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.

Hi, good afternoon. Let me go over my questions one by one, if you don't mind. First is on mobile. I just want to understand the 5% growth quarter-in-quarter, which was relatively consistent with what Globe reported, but the drivers differed. We saw ARPU growth for PLDT and subscriber growth for Globe. So do you mind explaining what you think drove that difference in this quarter?

Sorry, we didn't hear the beginning part of your question, but I suppose this is in regards to our wireless business and the growth of 5% at different drivers for smart. So I'll throw the question over. Can you divide it?

Good afternoon. Thank you. All right. So our drivers for growth for the quarter four were actually our launch of high personalization offers, which allowed us to upsell and therefore drive our boost. Moreover, if you look at our subscriber base, if you break it down to the numbers, our gross activations actually increased by roughly about 10, 15%, while our churn held firm. So that basically shows us also an increase in our subscriber base, plus the fact that our... our ARPUs also increased. Thank you.

Thank you. My second question is on broadband. It was flat quarter-on-quarter, and we saw some softness in ARPU, though offset by subscriber ads. So was this, I guess, driven mostly by prepaid acquisitions or anything that could have influenced ARPU? Thank you.

Hi, this is John from the ODP home. The The second half of 2025, as you know, was really one that was ridden with calamities. We had a few major calamities, including earthquakes and typhoons, including Super Typhoon Steno and Wuhan. These activities or these events actually cost us to balance our growth with customer trust. And we had to redeploy our resources to ensure that our existing customers were restored. We were impacted by these events and the redeployment of our resources, our repair resources to in our growth path. So our installation slightly went down. But it was a good balance of maintaining a growth trajectory as well as restoring those affected areas. The big difference, I believe, between the previous years was that while the previous calamities were driven by strong winds, today they're driven by floods. And flooding means extra restoration work for us, as we would have to go into the homes to replace the wires and the models. Last year, 22 million were actually affected by the typhoons that began in July and ended in December, plus the three earthquakes. And 293,000 homes were actually affected from PLDT. Glad to say that We feel that the trust remained because we were able to keep 73% of those customers, and we continue to work with the remaining 68,000 to handle them and make sure that we do everything we can to keep them on the network. On the second part of your question on the ARPU softening, as you know, we're operating in a more price-sensitive environment today, and the entry-level tiers are really our growth drivers. However, there is still a very stable demand in the pipeline for our mid- to high-tier post-pay plans. Moreover, our upsell activities from the entry-level tiers remain to be healthy. So the movement is not really any structural price erosion. Rather, it more reflects our portfolio and a mixed optimization to balance growth with lifetime value. Pre-pay does expand our overall market. It opens up another, you asked about prepaid, I'll let you reply. It is a growth driver. It opens up our market to an additional 12 billion homes, but we choose to participate selectively. We still have room in our existing facilities. which brings us more margins, but less capital intensity. So, we will only participate where the returns are within our thresholds.

Thank you. Okay, thank you for the very comprehensive response. I'll just combine my third and fourth question. Maybe a quick update on A Conectadong Pinoy, three overall thoughts on what might happen. And the second question is just an update on the data center and the potential IPO for Maya, which I guess we've seen in the press the past few days. Thank you.

Hi, this is Joanne. I will respond to the question on Connectado Pinoy. So as you may know, the IRR or the implementing rules of the KP Act were implemented last December and took effect and The next steps would be the issuance of the eligibility criteria for data transmission industry participants or DTIPs. That has already been released. The performance standards are also forthcoming. And the guidelines on the DIG-1s policy are also about to be issued. Now, the crucial... Next step would be the issuance by the DICT, PCC, and NTC of the initial access list. So as you may know, that should come out in March. However, we note that the TWG has not yet been formally constituted for that, and the industry has also not yet been invited to participate in the formulation of the draft access list. So that's where we are. The trigger for the issuance of the reference access offer of the DTIPs, including the incumbent telcos, is of course the issuance of the initial access list. Prior to that issue once, there is no basis for us to move with a reference access offer because we don't know what products, infrastructure, or services would be included in the initial access list. So we will continue to provide updates on this as the days and months pass. Thank you. And allow me to answer your question on Maya's IPO. Apologies, John, but we're not able to comment on the news surrounding Maya's IPO at this time. I hope you understand.

Thank you. And just two quick follow-ups. The data centers take sale. The update on that. And then just separately on Conectado Pinoy, I think we didn't touch on the loss pertaining to Spectrum. I think that was an equally important part of the bill. Thank you.

Yeah, we're seriously considering a rate IPO for our data center, Jan. Unfortunately, we cannot discuss about the timing. But yes, an international bank is helping us on this one.

