PLDT Inc.

Good afternoon, everyone, and thank you for joining us today. I'm Jagaina Bralas, Head of Investor Relations here at PLDT, and it's my pleasure to welcome you to our full-year financial and operating results briefing. Joining us today to share insights into PLDT's performance and strategic direction, we have PLDT CFO, Mr. Danny Yu. LDB's Chief Operating Officer, Mr. Uchimenez, our Chief Legal Counsel, Attorney John Devenesha Tabul, our Corporate Secretary, Attorney Marilyn Victorino Aquino. We also have our Business Union Heads, our Head of Consumer Business Home, Mr. John Palanca, our Head of Enterprise, Mr. Blum Spinetta, and our OICs for Smart Communications, Mr. Garbillo and Mr. Lloyd Managoto. We also have online with us EPLDT and VTRO President, Biboy Hintuno. Before we begin, I'd like to remind everyone that we will have a Q&A session after the presentation. And you may submit your questions via MS Teams Q&A panel here. Or if you would like, you can also unmute your mic later in the session. Right to start, I'd like to invite our Chief Financial Officer, Mr. Danny Yu, to walk us through PLDT's financial performance.

Good afternoon, everyone. Thank you for joining us today. Please allow me to present PLDT's financial and operating highlights for the full year 2025. Our gross service revenues reach $212.2 billion, up 2% or $3.8 billion. Net service revenues reach $196.2 billion, marking a record. Cash OPEC subsidies and provisions came down to 84.9 billion, down 1%, reflecting our focus on spending control, even as we support the growth areas. EBITDA excluding MRP costs rose 3% from 111.2 billion, with margins steady at 52%. Telco core income was 33.9 billion, down 3%, mainly due to higher financing costs and depreciation as we continue to invest in network updates. Core income improved to $34.6 billion, up 1%, supported by Maya's swing to profitability. Overall, our fiscal year results show a stable top line, resilient EBITDA, improving contribution from our digital business, and stronger cash as capex came down. Our consolidated service revenues reach $196.2 billion, up 1% or $185 billion year-on-year. If we exclude legacy services, revenue would have grown 3% or $5.5 billion to $176.9 billion. This now makes up about 90% of total service revenues versus 88% a year ago. For wireless, mobile data and fixed wireless reached 77.2 billion, up 1%, taking up 91% of wireless revenues versus 89% last year. Wireless consumer revenues were 85 billion, steady year on year. For home, fiber continues to lead the story. Fiber revenues grew 6% to 59.4 billion, accounting for 98% of home revenues versus 92% a year ago. As a result, home revenues reached an all-time high of $61 billion, up 3%. For enterprise, corporate data and ICT grew 3% to $36.3 billion, now 75% of enterprise revenues versus 72% last year. ICT on its 25% year-on-year. Overall, enterprise revenue is glued to a record $48.4 billion. By and large, the continued shift towards fiber, wireless data, and ICT is what is driving the growth, not emphasizing the decline in legacy services. To close the year, we ended four quarters stronger versus three quarters, Q3, building on the momentum that we saw last quarter. Consolidated service revenue in the fourth quarter were $50.3 billion, up 3% quarter on quarter. Wireless consumer revenues were $21.8 billion, up 4%, driven by mobile data and fixed wireless access. Enterprise revenues were $12.7 billion, up 5%, led by corporate data and ICT. Home was flat quarter on quarter, due to multiple major calamities in the fourth quarter, including two earthquakes and four super typhoons, which affected installation activity as resources were diverted to repair and restoration. Let's take a closer look at each of the business units. As mentioned earlier, Hoang delivered record revenues in 2025. On this slide, I will focus on the drivers behind the performance. Subscriber growth stayed strong and quality-led. Fiber net ads reached 392,000 in 2025, up 98% year-on-year, bringing total fiber subs to 3.76 million. This was supported by faster installs, improved service reliability, and more affordable fiber options that helped broaden adoption. Customer economics stayed healthy, supported by our bundling strategy. Our pool was stable at 1,447 for the full year. Churn remained very manageable at 1.82%. We continued to strengthen our bundles with Signal, Netflix, and HBO Max. We also expanded beyond streaming into home services through Home Life, which offers starter kits for home security and everyday living. And through IGV Game Pass, we reach subscriber access to over 200 PC games. Overall, we continue to grow home in a disciplined way, turning CAPEX into stronger revenues while keeping margins resilient. Wireless consumer revenue sells steady in a highly competitive market. Here, I'll focus on key drivers of the business, particularly hybrid personalization. 5G adoption and fix wireless access. Worth noting is that the gains in the third quarter were carried on to the fourth quarter, as we streamline offers and customer management while continuing to invest in network quality. We also saw sequential ARPU improvement, which marked prepaid up 4% quarter on quarter. and TNT up 3% quarter on quarter, supported by better targeting and more relevant offers. Usage continued to rise. Mobile data traffic grew 7% to 5,900 petabytes in 2025, and active data users reached 43.2 million as of end of December. 5G adoption also continues to expand, and this supports revenues as 5G users typically consume more data and take up bigger plots. 5G devices were up 35% to 11.2 million, while 5G data traffic rose 88%. 