PLDT, Inc. · PSE:TEL
PLDT — Q1 2010 Earnings Presentation
26 slides from PLDT's earnings presentation, May 13, 2010
Slide 1: First Quarter 2010 Financial and Operating Results
We’re changing lives. First Quarter 2010 Financial and Operating Results 13 May 2010 1
Slide 2: PLDT Group: 1Q 2010 Financial Highlights
PLDT Group: 1Q 2010 Financial Highlights 1Q 2010 1Q 2009 (unaudited) (unaudited) % Y-o-Y Service Revenues P36.0bn P36.4bn 1% • Wireless P23.7bn P23.9bn 1% • Fixed Line P12.9bn P12.8bn 1% EBITDA P21.2bn P21.9bn 3% • Wireless P14.4bn P15.0bn 4% • Fixed Line P 6.3bn P 6.6bn 4% EBITDA Margin 59% 60% Rep
Slide 3: PLDT Group: Core and Reported Income
PLDT Group: Core and Reported Income Core and Reported Net Income ¾ Core net income for 1Q10 grew by 3% or (Php in Billions) P0.3bn to P10.5bn on account of: Core Income Reported Income + P0.4bn increase in equity in net earning of 11.4 10.2 +3% 10.5 +19% affiliates, principally from our share in 9.
Slide 4: PLDT Group: Service Revenues and EBITDA
PLDT Group: Service Revenues and EBITDA ¾ Consolidated service revenues declined by P348mn or 1% to P36.0bn in 1Q10 from P36.4bn in 1Q09 as a result of: Consolidated Service Revenues (Php billions) + 3% growth in voice revenues particularly in cellular as a result of the recent introduction of new u
Slide 5: PLDT Group: Capex and Free Cash Flow
PLDT Group: Capex and Free Cash Flow ¾ Capex spend for 2010 guided at P28.6bn or approx. 19% of Capex projected service revenues (Php billions) 1Q10 capex stood at P5.2bn compared with P3.9bn last Wireless Fixed Line ICT Capex to Svc Rev (%) year 28.1 28.6 25.2 Of the P5.2bn: P2.4bn for wireless
Slide 6: PLDT Group: Debt Profile
PLDT Group: Debt Profile * Net of cash ¾ Net debt stood at US$1.0bn at the end of 1Q10, earmarked for Debt Balance dividends paid (US$ billions) or US$1.6bn if adjusted for P26.3bn cash in April 2009 utilized for the common dividends paid in April and April 2010 2.2 2.2 2010 1.8 1.6 1.6 1.6 1.2 1.3
Slide 7: PLDT: Snapshot of 1Q10 and our response
PLDT: Snapshot of 1Q10 and our response Macro environment • Consumer wallets affected by: • Peso appreciation which dampened growth in OFW remittances • Higher electricity costs brought on by El Nino/ drought and power supply shortage • Election spending allocated differently: more TV/radio ads, use
Slide 8: Broadband: Surging ahead
Broadband: Surging ahead ¾ PLDT group broadband subscriber base grew 14% to 1.85mn from YE09 with PLDT DSL, SmartBro, and WeRoam having added about 222,000 subscribers during the first Broadband Subscribers quarter of 2010 (thousands) +14% 1,847 SmartBro, the most widely available broadband servic
Slide 9: SMART: Serving more subscribers
SMART: Serving more subscribers Combined Smart Subscriber Base ¾ Smart and TNT subscriber base increased by 17% year- (millions) on-year to 43.2mn as at end-March 2010 representing net adds of 1.9mn cellular subscribers in 1Q10 41.3 43.2 38.5 39.1 • Of the 1.9mn net adds, 1.3mn are Buddy subscribers
Slide 10: SMART: Managing the transition
SMART: Managing the transition ¾ Wireless service revenues declined by 1% year-on-year to P23.7bn for the first quarter of 2010 from P23.9bn last year Service Revenues Others + 23% increase in wireless broadband revenues (Php billions) Broadband + 13% growth in cellular voice revenues - 14% decrease
Slide 11: Fixed Line: Rising from new foundations
Fixed Line: Rising from new foundations ¾ Fixed line service revenues grew by 1% y-o-y to P12.9bn in 1Q10 on account of: + Corporate data and DSL service revenues higher by 13% Service Revenues • Domestic data service revenues increased by P529mn or (Php billions) 14% due to continued demand from th
Slide 12: ePLDT: Rebuilding the base
ePLDT: Rebuilding the base ¾ ePLDT service revenues, which accounts for about 7% of PLDT group service revenues, increased by 1% to P2.6bn due to: ePLDT Service Revenues + 65% growth in data center revenues on account of (Php billions) Vitro Data increased co-location and disaster recovery Center co