On the Spectrum Management Policy Framework, which is required as well in the Connectadong Pinoy Note, this is supposed to be released by the NTC by end of year, 2026, or one more year after that. So we have no information as of now as to whether this has already been considered by the NTC, because there are several deadlines that have to be met by them before this particular deadline on spectrum. So we can expect that the movement on spectrum discussions will happen in Q3, Q4, thereabouts.

Thanks. Thank you very much. Using our spectrum. Yes. It's unused spectrums. That's right. Yes. I think you better say that today.

Oh, yeah.

So far as PLDT smart is concerned.

Yes. And so far as PLDT smart is concerned, we are utilizing our spectrum. And I think the management policy framework of the NTC will really tackle more the underutilized or unutilized spectrum and for possible recalls. So we have no issues with this, actually. Thank you, Attorney John and John. Allow me to move to some of the questions here in the Q&A box. This one is for our home business from Paolo Manansalav, COL. Just wanted to ask how broadband revenues are up 3%, but fiber is up 6%. What is the drag in growth for the home broadband line?

Hi, Paolo. Yes, we actually grew our... to 59.4, up 3.4 billion. However, we do have some drag from our legacy services. That includes our copper facilities that remain to be in the numerous buildings across the country. And a few voice-only lines that remain to be migrated into voice plus data over fiber. Our legacy services in 2024 used to amount to 3.2 billion. We've reduced that in 2025 to 1.5 billion. So, therefore, the total home business grew by 3% accounting for the reduced revenues that we enjoy from the legacy services by 1.7 billion.

Thank you, John. Thank you. All right, this next question is from Xiwei Fu of Macquarie, and this is on Maya. There was a step-up in loans disbursed during the fourth quarter of 2025, yet there was a Q&Q decline in share of earnings. Could you help me understand what happened here? So regarding Maya on the decline on before profits, I do want to say that the revenues remain highly diversified across payments, transactions, and digital banking services, and that's for both the consumer side as well as the business side, right? And I do want to emphasize as well that for 2025, Maya posted positive net income, which was a turnaround from the losses last year. The quarter-on-quarter decline was primarily driven by non-operating and one-time items. So that includes fair value adjustments and foreign exchange movements, as well as some investments in new products such as credit cards, new capabilities, including AI. Now, there was some impact from the delinking of the gaming applications during the quarter, but the impact of that is not as large as those one-time items, and that has fully washed through the fourth quarter results. All right. I have a raised hand here from... From Raymond Frankel, then you can unmute your mic now, and you may ask your question.

Thank you. Can you hear me? Yes. Okay. Thank you again for the call. My first two questions were answered just now. If you can – but this is still on Maya. Can you share the numbers on total provisioning levels on the lending side? of maya and how does that compare to 2024 and then the second question is can you break out the loans uh extended in q4 between credit cards and others

I don't think we disclosed the breakdown in loans, but in regards to provisioning, the credit cards were launched, Maya Black and Landers were launched within the last year, and there were some provisioning in relation to the launch of the credit cards. I think this was mentioned during our nine-month results. So just because of this new business line, there's that difference in provisions. I didn't think about it in that way. But I can't give exact figures on that.

Thank you for that. That's all the questions I have. Thank you.

Thank you. All right. We also had some questions here that came in before the meeting started. This question is on our data centers, and it's from Maki Karinungan of FDF Securities. I'll direct this to Devoy or to Blum. Can you provide IRR or payback expectations for your AI-ready data center investments? How do returns compare versus traditional data centers and regular connectivity such as mobile and fiber infrastructure? There's a follow-up here on the data center read, but I'll ask that afterwards. So, Blum or Vigoy, would you like to take this question?

Yeah, it's a new product that we launched for our data center business. Traditionally, we just have co-location and connectivity, but now we have a new service called Pilipinas AI. We're very happy to launch the first sovereign AI stack in the Philippines, which is getting a lot of interest from both the private sector and the public sector. Now customers have an option. If you want to run POCs or use cases on AI, you now have a couple of choices. Either you go to the public cloud, or you build your own sovereign on-premise stack, or you can co-locate to Vitro Santa Rosa, wherein the AI stack is now available. So now customers have an option, but if your data is very sensitive, then the choice for customers would be keeping your data on-prem, and this is what Vitro Santa Rosa offers. Thank you.

Thank you, B-Boy. A follow-up question on the data center rate, if it is pursued. Is the objective, and I think this question is for Danny, is the objective to deleverage or unlock value multiples? Would a partial divestment dilute long-term earnings versus retaining full ownership? are we going to be using the proceeds? Is the REIT IPO there to leverage?

The REIT IPO, the proceeds will be primarily used to pay off debts. That's the primary objective.

And do you believe that will this unlock valuation multiples for the data center?

Partly, yes. But the REIT will only cover the eight data centers. It does not include the Detroit Santa Rosa So it's a partial value.

