PLDT Inc.

Thank you for joining us today. I'm Jingay Nograles. I'm the head of investor relations here at PLDT. And it's my pleasure to welcome you all to our full year financial and operating results briefing. So joining us today to share insights into PLDT's performance and strategic direction are Butch Jimenez. He is the PLDT chief operating officer. Joining us right now is smart communications chief operating officer, Boy Martirez. We also have here PLDT Chief Financial Officer, Mr. Danny Yu, and our Chairman and CEO, Manuel V. Pangilinan will be joining us later during the presentation. So before we begin, I'd like to remind everyone that we will have a Q&A session after the presentations. So for those who are joining us virtually, you may submit your questions by the MS Teams chat in the Q&A panel. So to start, I'd like to invite our Chief Financial Officer, Mr. Danny Yu, to walk us through PLDT's Financial Performance for 2024. Danny.

Good afternoon, everyone, and thank you for joining us today. Allow me to walk you through PLDT's 2024 Financial and Operating Performance. Amid a dynamic and competitive landscape, we delivered consistent top-line growth and stable margins. Let's start with the financial highlights. Our service revenue grew 2% year-on-year to $194.7 billion, driven by fiber, mobile data, and enterprise ICT. On gross basis, revenue rose by 3% to $208.4 billion. EBITDA expanded by 4% to 108.5 billion on the back of revenue expansion and operating efficiency. Our EBITDA margin remains strong at 52%, underscoring our ability to sustain profitability even as we continue investing in network leadership and innovation. Telco core income grew by 2% to 35.1 billion reinforcing earning stability in financial resilience. Our focus remains on expanding revenues, managing costs, and improving cash flow generation in 2025. PLDT service revenue growth reflects consistent demand across key business segments, mobile data, fiber, and corporate data and ICT, which now account for 88% of total revenues, continued to expand, offsetting legacy revenue declines. Excluding legacy services, total revenues grew by 5%, emphasizing our shift towards data-driven and digital services. Moreover, our growing segments more than offset the drugs from legacy services, with individual mobile data up by 5%, home fiber by 6%, and corporate data and ICT services by 5%. We also expect legacy revenues drug to moderate, supported by customer migration through these segments. Total revenues for our individual segment rose by 2% to 83.5 billion, led by mobile data which rose by 5% year-on-year and a strong 7% in the fourth quarter. Mobile data now accounts for 89% of segment revenues. Key metrics have also increased. Blended ARPU moved up 9%. Average monthly mobile data usage per user grew 5%, while active data user reached 41.3 million. To stay ahead in a competitive market, we are driving higher data monetization, deepening customer engagement, and delivering an enhanced user experience. We are leveraging on 5G expansion to optimize revenue generation and increase ARPU, continued expansion and upgrades for our network and IT infra, as well as AI-driven marketing strategies. our extensive network and digital innovations, we are well positioned to capture further opportunities in the mobile data space. PLDT Home continues to strengthen its leadership with total home revenues hitting 60.7 billion. Fiber-only revenues grew 3 billion or 6% to 56 billion and now accounts for 92% of the segment revenues. we continue to set the industry benchmark with a churn rate of just 1.7%, reflecting strong customer loyalty. Meanwhile, PLDT's ARPU of 1,488 remains at a premium to the rest of the industry. A key driver of our success has been the higher adoption of premium plans with over 75% of new activation opting for plans above 1,299%. Helping this is our ability to differentiate ourselves from competition through our bundled plans, which account for about 40% of new activations. We're extending our fiber reach strategically, deploying additional ports while exploring new growth areas, including prepaid fiber offerings in select locations. In 2024, we expanded our reach to 2,500 additional barangays. Our strategy remains Clear. Strengthen retention through improved customer experience, maintain ARPU, and expand our fiber footprint. Enterprise revenues grew 3% to $48.4 billion, with ICT services continuing to be the fastest-growing segment, up 15% to $35 billion. Key growth areas include managed IT services, which grew 48%, cloud solutions up 30%, data center co-location, which rose by 22%. In addition, Vitro continues to lead the industry with Vitro Santa Rosa as the country's first and only AI-ready data center. Recently energized, it has already secured anchor tenants. Our focus is to expand our enterprise digital ecosystem, accelerate cloud and reinforce PLDT's leadership in the ICT space. PLDT delivered 108.5 billion in EBITDA, a 4% increase year-on-year, demonstrating steady revenue growth alongside effective cost management. OPEX, including subsidy and provisions, declined by 1 billion to 86.1 billion, reinforcing operational efficiencies. Our EBITDA margin remains strong at 52%. PLDT Telco core income increased by 2% to $35.1 billion. Core income expanded 5% to $34.2 billion, supported by lower losses from Maya Innovations, which posted its first profitable month in December 2024. Maya Bank, on the other hand, has been profitable since September 2024. This demonstrates the positive trajectory of our FinTech investments and their growing potential in contributing to our bottom line. Reported income surged 21% to 32.3 billion, up 5.7 billion year on year, owing to higher core income, derivative gains, and lower asset impairment. Tower sales continued with 356 additional sites sold in 2024, and additional towers earmarked for sale in 2025, reinforcing our asset monetization strategy. We continue to optimize investments, steadily reducing CAPEX intensity while maintaining network improvement. 2024 CAPEX totaled 78.2 billion, with CAPEX intensity further declining to 38%. Our CAPEX guidance for 2025 is between 68 and 73 billion with investments in the following key priority areas. New cell sites plus LT and 5G upgrade, home fiber ports, increased focus on AI and network, AI ready data center, submarine cable investment, upgrades and modernization of network and IT to improve our quality of service. While we work on decreasing CAPEX, we are committed to deliver greater outcomes through strengthened negotiation and efficient use of capital. PLDT remains in a strong financial position. Our net debt to EBITDA currently stands at 2.52 times, and we're working to bring this level down to 2.0 times in the midterm. In addition, we strive to deliver positive free cash flow by next year. Debt maturities are well spread out with 50% maturing beyond 2030, ensuring manageable refinancing requirements over the coming years. Our debt portfolio is well balanced with 14% dollar denominated debt of which 95% is hedged, thereby reducing Forex risk. Interest costs remain competitive with a healthy mix of 41% fixed rate and 59% floating rate. Average debt maturity stands at 6.6 years. We're also pleased to report that we have retained our investment grade ratings from S&P and Moody's, reinforcing our prudent debt management strategy. For 2024, total dividends amount to 97%. reflecting a 60% regular dividend payout aligned with our policy. A final dividend of 47 per share was declared today. PELDT continues to focus on leveraging to generate positive free cash flows. As of yesterday, PELDT's 12-month trailing dividend yield stands at 7%, positioning us as one of the most attractive dividend plays in the market. Now for Maya. I'll be presenting its 2024 operating highlights, showcasing its strong growth and market leadership in fintech. Maya remains the number one digital bank in the Philippines by deposit balance and customer base. It also continues to lead in merchant acquiring, holding the largest market share in card acquiring and QRPH transactions. As of December 2024, Maya Bank's customer base grew significantly, up 71% year-on-year to 5.4 million bank customers, while lending expanded to 1.6 million borrowers, doubling from the previous year. Deposits rose 59% to $39 billion, and cumulative loans disbursed reached $92 billion, with 2024 with 68 billion issued in 2024 alone. Most notably, Maya achieved positive net income in December 2024, marking a major milestone for its financial sustainability. These accomplishments demonstrate Maya's strength in providing seamless digital banking and financial services, further solidifying its dominance.

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