Slide 13: Meralco: Highlights
Meralco: Highlights ¾ Meralco’s consolidated service revenues as at 1Q10 increased by 34% to P61.1bn driven by a Energy Sales and Service Revenues 14% increase in energy sales, an increase in (in ‘000 GWh and Php in Billions) customer count, and higher average pass- through costs Energy Sales Revenu
Slide 14: PLDT Group: Guidance for 2010
PLDT Group: Guidance for 2010 ¾ Service revenues are expected to grow by 2% over P145.6bn in 2009 to P148bn: Strong growth in fixed/wireless broadband, corporate and SME business for the fixed line, and improvements in the BPO business Cellular growth challenged by 80% market penetration and mul
Slide 15: Forward-looking statements disclaimer
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 16: Appendix
Appendix 16
Slide 17: 1Q 2010: Consolidated Financial Highlights
1Q 2010: Consolidated Financial Highlights 1Q 2010 1Q 2009 (Unaudited) (Unaudited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated % Change Service Revenues 23,694 12,861 2,628 36,014 36,362 -1% Cash operating expenses 8,456 6,179 2,213 13,612 13,433 1% (1) EBITDA 14,440 6,314 3
Slide 18: Revenues
Revenues 1Q 2010 1Q 2009 % (Unaudited) (Unaudited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Service Revenues Wireless Cellular 21,790 21,790 22,151 -2% Broadband 1,589 1,589 1,289 23% Satellite and other services 315 315 464 -32% Fixed line Local exchange 3,930 3,9
Slide 19: Expenses
Expenses 1Q 2010 1Q 2009 % (Unaudited) (Unudited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Operating expenses Compensation and employee benefits 1,585 2,453 1,507 5,542 5,971 -7% Repairs and maintenance 1,210 1,188 152 2,369 2,217 7% Selling and promotions 1,053 47
Slide 20: Other Income (Expenses)
Other Income (Expenses) 1Q 2010 1Q 2009 % (Unaudited) (Unaudited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Gains (losses) on derivative financial instruments, net (1) 631 2 632 (323) -296% Interest income 212 152 8 366 533 -31% Equity share in net earnings (losses)
Slide 21: EBITDA
EBITDA 1Q 2010 1Q 2009 % (Unaudited) (Unaudited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Income before tax 11,398 3,517 126 15,041 13,287 13% Add (deduct): Depreciation and amortization 3,263 2,910 188 6,361 6,708 -5% Financing costs, net 779 1,057 44 1,874 1,584
Slide 22: Core Net Income
Core Net Income 1Q 2010 1Q 2009 % (Unaudited) (Unudited) (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Reported net income 8,713 2,571 137 11,421 9,580 19% Add (deduct): Foreign exchange losses (gains), net (346) (394) 32 (708) 592 -220% Losses (gains) on derivatives fi
Slide 23: Cash Flows
Cash Flows 1Q 2010 1Q 2009 (Unaudited) (Unaudited) % (in million pesos) Wireless Fixed Line ICT Consolidated Consolidated Change Net cash from operations 13,339 5,850 382 19,566 15,147 29% Add(Deduct): Capital expenditures (2,412) (2,681) (113) (5,206) (3,944) 32% Other investing activities 11 203 (
Slide 24: Balance Sheet
Balance Sheet Consolidated March 31, 2010 December 31, 2009 (in million pesos) (Unaudited) (Audited) Total Assets 289,044 280,148 Nominal Value of Total Debt 98,135 102,587 in US$ $2,167 $2,210 Less: Unamortized Debt Discount 3,570 3,858 Total Debt 94,565 98,729 (1) Cash and short-term investments 5
Slide 25: Earnings Per Share
Earnings Per Share 1Q 2010 1Q 2009 (Unaudited) (Unaudited) Basic Diluted Basic Diluted Net Income attributable to equity holders of PLDT 11,421 11,421 9,580 9,580 Dividends on preferred shares (114) (12) (113) (113) Net Income applicable to common shares 11,307 11,409 9,467 9,467 Outstanding common
Slide 26: Interest-bearing Liabilities
Interest-bearing Liabilities March 31, 2010 December 31, (Unaudited) 2009 Unamortized (Audited) (in millions) Carrying Value Debt Discount Face Value Face Value Change Debt PLDT $1,193.1 $5.8 $1,198.9 $1,204.7 ($5.8) Smart $885.7 $73.0 $958.8 $996.0 ($37.2) 2014 Debt 212.9 67.2 280.1 280.1 - Others