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PLDT Inc. 2017 First Quarter Financial and Operating Results
12th May 2017
2
Individual* Home* Conso Service Revenues Conso Service Revenues
P14.7bn -18% (P3.2bn)
P7.8bn
+12% +P0.8bn
Enterprise* Conso Service Revenues
P8.5bn
+13% +P1.0bn
International* Conso Service Revenues
P4.2bn -24% (P1.3bn)
Voyager* Conso Service Revenues
P0.3bn +132%
+P0.2bn
PLDT Group: 1Q17 vs 1Q16 Financial Highlights
Conso Service Revenues (net of interconnection costs: P2.1bn)
Wireless Fixed Line
P35.6bn
Service Revenues* Service Revenues* P20.8bn
-16% (P3.9bn)
P16.9bn
+10% +P1.5bn
-7% (P2.6bn)
* Net of interconnection costs
** Excluding gain from asset sales and EBITDA adjustments in 1Q16; no adjustments in 1Q17
EBITDA EBITDA Margin
P16.5bn -1% (P0.1bn)
44% (1Q16: 41%)
Core Income (recurring**)
P5.3bn -26% (P1.9bn)
Cash Opex*
P16.6bn -1% (P0.2bn)
Subsidies and Provisions
P2.2bn -52% (P2.4bn)
3
Individual* Home* Conso Service Revenues Conso Service Revenues
P14.7bn -2% (P0.4bn)
P7.8bn
+2% +P0.2bn
Enterprise* Conso Service Revenues
P8.5bn
+7% +P0.6bn
International* Conso Service Revenues
P4.2bn -12% (P0.6bn)
Voyager* Conso Service Revenues
P0.3bn +3% +P9mn
PLDT Group: 1Q17 vs 4Q16 Financial Highlights
Conso Service Revenues (net of interconnection costs: P2.1bn)
Wireless Fixed Line
P35.6bn
Service Revenues* Service Revenues* P20.8bn
-4% (P0.8bn)
P16.9bn
+4% +P0.7bn
-1% (P0.2bn)
* Net of interconnection costs
** Mainly in compensation and benefits expenses
*** Excluding gain from asset sales, deferred tax asset recognition, and accelerated depreciation; no adjustments in 1Q17
EBITDA EBITDA Margin
P16.5bn +7% +P1.0bn
44% (4Q16: 40%)
Core Income (recurring***)
P5.3bn 46% +P1.7bn
Cash Opex*
P16.6bn +1%**
P0.1bn
Subsidies and Provisions
P2.2bn -39% (P1.4bn)
4
7.2 4.5
4.8 3.6 5.3
1Q16 2Q16 3Q16 4Q16 1Q17
16.6 14.2 15.0 15.4 16.5
1Q16 2Q16 3Q16 4Q16 1Q17
38.2 37.6 36.1 35.8 35.6
1Q16 2Q16 3Q16 4Q16 1Q17
6.2 6.2
3.4 4.1
5.0
1Q16 2Q16 3Q16 4Q16 1Q17
PLDT Group: Consolidated Financial Highlights (Php in billions)
Core Income (recurring) Reported Net Income
EBITDA and EBITDA Margin
EBITDA Margin
41% 35% 39% 40% 44%
+1.0
+7%
-0.1
-1%
*Rocket Internet impairment: 1Q16 – P1.6bn; 2Q16 – P3.8bn; 1Q17 – P0.5bn
-1.9
-26%
Service Revenues, net of interconnection costs
-0.2
-1%
-2.6
-7%
Negative
momentum of
top line
arrested in
1Q17
1Q17 on track
vis-à-vis
guidance
Three quarters of
sequential
improvement in
EBITDA
1Q17 on track vis-
à-vis guidance
+1.7
-+46% +0.8
+20%
-1.3
-20%
* * *
* Excluding asset sales, EBITDA adjustments, deferred tax asset recognition and
accelerated depreciation
20.2
5
7.5 7.6 7.6 7.9 8.5
1Q16 2Q16 3Q16 4Q16 1Q17
PLDT Group: Service Revenues (by Business Unit)
(Php in billions)
Service Revenues (net of interconnection costs)
Enterprise Home
7.0
7.2 7.5
7.6 7.8
1Q16 2Q16 3Q16 4Q16 1Q17
+0.2
+2%
+0.8
+12%
+0.2
+2%
Service Revenues (net of interconnection costs)
+0.3
+4% +0.2
+3% +0.6
+7%
+1.0
+13%
+0.3
+1%
+0.1
+1% --
+1%
Individual
18.0 17.4 15.8 15.1 14.7
1Q16 2Q16 3Q16 4Q16 1Q17
Service Revenues (net of interconnection costs)
-3.2
-18%
-0.5
-3%
-1.6
-9%
-0.7
-5%
-0.4
-2%
6
Service Revenue Mix 1Q16 1Q17
Individual 47% 41%
Home 18% 22%
Enterprise 20% 24%
International & Carrier 15% 12%
Voyager and Others 0% 1%
By Business Units
14.7
35.6
7.8
8.5
4.2 0.4
Home Enterprise International
& Carrier
Voyager
And
Others