All right. Next question here is from Greg Elag of PPI Securities. This is on interest expense. On interest expense, the growth seems to be faster than the rise in total debt. Would you provide some color in what's driving that? The growth in interest expense is faster than the growth in total debts. What is driving that? Is that higher interest rates or higher debt?

The increase in financing costs is a function of interest rate, loan balance, as well as the accretion on these liabilities. If you try to dissect the increase in financing charges in 2025, 35% of that was to loan balances about 25% to accretion on these entities. On interest rate, we have started the negotiation with the local banks on on a smaller spread as well as on reduced repricing period. And so far we have been quite successful and this will give us considerable savings. Now with respect to loan balances, we expect to pay, we started, we think that we can start paying off debts by the latter part of 2026. So we should be able to bring down our total debts in 2026 versus 2025.

Thank you Danny. This other question is also from Greg and it's for our mobile business. On mobile, quarter-in-quarter growth was around 5% despite a very weak GDP print. Can you provide some color on what drives that demand? So it's mobile grew faster than GDP, so what's driving that you know, step up in demand versus a slow economy overall.

So, as mentioned earlier, with regards to MOBA, we were able to execute a few hyper-personalization of cell. The other item as well is we rapidly improved our network in terms of resiliency, which actually helped us during the last quarter when we had to deal with some natural disasters. And we were able to recover quickly, including our network teams for being able to do that. So that helped and happily set us up for the annual seasonality of mobile. That helped our numbers for mobile in the past one.

Thank you, Lloyd. All right, it looks like Raymond, you have your hand raised for another question. Go ahead.

Yes, thank you. Just a quick follow-up on Maya. Can you share the recurring net income for 2025 if you take out all of the one-offs?

We're not able to provide that at this time.

Okay, thank you. I understand.

We go to some other questions here that were sent before the meeting started. This is also for mobile. Mobile is showing some improvement in the second half versus the first.

The profits of Maya for 2025 was about 1.7 billion. 2024, it was a loss of 2.5 billion. $2.5 billion loss in 2024 and a profit of $1.7 billion for 2025. What's the other question? The question is, what's the recurring income? It's hard to distinguish. In the case of Maya, there were some subsidies on the credit card that were flowing to the P&L for 2020. we can go again into the P&L expenses, maybe even beyond. So I think if you take the 1.7, that's more or less recurring income. Is there another part to your question? Raymond?

No. No more. That's all I have. Thank you.

Thank you, MPP. All right, let me move to a question on mobile. I think this is partly connected to the first, but mobile is showing some improvement in momentum in the second half versus the first half. Was there something done differently in the second half, and do you anticipate this momentum to carry on to 2026?

So the smart performances for the second half has actually been quite consistent. We'll see a quarter-on-quarter growth as a trend. This is largely driven by a consistent growth in our subscriber base, along with new activations. And that is also, in the back of that, is also our churn numbers have also not dramatically decreased and has been quite constant. When you pair this together with the hyper-targeting offers that we've been mentioning earlier, we've actually been able to add not just the subscribers, but to actually increase the ARPU levels per subscriber. And that put together has actually given us the increase in our revenues quarter on quarter.

Thank you, Marge. This other question also came in. Could you comment on the earnings trends that you're seeing across the industry and how do you compare against Globe's recent disclosure?

The Philippine telco industry was kind of anemic in 2025, but comparing the two entities in terms of net service revenues, our revenues grew by 1% this year compared to flat for globe or in fact it was slightly lower at 200 million so in terms of core income plet was up by one percent while their core income was three percent uh lower compared to the previous year but if you strip off the fintech contribution and talk purely on telco core income reality was slightly down only by three percent while Our nearest competitor was down by more than 10%. In fact, based on our estimate, it's kind of about 15% to 17%. But we are seeing also market repair in the second half of the year. In fact, it's quite more parallel in the fourth quarter of the year. So we could see improvement in the fourth quarter, and hopefully, Both GLODE PLDT along with our industry players will do better in 2026. Thank you, Danny.

Looks like we have a question here from Arthur Pineda of Citi. Let me allow you to unmute your mic. Please go ahead, Arthur.

Hi, can you hear me?

Yes.

Hi, thanks for the opportunity. Several questions. First, any growth guidance on revenue in EBITDA for 2026? In addition, are you able to give us any flavor on Vitro's capacity take-up? I'm just trying to figure out how it will contribute further into 2026 based on the pipeline that you have. Thank you.

Ipoy, would you like to take the question on capacity take-up for Vitro?

Yes, thank you, Arthur, for that question. So we have nine data centers in total. Eight of those data centers are our data centers spanning Clark, in Metro Manila, in Pasig, in Cebu, and in Davao. These are older sites, if you may, and they have a total capacity utilization of close to 80% currently. The ninth data center that we have is called Vitro Santa Rosa, which we inaugurated April of last year. Out of the 36 megawatts of total capacity there, we have already sold 6 megawatts. So that is our total capacity take-up to date. We are anticipating additional workloads to hopefully come in once government passes a department order or an executive order on data sovereignty and data localization in the Philippines because, as you know, government is the single largest owner of data in the country.

