PLDT Inc.

Good afternoon and thank you for joining us today to discuss the company's financial and operating results for the first half of 2021. A copy of today's presentation is posted on our website. For those who have not been able to do so, you may download the presentation from www.dlt.com under the investor relations section. Also, a podcast of this briefing will be available on our website after the call. For today's presentation, we have with us our chairman, Mr. Manuel Pangilinan, Al Pantelio, our president and CEO of PLDT and Smart, Ms. Annabelle Limchua, chief finance officer and chief risk officer, as well as other members of the PLDT management team. At this point, let me turn the floor over to Mr. Pantelio to begin the presentation.

Thank you, Melissa, and good afternoon, Chairman MVP and colleagues in PLDT and to the and the panelists in the room, thank you for joining us this afternoon. I'm here to report the first half of 2021 financial creating reports. I have just a few slides and I will move it to Annabel. Again, as you know, we continue to face big challenges, but we remain steadfast in our commitment to deliver the needs of our customers and happy to report that the first half of 2021 We ended the half at $15.2 billion telco core income, which is 10% higher than the same period last year, or $1.3 billion in investment terms. Our net service revenues for the first half is also an all-time high at $89.9 billion, increase of $7 billion, or 8.5% versus last year. $45 billion was our second quarter, which again is an all-time high for the previous part. Our expenses also grew by 9% at $3.6 billion, and our EBITDA is at a very healthy 46.6 billion, 3.5 billion increase or 8%, which is a 51% margin. Next page please. So just some key highlights, key performance drivers for the first half. I mean, despite the fact that the pandemic is still around and we're about to get into another lockdown starting tomorrow and the behavior of customers really shifting towards For our Fiber Net Ads, which is our home, our home will be the star of the year. We have actually installed 478,000 new fiber installs in migration in the first half of 2021. And we have also grown our migration in the first half, an average of 182%, as we continue to shift over and migrate our ABSL customers to fiber. And for our enterprise, despite the challenges that they face, continue to face with MSMEs, we continue to grow our data center revenue, co-location net service revenues up 22%. And as a whole, as a company, our data revenues now is at 76% of our total revenue. Next page, please. Having said that, we continue to elevate our CX and continue to invest on our network, making it the strongest and most extensive digital infrastructure. We have doubled our 5G coverage in 2021, but at the same time strengthening our LTE sites. We have fast-tracked even more our fiber optic rollout to address the market demand. We have now close to 524,000 kilometers of fiber nationwide, and homes passed 11.3 million. Annabel will show the details of our network improvement this year. As I said, we continue to increase our data center capacity. We have actually 9,100 racks that are available. 61% of that is already occupied, and we are increasing the number of racks till the end of the year to another 800 racks that will end the year at 69% of the 9,100 racks that's available. And for our global infrastructure expansion, we continue to be the biggest capacity player in the country with 16 terabytes per second capacity from our 15 international systems. And looking at expanding that with three more and doubling the 16.9 terabytes to about 32, 33 terabytes by the end of 2021. So we continue to monitor our network and this has been, as we see the OPLA third-party results, SMART has sustained for the first three periods fastest mobile network recognition and the fastest 5G network in the Philippines for the first half of 2021. For the second half, and this will be four fulcrums that will be the focus of of PODP Smart. One is business, as we continue to drive our individual business segments. Individual, despite the hyper-competition, will unleash innovative products while enabling impactful campaigns that will be very relevant and embolden the passion and purpose of our customers. As I said, home will continue to ramp up its installations in migration, and we'll also continue to revamp its branding to make sure that we have more brand affinity for our customers and also driving content into the service. And Enterprise, as I said, will continue to grow its data center ecosystem, leveraging on the best fiber optic network to start winning strategic deals that is very important to the business. Second fulcrum is digital. This journey has started We will continue this as we transform, not only the way we do work, but in terms of how we engage with our customers and hopefully also improve overall CX as we speak. CX, third fold room, we will continue to transform and hopefully continue to operate excellently, improve the way we do business and really identify it's a culture transformation initiative for us where every PLC smart employee is an ambassador The fulcrum for us is sustainability, something I believe should be very close to our core business, ESG, environmental, social, and governance. And we have several programs that we have embarked on, like carbon footprint reduction programs, solid and hazardous waste management. We're also, our fleet, we are embarking on green flipping our fleet, and we will introduce electric vehicles for our fleet. And, you know, these four fulcrums should only be successful or we'll only be able to deliver our promise if our, again, transformation of people and culture is pointed. All four fulcrums, hopefully, will be moving forward with measurements in place. We are currently baselining digital CX and sustainability. And on a moving forward basis, we would want to be measured. And doing all that, we're also very focused on our CSR initiatives, education, disaster resilience, social economic initiatives, and pandemic response. For example, we've actually offered 100,000 asses sending out vaccines for certain health use. We've also offered vaccines to our partners, our sales partners, our outsourced partners, so that they're able to serve our customers in a safe manner. And as you know, the NAB Group has kicked off its own employee vaccination program, July 2 in Meralco and in VLDB Santa Ana. We started our vaccination program July 5. We've actually administered 10,146 jobs. 44% of our employee population has been vaccinated as of July 24. We will continue to vaccinate more employees. That's it for me, and I will pass on the mic for the presentation.

