PLDT (PHI) Q3 2024 earnings summary

Executive summary

• Net service revenues for the first nine months of 2024 reached ₱144.9 billion, up 2% year-over-year, with gross service revenue up 4% to ₱155.0 billion and consolidated EBITDA rising 3% to ₱80.7 billion, maintaining a 52% margin.

• Data and broadband contributed 83% of service revenues, growing 3% to ₱120.4 billion.

• Telco core income increased 2% to ₱26.6 billion, with reported net income up 1% to ₱28.1 billion; full-year core income guidance reaffirmed above ₱35 billion.

• Maya Bank remains the top digital bank in the Philippines by deposit balances, up 52% to ₱36 billion, with ₱67 billion in loan disbursements and 4.5 million customers; on track for profitability by year-end 2024.

• S&P Global Corporate Sustainability Assessment score improved by 13 points to 71%, the highest among Philippine corporates as of November 2024.

Financial highlights

• Operating expenses were stable at ₱64.2 billion; EBITDA margin held at 52%.

• Net debt to EBITDA stood at 2.44x, with net debt at ₱259.8 billion and a target to reduce to 2.0x.

• Gross debt was ₱272.6 billion, 14% USD-denominated, 5% unhedged; average interest cost 5% pre-tax, average debt life 6.7 years.

• CapEx for the period was ₱52.3 billion, with CapEx intensity at 34%, down from 37% in 2023.

• Dividend payout commitment remains at 60%.

Outlook and guidance

• Data and broadband revenues and EBITDA expected to grow mid-single-digits in 2024, excluding legacy revenues.

• Telco core income for 2024 projected above ₱35 billion.

• CapEx guidance for 2024 remains at ₱75–78 billion, with continued focus on reducing CapEx and CapEx intensity.

• Positive free cash flow before dividends targeted by 2025.

• Focus on customer service and network transformation for innovation.