Highlights
1Q2020: Consolidated Financial Highlights 1Q2020 Y-o-Y 1Q2019 Wireless Fixed Line Others Consolidated % Change (Php in millions) Service Revenues (1) 23,683 22,517 - 41,797 38,792 8% (2) Cash Operating Expenses 8,525 12,118 5 17,931 16,530 8% Subsidies and Cost of Services 555 648 - 1,180 1,058 12%
Slide 42: Consolidated Service Revenues
Consolidated Service Revenues 2020 2019 % Change 1Q20 vs 1Q20 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q19 4Q19 Fixed Line 18,543 18,199 17,955 18,356 18,602 73,112 2% - LEC 3,513 3,698 3,648 3,583 3,607 14,536 (5%) (3%) Fixed Line Voice - International 540 758 712 838 575 2,883 (29%) (6%) Fixed Line
Slide 43: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2020 2019 % Change 1Q20 vs 1Q20 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q19 4Q19 Data and Broadband 29,357 24,667 25,393 26,728 28,550 105,338 19% 3% Home Broadband 7,505 6,855 6,994 7,089 7,454 28,392 9% 1% Fixed Home Broadband 7,492 6,828 6,971 7,070 7,438
Slide 44: Wireless Service Revenues
Wireless Service Revenues 2020 2019 % Change 1Q20 vs 1Q20 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q19 4Q19 Data/Broadband 15,532 11,670 12,603 13,679 14,981 52,933 33% 4% Mobile Data 15,519 11,643 12,580 13,660 14,965 52,848 33% 4% Mobile Internet 14,598 10,486 11,497 12,500 13,916 48,399 39% 5% Mob
Slide 45: Fixed Line Service Revenues
Fixed Line Service Revenues 2020 2019 % Change 1Q20 vs 1Q20 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q19 4Q19 Data/Broadband 16,032 14,996 14,891 15,115 15,762 60,764 7% 2% Home Broadband 7,515 6,875 7,007 7,101 7,466 28,449 9% 1% Corp. Data and Other Network Services 6,963 6,694 6,397 6,668 6,922 26
Slide 46: Expenses
Expenses 1Q2020 Y-o-Y 1Q2019 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Compensation and Employee Benefits 1,956 4,290 - 6,242 5,796 8% Repairs and Maintenance 2,502 2,651 - 4,948 4,523 9% Professional and Other Contracted Services 1,036 1,767 1 2,141 2,276
Slide 47: Other Income (expenses)
Other Income (expenses) 1Q2020 Y-o-Y 1Q2019 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - (10) (10) 28 (136%) Vega - - 10 10 6 67% Voyager - - (579) (579) (451) (28%) Others - 47 - 47 47 - Total
Slide 48: Earnings Per Share (EPS)
Earnings Per Share (EPS) 1Q2020 1Q2019 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT 5,912 5,912 6,708 6,709 Dividends on Preferred Shares (15) (15) (15) (15) Net Income for the Period Attributable to Common Equ
Slide 49: Balance Sheet
Balance Sheet Consolidated (Php in millions) March 31, 2020 December 31, 2019 Total Assets 545,352 525,027 Nominal Value of Total Debt 205,922 193,047 in US$ $4,055 $3,800 Less: Unamortized Debt Discount 584 491 Total Debt 205,338 192,556 Cash and Short-Term Investments 33,893 24,683 Net Debt (1) 17
Slide 50: Debt Profile
Debt Profile (US$ in millions) 2016 2017 2018 2019 1Q2020 Debt Balance 3,730 3,466 3,362 3,800 4,055 Cash and Short-Term Investments 833 668 1,005 486 667 Net Debt 2,897 2,798 2,357 3,314 3,388 Interest-Bearing liabilities December 31, March 31, 2020 2019 Unamortized Debt Change Carrying Discount/De
Slide 51: 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 Conso Revaluation (in US$ millions) US$ Revenues 118.7 Debt (net of LT hedges & ST Forwards/optio
Slide 52: 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 53: PLDT
fA PLDT