5G devices now make up 19% of the total base. As more traffic moves to 5G, it also helps deconject LTE, improving the experience across the network. Fixed wireless access remains a key. Fixed wireless revenues grew up to 22% year-on-year, supported by the shift from 4G to 5G fixed wireless access, which improves service and helps us use network capacity more efficiently. Lastly, Our core modernization is now underway. This strengthens analytics and targeting, improves marketing efficiency, and supports our goals. Enterprise delivered its highest revenues in 2025, and we ended the year stronger. In Q4, revenue rose 5% quarter-on-quarter, supported by ICT contract wins and better delivery momentum. the mix continues to shift beyond pure connectivity with more customers taking the solution-led services alongside core connectivity. ICT is the key growth driver. ICT revenues grew 25% for the full year, led by managed IT services, which jumped 211%, and data center co-location, which expanded by 15%. In Q4, ICT was up 19% year-on-year and 15% quarter-on-quarter, supported by contract wins and better delivery. We also strengthened our security stub with Smart Safe Silent Access, a network-powered sign-in solution that moves beyond SMS OTPs and aligned with the BSP's push for stronger digital authentication. Lastly, SME also contributed to growth, with revenues up 3% year-on-year, supported by fiber and mobile access and scalable ICT offers, including SME engagement series with government and partners. Overall, enterprise is back in growth mode, on board with ICT and digital infra. I'll zero in on BITRO and Filipinas AI on the next slide. BITRO is now on its 25th year and it remains the market leader with the widest data center footprint in the Philippines. That matters because enterprise, cloud, AI workloads all depend on the uptime, security, and trust. In April 2025, we launched the country's first operational hyperscale facility through BITRO. BITRO Santa Rosa is designed for enterprise, hyperscalers, and public sector workloads. With about 4,500 racks and up to 50,000 megawatts, once fully energized, it now hosts live NVIDIA GPU servers, powering EPL-UP's A-STOCK solutions. Demand remains, dealing with co-location of 36%, supported by a 19% increase in rack deployments. On top of the infra, We're also building the AI layer through IPinasAI, the country's first sovereign AI solution stack. This tool allows enterprises and the PH government to adopt AI without heavy upfront build-out while keeping data and workload hosted locally. To make this tangible, we already have live AI use cases running in vitro today. These include AI-powered contact center tools that automate routine steps, improve response quality, and give agents better prompts and insights. We also run conversational AI or topos that can handle tag-dish and multi-step conversation for customer support and lead generation. Lastly, we also have AI assistants that improve productivity in collection and other workloads by guiding next best actions and reducing handling time. Vitro and Pilipinas AI strengthened PLD's position in data center and AI and support our long-term plan to scale this business with discipline. As we continue to invest in the business, we are also keeping a tight grip on costs as operating expenses came in lower for the third consecutive year. For the full year 2025, total cash co-ops, subsidies provision, 84.9 billion, down 1.2 billion or 1% year-on-year. The biggest savings came from compensation and benefits, down 6%, reflecting continued workforce discipline and productivity efforts. We also spent less on selling and promotions, down 9%, supported by better targeting and spend efficiency. Provisions and subsidies were both lower year-on-year, reflecting more disciplined customer acquisition and tighter credit screening in device-led plans. Offsetting some of these, contract-specific services increased, tied to the wrap-up of PICT projects. Repairage and maintenance was also higher, reflecting ongoing network rollout and uptick. All told, we're managing OPEX carefully while still funding the priorities that support growth and service quality. For the full year 2025, EBITDA reached $188.2 billion, up 3% year-on-year, with margins steady at 52%. This was driven by a $1.5 billion increase in service revenues alongside a $1.2 billion decline in operating costs. The EBITDA margin held firm at 52% for the year, reflecting our ability to defend profitability even in a competitive market. Self-employment was $33.9 billion, down 3% year-on-year, mainly due to higher depreciation and financing costs as we continue to invest in net worth and interest. Core income improved to $34.6 billion, up 1%, supported by Maya's milestone year. Our share in Maya's core income was $0.7 billion, improving from a billion loss last year, or $1.3 billion upswing. Imported income was $30 billion, down 7% year-on-year. This mainly reflects the lower forex and derivative gains versus last year. Overall, our earnings held up, supported by steady operation and Maya's improving contribution. Meanwhile, our modernization work positioned us for the next phase of growth. Let me now move to topics in free cash flow. First, we sustained positive free cash flow through end 2025, building on what we achieved last quarter. Full year 2025 topics was $60.3 billion, down from $78.2 billion last year. Topics intensity improved to 38%. from 38% a year ago, reflecting higher discipline and better pricing and terms. For 2026, our capex guidance is in the mid 50 billion range with the same focus on growth and quality. Our goal is to steadily bring capex and capex intensity down while sustaining positive free cash flow. Let me now move to our debt profile as of December 2025. I'll start with a key point. PLDD sustained positive free cash flow as of end of 2025, supporting our deleveraging path. Net debt was $284.7 billion, while net debt to EBITDA was up 2.56 times. Gross debt was $296.9 billion, and our maturity profile remains long-dated, with 49% of our maturities on post-2031. This keeps our near-term refinancing needs manageable. Interest cover remains