PLDT Inc.

Good afternoon, everyone, and thank you for joining us today. I'm Jingay Nagralis, Head of Investor Relations here at PLDT, and it's my pleasure to welcome you to our first half financial and operating results briefing. Joining us today to share insights into PLDT's program next in strategic direction are PLDT Chief Operating Officer, Mr. Butch Jimenez, TLDP Financial Officer, Mr. Danny Yu. TLDP Corporate Secretary, Marilyn Victorino Aquino. TLDP Chief Legal Counsel, Attorney Joan Devenesha Cabral. TLDP Head of Consumer Home, Mr. John Palanca. TLDP Head of Enterprise, Blum Spinetta. PLDT President, D. Boy Henvino, and PLDT Treasurer, Leo Posadas. Later during the call, we will also be joined by Smart Communications Chief Operating Officer, Mr. Boy Margaris.

Go ahead, Daniel. Good afternoon, everyone. Allow me to present PLDT's first top 20 certified performance, covering key results and business highlights. Our service revenue's net of interconnection costs reach $97.1 billion. Our service revenue's net of interconnection costs reached $97.1 billion, a touch higher year-on-year. EBITDA came in at $55.5 billion, up 3% this year. EBITDA margin remains steady at 52%. This was supported by steady growth from our fiber and disciplined cost management. Cash OPEC subsidies provisioned $2.2 billion. reflecting continued spending discipline. Telco core income landed around 4%, managing higher depreciation and financing costs as investment in our network and infra to improve quality of service. Core income on the other hand reached 17.6 billion, up 1%, lifted by Maya's positive earnings. BLVP share in Maya's core earnings amounted to $406 million in the first half, its first profitable semester, marking a $1.1 billion turnaround from the $693 million lost last year. This strong result reflects continued growth in deposits, lending, and payments volume. In summary, we delivered stable core results and maintained a good margin. driven by careful cost management and ongoing revenue growth in key areas. PLDT service revenues remain stable, driven by sustained demand across key segments, mobile data, fiber, corporate data, and ICT. Starting with home, revenues grew 4% year-on-year, reaching $30.4 billion, led by strong steady fiber demand. Enterprise was slightly lower at $23.5 billion, down 1% due to continued declines in legacy of businesses. Positively, corporate data and ICT revenue sell steady despite last year's closure of Ogon Connectivity. Within these segments, ICT stands out, growing 15% from year-on-year to $3.2 billion. While our connectivity business is in transition, we continue to build a pipeline of new opportunities powered by human-led tech solutions. Turning to individual, revenues total 42.3 billion, slightly down in part due to weaker legacy offerings. Mobile adaptation to 37.4 billion, now making up 89% of the segment's revenues. We remain encouraged by the robust adoption of 5G and the continued increase in data usage, supporting future growth and better money. Overall, mobile data and fiber and corporate data ICT now represent 90% of our total revenues versus 88% last year, more than offsetting legacy declines. Exclusively, legacy services total net service revenues rose by three percent now let's take a closer look at the whole segment home revenues grew four percent year on year to 13.4 billion and by strong fiber demand fiber revenues reached 29.5 million up seven percent versus last year and now make up 97 percent of total home revenues Subscriber momentum remains strong, with 169,000 Net Fiber Ants in the first half, over three times higher than last year's 50,000 Net Ants. This growth reflects the impact of our accelerated Fort Roald Tau program. We continue to lead in ARPU and churn. ARPU held steady at 1,485 for the semester, the highest in the industry. Churn improved quarter on quarter a testament to network reliability and brand strength. Our bundle offerings also continue to resonate, where over 80% of new subscribers opted for higher price at $1,299 and above. These integrated broadband mobile and content bundles help drive customer stickiness and support revenues. Enterprise revenues for the first half reached $23.5 billion, slightly down by 1% from last year due to known headwinds. This includes the full impact of lost Pogo connectivity as well as slower public sector deal closures tied to the main elections and leadership changes in government agencies. We expect these delayed awards to be booked in the second half. Corporate data and ICT remain stable at $17.4 billion and now account for 74% of