PLDT, Inc. · PSE:TEL
PLDT — 1H 2024 Earnings Presentation
44 slides from PLDT's earnings presentation, Aug 13, 2024
Slide 1: First Half 2024 Financial and Operating Highlights
First Half 2024 Financial and Operating Highlights 13th August 2024
Slide 2: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights 1H24 1H23 1H24 vs 1H23 (Php in bn) Gross Service 4% Service Revenues 3% 96.9bn 94.5bn Revenues +4.2bn (net of interconnection costs) +2.4bn ₱103.4bn Cash Opex, Subsidies, Provisions 43.0bn 42.4bn 1% (ex-MRP) +0.6bn EBITDA 53.9bn 52.1bn 3% (ex-MRP) Margin: 52% 53% +1.
Slide 3: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues 1H24 1H23 1H24 vs 1H23 (Php in bn) 40.2bn 4% Individual 41.9bn +1.7bn 1% Fiber 7% Home 30.0bn 30.1bn 27.6bn +1.8bn -0.2bn Enterprise 24.0bn 23.2bn 4% +0.9bn Consumer and Enterprise 95.9bn 93.4bn 3% +2.4bn International 1.0bn 1.1bn 5% --- 3% Total Service Rev
Slide 4: PLDT Group: Segment revenue growth driven by data/ICT
PLDT Group: Segment revenue growth driven by data/ICT Excl Legacy 88% Total 1H2024 Service Revenues (1) 96.9bn 3% 7% +2.4bn +5.4bn Individual Home Enterprise 4% 1% 4% ₱41.9bn ₱30.0bn ₱24.0bn +1.7bn -0.2bn +0.9bn Mobile Data 89% Fiber 92% Corp Data/ICT* 72% ₱37.1bn 8% ₱27.6bn 7% ₱17.4bn 7% +2.6bn +1.
Slide 5: Individual: Mobile data continues to underpin growth
Individual: Mobile data continues to underpin growth vs 1H23 vs 1H23 ➢ Individual service revenues for 1H24 grew by 4% Total 1H24: 4% Total 1H24: 8% ▪ 4% growth in both prepaid and postpaid ₱41.9bn ▪ Blended ARPU higher by 14% mainly due to an Individual +1.7bn Mobile Data ₱37.1bn +2.6bn 11% increas
Slide 6: Home: Fiber revenues continue to climb
Home: Fiber revenues continue to climb vs 1H23 vs 1H23 ➢ Fiber revenues rose 7% in 1H24 and now account 1H24: 1% 1H24: 7% for 92% of total Home revenues Total Total ▪ ARPUs remain in the ₱1500-level Home ₱30.0bn -0.2bn Fiber ₱27.6bn +1.8bn ▪ Low priced plans offered selectively in areas with spare c
Slide 7: Enterprise: Customer digital transformation fueling Data and ICT growth
Enterprise: Customer digital transformation fueling Data and ICT growth vs 1H23 vs 1H23 ➢ Overall industry experienced a slowdown as customers Total were more deliberate with IT and DX decisions to consider Total 1H24: 4% 1H24: 7% the impact of global trends (tech developments including Corp Data/ E
Slide 8: Expenses: Pursuing operating efficiencies and cost rationalization
Expenses: Pursuing operating efficiencies and cost rationalization (Php in bn) 1H24 1H23 1H24 vs 1H23 (Php in bn) Repairs and Maintenance 15.1 bn 14.6 bn +0.5 bn Compensation and Benefits (exMRP) 11.8 bn 11.7 bn +0.1 bn Professional and Other Service Fees 3.6 bn 3.6 bn (0.1 bn) Selling and Promotion
Slide 9: Consolidated EBITDA (ex-MRP): Aiming to expand margins above 52%
Consolidated EBITDA (ex-MRP): Aiming to expand margins above 52% vs 1H23 1H24: EBITDA ₱53.9bn + ₱2.4bn rise in revenues 3% (Margin) (52%) − ₱0.6bn increase in costs +1.8bn (Php in bn) vs 2Q24 +2% 26.0 26.1 26.2 27.3 26.6 +0.5bn 25.9 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY23: ₱104.3bn 1H24: ₱53.9bn (Margin:
Slide 10: Telco Core Income: Maintaining north of ₱35.0bn guidance for 2024
