PLDT Inc.

For the first half of 2026, gross service revenues grew 2% to PHP 108.7 billion, service revenues net of interconnection rose 1% to PHP 97.8 billion, EBITDA reached PHP 56.1 billion, and EBITDA margin held at 52%. Telco core income fell 2% to PHP 16.6 billion, core income was PHP 17.3 billion, and reported income was PHP 16.4 billion, down 6% year-on-year. CapEx was PHP 20.7 billion, down from PHP 27.4 billion a year ago, or 19% of service revenues versus 26% last year. For the full year, management reiterated CapEx guidance in the mid-PHP 50 billion range; on the balance sheet, net debt was PHP 287.3 billion and net debt to EBITDA was 2.57x, with management still aiming to bring leverage toward 2x. The Board declared an interim cash dividend of PHP 46 per share, and management said the payout ratio remains at the 60% core income policy. On the Q&A, management said the proposed VITRO REIT could reduce net debt to EBITDA to about 2.4x and that approximately PHP 12 billion to a little under PHP 13 billion of proceeds would be used to pay down debt.

Butch Jimenez framed the half as resilient despite softer consumer spending, pointing to improving wireless monetization, a recovering home installation pipeline, and continued enterprise strength. He said the mix is shifting toward data and ICT, with the company more disciplined on pricing, personalization and capital allocation. His tone was constructive but measured, emphasizing that revenue recovery in home should follow with the usual lag and that second-half trends look firmer.

Management highlighted cost discipline, with cash expenses, subsidies and provisions broadly flat at PHP 41.7 billion in the prepared remarks and total cash expenses/subsidies later described as slightly lower at about PHP 47 billion. EBITDA margin stayed at 52% despite higher depreciation and amortization, which was said to reflect prior network and infrastructure investments and some IFRS 16-related step-ups. CapEx intensity improved to 19% from 26% a year ago, full-year CapEx was kept at mid-PHP 50 billion, and net debt to EBITDA was 2.57x; they also noted average debt cost improved to 5.05% from 5.43% at end-2025. The CFO also pointed to Maya’s contribution of PHP 559 million to first-half core income, plus about PHP 0.3 billion from asset sales, and reiterated that deleveraging and positive free cash flow remain priorities.

Analysts pressed on wireless weakness, asking whether the recent pickup in top-ups was structural or just a response to pricing and promotions. Management said the improvement is partly helped by lower fuel prices and mobility, but that recent gains are also being driven by marketing interventions and hyper-personalized offers, which they said convert far better than generic SMS campaigns. On home, management said the recovery is already visible in higher installations, better conversion and lower churn, but revenue should still come through with a lag. Questions on Maya’s softer second-quarter contribution were answered by saying the dip was mainly due to one-time accounting adjustments, not a deterioration in the underlying business, while credit growth was described as still having room because the loan-to-deposit ratio remains in the low-40s and NPLs improved to 4.8%.