PLDT Inc.

Good afternoon, everyone, and thank you for joining us today. I'm Jingay Nograles, Head of Investor Relations here at PLDT, and it's my pleasure to welcome you all to our nine-month financial and operating results briefing. Join us today to share insights into PLDT's performance and strategic direction are. EPLDT's Chief Financial Officer, Mr. Danny Yu. EPLDT's Chief Operating Officer, Mr. Butch Jimenez. EPLDT Corporate Secretary, Marilyn Victorino Aquino. EPLDT Chief Legal Counsel, Attorney Joanne de Venetia Cabo. Head of Consumer Business, Mr. John Palanca. Head of Enterprise Business, Mr. Blum Spinetta. EPLDT President and CEO, B. Boyd Hendino. As well as our OICs for SMART. and Ms. Marge Garuccio. All right, so before we begin, I'd like to remind everyone that we will have a Q&A session after the presentation. So you may, of course, submit your questions via the MS Teams Q&A panel, which you can see in the webinar. Thank you also to those who have set their questions in advance. For those who are not able to use the Q&A due to compliance reasons, you may definitely raise your hand, and we will unmute your mic at that time. All right, to start, I'd like to invite our Chief Financial Officer, Mr. Danny Yu, to walk us through TLDT's financial performance.

Good afternoon, everyone, and thank you for joining us today. Allow me to present TLDT's financial and operating highlights for the first nine months of the year. Our service revenue's net of interconnection was reached 145.9 billion, up 1% year-on-year, driven by steady demand across fiber, data, and ICT. Cash effects, subsidies, and provisions were down 2%, showing our focus on spending control and even as we support growth areas. EBITDA rose 3% to 82.8 billion, with margin steady at 52% amidst higher revenues and lower outbreaks. Telco core income came in at 25.3 billion, around 5%, mainly due to higher depreciation in financing costs from network and IT investments. On the other hand, core income was stable at 25.8 billion, supported by Maya's sustained profitability. Our share in Maya's core net income reached $603 million for the period, a $1.5 billion turnaround from last year's loss. Maya remained profitable for the third consecutive quarter, showing consistency as it solidifies its position as the country's leading tech-in-tech ecosystem. In summary, our nine-month results show a stable top line. We see yet even an improving contribution from digital businesses. Consolidated service revenues reached 145.9 million, up 1% year-on-year. If we exclude legacy services, total revenues rose 3%, showing the continued expansion of our people growth areas. Within these growth segments, fiber revenues grew 7%, reflecting solid demand for reliable connectivity. Mobile data and fixed wireless revenues were up 1%, with usage and 5G adoption continuing to rise. Please note that beginning this quarter, we will now include fixed wireless access, FWA, within our growth segments for our wireless business. The base numbers have been adjusted accordingly to provide like-for-like comparison and reflect organic growth. Fixed wireless growth is driven by expanding 5G base and stronger network coverage. For enterprise, corporate data and ICT revenues grew 2%, returning to growth in the third quarter as government and public sector projects started to ramp up after election-related delays in the first half. ICT on its own grew 27%. Overall, the shift towards these growth areas, namely fiber, data, fixed wireless, and ICT, continues to offset the decline in legacy revenues. Focusing on the third quarter, I'd like to point out that all major business units delivered positive growth, even with legacy drugs, showing recovery especially for our mobile and enterprise groups. Consolidated service revenues rose 2% year-on-year to $48.8 billion. Excluding legacy services, total revenues rose 4%. Wireless consumer revenues were up 1%, with mobile data and fixed risk delivering 3% growth year-on-year. Home revenues climbed 3%, while fiber revenues were up 6%. Enterprise, as mentioned earlier, is now back on its growth path, seeing a 2% increase year-on-year, with corporate data and ICT up 5%, while ICT services on its own grew 51% year-on-year as government projects begin pushing through. Overall, third quarter marked a broad-based recovery, with improvements in both mobile and enterprise. reflecting steady execution and disciplined growth across the group. Now let's take a closer look at each of the business units. Home revenues grew 4% year-on-year to 45.7 billion, driven mainly by continued fiber demand. Fiber revenues were up 7% to 44.5 billion, now accounting for 97% of total home revenues. We added 265,000 net fiber subs year-to-date, up 67% versus last year. Total fiber base is now 8% higher year-on-year. On prepaid, we have selectively introduced prepaid fiber in appropriate growth markets, specifically targeting quality subs who have a high probability of topping up regularly. In this way, We're not only secure revenue growth, but also sustainable profits in the long run. WePageSumTown has grown 15 times since end of 2024. Our pool held steady at 1,470, the highest in the industry driven by our value-based bundles such as video and