Telco Core Income: Maintaining “north of ₱35.0bn” guidance for 2024 vs 1H23 1H24: + Higher EBITDA by ₱1.8bn Telco - Higher Depreciation by ₱0.3bn 3% Core ₱18.0bn - Increased Financing Costs by ₱0.5bn +0.5bn - Lower Others (net) by ₱0.5bn (Php in bn) 8.9 9.3 8.6 8.5 8.3 8.7 1Q23 2Q23 3Q23 4Q23 1Q24 2
Slide 11: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income 1H24 1H23 1H24 vs 1H23 3% Telco Core Income 18.0bn 17.6bn +0.5bn Continued reduction in Maya’s Share in Maya Innovations Holdings (MIH) / Bank Hold Co Loss (0.7bn) (1.2bn) losses – yoy and qoq +0.5bn • ₱0.3bn (2Q24), ₱0.4bn (1Q24) Telco Core Income + Maya 1
Slide 12: PLDT Group: Capital Management
PLDT Group: Capital Management Interim Declaration Date: Record Date: Payment Date: Cash Dividend ₱50/share 13 Aug 2024 27 Aug 2024 11 Sept 2024 Telco Core EPS (1H2024) ₱83 1H2023: ₱81 Dividend Payout (Regular) 60% 1H2024 1H2023: ₱49 Dividend per Share ₱50 Cash Dividend ➢ Focus remains on deleveragi
Slide 13: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (Php in billion) (Php in billion, as of end June 2024) Net Debt-to-EBITDA* Gross Debt Net Debt 2.38x ₱ 265.4bn ₱252.7bn 149.8 (1Q2024: 2.29x) 251.9 225.7 256.9 239.8 265.4 252.7 4.1 23.4 15.6 27.2 20.9 24.4 26.2 17.2 12.7 2024 2025 2026 2
Slide 14: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) Business Capex Network/IT Data Center and Subsidiaries Others ➢ Guidance for 2024: ₱75-78bn ▪ Includes investment in capacity to drive revenue 12% growth and support continuing rise in network traffic ✓ Re-acceleration of roll out to expand fixed and 96.8 -
Slide 15: 5G Highlights: Growth to continue as prices of 5G enabled devices trend lower
5G Highlights: Growth to continue as prices of 5G enabled devices trend lower Connected Unique Devices vs Dec. 2020: +2,464% In ‘000 +12% 6,450 5,780 5,250 4,350 3,492 3,891 2,511 3,072 1,583 2,114 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 * Daily ave. for Mar 2024: 4.77m
Slide 16: Maya: First Half 2024 Highlights
Maya: First Half 2024 Highlights #1 #1 Digital Bank(1) Merchant Acquiror 4mm 1.2mm Largest Market Share in Bank Customers(2) Borrowers (+133% YoY)(2) Card Acquiring & QRPH (3) Php46.8B Best Digital Bank Php32.8B FinanceAsia Awards, Retail Banking Awards, Loans Disbursed LTD Deposit Balance (+32% YoY
Slide 17: Maya's Comprehensive Suite of Lending Products
Maya’s Comprehensive Suite of Lending Products Consumer Loans Embedded Banking Lending Solutions Driving Financing Inclusion for Businesses to Key Partners Device Financing 60% 2.7x 6.7x of Borrowers Loans Disbursed YoY, 2Q24 vs Loans Disbursed YoY, have sole Banking Relationship 2Q23 2Q24 vs 2Q23 w
Slide 18: Exclusive Voting Partner of PBB
Exclusive Voting Partner of PBB
Slide 19: 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 20: Other Details
Other Details 20
Slide 21: Data/broadband: 83% of Consolidated Revenues
Data/broadband: 83% of Consolidated Revenues 2024 vs 2023 (Php in bn) ILD (1%) 3.2 0.7 7% Mobile Data ₱38.9bn +2.4bn 12.5 1H24 Home Broadband ₱26.2bn +0.1bn ₱96.9bn 3% +2.4bn 1% Data/Broadband 4% Corporate Data ₱12.6bn (83%*) +0.1bn +3.0bn 80.5 16% ICT ₱ 2.8bn % of data/broadband per segment include
Slide 22: ePLDT Data Center business: Key Highlights