1Q17
(3.2) -18%
+0.8 +12%
+1.0 +13%
-1.3 -24%
+0.2 +111%
PLDT Group: Consolidated Service Revenues*
* Net of interconnection costs
(Php in billions)
Individual
-2.6 -7%
Home and Enterprise businesses grew double-digit year-on-year at 12% and 13%, respectively
Combined Home and Enterprise revenues now represent 46% of consolidated service revenues,
greater than the 41% contribution of the Individual business
Data/broadband continue to underpin the growth of the Home, Enterprise and Individual
businesses, accounting for 61%, 66%, and 37% of 1Q17 revenues
Home data and broadband revenues were up by 16% to P4.8bn
Enterprise data and broadband revenues rose by 24% to P1.1bn
Service Revenues (Php in mi l l ions) 1Q16 1Q17
Individual 17,984 14,749
Home 6,965 7,794
Enterprise 7,497 8,469
International & Carrier 5,542 4,230
Voyager and Others 174 368
Total 38,162 35,610
46%
7
Service Revenue Mix 1Q16 1Q17
Data/Broadband/Digital Platforms 38% 45%
SMS 20% 16%
LEC/Mobile Domestic Voice/Others 32% 30%
Intl Voice/Fixed Line Domestic Voice 10% 9%
(Php in billions)
By Product type
1Q16 1Q17
Lower by P2.6bn or 7%
38.2 35.6
+1.7 +11%
-1.7 -23%
-0.8 -21%
Data, broadband
and digital
platforms SMS
International
voice and fixed
line domestic
voice
PLDT Group: Consolidated Service Revenues*
* Net of interconnection costs
-1.7 -14%
LEC, mobile
domestic
voice and
others
Data/broadband revenues of P15.9bn represent 44% of 1Q17 consolidated service revenues*
Data/broadband account for 62% of Fixed Line and 33% of Wireless service revenues*
Mobile internet revenues grew by 20% year-on-year to P4.6bn
Corporate data and data center revenues increased by 17% to P4.9bn
Home broadband revenues rose by 15% to P4.7bn
Fixed home broadband up by 19% to P4.1bn
Service Revenue Mix 1Q16 1Q17
Data/Broadband/Digital Platforms 14,508 16,163
SMS 7,514 5,813
LEC/Mobile Domestic Voice/Others 12,328 10,608
Intl Voice/Fixed Line Domestic Voice 3,812 3,026
Total 38,162 35,610
8
Service Revenue Mix 4Q16 1Q17
Data/Broadband/Digital Platforms 44% 45%
SMS 18% 16%
LEC/Mobile Domestic Voice/Others 29% 30%
Intl Voice/Fixed Line Domestic Voice 9% 9%
(Php in billions)
By Product type
4Q16 1Q17
35.8 35.6
+0.5 +3%
-0.6 -9%
-0.3 -8%
Data, broadband
and digital
platforms SMS
International
voice and fixed
line domestic
voice
PLDT Group: Consolidated Service Revenues*
* Net of interconnection costs
+0.2 +1%
LEC, mobile
domestic
voice and
others
By Business Units
14.7
35.6
7.8
8.5
4.2 0.4
Home Enterprise International
& Carrier
Voyager
And
Others
1Q17
(0.4) -2%
+0.2 +2%
+0.6 +7%
-0.6 -12%
-- +2%
(Php in billions)
Individual
-0.2 -1% 46%
Service Revenue Mix 4Q16 1Q17
Individual 15,100 14,749
Home 7,644 7,794
Enterprise 7,893 8,469
International & Carrier 4,810 4,230
Voyager and Others 360 368
Total 35,807 35,610
Service Revenues (Php in mi l l ions) 4Q16 1Q17
Data/Broadband/Digital Platforms 15,641 16,163
SMS 6,418 5,813
LEC/Mobile Domestic Voice/Others 10,457 10,608
International Voice/Fixed Line Domestic Voice3,291 3,026
Total 35,807 35,610
Service Revenue Mix 4Q16 1Q17
Individual 42% 41%
Home 21% 22%
Enterprise 22% 24%
International & Carrier 14% 12%
Voyager and Others 1% 1%
Lower by P0.2bn or 1%
9
16.6
14.2 15.0 15.4 16.5
1Q2016 2Q2016 3Q2016 4Q2016 1Q2017
(Php in billions)
* Net of interconnection costs
PLDT Group: Consolidated EBITDA
Margins
41% 35% 39% 40% 44%
-15% -2.5
+6% +0.8
+3% +0.5