gaming. Churn remained low at 1.9%, reflecting strong customer loyalty and consistent network quality. To further extend our reach, we have launched air fiber and laser internet, providing fiber-like speeds in hard-to-reach areas at lower cost. This technology expands our coverage and improves service availability in underserved locations. Overall, home continues to deliver solid growth, underpinned by fiber leadership. IRP, and expanding access through new technologies. Let's now move on to enterprise. Year-to-date revenues reached 35.6 billion for the first nine months, broadly steady year-on-year, while corporate data and ICT revenues rose 2% year-on-year to 26.7 billion. Within this, ICT revenues grew 27% year-on-year Driven by strong demand for managed IT services up 115%, data center co-location up 25%, cybersecurity services up 12%. Importantly, the business unit returned to growth during the third quarter, reversing earlier softness as delayed government projects pushed through. Enterprise revenue rose 5% versus the second quarter, with corporate data and ICT up 7%, led by a 40% increase in ICT services. Corporate data and ICT now account for 75% of total enterprise revenues, reflecting our continued shift toward high-value services. PLDT also continues to strengthen its leadership in AI and data infrastructure. positioning the group at the forefront of the country's digital transformation. We recently launched Pilipinas AI, the country's first sovereign AI platform. Also at Vitro Santa Rosa, this platform enables the enterprise to build and deploy AI models locally, giving businesses access to GPU-powered computing on demand. For our wireless business, revenues reached 63.2 billion for the first nine months, down slightly by 0.3 billion versus last year due to legacy funds. Data revenues, which now include mobile data and fixed wireless, rose 1% year-on-year to 57.3 billion, accounting for 91% of total wireless revenues. For the third quarter alone, data revenues were up 3% year-on-year, reflecting steady demand and continued monetization discipline. VIX Wireless sustains strong momentum with revenues up 18% year-on-year as smart leads the market by revenue share. If we remove VIX Wireless, mobile data revenues rose 1% to 56 billion. Performance was supported by stable data traffic growth, disciplined monetization, customer value management initiatives that help optimize spend and reduce marketing costs. 5G adoption continues to expand with the number of 5G devices up 39% year-on-year to 10.5 million, while data traffic rose 6% year-on-year to 4,393 petabytes. The share of 5G devices in the total base improved to 18%, driving higher data usage, and improve customer experience. As we continue to innovate on the product side, we also stay focused on cost discipline across the group. Total cash effects, subsidies, and provision for the first nine months of the year came in at 63.1 billion, down 1.1 billion of 2% versus last year. The biggest savings came from compensation and benefits down 7%, reflecting continued workforce optimization. Selling and promotions were also lower by 18%, driven by better campaign targeting and spend efficiency. Subsidies were also down by 25%, reflecting smarts' deliberate shift towards higher-quality acquisitions and tighter credit screening for post-paid device plans. On the other hand, repairs and maintenance rose 4% to $23.6 billion, reflecting ongoing network expansion and site rollouts. Contract-specific services were up 25%, tied to the ramp-up of key enterprise and ICT projects. For the first nine months of 2025, EBITDA reached 82.8 billion, up 3% year-on-year, with margins steady at 52%. This performance reflects the combined impact of a 1 billion rise in revenues along a 1.1 billion discipline for decline in operating costs. The 52% EBITDA margin has helped firm demonstrating our ability to defend profitability even in a very competitive environment. Telco core income reached $25.3 billion, down 5% year-on-year, mainly due to higher depreciation in financing costs from network and infra investments. Core income was steady at $25.8 billion, supported by continued earnings from Maya, whose consolidated core income hit $1.6 billion year-to-date. Maya remained profitable for the third straight quarter, continuing to gain scale through higher transaction volumes, growing deposits, and steady expansion in its lending and merchandise businesses. This quarter also includes $2.6 billion in accelerated depreciation, a non-cash charge related to modernization of our core and IT systems, and the retirement of legacy assets. Reported income stood at 25.1 billion lower year-on-year, mainly reflecting the absence of last year's higher forex and derivative gains, as well as the accelerated depreciation book this quarter. CapEx for the first nine months stood at 43 billion, down from 52.3 billion for the same period last year. CAPEX intensity improved to 27 from 33 a year ago, driven by lower spend on network and IT as major projects near completion. For the full year, 2025 CAPEX guidance is lowered further to 60 billion, lower than the original guidance of 68 to 73 billion. This is mainly due to more favorable pricing and terms. We continue to invest