total enterprise revenues. ICT continues to be a bright spot with segment revenues up 15% year-on-year. Data center colocation grew by 36% while cybersecurity services expanded by 24%. Other growth areas include fiber up 4% year-on-year, SD-WAN up 19% as demand for secure, flexible enterprise connectivity continues to rise. We also saw meaningful traction from Asia Direct Cable, which supported high bandwidth deal closures with hyperscalers and carriers in the second quarter. While connectivity revenues are in transitional phase, our broader enterprise business remains resilient, supported by advanced digital solutions and a growing customer pipeline. In April, PLDT, through its data center ARM Vitro, inaugurated Vitro Santa Rosa, the country's first operational AI-ready hyperscale facility and the largest in our portfolio. This rated-free certified mega-facility delivers 50 megawatts of power capacity and houses over 4,500 trucks built to meet the stringent requirements of enterprises, and AI workloads. The facility now hosts live NVIDIA GPUs powering EPLDT's AI solutions, giving Philippine enterprises across to on-demand, high-performance AI computing without the heavy capital costs of building their own infra. As the country's first true AI enabler, BITRO offers low latency and the computing skills needed for enterprise to innovate and compete. Vitro continues to deliver strong growth with co-locations revenues up 36% in the first half, driven by a 19% increase in RAC deployments across our data center network. With Vitro Santa Rosa and our broader ecosystem, PLDT is building the intra-backbone to position the Philippines as a regional hub for digital services and AI innovation. Individual revenues reached 42.3 billion for the first sub, down 1% from last year, reflecting continued drag from legacy services and a softer second quarter. Mobile data revenues were stable, 37.4 billion, making up 89% of the segment. While Q2 was slightly slower, we continued to see healthy data usage and stickiness from our customer base. Our pool has remained broadly stable despite competitive pressures thanks to our hyper-personalized offers that match customer needs while helping us manage marketing costs more efficiently. Total mobile data traffic grew 5% year-on-year to 2,766 petabytes, supported by the continued rise in 5G adoption. 5G traffic surged 84% versus last year, and 5G latch devices now make up 17% of our base, up from 11% a year ago. This reflects network improvements and the impact of affordable 5G device offers. Another bright spot is fixed wireless. With the introduction of our new 5G modem, we saw revenues from the segment growing 12% year on year, driven by the strength and reliability of our 5G network, especially in areas where fiber is not yet available. We remain focused on giving customers the best experience, not only in network quality, but also in how we design products that match their preferences and needs. This approach allows us to maintain our book, spur demand, and increase loyalty. Innovations remain a key lever as we took shape the next phase of growth. To share more about our latest digital initiatives targeting younger Filipinos, I'd like to turn it over to our smart COO, Mr. Boy Martires.

Hi. After months of hard work by our internal teams and technology partners, it is my pleasure to present to you the first of a series of innovations that we've embarked on. Our next mobile service called KIPP. KIPP is the Philippines' first and only app-based mobile service that offers a personalized digital telco experience. KIPP is also one of the first in the world who offer such groundbreaking experience. King is our foe to the Gen Z market. The Gen Z, between 19 to 20 years old, is this young generation redefining how they live, share, and stay connected. They are disruptors, and we've seen their influence and power in the results of our latest Philippine elections. Their rebellious yet authentic nature, their ability to know exactly when to swipe left or to double tap, make up a generation that will never quit freedom and control. With this in mind, we have built Kik, a mobile experience that gives Gen Z complete freedom and flexibility to personalize and control their mobile journey on their own terms. With the Kik app, users can build their own plan, choose their own data allocation, choose their call and text inclusions, choose their numbers, choose their validity period, and more. unlocking a very personalized experience for Gen Z's. It's my pride to show you our television commercial that was launched last Sunday.