PLDT Inc. posted a positive growth momentum in its profits for 2024, driven by strong revenues of core businesses, ahead of the telecommunications giant’s preparations to go all-out in its artificial intelligence (AI) drive this year.
In a disclosure to the Philippine Stock Exchange (PSE), Manuel V. Pangilinan-led PLDT said it notched ₱32.3 billion for its net income for January to December 2024, a 21 percent jump from the previous year’s ₱26.6 billion.
The company’s gross service revenues reported a three percent hike to ₱208.4 billion, while consolidated service revenues grew by two percent to ₱194.7 billion—with data and broadband contributing 83 percent of the total.
“Our 2024 results highlight PLDT’s resilience and the continued demand for reliable connectivity,” Pangilinan, Chairman and Chief Executive Officer of PLDT, said in a statement.
“But our intention is to use this as benchmark for even better performance in the coming years,” he continued.
In a press briefing on Thursday, Feb. 27, PLDT announced its intention to significantly bring down its capital expenditure (capex) budget from last year’s ₱78.2 billion.
The company is set to spend between ₱68 billion and ₱73 billion this year, according to PLDT Chief Financial Officer Danny Yu.
The capex intensity ratio, which measures how much capital a company needs to generate revenue, is also expected to go down within 32 percent to 34 percent from last year’s 38 percent.
Similar to its competitor Globe, which also sought to keep its capex down, PLDT said a decrease in its capex will help the company achieve a sustainable cash flow in 2026.
Pangilinan told reporters that 2025 is still a “touch and go” in this regard, given the potential challenges on the horizon, particularly with AI.
This uncertainty, combined with the slower-than-usual business in January, is the reason why the company is still not keen on providing its profit guidance at this point.
While the potential threat of AI looms, PLDT is upbeat in harnessing the power of this technology in its umbrella of products and services.
Smart Communications Inc. Chief Operating Officer Anastacio Martirez said the only worry within the company is balancing the need to accelerate AI with the ethical concerns surrounding it.
With this, PLDT has established specific units on AI and AI-driven analytics to grasp the technology better.
“Together with this, we put money where our mouth is, we will drive this in every facet, in every DNA of our organization, in everything that we do. From network, sales and advertising, and through customer care,” said Martirez.
For his part, Pangilinan asserted that PLDT intends not just to survive an AI-driven future, but to also shape it as well.
“As the world evolves, the formula for success remains the same: to be bold, hardworking, and open to new ideas,” he noted.