in new cell sites, LTE and 5G upgrades, home fiber ports, data center development, and submarine cables. These projects will strengthen network quality to support the growth of enterprise and digital services. As at the end of September, debt stood at $289 billion, translating to a net debt to event ratio of 2.61 times slightly higher than the prior quarter, but still within our target range. Our gross debt was at $299 billion, with 60% of maturities falling beyond 2030, providing a long runway and minimal near-term refinancing pressure. About 13% of total debt is U.S. dollar denominated, with only 5% unhedged. keeping forex exposure very manageable. The average interest cost was 5.49%, up slightly from last year's 5.08%, as lower rate maturities are refinanced. Our interest coverage ratio remains healthy at 3.37 times, while our average debt maturity is 6.5 years. PLET remains in better investment grade with ratings from S&P and Moody's. In terms of cash flow, we recorded a $1.1 billion in proceeds from tower sales and completed a $20.5 billion final dividend payment for 2024 during the period. Incidentally, Fidelity hit positive pre-cash flow as of September 2025, ahead of its forecasted 2026 target. Looking ahead, we are working towards reducing leverage to around 2.0 times net debt to EBITDA, which will be supported by our asset monetization program, as well as lower capex. Now, let me now discuss Maya, the Philippines' all-in-one fintech platform powered by Maya Bank and Maya Philippines. It's a fully integrated platform that unites digital payments, savings, and lending for both consumer and enterprise and enterprises maya has created a powerful two-sided network where more customers drive more transactions generating richer insights which enables higher cross-seller products and ultimately delivering scale and profitability maya continues to lead with strong performance across deposits loans and payments maya remains the number one merchant acquirer and card payment processor. It delivered 532 million in net income in the third quarter, sustaining profitability while growing. Boundary customers nearly doubled year-on-year to 9 million, while its cumulative borrower base grew 81% to 2.4 million. Deposit reached 57 billion, up 59% year-on-year, and total loans dispersed since its inception hit 187 million. Maya continues to onboard millions into the formal financial system, especially younger users and underserved segments. It continues to be the digital bank of choice for young customers across the country. Of the 9 million customers in just over 3 years, 84% comprise Gen C and Millennials and 76% are based outside of Metro Manila. Of the 2.4 million borrowers that Maya has given credit to, over half are first-time borrowers with no previous lending history. Maya's deposit base has grown to $56.7 billion as of September, more than doubling from end of 2023. It dispersed $36 billion in Q3 alone, bringing its total loan disbursement since launch to $187 billion. The loan book now stands at $27 billion, with loan-to-deposit ratio at 48%. Net interest margin rose to 18.9% for the first nine months, while maintaining a healthy portfolio with an NPL ratio of 6.3%. Maya continues to expand its fintech ecosystem through product innovation and strategic partnerships. Maya launched Maya Black, its premium credit card in quarter three, receiving a very strong response from the customers. Around 40% of Maya black card holders are first-time credit users, underscoring Maya's role in democratizing credit access to Filipinos. Maya has also launched an innovative personal vaults product the previous quarter that incentivizes users to make periodical savings a habit by offering higher rates. Maya is also leveraging its relationship with established businesses like Cebuana Luwiler to expand credit to unbanked customers through over 3,500 branches and 25,000 agents nationwide. In summary, Maya's strong growth across payments, deposit, and lending reflect the power of a fully digital integrated ecosystem. PLDP continues to mark progress in its sustainability journey, as manifested in its latest ESG ratings, which continue to register improvements, as you will see on the slide. We continue to align with global best practices, and we have started to take part in global conversations. At the Climate Week in New York, PLDP and SMART represented the Philippines that the United Nations Global Compact Leaders summit. which will showcase a homegrown innovation that integrates localized mounting of natural hazards and remote monitoring of network facilities into a single visual dashboard. We were also featured in the Philippines 2025 Voluntary National Review presented by the Department of Development, highlighting the country's progress on sustainable development goals. Other highlights during the quarter include a workshop with our supply chains where we cascaded our biodiversity policies, particularly in the context of network rollouts. Smart also secured a 2 million peso green loan with proceeds to be used to accelerate the rollout of our 5G network nationwide, which is more energy efficient. Now that concludes our prepared remarks for PLDD's nine months results. We're now open for questions.

