PLDT Inc (PHI) Q1 2025 Earnings Call Highlights: Resilient Revenue Growth Amid Market Challenges
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
PLDT Inc (NYSE:PHI) reported a 2% increase in revenue, reaching 53.4 billion, driven by strong performance in fiber and ICT segments.
The company's EBITDA grew by 2% to 27.9 billion, showcasing effective cost management and a resilient revenue base.
Maya, PLDT's fintech arm, turned profitable this quarter, contributing positively to the core income.
The shift from legacy to fiber is progressing well, with fiber now representing 97% of total home revenues.
PLDT's new hyperscale data center, Vitro Santa Rosa, enhances its competitive edge in the digital infrastructure landscape.
Telco core income decreased by 6% year on year, mainly due to increased depreciation from network expansion.
Mobile revenues declined slightly to 21.3 billion, affected by lower packet Wi-Fi usage and adjustments in prepaid packages.
The enterprise segment faced challenges due to the shutdown of POGO operations, impacting connectivity revenues.
Depreciation and financing costs are expected to remain at current levels, potentially affecting future profitability.
PLDT is unable to provide net income guidance for 2025 due to the fluid market environment.
Warning! GuruFocus has detected 3 Warning Signs with PHI.
Q: On the enterprise segment, you've mentioned pogo revenue pressures in the first quarter. Is this expected to continue, or should we see enterprise accelerating in the following quarters? A: (Unidentified_5) POGOs were shut down in July last year, and we anticipate some continued impact until about Q3. However, our programs have helped maintain flat performance and make up for revenue gaps.
Q: Can you provide details on the take-up levels for the new capacities at Vitro Santa Rosa? Have you signed anchor tenants? A: (Unidentified_6) We have landed a major hyperscale customer using 4 megawatts of capacity. There is significant interest from Western and Chinese hyperscalers, and ongoing discussions with enterprises to fill up the capacity.
Q: Regarding Maya, where do you see the profit momentum for the rest of the year? A: (Unidentified_7) We have been reducing losses and are now profitable. We expect a steady and gradual improvement in margins and profitability as we scale, rather than a rapid increase.
Q: What are your thoughts on the mobile business for the second quarter, given the challenges in the first quarter? A: (Unidentified_8) While the market has softened, we continue to see year-on-year growth in traffic, which gives us confidence in monetizing demand. We focus on innovations and best-in-class network and customer experience.
Q: Can you comment on the potential enterprise revenue uplift from Vitro Santa Rosa once fully operational, and do you recognize revenues from current AI workloads? A: (Unidentified_6) Vitro Santa Rosa is energized with an anchor tenant taking 4 megawatts. We are AI-ready with live workloads and plan to launch GPU as a service to make AI accessible to enterprises in the Philippines.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 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