ePLDT Data Center business: Key Highlights Data Centers Sustainable Operations (1H24) 10 sites 4 ➢ 0.90 CUE (Carbon Usage Effectiveness) vs TIA-942* rated 3 certified facilities 0.95 in 2023 strategically spread across PH (*Telecommunications infrastructure standard for DCs) ➢ ISO 14001:2015 (Enviro
Slide 23: Fixed and Wireless Network: Selected Highlights
Fixed and Wireless Network: Selected Highlights FTTH Presence Fiber: Extensive Network Reach 71% TOTAL HOMES PASSED FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Million Cable Kilometers Laid) *excluding non-fiber of 0.76mn International D
Slide 24: Sustainability Everyday
Qrior ase #Sustainabilihy Everrjdary y /
Slide 25: Environment: Promoting Circularity
Environment: Promoting Circularity Collections Report: Yr 1 Over 6,400 Kgs 2024 Target Scale up e-Waste Collection points nationwide Turned-over to DENR accredited recyclers in partnership with UNIDO, DENR and EcoWaste Coalition Operations: Deployment of e-waste bins Information, Education, and Comm
Slide 26: Environment: Environmental Stewardship through Investments and Partnership
Environment: Environmental Stewardship through Investments and Partnership Secured a 10-year ₱4.0 B Green Loan facility from Metrobank DENR-BMB: 3rd National Protected Area Conference ➢ PLDT and Smart represented the private sector ➢ PLDT's first green loan with a local financial institution in a pa
Slide 27: Social: Nurturing and Empowering Vulnerable Sectors
Social: Nurturing and Empowering Vulnerable Sectors PLDT and Smart joined the Security Service Providers (SSP) of PLDT and Smart Undergo panel at the PBCWE Gender Disability Awareness and Sensitivity Training Working Group Session x (2Q 2024) Policy Forum (7 June 2024) ➢ During the workshops, SSP tr
Slide 28: Social: Caring for Children and Engaging with Local Communities
Social: Caring for Children and Engaging with Local Communities PLDT and Smart’s sharing best practices on the adoption PLDT and Smart’s Engagement Framework and of the Child Rights and Business Principles (CRBP) Reporting on Programs with Local Communities framework ➢ Updated articulation of the fr
Slide 29: Governance: Sharing PLDT's Sustainability Framework with its Supply Chain and Joint Ventures
Governance: Sharing PLDT’s Sustainability Framework with its Supply Chain and Joint Ventures PLDT and Smart’s Sustainability Forum: PLDT and Smart share highlights of Partnersing for a Sustainable Supply Chain Sustainability journey with Eastern Telecom (21 June 2024) ➢ Eastern Telecommunications Ph
Slide 30: Appendix
@ PLDT APPENDIX
Slide 31: Subscriber Base
Subscriber Base End-June 2024 End 2023 5% Total Subscribers 68,245 65,303 +2.9mn Net Adds Mobile 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 2Q2024 vs YE2023 Mobile Subscriber Base Prepaid 58,574,596 56,785,718 55,667,880 53,105,076 60,891,135 2,906,716 5% Smart Prepaid 22,550,066 21,856,044 21,530,993 20,49
Slide 32: ARPU
ARPU 2024 2023 Mobile ARPU, Net 1Q 2Q 1Q 2Q 3Q 4Q Postpaid 703 688 674 687 697 693 Smart Prepaid 125 119 107 109 128 130 TNT 106 100 86 92 109 109 Fiber ARPU 2024 2023 1Q 2Q 1Q 2Q 3Q 4Q Home: Fiber * 1,496 1,500 1,489 1,476 1,511 1,506 32
Slide 33: Consolidated Financial Highlights