Thank you so much, Danny, for your insights. Before we open the floor to your questions, allow me to reintroduce our business leaders in the room. I'd like also to recognize our COO, Mr. Bochimenez, Ayush Junjunwala of Maya. The CIO of Maya has also joined us as well. And just to remind everyone, those who are in the room with us are our Head of Consumer Business, Mr. John Palanca, our Head of our Enterprise Business, Mr. Lump Spinetta, EPLDD, and Petro President, V. Boyd Henvino, our OICs for SMART, Lloyd Manaloto, and Marge Garcilio. Of course, we have our CFO, Mr. Danny Yu, our Chief Legal Officer, Ms. Joanne de Venetia-Cabul, and our Corporate Secretary, Ms. Marilyn Victorino-Aquito. All right, so for those who would like to ask questions, please feel free to put them in the Q&A box. We are also welcome to answer your questions live. Just feel free to raise your hand, and we would be more than happy to assist. All right, so the first question here is from Nikki Frankel of Apaca Securities. This is for Maya. Given that Maya's lending was still strong in 3Q25, what were the main drivers for the drop in net income for the period? Were there any one-offs that were attributed to this? Ayush, would you like to take that?

Hi, thanks for the question. So there are a couple of factors that resulted in a slight drop. One was the slight impact of the removal of gaming links, the effect of which started to come in the August of 2023 as per BSP's direction. And secondly, as Danny mentioned, we launched my black credit card. And as I mentioned in the previous call as well, that we had launched our personal loans. So as we scale these longer duration loans, you know, they will continue to have some provision, some excess provision impact in the near to medium term until the portfolio matures. So these are the two sort of main factors for that.

Thank you, Ayush. All right, it looks like we also have some questions here from Arthur Pineda of Citi. I'm just gonna read you. All right, go ahead, Arthur.

Hi, hi, yes, thanks for the opportunity. Several questions, please. Firstly, with regard to the KPA and the IRRs which have been released and signed by the President, how do you see this impacting your profitability as well as your investment profile going forward? I'm just wondering, do you see the new revenue opportunities as outweighing the revenue risks with regard to upcoming competition? Second question I had is with regard to mobile. We've seen this has been trailing that of your competitor for the third straight quarter. What's driving this difference in performance? Is there any issue that the company needs to work out? And the third question is on enterprise. You mentioned an uptake in government projects earlier. I'm just wondering, are you seeing sustained uptake into the fourth quarter, given that you've seen a slowdown in the broader macro momentum and government spending? Thank you.

Thank you, Arthur. Okay, we have three questions here. Perhaps we can take your first question, your second question first, which is on wireless. It's been training for a while. Is there any difference in performance that you'd like to highlight? So Marge or Lloyd, would you like to take this question? All right.

So for the wireless business, whilst we have been training behind Globe in actual revenue, when you actually review the that the smart wireless group has actually achieved a flattish growth rate for year-to-date 2025 versus globe. It's actually more of a negative. Number two, the actual Q3 achievement versus last year. Smart is also ahead versus globe. Now, What's interesting is that what we've actually managed to do is using tools like hybrid targeting, we actually have been able to secure a higher quality subspace, so much so that our RFUs for SMART have actually improved. negative 5.5. We do believe that with tools like this, and actually focusing on how we could generate more positive growth, we should be able to at least stabilize and actually sustain our mobile resilience.

Also, we'd like to add to the fact that feedback-based wireless, you know, exactly on wireless networks. rapidly growing, and it is driven by our investment in 5G and investment in 5G devices. So that's one area that we're also focusing on as a total portfolio, because we see the bigger growth on the broadband.

