PLDT, Inc. · PSE:TEL
PLDT — H1 2016 Earnings Presentation
37 slides from PLDT's earnings presentation, Aug 2, 2016
Slide 1: Delivering the total digital experience
Delivering the total digital experience PLDT Inc. First Half 2016 Financial and Operating Results 2nd August 2016 1 1
Slide 2: PLDT Group: 1H16 vs 1H15 Financial Highlights
PLDT Group: 1H16 vs 1H15 Financial Highlights Revenues P85.3bn 0% P0.1bn Service Revenues Service Revenues (net of interconnect) P80.6bn -1% P75.8bn 0% (P0.6bn) (P0.2bn) Service Revenues (ex-ILD/NLD) Wireless (ex-ILD) Fixed Line (ex-ILD/NLD) Service Revenues Service Revenues P72.1bn +2% P48.2bn P27.
Slide 3: Consumer: Data surge fuels converged digital services in 1H16
Consumer: Data surge fuels converged digital services in 1H16 BARRAGE OF SUPERIOR ENTERTAINMENT PEACE OF MIND CONVERGENCE DATA CONNECTIVITY MOBILE INTERNET: 2X FIBR + TELPAD – IPTV with Cignal + growth rate vs. FAMCAM Home QuadPlay, Shared Control Center of the TVolution VOD 2015 monitoring system D
Slide 4: Enabling the Digital Enterprise
Enabling the Digital Enterprise Key Initiatives to Double-digit Robust YTD Real-time Sales Ensure New Data Center YTD Revenue Pipeline across Performance Continued Strong Capacity to Sell Growth Fixed, Wireless & ICT Tracking Growth VITRO Clark VITRO Makati • Total YTD Jun • Enterprise with more • R
Slide 5: Voyager: Continued String of Breakthroughs in 1H16
Voyager: Continued String of Breakthroughs in 1H16 68 Enterprise Accounts PayMaya Account Base doubled in H1 2016 Micro-credit lending Consumer lending w/ Consumer loans : soft launch June 2016 insurance and auto- platform : Account growth significantly accelerating with #NowNation : Around 30% resp
Slide 6: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues (Php in billions) By Service Revenue Streams Service Revenue Mix 1H15 1H16 Ser Lower by P0.6n or 1% Data/Broadband/Digital Platforms 29% 36% Da SMS/Domestic Voice 58% 53% SM ILD 13% 11% Int Data, Broadband and SMS, Voice Domestic Digital Platforms and Others
Slide 7: Fixed Line and Wireless: Service Revenues
Fixed Line and Wireless: Service Revenues (Php in billions) Service Revenue Mix +5% 1H15 1H16 Fixed Line Data/Broadband 57% 59% Higher by P2.1bn or 7% Domestic Voice and Others 32% 31% ILD/NLD 11% 10% Data and Domestic Voice Service Revenues 1H15 1H16 ILD and NLD Broadband and Others Data/Broadband
Slide 8: Breakdown of Consolidated Service Revenues
Breakdown of Consolidated Service Revenues (Php in billions) Service Revenue Mix 1H15 1H16 Consumer Higher by P0.4bn or 1% Data/Broadband 30% 38% Voice 39% 35% Mobile Fixed Line Wireless Fixed Line Wireless SMS 29% 25% Internet Data Broadband Voice Voice SMS Others Others 2% 2% +49% +18% +13% +4% -1
Slide 9: PLDT Group: Consolidated EBITDA
PLDT Group: Consolidated EBITDA (Php in billions) Lower by P4.8bn or 13% Svc Rev Subsidies Cash 35.5 -0.6 Opex Provns -2.5 +1.5 -3.3 30.8 1H 2015 1H 2016 Margins 44% 38% Consolidated EBITDA declined by P4.8bn or 13% year-on-year to P30.8bn in 1H16 mainly due to increases in subsidies and provision
Slide 10: PLDT Group: Core and reported net income
PLDT Group: Core and reported net income (Php in billions) Core Net Income Core net income for 2016 estimated at Lower by P1.2bn or 6% P30.0bn P2bn higher than original guidance of P28bn Provn for P6.5bn net gain from sale of stake in EBITDA Net Fin Misc Inc Taxes Beacon 18.9 -4.8 equity in ea
Slide 11: PLDT Group: Capex
PLDT Group: Capex Fixed Line Wireless 48.0 43.2 36.4 13.9 20.0 31.2 34.8 12.9 28.8 13.7 11.7 13.9 3.2 13.7 11.7 2.9 30.3 34.2 16.8 22.1 23.0 17.2 17.1 11.0 2011 2012 2013 2014 2015 2016 1H15 1H16 Guidance % of Capex to total service revenues: up to 21% 23% 18% 21% 26% 30% Note: BPO capex up to 2012
Slide 12: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (US$ in billions) (US$ in millions, as of end June 30, 2016) 3.4 3.4 Total: US$3,363mn 1,048 2.9 2.9 2.7 2.4 2.3 2.4 1.9 1.6 1.0 660 0.9 0.7 0.6 0.6 439 390 367 283 2012 2013 2014 2015 1H2016 176 Debt Balance* Cash & Short-term Investments Net De
Slide 13: Updates: Acquisition of SMC telco business
Updates: Acquisition of SMC telco business PLDT and Globe each acquired 50% of the telco businesses of SMC Total consideration: P70bn consisting of equity value of P52.9bn and assumed liabilities of P17.1bn Of PLDT’s share in equity value of P26.5bn, P13.2bn has been paid; P6.6bn to be paid in
Slide 14: Updates: Beacon Electric Asset Holdings, Inc.