Hi, good afternoon everyone. Thank you for joining us this afternoon. So let me run you through the details of our financial results for the first half of the year. On the back of having increased revenues by 8% in the first quarter, we saw our second quarter revenues also rise by 9%, to $45 billion, and all totaled $89.9 billion for the first six months of the year. Thank you very much. Home registered a 27% increase in the second quarter, and combined with the first quarter, a 23% increase equivalent to $4.2 billion to hit $22.7 billion. Enterprise, notwithstanding all the challenges out there, continues to show a healthy 2% increase year-on-year. International, of course, which makes up the balance of our revenues, is down 8% because of the lack of travel and growth. Moving forward to the next slide, with the 8.5% increase in revenues, we saw our EBITDA grow by 8% to $46.6 billion, equivalent to an EBITDA margin of 51%. On a Delta Core Income basis, our Delta Core Income for the first half of the year was at $15.2 billion, a good 10% higher than the same period last year. Next chart, please. So looking at the revenue trajectory over the last 10 quarters, we started 2019 with about 38 billion of revenues in the first quarter of 2019. Today, we have hit 45 billion for the second quarter of the year, which is a record high for PLDT in terms of quarterly revenue performance. Combined with the first quarter, the semester is also at a record high. Moving on to the next chart, we also show the revenue split down by data versus non-data revenues. And clearly, it's been data that has driven the growth of our revenues over the past two and a half years. Data grew by 16% in the first half of the year compared to the overall 8.5% increase that we registered. Next chart, please. Where did the growth from data come from? So across the businesses, we're seeing data is already 76% of total revenues. Higher in home, 82%. Individual has 79% data component and enterprise, 72%. By way of the major drivers for this, mobile data is $35 billion of the $68.3 billion. That's up 12% driven by smartphone and data usage. Home broadband has risen by 32% to hit 20.3 billion in the first half of the year, and corporate data is at 10.7 billion and ICT 2.3 billion. Next chart, please. So just drilling down a bit into some of the customer segments, this is the performance of our individual business, which has continued to show growth in the middle of the pandemic. Of course, work from home has impacted The usage on mobile, because of the lack of mobility, this kind of shift has happened, and the consumer wallets are also tighter to the general situation that we have with the pandemic. But notwithstanding all of these challenges, our first half revenues for individuals rose 7% year-on-year. Mobile data traffic continues to grow, 17% higher than last year. We continue to push our Giga Life app, and now Giga Life app comes with a Giga Pay feature that is in partnership with Paymaya. Next chart. This one now shows the home revenues over the six quarters, so you see here the kind of quarterly growth that home has been experiencing. We also further break down the revenues of home into what is the red bit, which represents the fiber Thank you very much. Thank you. Thank you very much. and we continue to roll out our ports and our fiber coverage to support this increasing adoption of fiber. Next chart, please. Enterprise, as noted, there are challenges in the economy, but there are also opportunities that we see in the enterprise space. Of note is that we are Now, we have won several deals that we expect to register in the second half of the year, including the supply of some SIMS to DepEd requirements, as well as SD-1 deals for major enterprise customers. Next chart, please. This is the international revenue. We do have a bit of... Pressure here, downward pressure because of the lack of travel and roaming. But there are certain bright spots within international, which includes international data and A2A2 business segments. Sub-base, the group has 78.4 million total subscribers for the PLDT Smart Business. There's another 3.6 million signal pay TV subscribers are not counted in this number. So within this, mobile is 71.7 million. The broadband is close to 3.5 million. It's 2.5 million on the fixed broadband and another 900,000 on fixed wireless. Just to also highlight for the fixed broadband, you'll see from the metrics on the right side that during the first quarter of the year, we were averaging about 80,000 new connects per month to hit 241,000 per quarter. By 2Q, we had ramped that up to about 90,000 per month, so that's 270,000 for the second quarter. As we speak, in July, we already are almost at 100,000 new connects for our broadband, and we expect to cross 100,000 in the next few months. Now, these numbers that we show here, the 265,000, is a combined number of fiber-only net adds of actually 478,000, which includes the migration out of copper, and that's why there is a bit of a dip in the copper number to result in the 265. So to recap again, our higher service revenues of $7 billion, offset by some increases in cash effects and subsidies, allowed Our EBITDA to rise by 8% to 46.6 billion. Delta Core Income is of course boosted by the higher EBITDA, although we have higher depreciation and financing costs as a function of the investments we have been making behind the network. The lower corporate income tax rate passed under the CREATE tax law has also helped support the increase in our Delta Core Income in the first half of the year. Next chart, please. So EBITDA over the six quarters, so 23.3 billion as noted, our all-time highs in terms of the quarterly performance this year, as well as the first semester EBITDA of 46.6 billion. We have maintained our EBITDA margins the first two quarters at 51% EBITDA margin. Next chart, in terms of our telco core income from an average of about 7 billion per quarter last year, We're at 7.5 billion in Q1 and at 7.7 billion in the second quarter of this year. Next chart. Just quickly, after the telco core income, we do have other items, including our share in the Voyager performance. So if you count Voyager in, our core income with Voyager will be at 15 billion, so still up 2 billion from a year ago. and then considering all other one-off items which we've listed in this chart, our reported income was 12.9 billion, up 5% versus the reported income last year. Next chart. This shows our debt profile as of the end of June, gross debt of about 4.87 billion U.S., net debt about 4.32 billion U.S., net debt EBITDA ratio of 2.28 times. We continue to manage the liquidity situation because our debt maturities are fairly well spread out as we show here, and then we have already lined up the external borrowing requirements for the year. with various local banks. Our average cost of debt continues to be good at 4.41% and PLDT remains investment grade as rated by S&P. Next chart, CAPEX. So for the first semester, CAPEX came in at 41.3 billion. So we do expect CAPEX to come around our guidance number. Probably around 89 to 90 billion by the time the year is over. In the first half, 31 billion of the CAPEX spend went to the network to support the increasing data traffic requirements. And then another close to 8 billion pesos was really to support the growth in the business side. In particular, the last mile installed in CP requirements on a growing home broadband takeover. So other metrics to note from a payload perspective, the data traffic recurring overall and fixed is up 64% year-on-year, and mobile internet is up 13%. Other field metrics that we want to highlight, for 5G, we were able to complete more than 4,200 base stations for six months. 4G, more than 4,500 ports, in particular, 730,000. Newports out of our goal of 1.7 million for the year, so we should be able to achieve the 1.7 even before the year is over. And then from fiber kilometers, we added 95,000 kilometers, again, ahead of the prorata requirement for the build-out this year. We also want to highlight the amount of capacity our network can support from a domestic backbone basis. We can carry 55 terabits per second nationwide. That's up from 30 as of year end 2020. And our goal is to hit a capacity of 92 terabits per second by year end of this year. For international, across 15 major international cable systems that we are part of, we have 16 terabits per second. And then when Jupiter cable system comes on stream, our capacity will be up to 60 terabits per second. We show these numbers just to show that this is clearly unmatched by any other operator in the country, and it forms the basis of how we are able to support the growing data traffic usage of all of our customers in the Philippines. Next chart, please. More on the network side. From a fixed network perspective, we already passed 11.3 million homes in the country. with 4.8 million equipped fiber ports, which includes those that have been sold and available for sale. From the fiber footprint, as mentioned, we have 524,000 fiber kilometers of 95,000 from year-end level. Wireless side, our count for base stations, close to 35,000 for LTE, another close to 17,000 for 3G and then 5G is on the rise with 4,800. Just by way of some usage behaviors, the devices that we're seeing predominantly still at LTE, 78%, but 2G and 3G is now down to about 21%, the base, and then 5G, as noted, is still small, but it's accounting for about 1% and should continue to rise as the handset sets become more affordable. Zooming in a bit more on 5G in particular, so we are proud to note that Smart 5G is rated ahead of competition by Bukla, as we show here. And then in terms of the usage that we're supporting, there are roughly about 520,000 unique 5G devices that we see on a monthly basis, and that's going to continue to rise, and then data traffic, as you can see, is also more than double, just quarter and quarter. Next chart. So more on the network. These are the HUCLA speed test results speak for themselves in terms of mobile download speeds. SMART is a clear leader at about 50 Mbps. So the Philippines ranks 75th out of 137 countries. But when you consider SMART on a standalone basis, in fact,