Thank you, Marge. Thank you, Lloyd. Let's take your question on enterprise next. In terms of the sustained update in the fourth quarter, Lungs, would you like to

Yes, we are seeing the momentum, as we mentioned before, into the fourth quarter and also into our early Q1. As you can imagine, some of the major projects will probably result in some slippage of award dates, et cetera, which is quite normal. But we're seeing still that level of investment and activity. agencies, NLGs, continued demand here that we're serving on both the connectivity and the ICP side. Thank you.

Can I add? Yes, of course.

Just I guess a couple of insights on where the government is going to land in terms of sustaining their investments in the digital connectivity. Of course, I can't speak for the government at this point in time, but generally what we see is that they are going to continue their thrust and their investments in being able to connect the Philippines digitally. I don't see that slowing down, and I think that after realizing that they've spent too much on flood controls, they've started to sense that maybe they should start shifting some of that expense or that spend to other areas and digitizing or providing digital connectivity to various aspects of Philippine society is something that they are talking about prioritizing. So first, let's talk about data centers. government or PBBM has already given the DICT an order for public sector data sovereignty. That becomes a big driver for the enterprise group in terms of possible revenues in the future, principally because we do have the biggest data center in the Philippines and we are the only ones at this point in time that can provide GPU as a service leading towards AI. Aside from that, The GEDA site investment or initiative of the government has just finished its fitting. PLDD Globe has gotten its fair share of rolling out in GEDA sites. So that is going to add revenue for our company. At the same time, continue the investments of the government in connectivity. Now, tomorrow, I will be presenting to the PISA, the Private Sector Advisory Council, a couple of more initiatives to digitize state universities in the Philippines, and the other one is healthcare centers in the Philippines. So it looks like they are realizing that we are far behind our Asian or ASEAN neighbors when it comes to digital connectivity. And it's one of the priorities that I think the president and the government is going to push forward in 2026 and beyond. So looking forward to a sustained investment of the government in connectivity.

Thank you, Sir Butch. Right, the last question, which is on . Would you like to take this one?

Hello. Hello.

What opportunities? It's difficult to assess the opportunities right now because this is the first country where they are going to roll out the open access all assets model. So we don't know in what shape or form it will transform. it would basically be formed in the Philippines. But aside from that, if there are new players that are with a vision and philosophy that allows them and are committed to invest in the Philippines, invest in new infrastructure that will complement and supplement our network, that is an opportunity that we can consider because it will strengthen our network together and we may be able to improve the connectivity for the entire country, and maybe that will help innovation of the to have more connectivity even in the GEDAS area, and also improve the internet connectivity in the entire country. But that requires, but that is something that we can find. an opportunity that we can explore and exploit and create new partnerships around that. But if it is pure access, it's hard to access the opportunity right now because we don't know how it will be rolled out in the Philippines. So open access for all assets.

So the indications on the IRRs based on what's been signed by the President so far?

I'm sorry?

Indications on... How we feel about the IRR?

Well, how we feel about the IRR, Mr. Pamilinan answered that earlier in the Meetup briefing. Do you agree with his answer?

Sure, sure. So he had a statement earlier that he shared with the media, so I'll just quote what he mentioned and I'll share it with you, Arthur. So when he was asked about the LDD's overall view on the final RRR, he answered by turning the question around, right? Do we think that the law as written actually achieves what it set out to do? cheaper internet for all, wider coverage, more infrastructure, because the law and its IRR right now do not impose any obligation on new entrants to build infrastructure. There's no requirement to start in geographically isolated or disadvantaged areas, and there's no service obligations to ensure coverage or quality. And if you recall, in the Ramos administration, there was a sound model under the service area scheme, where telcos were assigned specific regions and targets, like reaching the number of households to be connected, right? And that created real infrastructure build-out at that time. And the Conectado Pinoy law, on the other hand, does not have such provisions. So really, the question remains on whether it will truly deliver on its promises. So that was the statement shared by MPP earlier on the IRR.

Got it. Thank you very much.

Thank you, Arthur. All right, we have another hand raised from Ranjan Sharma. Let me go ahead and unmute you.