EBITDA for 1Q17 was lower by P0.1bn or 1% at P16.5bn vis-à-vis 1Q16 but higher by 7% or P1.0bn quarter-on-
quarter
Consolidated EBITDA registered three quarters of sequential improvements starting from 2Q16
Primarily due to lower provisions (P2.3bn) and lower subsidies (P1.9bn), management efforts to operate more
efficiently resulting in lower costs (P0.7bn) fully absorbing the decline in service revenues (P2.3bn) and increase in the
cost of content (P0.2bn)
Consolidated EBITDA margin for 1Q17 at 44% vs 41% in 1Q16 and 40% in 4Q16
Wireless: 37% (vs 1Q16: 36%; 4Q16: 35%; FY16: 32%)
Fixed Line: 43% (vs 1Q16: 39%; 4Q16: 37%; FY16: 39%)
EBITDA guidance for 2017 of P70bn anticipates a “back-ended recovery”
+7% +1.0
15.4 16.5
Margins 40% 44%
Lower
svc
rev*
Lower
sub-
sidies
Higher
cash
opex*
Lower
provns
+1.4 -0.2 -- -0.1
4Q16
Higher by P1.0bn or 7%
1Q17
10
Recurring core income of P5.3bn for 1Q17 was higher by P1.7bn or 46% from P3.6bn in 4Q16
Compared with 1Q16, recurring core income declined by 26% or P1.9bn
Reported net income for 1Q17 of P5.0bn decreased by P1.3bn or 20% year-on-year
Additional P0.5bn impairment of Rocket Internet investment was booked in 1Q17 (end March 2017 share price of
€16.03 with market value at P8.7bn)
Rocket share price improved to €18.745 on 11 May 2017 with market value at P10.3bn
1Q17 core income broadly tracking full year guidance of P21.5bn
4Q16
Recurring
1Q17
(Php in billions)
PLDT Group: Core Income
3.6
5.3
Higher by P1.7bn or 46% vs recurring core income in 4Q16
1Q17
7.2
5.3 -1.4
Lower
Misc
Income -0.1
Lower
EBITDA
-0.3
Lower
net
Equity
in
earnings
-0.4
Higher
Non-
cash
Expenses
+0.4
Lower
Provn
for Inc
Taxs
Lower by P1.9bn or 26% vs 1Q16 Recurring core income
+1.0
Higher
EBITDA +0.1
Lower
Non-
cash
Expenses
Higher
net equity
in
earnings
+0.5 +0.1
Lower
Fin
Costs -
Net -0.4
Higher
Provn for
Taxes
1Q16
Recurring
---
Gain from
asset
sales and
EBITDA
Adj.
+0.4
Higher
Misc
Income
11
(Php in billions)
Note: BPO capex up to 2012 only
17.2 22.1
17.1 23.0 30.3 32.1 28.8
13.7 13.7
11.7 11.7
12.9 10.7 17.2
Fixed Line Wireless
31.2
2011 2012
36.4
2013
28.8
2014
34.8
43.2
2015
42.8
2016
% of Capex to total service revenues:
21% 23% 18% 21% 26% 27% < 30%
PLDT Group: Capex
46.0
2017F
37% (25% in 2016)
63% (75% in 2016)
Capex program to build a network that will provide customers with a superior data experience:
proceeding as planned
Cash capex in 1Q17 amounted to only P1.8bn with payments anticipated to be backended
Network milestones:
Continues to lead in the LTE landscape in the Philippines based on recent performance analysis of
Open Signal
Substantially completed LTE rollout in Cebu; ongoing works in Metro Manila
Continued rollout of network using the spectrum acquired through VegaTel, including the 700MHz
Made the first successful mobile call using voice-over-LTE (VoLTE) in the Philippines, and also
successfully tested voice-over-WIFI
Strengthened fiber superiority in the HOME and Enterprise
Launch of fiber-powered “PLDT SmartCities” in partnership with the LGUs of: Toledo City (Cebu),
General Santos (Mindanao), Naga City
Deployment of G.fast technology to achieve fiber-like speeds over copper
Increased FTTH homes passed to 3mn and port availability by 70K in 1Q17 and 110K at YTD April 2017
12
Debt Maturities
Debt Balance
2.9 2.4
2.9 3.4 3.7 3.5
0.9 0.7 0.6 1.0 0.8 0.8
1.9 1.6 2.3 2.4
2.9 2.7
2012 2013 2014 2015 2016 1Q2017