Updates: Beacon Electric Asset Holdings, Inc. On May 30, 2016, PCEV sold 50% of its equity interest in Beacon to MPIC for a total consideration of P26.2 billion PCEV received P17 billion cash upon closing Balance of P9.2 billion to be paid in annual installments until June 2020 Post-sale PCE
Slide 15: Capital Management
Capital Management Core income for First Half 2016 P17.7bn Core income per share P82 Interim dividend per share (60%) P49 Declaration Date 02 August 2016 Record Date 16 August 2016 Payment Date 01 September 2016 Core income for 1H16 of P17.7bn includes gains from asset sales which we mainly used t
Slide 16: Imperatives for Second Half 2016
Imperatives for Second Half 2016 In line with PLDT’s ‘digital pivot’ and 3-year digital transformation journey: follow-through on the objective of providing superior data experience to our Consumer and Enterprise customers Continued build out of a robust and reliable data network Fast-track ne
Slide 17: PLDT Group: Updated Guidance for 2016
PLDT Group: Updated Guidance for 2016 EBITDA: P64bn Capex: P48bn Lower by P6bn from original guidance Increase of P5bn (US$100mn) from the original capex Low single digit growth in consolidated service revenues guidance of P43bn Double-digit growth in data/broadband to continue Additional
Slide 18: Other Details
Other Details @PLDT BSmart voyacer 18
Slide 19: Data and broadband
Data and broadband (Php in billions) Data and Broadband Conso Revenues Corp. Data Mobile Internet Fixed Broadband Wireless Broadband Y-o-Y +24% +25% +2.9 +10% +5.9 +14% 29.3 26.7 +2.6 +4% +3.2 6.5 23.5 5.7 +22% 15.6 Y-o-Y +12% 13.7 +0.5 5.3 +8% +20% 8.1 +55% 12.1 3.2 6.8 +18% 3.2 -1% 5.2 +31% 2.7 +5
Slide 20: Appendix
Appendix @PLDT BSmart vovacer 20
Slide 21: Subscriber Data: Cellular
Subscriber Data: Cellular Cellular Subscribers by category: 2Q16 vs 2Q15 2Q16 vs YE2015 Net Adds Jun-16 Mar-16 Dec-15 Sept-15 Jun-15 Net Adds % Net Adds % 1Q16 % 2Q16 % CELLULAR Prepaid 61,479,780 61,484,747 61,980,425 64,082,775 65,843,593 (4,363,813) -7% (500,645) -1% (495,678) -1% (4,967) - Smart
Slide 22: Subscriber Data: Broadband and Fixed Line
Subscriber Data: Broadband and Fixed Line Broadband Subscribers 2Q16 vs 2Q15 2Q16 vs YE15 Net Adds Jun-16 Mar-16 Dec-15 Sept-15 Jun-15 Mar-15 Net Adds % Net Adds % 1Q16 % 2Q16 % BROADBAND Wireless Broadband 4,049,555 3,989,519 3,932,820 3,789,654 3,676,164 3,391,440 373,391 10% 116,735 3% 56,699 1%
Slide 23: 1H2016: Consolidated Financial Highlights
1H2016: Consolidated Financial Highlights 1H2016 1H2015 Consolidated Consolidated % Change Wireless Fixed Line Others (Php in millions) (unaudited) (unaudited) Total Revenues 55,474 35,937 - 85,284 85,191 - Service Revenues 52,741 33,989 - 80,604 81,159 (1%) Cash operating expenses 25,091 20,468 21
Slide 24: Reconciliation of Core and Reported Net Income
Reconciliation of Core and Reported Net Income 1H2016 1H2015 Consolidated Consolidated % Change Wireless Fixed Line Others (Php in millions) (unaudited) (unaudited) Net Income attributable to equity holder of PLDT 4,803 4,341 3,319 12,463 18,729 (33%) Add (deduct): Foreign exchange losses (gains), n
Slide 25: Consolidated Service Revenues
Consolidated Service Revenues 2016 2015 (Php in millions) 1Q 2Q 1H 1Q 2Q 3Q 4Q FY Fixed line 14,287 14,320 28,607 13,034 13,302 13,589 13,817 53,742 Fixed Line voice - domestic 4,333 4,384 8,717 4,172 4,226 4,280 4,301 16,979 Fixed Line voice - international 1,240 1,092 2,332 1,311 1,323 1,273 1,336
