PLDT Inc., the country’s largest telecommunications firm, expects single digit growth in revenues this year with a net income of about P35 billion as it reported a nine percent year-on-year growth in net income to P9.8 billion in the first quarter of 2024.
In a press briefing, PLDT and Smart Chairman and CEO Manuel V. Pangilinan said that, “In 2024, we expect our Consolidated Service Revenues and EBITDA to grow in the mid- single digit range, driven by robust increases in data and broadband revenue streams of the various business segments and supported by top-line growth and tight cost management. Our guidance for our Telco Core Income is north of P35.0 billion.”
"While we recognize the realities of market saturation and higher capital expenditures as factors in slowing growth, we do not accept them as excuses for PLDT and Smart to stop delivering value to our stakeholders.
“Only an obsession with growth will get us to escape velocity. When we see the 7 percent average total shareholder return (TSR) for telcos, our goal shouldn’t be to exceed it—our goal should be to set a new benchmark, one that challenges the lofty returns of the best tech companies," Pangilinan added.
PLDT's gross service revenues grew by 5 percent to P52.2 billion, while consolidated service revenues (net of interconnect costs) grew by 3 percent to P48.7 billion in the first quarter of 2024.
Data and broadband, which grew by 5 percent to P40.5 billion, contributed 83 percent to consolidated service revenues. Excluding the drag from legacy revenues, consolidated service revenues were higher by 8 percent.
“We continue to squeeze growth out of an industry that seems bound by gravity. That said, our first quarter results are encouraging. We are determined to break past this gravitational hold,” said Pangilinan.
Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 5 percent year-on-year to a record P27.3 billion in the first three months of 2024, as a result of higher revenues. EBITDA margin was at 52 percent for the period.
Telco core income, excluding the impact of asset sales and Maya Innovations Holdings, reached P9.3 billion, up 8 percent from the same period last year, mainly due to higher EBITDA partly negated by the increase in financing costs and tax provisions.
PLDT’s individual wireless segment started the year strong, posting revenues of P21.1 billion in the first quarter, higher year-on-year by 7 percent.
Mobile data revenues, which now account for 89 percent of total individual wireless revenues, grew by 11 percent to ₱18.8 billion resulting from improved data monetization, with blended average revenue per user higher by 21 percent vis-a-vis the 10 percent rise in average usage.
Active data users grew to 39.4 million, with average data usage per subscriber higher at 11.6 GB, higher than 10.6 GB in previous year. Mobile data traffic increased by 9 percent year- on-year to 1,304 Petabytes.
As of the end of March 2024, Smart had registered 59 million mobile subscribers.
PLDT Home’s fiber-only service revenues continued to grow registering a 7 percent increase to P13.7 billion in the first quarter of 2024. Fiber-only revenues accounted for 92 percent of total Home revenues of P15.0 billion.
Total fiber subscribers as of end-March 2024 stood at 3.2 million. Fiber coverage has expanded to 19,300 barangays, with fiber presence at 70 percent.
PLDT Enterprise, the B2B division of the PLDT Group, showcased robust performance in the first quarter of 2024, with net service revenues reaching P12.1 billion. This growth was fueled by strong momentum in corporate data and ICT.
ICT revenues rose 13 percent year-on-year underpinned by growth in Cloud Services, Managed Services, and Cybersecurity Solutions.
The PLDT Group’s fiber footprint remains unparalleled and the most extensive in the Philippines. Homes passed reached almost 18.0 million in 70 percent of the country’s towns and 91 percent of provinces.
Smart’s combined 5G/4G network covers around 97percent of the population.
Capital expenditures for 2024 is expected to be P75 billion to P78 billion, in line with the company’s push to reduce its capex headline number and lower its capex intensity.
The capex guidance already includes fresh capex for the year, as well as deliveries of prior year commitments. Capex for the first quarter of 2024 amounted to P15.7 billion.