Telecommunications giant PLDT Inc. is expecting more its strategic assets, including data centers, to drive growth in the second half as profits softened amid macroeconomic headwinds.

Based on its disclosure to the Philippine Stock Exchange (PSE), PLDT’s net income eased to ₱17.33 billion in the first half from ₱17.36 billion in the same period a year ago, as expenses accelerated faster than revenues.

PLDT said its expenses went up by four percent to ₱84.88 billion by the end of June, while revenues rose by two percent to ₱112.01 billion.

The growth of the company’s revenues was relatively modest, especially as inflationary pressures dragged on demand in the first six months.

While PLDT’s second-half performance would still hinge on the recovery of the country’s economic standing, its chairman, Manuel V. Pangilinan, expects the bigger challenge to be growing its revenues.

“It's the revenue side that is challenging for us,” he said in a press briefing, noting that PLDT is actively working on tempering its expenses.

Within PLDT, VITRO REIT Inc. is perhaps one of the key assets most primed for growth, especially as demand for data centers is higher than ever due to the increased adoption of artificial intelligence (AI).

In fact, VITRO REIT posted a 13-percent hike in data center revenues by the end of June, fueled by higher colocation demand from hyperscalers, enterprises, and the public sector.

PLDT said data center demand pushed corporate data and ICT revenues to expand by five percent to ₱18.4 billion, which led to an increase in total enterprise revenues to ₱24.8 billion.

VITRO REIT President and CEO Victor Genuino said there is still room for growth, as its data centers still have nearly 34 megawatts (MW) of capacity ready for utilization, which will increase to 44 MW by the end of the year.

Genuino said the company will bank on government data to utilize this available data center capacity, in line with the implementation of the government’s data residency framework that requires agencies to store top-secret data within the country.

VITRO REIT is also preparing to list on the PSE, with PLDT selling half of its shares to raise up to ₱24.2 billion. Genuino said the listing is on track for the fourth quarter, subject to market conditions.

PLDT also expects revenue growth from digital bank Maya, as its contribution increased to nearly ₱600 million in the six-month period, compared to ₱400 million last year.

Maya saw its deposit balance reach ₱86 billion by the end of June, while its loan balance stood at ₱39 billion.

To keep expenses at bay, PLDT lowered its capital expenditures (capex) in the first six months to ₱20.7 billion, down by nearly a quarter from ₱27.4 billion in the previous year.

For the year, the company has maintained its capex guidance to be within the mid-₱50 billion range.