Slide 26: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2016 2015 (Php in millions) 1Q 2Q 1H 1Q 2Q 3Q 4Q FY Data/Broadband/Digital platforms 14,525 14,974 29,499 11,656 12,309 13,566 13,648 51,179 Mobile Internet 3,811 4,257 8,068 2,450 2,766 3,451 3,388 12,055 Wireless broadband 2,931 2,856 5,787 2,506 2,655 2,82
Slide 27: Wireless Service Revenues and EBITDA
Wireless Service Revenues and EBITDA 2016 2015 (Php in millions) 1Q 2Q 1H 1Q 2Q 3Q 4Q FY Data/Broadband/Digital platforms 6,905 7,199 14,104 5,243 5,688 6,643 6,523 24,097 Mobile internet 3,811 4,257 8,068 2,450 2,766 3,451 3,388 12,055 Wireless broadband 2,960 2,882 5,842 2,528 2,677 2,841 2,945 10
Slide 28: Fixed Line Service Revenues and EBITDA
Fixed Line Service Revenues and EBITDA 2016 2015 (Php in millions) 1Q 2Q 1H 1Q 2Q 3Q 4Q FY Data/Broadband 9,110 9,216 18,326 8,074 8,261 8,537 8,876 33,748 Fixed broadband 4,428 4,638 9,066 3,812 3,962 4,113 4,254 16,141 Corp. data and other network services 3,944 3,810 7,754 3,660 3,680 3,747 3,916
Slide 29: Expenses
Expenses 1H2016 1H2015 Consolidated Consolidated % Change Wireless Fixed Line Others (Php in millions) (unaudited) (unaudited) Operating expenses Compensation and employee benefits 3,523 6,549 - 10,064 11,315 (11%) Repairs and maintenance 4,186 3,658 - 7,593 7,452 2% Selling and promotions 3,064 1,1
Slide 30: Other Income (Expenses)
Other Income (Expenses) 1H2016 1H2015 Consolidated Consolidated % Change Wireless Fixed Line Others (Php in millions) (unaudited) (unaudited) Equity share in net earnings (losses) of associates and joint ventures (209) (239) 1,383 935 2,234 (58%) Interest income 160 356 73 472 364 30% Gains (losses)
Slide 31: Cellular and Broadband Net ARPU
Cellular and Broadband Net ARPU Cellular Net ARPU 2016 2015 1Q 2Q 1Q 2Q 3Q 4Q Smart Postpaid 999 1,018 1,039 1,065 1,021 1,014 Smart Prepaid 109 106 118 114 115 113 TNT 80 77 85 83 82 83 Sun Cellular Prepaid 78 80 63 64 65 71 Sun Cellular Postpaid 459 443 449 419 436 482 Cellular Prepaid and Postpai
Slide 32: Earnings Per Share
Earnings Per Share 1H2016 1H2015 (unaudited) (unaudited) Basic Diluted Basic Diluted Net income attributable to equity holders of PLDT 12,463 12,463 18,729 18,729 Dividends on preferred shares (30) (30) (29) (29) Net income for the period attributable to common equity holders of PLDT 12,433 12,433 1
Slide 33: Balance Sheet
Balance Sheet Consolidated June 30, 2016 December 31, 2015 (Php in millions) (unaudited) (audited) Total Assets 463,208 455,095 Nominal Value of Total Long-term Debt 158,077 161,568 in US$ $3,363 $3,429 Less: Unamortized Debt Discount 646 676 Total Long-term Debt 157,431 160,892 Cash and short-term
Slide 34: Debt Profile
Debt Profile (US$ in millions) 2011 2012 2013 2014 2015 1H2016 Debt Balance 2,719 2,851 2,353 2,920 3,429 3,363 Cash and short-term investments 1,061 919 735 610 1,016 640 Net Debt 1,658 1,932 1,618 2,310 2,413 2,723 Interest-bearing Liabilities June 30, 2016 December 31, (unaudited) 2015 Unamortize
Slide 35: Foreign Exchange Risk
Foreign Exchange Risk Forex Impact on Core Income Forex Impact of B/S Revaluation Forex Impact on Derivatives Forex sensitivity for every P1 change (in US$ millions) Forex sensitivity for every P1 change on B/S Revaluation (in US$ millions) Conso - net of Elim Conso Debt (net of LT hedges)* 772.4 P1
Slide 36: 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 37: PLDT
PLDT ASmart veyacer