The rating improves by 22 notches.

And on the fixed side, next chart please. Again, we are on the lead, but of course practically tied with the other competitor. Both operators have been providing speed boost and higher speed style to the growing requirements of the fiber customers out there. So Philippines, Rank 62 out of 181 countries, PLDT standalone is number 58. Next chart, please. Today, our board declared our interim cash dividend at 42 pesos per share, equivalent to a 60% payout of our first half core EPS of 70 pesos. Record date, August 19, payment date on September 3. The dividend yield that investors enjoy is equivalent to about 6.3% for the P&D stock. With that, let me turn you over to our chairman, Mr. Pangilinan, for his closing remarks.

Well, thank you, Annabel, and good afternoon to all of you. Thank you for joining us this afternoon for this honest briefing. Well, on the revenue side, we... Anticipate continued improvement on the overall service revenues for the second half. As Annabel noted, for the second quarter, we achieved a historic high. And for the full year, it will be a historic high for PM&T. We'll land at certainly north of $150 billion service revenues for the full year. And EBITDA will follow. The first half EBITDA was about almost $47 billion. So if you calculate We will continue the build out of our 5G network. We are ahead of schedule, actually in terms of build out. and by September we will continue to build out of our FTTH fiber imports such that in fact we will complete the scheduled build-out by the end of September. So we are considering accelerating part of the build-out in 2022 into the fourth quarter for FTTH given the significant increase in new installs by home. because I think also for 2021, home will drive about 50, 55% of the growth in revenue for the full year as it did for the first half. DecoCore, we're guiding at 30 billion for the full year. Dividend payout, considering free cash flows, CapEx, and net debt to EBITDA ratios, we're open to Going back to our old policy of a basic dividend payout of 60% and a special payout of 5% for the full year 2021 on telco core income.

We're now ready to take your questions. You may type in your questions by clicking on the Q&A panel on the upper right side of your screen. Time to indicate your company and name, and we will read out your questions. Let me now read some of the questions that we received via email. The first set of questions are from Arthur Pineda. Mobile revenues are slightly softer Q&Q. Do you see this as driven by macro factors or do you see competitors such as Globe and Dito as taking a greater share in the market? I wonder if the new entrant is disrupting momentum or if consumer spending is just free.

Yeah, I think, I mean, just to answer that, I think, you know, there are really factors that we have considered there. I mean, first of all, I think I mentioned earlier that change in behavior of our customers, I mean, we're starting a lockdown again tomorrow. So actual mobility is the one that's affected by the lockdowns. But to MPP's point, the growth is being now delivered by the home broadband. So that is the benefit of us being an integrated telco. Thank you very much. Thank you. Again, you know, if you say it's 20%, 25% active, then that has to come between Globe and Smart, right? So there will be some customers who will try their service. But I think at the end of the day, after we've shown you our major investments in network and the customer experience that we want to really offer our customers, at the end of the day, we feel that the best customer experience should prevail in the long term. So that's what's happening in wireless.

Arthur's follow-up question is, how do you see the early trends into July and August in terms of consumer spending? Are people reducing spending levels?

Well, there's an impact, obviously, of people losing their jobs, and I think it's an affordability question today in terms of the offers. That's why it is very attractive for our consumers when they see very low offers in the market. But that's really because... Thank you very much. also continue to rise.

Next set of questions comes from Gio De La Rosa of Regis. They're related to the news about the spinning off and sending our tower assets. Would you care to comment on the veracity of this? PLDT used to view them as strategic and thus not open to selling them. Has that view changed and would PLDT consider the possibility of REIT-ing them?