Hi, good evening, and thank you for the presentation. Can you hear me? Yes, we can. Thanks for the opportunity. My questions are related to the KPA as well. Can you help us understand how the wholesale access pricing mechanism is going to be set? When you're being asked to open up a network, on what basis are wholesale access prices that you will be charging any access seekers? Is this completely on commercial terms? Is there a cost model associated with it? And the second question is on the spectrum. I think there's also spectrum management provisions as well. which includes drawback of underutilized spectrum. Can you help us understand how that might impact the industry as well? Thank you.

In terms of the pricing, I don't think there has been any specific model that was shared in the IRR. The way it was drafted was that the incumbents are to submit our price list in the reference access offer, and that will be reviewed by the regulators to determine if it is fair, reasonable, and non-discriminatory. So I think there's really no specifics at this time, Ranjan, on using any specific model.

Yes, maybe you're right. In fact, it is not clear to us because we already have open access bilateral contractual maintenance. We do open access on a contractual basis. But it's not clear to us, for example, whether or not the pricing that we have to do based on voluntary contracts with counterparties will be the same price that will be approved by the regulators. And there is also a provision in the IRR which says if you have been determined to be a significant market player, then the regulator may scrutinize your pricing. And what that means is not clear to us. Whether or not significant market players will be required to price down their offering compared to contractual commitments that they've entered into before . It's not very clear to us. So from the spectrum under utilization, is that the question?

How is... Factor management provisions, how we see this impacting our business?

Well, if you have an impact on the business, Please appreciate that right now there is no standard for underutilization. It really depends on how you use the spectrum. If you use the spectrum as a macro site, the utilization might be different. If you use the spectrum to cover dark or basically blind spots, or if you use it to have continuous travel, the utilization would be different. And so the spectrum management policy is intended to, I think, come up with that. And hopefully there will be a consultation with the stakeholders like us who are using the spectrum. And hopefully there will be a transition period if they define, for example, under utilization as such to them. The next day, they will start recalling the spectrum like not there because it's basically a totally new definition of underutilization, which we are unable to comply. The next day, they will start recalling. So that is what's not clear. But I think they will have a period from the effectivity of the IRR to come up with a spectrum management policy framework. But that's not very clear right now.

Thank you, Ma'am.

Thank you.

Do you want me to have the interview?

No, it's fine. Thank you.

Looks like we have some questions here as well from Ken Kwan Soon of Prusik. So two questions on net debt. You mentioned that net debt to EBITDA will be reduced to two times. Which year is this expected to be achieved? So that's the first question. Second question, net debt to EBITDA is increasing a lot faster than net profits. Where in the business is debt going to?

We continue to spend on IT, network rollout, and data center development. So that's where the debt go to. Now, with respect to projection, I think it will be about three to four years from now, going to the 2.0. But certainly, I think the positive news is that we finally achieved positive free cash flow as of September. ahead of our forecast in 2026. That's one good news. And we hope to sustain this with lower topics moving forward as well as with our monetization program.

Thank you. And we also have a question related to that. Regarding our positive free cash flows, how confident are we that we can sustain this into 2026?

We're confident because we will have lower capex moving forward, again, as mentioned earlier, because of our asset monetization program.

And also, this is a common question that was sent to us earlier. Any updates on the current asset monetization programs, namely the data center stake sale, as well as the copper sales?

On the data center, we're currently in talks with a prospective investor who intends to take around 49% of the business. At the same time, we're also exploring the possibility of doing a REIT listing for our data center, just in case the other falls through.

Thank you, Danny. All right. We have another question here from John Ter of UBS. Let me just go ahead and unmute you. Okay, John, go ahead.

Hi, good afternoon. Two questions. First is on the fixed broadband net ads, quite strong, 95,000 compared to your run rate of 70,000 in the first half. So how much of this was prepaid, how much of this was postpaid, and what drove the acceleration there?

Hi, John, how are you?

So, thank you for this question. Yes, we've actually been able to build up the install rates over the last quarter. These top buyers. I can't, all I can say is that in the third quarter, we've seen more than a three-fold increase in the prepaid subscriptions. We're doing this in a very different way. I think I mentioned in the previous quarter that while we are growing the pie to ensure that the articles remain at the high level and not capitalize on proposed pay, our acquisition of prepaid has been very targeted to areas where prepaid applies. So growing the pie from tier A and tier B municipalities is very selective. So we will not be seeing the same volumes, but what we will be seeing are the quality subscribers who have the high-preference in E2 top-up. As mentioned from the beginning of the year, we have grown more than 3x already, 3.3x to be exact. And once we're ready to release the figures, and we have a sizable market, rather subscriber based on prepaid than we would do so. So at the moment, the majority of it is coming from our postpaid acquisitions.