Thank you, Arthur. We can't really give guidance at the moment. I think it's just too early at this point. But one thing for sure is that CapEx is going to be in the mid $50 billion.

That's it. Sorry, it went silent for a while after you said $50 billion.

Was there any... What I'm saying is that we could not give guidance at the moment. I think it's too early to tell. We're just in February. So what is certain, though, is our CAPEX guidance is going to be in mid-$50 billion. So it's between $53 and $57 billion.

Understood. Okay, thank you.

And Danny, this question is for you as well, and this is in regards to our positive pre-cash flows after the two quarters where we were positive. Can we expect this to be sustainable into 2026? And in terms of the leveraging, what can we expect?

I think positive pre-cash flow is sustainable for as long as we rationalize it. moderate our capex and and pursue all the asset monetization programs hey danny hey let me check the q a box there are some questions here as well

Okay, this is from Ziwei Fu of Macquarie on mobile. You mentioned being able to drive higher ARPUs from hyper-personalization, which shows that consumers have room to spend more. How much more do you think the consumer can spend and lift ARPUs further? And what percentage of subs is using this hyper-personalization and raising ARPUs?

So to answer the last question first, but roughly based on our CDM capabilities, we've gotten consent for roughly 40 million of our subscriber base to actively be targeted for these offers. So that's the first question. With regards to our guidance on the R pool, we're looking at driving a further 2% of the R pool to help improve our revenues.

Thank you, Lloyd. And this question is for Lums on enterprise business. Looks like there's some momentum in the second half. Are these mostly from recurring businesses or one-time large deals? How sustainable is the run rate moving forward? Lums, are you there?

Sorry, can you repeat the back end of the question?

Basically, is the uptick in revenues due to recurring revenues we can expect to carry forward or large one-time deals?

Yeah, it's a mix of both, actually. So, obviously, we had some very big wins in particular Q3 and Q4 past year. The Emergency 911 National Contract was a big one. We were beginning to see part of that in Q4. but those will deliver recurring revenues in 2026. So there's a mix of one-time, one-off, as well as things that really drive monthly recurring charges on both the connectivity side as well as some of the managed IP services side. So it's a combination.

Thank you, Bob. Arthur, I still see your hand raised. Is there another question from you?

No, sorry. Let me put it down.

I don't see any other questions in the queue. Let me just wait a couple of moments here. Are there any other questions from the live audience? Perhaps I may invite our CEO of MBB for some closing remarks.

Thank you. First of all, thank you for joining us this afternoon. But maybe we'll be a little bit more current about my colleagues. Let's take my neck out. In respect of our ability to just addressing the cash flow, issues, especially the free cash flows. If you assume that we're able to maintain our EBITDA in 2025 over to 2026, which I think we can, let's say it was $111 billion, right, for 2025. And if you assume what Danny indicated to you, that our capex will land somewhere around $55 billion. Our interest expense 2025 was around 17 billion pesos. I think we were positive cash flow last quarter this year, 2020. You could probably maintain an interest expense at around 17 billion and taxes at seven. When you do your sums, the free cash flows available for dividends is about 32 billion. Our dividends will probably be around 21 billion or thereabouts, 22 billion. next year, rather than 26. So we could probably be able to start reducing our debts to the tune of at least 10 billion in the second half of 2026. So those are the broad numbers from a cash standpoint. We do anticipate some slight growth in profitability for 2026. For one, we think that Maya will likely improve its profit performance in 2026 compared to 2025. Now, where are we in my respect of IPO, because I hope, unfortunately, in a Morocco interview, meeting with the, well, the media briefing in Morocco. Anyway, yes, at the rest or at the initiative of KKR, KKR has engaged two banks. They last year to do a market scan, especially in the States of what, whether an IPO would be possible in 2026 or 2027. And what's that market scan? that have engaged us also in a discussion about the potential IPO for Maya. Currently, the potential terms of an IPO are being discussed with them, including the size of the offering, the timing, and the like. So, If anything moves, it will be probably in the second half, not in this first half. So it could spill over to 2027. So we don't know at this stage the exact timing. We know who the banks are. PLB probably will have to engage its own financial advisor at some point in the year. So that's where we are. I think beyond that, we can comment as to terms. Thank you.

So thank you.

Hope to see you guys after we announce our first quarter results.

Thank you, MPT, and thank you, everybody. For those, Kervin, I see your hand raised. I can take your question offline, and I can put that one. And thank you, everybody, for joining. That's about all the time we have today, and we'll see you in May for our first quarter results for 2026. Have a good afternoon.

Thank you. Thank you. Thank you.