Well, Before we have changed the position that none of our network elements, we're not prepared to open up any of our network elements, but given changing circumstances, we're now open to considering that. We've started discussion with certain banks who have actually been a learning experience for us, If we were to consider sailing these back of certain of our towers that are not strategic to the overall network position of PLDT. So yes, those discussions have started on a preliminary basis and the banks have started to sound off a number of these tower operators that operate globally and in the region, private equity, Thank you very much. Thank you. A portion of a tower. So nothing has been agreed. We briefed the board today about that possibility. And a further exposition to the board will be made towards the end of March in the next board meeting. And then we'll have to take it from there.

The next question comes from Hermanda La Paz of Abaco Securities. Would you have any comments on MMP and its effectivity by September 3rd?

Well, we're actually looking forward to MMT. I think we're getting ready for that. I think at the end of the day, it's great for the customers. They have a choice, which is a better network for them, better choice on the network, and while keeping their numbers. I hear a lot of my friends that they want to move, but they want to keep their numbers. So again, at the end of the day, it's offering the better plans, offering the better network to our customers.

The next question from Miguel Ong of Papa Securities. What are the potential constraints or challenges for satellite broadband? Will this require higher price points in plans or promo offerings? And are there any plans to introduce data-only offerings in the prepaid and mobile space?

I think on that, it's still very early stages. We just signed an MOU to explore. So we still have to see when the technology is available in the country. That's really the offers that we can The reason why we went into it is it's really aligning our purpose of making sure every Filipino is connected. And we have 7,100 islands, as you know, and some of them are reachable by fiber or microwave, and hopefully some form of satellite hosting that's affordable and we're used The mobile handsets as a device and not special handsets. That's what we're looking at.

The second question, are there any plans to introduce data-only offerings in the prepaid mobile space?

Data-only? Yes, yes. I think we just launched Smart Grow on a fully data plan, rocket-saving.

and Le Pen of Fullerton. On the cap ex of 90 billion, would it be adjusted according to operating cash flow, such that the company would still be able to book positive operating cash flows?

Well, as noted, the EBITDA for the year could cross 90 billion, but the bet obviously is that over time, That operating cash flow will continue to improve on the back of the returns that we generate on the CAPEX. Having said that, I think CAPEX this year is quite high because we are investing on several fronts, right? 4G, 5G, fiber ports, transport, etc., right? So our sense is that next year, we should be able to bring the CAPEX down to probably closer to what it was before 2021. So that's something that we will continue to manage. Obviously, the quality of the network is something very important for us to win from the customer standpoint and to be able to generate more revenues. But it's also something that we should continue to optimize from a cash flow and spend basis.

Also from the bank, on 9-13, the fixed broadband service, this would be fiber only. And so the fiber-only net adds 478,000 in the first half of 2021. Is that part of the 511,000 gross adds in the first half?

The 478 is a net basis. So if you look at it, 478 fiber-only, the total was 265, which implies the difference is a net reduction in the copper ESL numbers.

A related question on the Fibernet ads from Hermana La Paz. Regarding the 478,000 Fibernet ads, how many of these were conversions from copper and how many are new customers?

About 120,000, if I remember, was the upgrades from the copper. So we're averaging about 21,000 migrations per month in the second month. That's a rough number. Jeremiah can probably give the exact number.

107,000, Annabel. So you're very, very, very close.

Thank you. 107,000. Yeah. But that's one perspective. I think what we want to achieve by showing the total subs and total additions to fiber is the new connects, you're right, and the migration from diesel to fiber because, look, Those are subscribers already on the network. Maybe in the short term, there is no significant impact on revenues from the migration, but it does open the opportunity for PLDT Home to sell, upgrade plans and to push more content. And the fiber experience is very different from the DSM experience. From another perspective, what is incremental to revenue needs? is both the net ads and the upgrades to the plants. So it depends what you want to do. The net ads total on fiber makes it directly comparable to a converge. If you want the revenue impact, you have to consider the net ads on fiber plus the upgrades. So we can give you both numbers if you wish.

Still on the subscriber base for fixed broadband. With your current subscriber base, what is the share or split between copper and fiber?

Of the roughly 2.5 million, about 1.77 million are fiber, and then about 770,000 are combination of copper DSL and PVDSL.