healthy at 3.3 times. Average debt maturity is 6.5 years with 33% fixed rate and 67% keeping as we anticipate lower rates moving into 2026. Finally, our recent annual review TLBT continues to be rated investment rate by S&P and Moody's with stable outlooks. Looking ahead, our focus is to maintain positive free cash flow in 2026 and works toward around 2.0 times net debt limit supported by our asset monetization plans. For 2025, total dividends amount to 94 per share, reflecting a 16% regular dividend payout aligned with our policy. A final dividend of 46 pesos per share for 2025 was declared today. PLDD continues to focus on the leveraging to generate positive free cash flows. As of end of 2025, PLDD's 12-month trading dividend yield stood at 8%, positioning us as one of the most attractive dividend place in the market. On my top of the Maya, Maya operates as an integrated digital financing platform, covering payments, savings, and lending. The platform serves both consumers and businesses with scale driving higher transactions, broader product usage, and stronger network effects. These dynamics support Maya's leadership in digital financial services in the Philippines. Maya closed 2025 with robust growth and achieved full-year profitability. As of December 2025, Maya remained as the leading digital bar and merchant acquirer in the Philippines. Deposit balances reached approximately $68 billion, up 72% year-on-year. Total losses since 2020 to reach $256 billion. The Maya Group delivered a $1.7 billion in net income for 2025, marking its first full year of profitability. Performance was supported by Maya's proprietary technology platform and AI capabilities. On the funding side, deposit products continued to attract customers with competitive interest rates. In 2025, Maya accelerated credit expansion through the launch of the Maya Black Credit Card and continued scaling of easy credit and personal loans. Credit quality remained stable with a gross NPR ratio of 6.1% as portfolio continued to mature. Maya continues to expand access to formal banking across the country. its customer base is predominantly young with majority located outside Metro Manila. So through digital banking and credit products, Maya enables consumer to save security, spend flexibly, and access credit responsibly. In 2025, Maya expanded partnership across the private and public sectors Private sector collaboration included Cebuana Luilir for new-to-credit consumers and Pepsi Cola Philippines and Ultra Mega to enable purchase financing for micro-businesses. Maya also partnered with Philippine Airlines to integrate airline miles into Maya app and supported digital engagement and voting platforms such as Pinoy Big Brother and Miss Universe Philippines. In the public sector, Partnership with agencies including the Department of Education, the Philippine Sports Commission, and the National Power Corporation help improve access to digital financial services. Based on the performance of each product and partnership, Maya continues to redefine digital finance in the Philippines. From PLDP's perspective as a shareholder, Maya's first full year of profitability reflects the strength of its platform-led model, and the long-term growth potential. PELDT continues to make notable gains in sustainability. For the second straight year, PELDT was included in the S&P Global Sustainability Yearbook after posting the highest CSA score among the Philippine companies at 77. Only 848 out of 9,200 companies assessed were included. Further evidencing that it has made in ESG, PLDT also earned a B rating from CDP for both climate and water, performing in line with global and industry averages on climate, while exceeding averages on water. PLDT remained at the forefront of adapting global reporting framework on ESG to further improve transparency and communication of progress to its various stakeholders. During the quarter, the board approved policies on water and energy management to support energy efficiency and greenhouse gas reduction objectives. Energy audits and energy management trainings were conducted nationwide. In support of our advocacy of creating a safe online event, we continued to block access to malicious domains and URLs. We also deployed in-house innovation using AI to enhance risk assessment for both the enterprise and our employees. A summary of our latest ESG ratings that manifest the progress that we have made can be found in the sustainability selection section of the presentation. Now that concludes our prepared remarks for PLDT school year 2025 results. We are now open for questions.

Thank you, Danny, for those valuable insights on our growth initiatives and key developments. As you've seen today, we remain confident in our market position, supported by our improving operational fundamentals, strategic investments in digital infrastructure, and the promising growth trajectory of Maya. Before we open the floor to your questions, allow me to reintroduce our business leaders who are here with us, who can also help answer your queries. We have our Chairman and CEO, Mr. Manuel V. Pangilinag. Of course, our CFO, Mr. Danny Yu. Our COO, Mr. Butch Jimenez. Our Corporate Secretary, Attorney Marilyn Victorino Quino. Our Chief Legal Counsel, Attorney Joan Davinesha Pabul. We have our Business Unit Heads, our Head of Consumer Business Home, Mr. John Palanca. Our Head of Enterprise Business, Mr. Blum Spinetta. the OICs for Smart Communications, Ms. Marjorie Garaviglio and Mr. B. Boyd-Manolato. We also have with us the President and CEO of ETLDT and Petro, Mr. B. Boyd-Hendino. Now, I'd like to open the floor to your questions. You may submit your questions by the Q&A panel. You may raise your hand as well. And I've also received a number of questions here before the meeting started. I see we have a hand raised by John De of UVS. Let me unmute you, John, and you can ask your question.