Thank you. Okay, thank you. A quick follow-up on, for me, for Danny, on depreciation, there was two plus billion charge in nine months, but safe to assume that most of it came from the third quarter. And the related question on interest expense, given that debt really hasn't changed, but there was a spike on year-on-year interest expense, would this mainly come from, I guess, leases for towers, et cetera? Thank you.

I'll take the second question first.

The reason for the increase in interest is mainly due to increase in the... Increase in the weighted average rate by around 49 basis points. That's one. Second reason for that is that also increase in the weighted loan average by around 19 billion compared to the previous year. So that's for the second. What was the first question again?

Accelerated depreciation of 2.6 billion.

It's mainly retirement of legacy assets as well as modernization of our IT and network core system.

Thank you, Ed.

Most of the innovation is a fast-paced, capital-intensive industry, and it's rapidly changing, so we have to continually review the economic life of these assets.

And most of it occurred in the third quarter, right?

Yes, in the third quarter. I think we recorded that in July of this year.

Okay. Thank you, Danny. Thank you, Manish Venki.

Okay, so some questions that were sent in as well. This one is for Enterprise. You recently launched SmartSafe as well as Filipinas AI. How do you see these contributing to your revenues moving forward?

I'll tackle SmartSafe, and then I guess have a percentage of the GDP in control, even if you don't tackle that. So the SmartSafe, yes, we have actually been bringing this to customers already even in Q3, but we did a commercial launch just last week. Basically, with SmartSafe, this takes advantage of specific technology on the smart network that makes it as secure for someone to have a transaction on a mobile app that's available for this so that they don't need an OTP. So it's a very seamless log on, but also just as secure as an OTP type motion. You bypass the risk of... etc., which is very common nowadays. From a review standpoint, of course, this is a capability we need to work with other B2B companies that have apps, so the banking system, government apps, etc., for them to build this into, very simple to do it, for them to build this into the next release of their app. So that's a motion that's happening now. We're quite excited that we have several institutions with apps that are interested in this and looking to launch it as soon as possible. So we'll keep the theme posted in terms of what that is. Turning over to Vibhai. Yes, thank you, Jhingai, for the question on Filipinas AI. So, yes, we launched this in the third quarter of this year. And the basic concept is to be able to offer a platform for enterprises to be able to run AI use cases. The main issue of enterprises now is that they want to run AI use cases or proof of concepts, but they don't know how to utilize it, how to build the infrastructure around it. They have the source for the GPUs. They need to talk to a stack provider. They need to talk to a data center. They need to provide the connectivity of the cybersecurity requirements. We're basically taking this pain point away from the customer and letting them run these different applications on the ASUs model wherein they can run the POCs on an hourly, daily, weekly, or monthly view. And we've seen a lot of interest coming from enterprise customers who really want to experiment and run AI use cases. So we're very happy to be able to offer this service to our customers. We're the first company in the Philippines to actually bring in NVIDIA H200 GPUs, the most advanced GPUs of NVIDIA currently, and we're seeing a lot of interest currently.

Thank you, Bboy. This question is from Rod. This question is for Danny. Noting that your debt levels have increased this year despite continuous lower CAPEX guidance, is this mainly for refinancing? increased net debt despite lower CapEx guidance. So is the increase that because of mostly refinancing or is there new?

Mostly refinancing. Yeah, mostly refinancing.

Thank you. Alright, and from Tony Watson, any thoughts? This is for Ayush. Any thoughts that you can share on a potential Maya IPO or spin-off?

I think we'll stay clear of that. I think we are focused on driving the business and, you know, any IPO decisions, et cetera, will be led by the shareholders. But we as management are sort of fully focused on just executing and scaling on products.

Just doing a last scan for questions here. If there's any from the floor. Okay, it looks like there are no further questions. With that said, I'd like to thank everybody for your time today and joining us for our nine-month preaching. If you have any further questions that you'd like to send to us, please feel free to reach out to us via email. And with that said, we look forward to presenting our