The next set of questions comes from Sebi Sabidal of BTI Securities. Hi, PLDT team. Congratulations again for another set of strong results. The first question, could we get color on what you're seeing in terms of data yields? In the previous earnings call, management noted the outperformance of the value brands for mobile. Are you seeing the recessionary effects of the pandemic weigh on mobile consumption and perhaps yields? I'll read the question again. Could we get color on what you're seeing in terms of data yields? In the previous earnings call, management noted the outperformance of the value brands for mobile. Are you seeing the recessionary effects of the pandemic weigh on mobile consumption and perhaps yields?

It's not so much the economic effect, but it's really the fact that the rate at which data usage is growing outpaces that of the revenue growth, which implies there's a bit of compression on the yield. Having said that, it's only a small difference. I think it's 21 pesos difference. Yield per GB for the first half of this year versus 22 pesos average yield per GB last year. This is on the back of around 39.4 million active mobile data users in our base, consuming a little over 7 GB per month. So just another data point, the data revenues for mobile grew 12%, and then the traffic grew 17%. So that's why there's a bit of a change in terms of yield from 22 to 21 pesos.

Second question, in the light of the 182% growth in migrated subscribers and ramp up in gross connects in the second quarter, what kind of pace do you expect for the migration of the remaining ADSL customers? Are we still looking at the end of the year or should we expect a faster pace of migration?

I think the plan for ABSL, as we indicated last year, was to zero out ABSL as soon as possible. So by year end, I think we're close to about 80,000 left of ABSL and should PLET only migrate that by the start of next year.

So PLET will be on equal footing as Converge. Converge has claimed that we're all five on the home road, actually.

Follow-up question from Fullerton. Is the 2021 CAPEX the peak level? Most likely, yes.

Total year, yes.

The last question is from Miles Aliceto of SB Equities. Do you see the growth in wireless and fixed line segments somehow offsetting the depreciation of the peso on

As we noted, our unhedged debt is only down to 5%. So FX is not as big as the driver as it was in the past. And then in terms of revenues, it's principally now a peso-based revenue, right? Unlike before, for ILD, the settlements were such a big part of DLT. So it's really more and more a peso-driven business.

Also from Miles, do you see a sustained growth in your EBITDA margin to help maintain your competitive advantage in the long term?

Certainly there are scale benefits as you get bigger, which we would hope to extract as a result of that, bring up our EBITDA margin. As Al noted earlier, there are a lot of initiatives he's championing from an operating efficiency side. So we certainly believe that there are still a lot of juice to be extracted in terms of increasing productivity, more automation and digitalization. So there are still a lot of cost optimization opportunities for the business.

The next one is a question about Voyager. Post-money valuation of Voyager implied by the most recent funding round, how much is DLDP's stake?

We are not prepared to disclose that number. But recently we invested another $25 million. So we own 38.5% roughly of Voyager. I think the general plan is that maybe Two years down the road or somewhere like that, Voyager could potentially be an IPO candidate.

So we're still the biggest shareholder.

Next question. Congrats on a strong set of wireline numbers. Any color as to why PLTT adjusted broadband plans recently? The speed boost in the 6099 plan and the price cut on the 50 hundred MBPS.

or Jeremiah in my mind. I mean, they have some geo-stripes to their executives. Jeremiah can answer that.

Hi, Al, if I may. I just wanted to say that we continue to evaluate all of the plans that we have in market to make sure that they best satisfy what our customers are looking for. It's our intention that we make sure that what we do provide to our customers remains competitive, but also very, very relevant to the different use cases that they have. We see a huge increase in customers looking to use their broadband connection at home for working, as well as providing schooling services, entertainment, and also remaining connected with a lot of their family and their loved ones. As a consequence, we see the demand for higher and higher speeds become more and more important, and that's why we continue to evaluate what those price points are and what the data and speed inclusions we provide in each of them.

Next question is also related to our fiber. Where geographically are the new FTTH connections the strongest?

Jeremiah, you want to pick it up?

Sure. We see demand actually very, very strong across the country, right? So we see demand actually, whether it's Luzon, whether it's Vismin, whether it's GMM, We see demand very, very strong as connectivity is a requirement regardless of what part of the country you're in. I think this pandemic has really impacted all parts of the Philippines. It's affected our ability to work. It's affected our ability to logistics. It's also affected our ability to move around in general. So we see demand very, very strong in all of those areas. And we look to actually expand out our footprint as well as our install capability across the country.

Just to give a specific number, I think for, besides Mindanao, close to 500,000 ports each in those areas are available.