Consolidated Financial Highlights 1H2024 Y-o-Y 1H2023 Wireless Fixed Line Others Consolidated % Change (Php in millions) Service Revenues (1) 49,073 63,892 - 103,443 99,251 4% (2) Cash Operating Expenses 22,442 30,121 46 46,179 44,443 4% Subsidies and Cost of Services 1,225 1,550 - 2,705 2,903 (7%)
Slide 34: Consolidated Service Revenues
Consolidated Service Revenues 2024 2023 % Change (Php in millions) 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q FY 1H24 vs 1H23 Fixed Line 27,627 27,160 54,787 26,541 26,032 52,573 26,769 27,496 106,838 4% Fixed Line Voice 7,052 6,605 13,657 6,473 5,753 12,226 6,385 6,549 25,160 12% Home Broadband 12,690 12,774 25,464 1
Slide 35: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA 2024 2023 % Change 1H2024 vs 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q FY (Php in millions) 1H2023 Data and Broadband 40,643 40,115 80,758 38,602 39,052 77,654 39,473 40,827 157,954 4% Home Broadband 13,069 13,134 26,203 12,976 13,120 26,096 13,200 13,185 52,481 - Corporate Da
Slide 36: Wireless Service Revenues
Wireless Service Revenues 2024 2023 % Change 1H2024 vs 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q FY (Php in millions) 1H2023 Data/Broadband 20,181 19,633 39,814 18,604 18,841 37,445 19,158 20,016 76,619 6% Mobile Data 19,802 19,273 39,075 18,196 18,412 36,608 18,753 19,629 74,990 7% Mobile Internet 18,899 18,443 37,3
Slide 37: Fixed Line Service Revenues
Fixed Line Service Revenues 2024 2023 % Change 1H2024 vs 1Q 2Q 1H 1Q 2Q 1H 3Q 4Q FY (Php in millions) 1H2023 Data/Broadband 24,183 25,015 49,198 22,981 23,249 46,230 23,203 23,779 93,212 6% Home Broadband 12,695 12,779 25,474 12,574 12,698 25,272 12,801 12,803 50,876 1% Corp. Data and Other Network
Slide 38: Expenses
Expenses 1H2024 1H2023 Y-o-Y (Php in millions) Consolidated Consolidated % Change Operating Expenses Repairs and Maintenance 15,085 14,563 4% Compensation and Employee Benefits 13,115 13,429 (2%) Interconnection Costs 6,546 4,720 39% Professional and Other Contracted Services 3,602 3,967 (9%) Sellin
Slide 39: Other Income (expenses)
Other Income (expenses) 1H2024 1H2023 Y-o-Y Consolidated Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Vega (41) 15 (373%) Maya (635) (1,235) 49% Others (16) (105) 85% Total Equity Share in Net Losses (692) (1,325) 48% Financing Costs
Slide 40: Earnings Per Share (EPS)
Earnings Per Share (EPS) 1H2024 1H2023 (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 18,413 18,413 18,480 18,480 Discontinued Operations - - (29) (29) Net Income Attributable to Equity Hold
Slide 41: Balance Sheet
Balance Sheet Consolidated (Php in millions) June 30, 2024 December 31, 2023 Total Assets 627,527 609,519 Nominal Value of Total Debt 265,432 256,927 Less: Unamortized Debt Discount 2,058 2,129 Total Debt 263,374 254,798 (1) Cash and Short-Term Investments 12,750 17,163 (2) Net Debt 252,682 239,764
Slide 42: Debt Profile
Debt Profile June 30, 2024 December 31, 2023 Unamortized Debt Change Carrying Discount/Debt Face Value Face Value Value (Php in millions) Issuance Debt PLDT ₱161,199 ₱1,186 ₱162,385 ₱157,071 ₱5,314 Smart 95,746 827 96,573 94,856 ₱1,717 ePLDT 6,430 45 6,475 5,000 ₱1,475 Total Debt ₱263,375 ₱2,058 ₱26
Slide 43: 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 44: PLDT
4 PLDT