PLDT, an integrated telecommunications provider, reported a net income of P18.4 billion for the first half of 2024. Despite the increasingly competitive telecom environment, the company described its financial performance as “stable.”
PLDT’s telco core income, excluding the impact of asset sales and losses from Maya Innovations Holdings, grew to P18 billion, marking a 3% increase, or P0.5 billion, compared to the same period last year.
“Even as we continue to face challenges—among these geopolitical uncertainties, significant gravity in the telco space, and an increasingly competitive telco landscape—we remain determined to do our best to grow the business,” said Manuel Pangilinan, chair and CEO, PLDT and Smart.
Revenue growth driven by data and broadband
PLDT’s gross service revenues increased by 4% to P103.4 billion, while consolidated service revenues grew by 3% to P96.9 billion. The growth was largely driven by data and broadband services, which saw a 4% increase, contributing P80.5 billion to the consolidated service revenues. Data and broadband services now account for 83% of PLDT’s consolidated service revenues.
The company also reported a 3% increase in consolidated EBITDA, which reached P53.9 billion in the first six months of 2024, with an EBITDA margin of 52%.
As of the end of June 2024, the company’s consolidated net debt stood at P252.7 billion, with a net debt-to-EBITDA ratio of 2.38x. PLDT’s gross debt amounted to P265.4 billion, with maturities spread across various periods.
Potential data center investment
PLDT has also made strategic moves in its data center operations, establishing a spin-off focused on this segment through its subsidiary, Vitro Inc. However, the company is currently in discussions with an unnamed entity regarding the potential sale of a 49% stake in its data center business.
Pangilinan explained that the ongoing discussions revolve around direct investments in data centers, which may involve a combination of existing shares sold by ePLDT and the issuance of new shares, infusing additional capital into the data center operations.