We're coming to our last question, so just please type in the Q&A section if you have any questions. So this question is from Ray Shedin of Maybank. When do you expect Voyager to show positive income growth?

Thank you. Yes, we are working towards a 2023 profitability. We are expanding the number of services that we are offering. We're getting into lending and other higher margin products. So we've started rolling those out. So we are aiming for a 2023 profitability.

Question in hyperscalers. Any update on the hyperscalers?

So who do you want to pick the top?

Yes, Bossa, thank you. From the hyperscaler market that we're seeing, there's much demand that we're seeing. Not to disclose the names, but we've closed already two of the major hyperscalers who are now going to be co-located in our data center in Vitro, Makati. There are a couple of more global cloud companies that we're talking to, and we're now working very closely also with the government So that we can make this into a major industry for the country. And we believe that by doing that, we can position the Philippines to be a hyperscaler hub in Asia. Now, that behooves us to a point where we probably have to build a new data center. We are now studying that because the kind of scale that we're seeing will be in the 30 megawatt range, most probably. So we're at the study phase today, but that will be pursued very aggressively.

There are no further questions.

Well, I think we should add a bit more color. I mean, as a general point of this hyperscaler thickest, Joe indicated that it is possibly a new But it is a new area of growth, so it just depends on how substantial it can be for enterprise. The advantage that PLTD has got is the extent of its international cable facilities and of course the scale of its current data centers. And the geopolitics is playing in a way into the hands of the Philippines because I think there, what we're picking up is noise concerning reluctance of some of these, a number of these hyperscales, major ones, that are reluctant to locate in Hong Kong, because obviously this is a Chinese territory. And in Singapore, they have put a limit to growth in data centers that rely on thermal power. As you know, Singapore is an all-gas economy. On the other hand, I think the government has committed to make it carbon neutral. So I think they're looking at data centers that do offer as much as possible renewables. So that's where the, so the links will have to avoid as much as possible, international cable, links avoid as much as possible, the South China Sea. So that puts The East Coast of the Philippines is a potential place to locate data centers, including the eastern seaboard of the Indianapolis. And at the same time, I think the relationship of dealing to Meralco and Meralco's own pivot towards renewables is a very key factor, both as a source of power and of course a cost of power, which is a major expense for data centers. So I think that that's I think we were asked earlier about where the growth would come from. This could be a major source of growth for the Philippines in general, and certainly for PLDT. So we should really try to exploit that advantage, partly driven by the geopolitics.

We don't seem to have any more questions at the queue. If there are no further questions, we'll now turn the floor back to Mr. Pangilinan for closing remarks.

Well, I think there was a question asked about the satellite. It's really a niche market. I think we turn to it because Signal obviously is a big user of satellite capacity. And so they can easily, together with SMART, be capable of rendering of delivering broadband in the farthest reaches of the country. But they're expensive. I mean, the service is expensive, the cost to transform is expensive. So I don't think it'd be, at least in the foreseeable future, a mainstream purveyor of broadband. But it is, if in education, for example, you need broadband capacity, we can deliver that, and nobody else can. Anyway, thank you for joining us this afternoon. We look forward to seeing you again in respect to the third quarter results. As I indicated, the way forward for enterprise was promising for the second half. A number of transactions that we closed in the second quarter will see the benefit flow in the second half. And certainly, PLEDT Home appears to have acquired a significant momentum in the second quarter and that seems to be flowing through to July-August numbers that we're seeing in terms of new installs. So we anticipate that actually in terms of the revenue growth, PLEDT Home would have as much as 60% of the improvement in revenue, of the aggregate revenue improvement for 2021. Wireless is a A bit of a concern. I know you see some softness in the numbers. I think partly driven by the recessionary conditions containing at the moment. To what extent that has solved it, we actually don't know. But it's also partly driven by significant competition that is emerging in the market. And what worries us is that it appears to be Price Driven, and we're worried about that. We have not responded to it yet. We will have to maintain a watching brief to see how that develops because we cannot afford to lose market share. So I think pricing is the poorest form of competition. It really is. It doesn't take a genius to match what the other guy did So we hope to see you again in early November when we announce our third quarter results. Thank you.

That concludes today's briefing. As always, should you have any further questions or clarifications, please reach out to PLT Investor Relations. Thank you for your participation. Stay safe.