Riding on the surge of data/broadband demand in the continuing pandemic, PLDT Inc. reported its "highest full year revenue ever attained" of ₱182.1 billion in 2021, surpassing 2020’s ₱171.5 billion by 6 percent.
The telco's data/broadband revenues, which account for 77 percent of the revenue pie, grew 12 percent to ₱139.7 billion.
Net Income, which includes exceptional costs, jumped by ₱2.1 billion or 9 percent to ₱26.4 billion.
Core income, excluding the impact of asset sales and Voyager Innovations, climbed 8 percent to ₱30.2 billion ahead of earnings guidance of ₱30 billion.
“2021 proved to be record-breaking year for PLDT as we delivered all-time highs across the board despite the challenges brought about by the pandemic, calamities and hyper competition,” stated Alfredo S. Panlilio, PLDT and Smart President and CEO.
“This exceptional performance sets the foundation for 2022 and beyond," he projected.
"If we stay to our true North, I'm optimistic that by 2025, our core profitability will reach even greater heights,” said Manuel V Pangilinan, PLDT Chairman.
This year is "the start of a new era for PLDT," he maintained.
“Since 2016, we have seen our revenues and profits increase steadily to the point that 2021 revenues were an all-time high and Core Income has returned to the ₱30 billion mark - something we have not seen since 2015," Pangilinan explained.
"But all this will be for naught if we do not undertake changes to get better so we can be the best," the Chairman underscored.
"To this end, we are channeling our efforts to improve our free cash flow. The formula is simple enough – increase revenues, rationalize capex, reduce costs and manage our cash position," Pangilinan elaborated.
In addition, PLDT is exploring other mechanisms to create value.
"We recently embarked on a process to monetize our extensive tower network. This transaction will augment our operating cashflows and allow us to reduce debt," he noted.
"We anticipate completing the tower arrangements by the end of the second quarter and could set the stage for a special dividend thereafter."
"With our strategic transformation initiative in place and our evolving fintech ecosystem, we are well positioned to maintain our growth momentum moving forward.”
PLDT's Consolidated EBITDA also reached an all-time high in 2021, growing 8 percent year-on-year to ₱96.2 billion, excluding Manpower Rightsizing Program expenses of ₱0.3 billion, driven by higher service revenues.
Consolidated Net Debt as of end December 2021 amounted to US$4,486 million while net-debt-to-EBITDA stood at 2.38x.
PLDT maintained its credit ratings from Moody’s and S&P Global at investment grade.
"We are determined to strengthen our financial standing as we focus on generating positive free cash flow," according to Pangilinan.
"After years of massive spending on infrastructure, we are transitioning to a more deliberate approach to our capital expenditures, having built the country’s most extensive networks. We are also renewing efforts to throttle down on operating expenses to further enhance our EBITDA,” he added.
In line with PLDT’s dividend policy of paying out 60 percent of telco core earnings, a final cash dividend of ₱42 per share will be paid out on April 4, 2022 to shareholders on record as of March 17, 2022.
An interim dividend of ₱42 per share was paid in September 2021, bringing total dividends paid for 2021 earnings to ₱84 per share. Based on the closing share price on the last trading day of 2021, dividend yield stood at 5 percent.
Overall, “For 2022, we anticipate that Home will continue to lead the way at a sustained, doubledigit pace, alleviating the pressure on our Individual business," said Panlilio.
"Enterprise revenues should grow as well on the back of the gradual reopening of businesses and opportunities to serve the needs of global hyperscalers with our expanded data centers."
Taken in the round, PLDT expects Consolidated Service Revenues to grow by mid-single digit in 2022 and Telco Core Income to be between ₱32-33 billion, Panlilio announced.