PDLT Inc. suffered an 8 percent decline in net income in the first quarter of 2025 to PHP9 billion on flat service revenues for both data and broadband amid softer market environment.
“We’re navigating a softer market environment, but our fundamentals are intact. Broadband and fiber continue to anchor the business, while digital finance is emerging as a strong new driver. We remain focused on recovery and growth across all segments,” said Manuel V. Pangilinan, PLDT and Smart Chairman and CEO during a press conference on May 15, 2025 for its 2025 first quarter financial performance.
In particular, Pangilinan said the reason why the revenues are flattish is largely because they lost business from POGO, the WIFI project in Cavite and the SkyCable. “So, we lost those three,” he said noting the losses could be about a billion pesos for the entire year.
But he expressed confidence the company would be able to catch up by the middle of the year.
SOFTER ENVIRONMENT
Pangilinan said that the industry as whole, not just in the Philippines, but Asia and globally, has been soft with some tough and concerning challenges. He noted for the 6 percent GDP in the first quarter, which is lower than expected.
But, he also said that the domestic economy is not very much exposed to the tariff policy of the Trump administration. There are also positive signals for the domestic economy like the improvement of the local exchange rate.
The company reported modest 2 percent (PHP1.2 billion) improvement in gross service revenues to PHP53.4 billion, while consolidated service revenues (net of interconnect costs) was another flat growth of 1 percent (₱0.3 billion) to ₱49.0 billion in the first quarter of 2025. Data and broadband, which grew by 2 percent (₱0.69 billion) to ₱41.4 billion, contributed 85 percent of consolidated service revenues.
Excluding legacy revenue drag, consolidated service revenues were higher by 2 percent year-on-year. Consolidated EBITDA grew by 2 percent, or PHP0.6 billion to PHP27.9 billion in the same period. EBITDA margin remained steady at 52 percent despite pressures from rising costs, which were tightly managed.
The telco core income, which excludes the impact of asset sales and attributable profit from Maya Innovations Holdings, reached PHP8.8 billion, lower by 6 percent or PHP0.5 billion than the same period last year.
Overall core income remained steady year on year at PHP8.9 billion, supported by Maya’s positive contribution.
The company also reported of improved net debt position. PLDT’s consolidated net debt as of end-March 2025 amounted to PHP270.7 billion, while net debt to-EBITDA improved to 2.48x, compared with year-end 2024.
Gross debt was at PHP285.0 billion, with maturities well spread out, of which 14 percent is denominated in U.S. dollars while 5 percent of total debt is unhedged. PLDT’s credit ratings from Moody’s and S&P Global remain at investment grade.
The company also reported that enhanced network investments delivering diverse offerings PLDT Home increased its momentum in Q1 2025, with fiber-only revenues reaching PHP14.7 billion, up 7 percent year-on-year, PHP0.9 billion higher.
Fiber now accounts for 97 percent of Home’s total PHP15.2 billion revenues, up from 92 percent in 2024. Legacy revenues now account for only 3 percent of total Home revenues. Home continues to set the industry standard for value and loyalty, with the highest average revenue per user (ARPU) at PHP1,493 and the lowest churn rate at just 1.99 percent.
In terms of subscribers, PLDT reported a robust base of 3.47 million fiber subscribers as of end-March 2025, driven by 101,000 fiber net adds during the quarter. Notably, 80 percent of new subscribers opted for higher-value broadband plans, reflecting strong demand for premium connectivity experiences.
GROWTH
Growth will remain fueled by continued fiber expansion, rising demand for high-speed connectivity, and the appeal of bundled offers that add value to the customer experience.
In addition, resilient revenue performance driven by strong ICT growth PLDT Enterprise posted ₱11.9 billion in net service revenues in Q1 2025, supported by sustained demand for connectivity and digital solutions across sectors. Corporate data and ICT revenues rose 1 percent to PHP8.8 billion, accounting for 74 percent of Enterprise revenues.
PLDT’s capital expenditures for the first quarter of 2025 amounted to PHP6.3 billion, roughly half of the PHP11.3 billion spent in the previous year. Capex intensity ratio (capex as a percentage of service revenues) landed at 20 percent, versus 30 percent in the same period last year.
The company has been targeting a continued lower capex intensity, but said that the decrease in the first quarter expenditures was partly due to timing, with the majority of project completions scheduled for the second half of the year.
For the entire 2025, PLDT maintains its capex guidance at PHP68–PHP70 billion.
