PLDT, Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Financial Highlights: Service revenue grew 2% Y/Y to PHP 194.7 billion. Gross revenue rose 3% to PHP 208.4 billion. EBITDA expanded 4% to PHP 108.5 billion, with an EBITDA margin of 52%. Telco Core income grew 2% to PHP 35.1 billion.
• Business Unit Developments:
  • Wireless (Smart): Focus on scaling 5G adoption and monetization, with 5G devices growing 67% Y/Y. Utilizing AI in network optimization, advertising, and analytics for better revenue and cost efficiency.
  • Home: Launched an integrated fiber and mobile network service for home connectivity. Embraced AI in collections, cross-sell, and upsell to enhance operations.
  • Enterprise: Deploying 5G mobile private networks for remote areas and 5G slicing for dense locations. Achieved GSMA Open Gateway certification for number verification API. VITRO Santa Rosa, an AI-ready data center, is operational with anchor tenants.
• Sustainability: S&P Corporate Sustainability Assessment score rose to 72, highest among Philippine corporates. Recognized in the 2025 S&P Global Sustainability Yearbook and ranked second globally in child protection.

Segment Performance

• Individual Segment: Total revenues rose 2% to PHP 83.5 billion. Mobile Data led growth, up 5% Y/Y, accounting for 89% of segment revenues. Blended ARPU increased 9%, average monthly mobile data usage per user up 5%, and active data users reached 41.3 million.
• Home Segment: Total Home revenues hit PHP 60.7 billion. Fiber-only revenues grew PHP 3 billion (+6%) to PHP 56 billion, accounting for 92% of segment revenues. Churn rate was 1.7%.
• Enterprise Segment: Revenues grew 3% to PHP 48.4 billion. ICT services were the fastest-growing segment, up 15% to PHP 35 billion, with managed IT services up 48%, cloud solutions up 30%, and data center colocation up 22%. VITRO Santa Rosa, an AI-ready data center, was energized with anchor tenants.

Guidance

• CapEx: 2025 CapEx guidance: PHP 68 billion to PHP 73 billion, focusing on 5G expansion, Home fiber ports, AI, data centers, and submarine cables.
• Debt: Aim to reduce net debt-to-EBITDA to 2.0 times mid-term and achieve positive free cash flow next year.
• Core Income: No specific 2025 core income guidance yet; will provide after first quarter when economic situation is better assessed.

Risks

• Regulatory: Opposition to the Konektadong Pinoy Act regarding open access and national security concerns, potentially impacting competition with foreign players.
• Legacy Migration: Uncertainties around timing and impact of migrating legacy services (e.g., copper) to fiber and higher-generation technologies.
• Market Competition: Price competition affecting ARPU and revenue growth; need to sustain data monetization and customer engagement.

Question and Answer

• Q: What is PLDT's stand on the Konektadong Pinoy Act?

A: Marilyn Aquino stated support for open access, seeking equal treatment with data transmission providers and reasonable restrictions to protect asset owners.

• Q: How is PLDT driving higher ARPU in Mobile?

A: Boy Martirez mentioned 5G rollout, upskilled sales/marketing, and 5G phones contributing to 4Q ARPU growth.

• Q: Thoughts on GPU-as-a-Service?

A: Jojo Gendrano said it's early stages, with a modest farm in VITRO Sta Rosa having active workloads, and aggressive pricing planned.

• Q: Plans for monetizing legacy assets?

A: Butch Jimenez mentioned accelerating migration of copper subscribers to fiber, with POCs underway, and monetizing other legacy assets like 3G cell sites.