The following is a summary of the PLDT Inc. (PHI) Q2 2024 Earnings Call Transcript:
Financial Performance:
Consolidated service revenues reached ₱96.9 billion, a 3% increase YOY.
EBITDA reached ₱53.9 billion with a margin of 52%, and net debt-to-EBITDA was 2.38.
Business Progress:
Individual segment revenues increased by 4% due to mobile data uptake; enterprise segment grew by 4%.
Expansion of 5G technology and data center capabilities, including the VITRO Sta. Rosa project.
Opportunity:
Enhancement of data center capabilities, particularly with the upcoming VITRO Sta. Rosa facility.
Maya's turn to cash flow positivity signals potential for significant financial improvements.
Risk:
Seasonal fluctuations impacting mobile revenues in Q2; unpredictability in performance due to external factors.
Economic considerations and customer commitments pose challenges in scaling the prepaid fiber market.
Financial Performance:
PLDT Inc. reported consolidated service revenues of ₱96.9 billion for the first half of 2024, a 3% increase year-over-year.
EBITDA for the period was ₱53.9 billion, also growing by 3% with an EBITDA margin of 52%.
Telco core income rose by 3% to ₱18 billion, excluding asset sales in Maya.
PLDT declared an interim dividend of ₱50 per share, representing 60% of telco core income.
Net debt-to-EBITDA was maintained at 2.38 times with a strategic target to lower it to 2.0 times.
Gross debt stood at ₱265.4 billion, with capital expenditures at ₱35.1 billion.
Business Progress:
The Individual business segment saw a 4% revenue increase driven by mobile data, with active mobile data users rising to 40.5 million.
Home segment revenues were slightly down by 1% to ₱30 billion, although fiber-only revenues rose by 7%.
Enterprise segment grew by 4%, spurred by gains in corporate data and ICT which grew by 7%.
Introduction of various customer-centric initiatives such as geo-targeted campaigns and enhanced customer care through technology integration.
Expansion and modernization of network infrastructure, including more aggressive deployment of 5G technology.
Opportunities:
PLDT is expanding its data center capabilities with the Sta. Rosa facility expected to add significant capacity by the end of 2024, which positions the company to benefit from growing demand for data services, including AI and cloud computing.
Continued growth in digital banking through Maya, which turned cash flow positive in the second quarter, indicating potential for significant financial performance improvements in the near future.
Risks:
The slowdown in mobile revenues in Q2 due to seasonal effects such as school holidays and higher temperatures impacting customer mobility, which could suggest sensitivity to external factors that could affect performance unpredictability.
Potential challenges in scaling the prepaid fiber market due to economic considerations and necessary customer commitments.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