Debt Balance Cash & Short-term Investments Net Debt
221 300 399 384 440 376
1,381
2017 2018 2019 2020 2022 2021
Total: US$3,501mn
* Total debt based on nominal debt amount
*
2023
to 2026
Net debt and net debt to EBITDA as of end March 2017
stood at US$2.7bn and 2.2x
At end March 2017, gross debt amounted to US$3.5bn
US$ denominated gross debt now at 25% from 32% at YE16
following the full payment of the 8.35% US$ bond on 6 March
2017 (refinanced in pesos)
Taking into account our available US$ cash and hedges, only
US$0.3bn or 9% of total debt is unhedged
73% are fixed-rate loans, while 27% are floating-rate loans;
post-interest rate swaps: 91% fixed, 9% floating
Average interest cost (pre-tax) of 4.3% (FY16: 4.4%)
As of end March 2017, PLDT’s investment grade ratings
remained unchanged from YE16
Net Debt/EBITDA:
1.05x 0.9x 1.35x 1.62x 2.36x 2.2x
Debt maturities to total debt:
6% 9% 11% 11% 13% 11% 39%
Ratings AgenciesLong-Term Foreign
Issuer Rating
Long-term Local
Issuer RatingOutlook
Fitch BBB BBB+stable (FC IDR);
negative (LC IDR)
Moody's Baa2 Baa2 stable
Standard and Poor's /
S&P NationalBBB+ axA+ stable
(US$ in billions)
(US$ in millions)
PLDT Group: Debt Profile
13
Business Unit Updates
14
INTERNATIONAL
HOME
INDIVIDUAL 14.75 B
7.79 B
8.47 B
4.23 B
₱35.24 B
ENTERPRISE
1Q 2017 HIGHLIGHTS
TOTAL
● Contribution of Home and Enterprise, our fastest
growing segments, comprise 52% of revenues,
excluding international, and forecasted to grow to
approximately 56% share by 2019.
● Combined revenues of Home and Enterprise
(FIXED: ₱16.26 Billion) have again
surpassed Individual Wireless revenues
(₱14.75 Billion)
REVENUES IN PESOS BILLIONS
Net of Interconnection Cost
Excludes Voyager and Others
15
SUB- TOTAL
1Q 2017 HIGHLIGHTS: PLDT GROUP SERVICE REVENUE
INTERNATIONAL
HOME
INDIVIDUAL
ENTERPRISE
TOTAL
Q1 ‘16
18.0
32.5
5.5
38.0
Q4 ‘16
15.1
30.6
4.8
35.5
Q1 ‘17
14.8
31.0
4.2
35.2
Actual Actual Actual YOY GROWTH
-3.2
-1.4
-1.3
-2.8
-18%
-4%
-24%
-7%
vs 1Q 2016 QOQ GROWTH
-0.4
0.4
-0.6
-0.2
-2%
1%
-12%
-1%
vs 4Q 2016
7.0
7.5
7.6
7.9
7.8
8.5
0.8
1.0
12%
13%
0.2
0.6
2%
7%
1Q 2017 Service Revenue Net of Interconnection Cost In Pesos Billions
1Q 2017
16
01 HOME KICKS OFF THE YEAR WITH THE
HIGHEST EVER 12% YOY GROWTH, WITH
BOTH VOICE AND DATA GROWING
VOICE
3.02B
6%
DATA
4.78B
16%
Q1 2016 Q1 2017
6.97B
7.79B
12% VOICE
2.84B
DATA
4.12B
02
Q1 2016 Q1 2017
10%
1Q 2017 HIGHLIGHTS: HOME BUSINESS
In Pesos Billions
3.43M
ALMOST 340K SUBSCRIBERS RESULTING
TO A 10% YOY GROWTH
3.77M
In Millions of Subscribers
17
Launch of a Tri-band Gigabit
Router to maximize and amplify
the ultra-fast internet of PLDT
Home Fibr
03 REALIZING SIGNIFICANT GROWTH IN HOME BROADBAND, WITH DIGITAL
CONTENT AND SERVICES INSTRUMENTAL TO CREATING MORE DEMAND
Strong demand for higher broadband
subscriptions, with a significant YOY
growth of 20% in wired broadband
revenue
New premier content partnerships to
cater to the increasing video demand,
which grew 4x in consumption YOY
1Q 2017 HIGHLIGHTS: HOME BUSINESS
18
04 ACCELERATING MOMENTUM TO COVER THE COUNTRY WITH LEADING EDGE
TECHNOLOGIES AND IN STRENGTHENING MARKET DOMINANCE
Toledo City, Cebu
General Santos City
Isulan, Sultan Kudarat
Naga City, Camarines Sur
BF Homes, Paranaque
Merville, Paranaque
Mahogany Place, Taguig
Verawood Residences, Taguig
1Q 2017 HIGHLIGHTS: HOME BUSINESS
● PLDT Home Rolled out 110K
high speed broadband lines by
end April 2017
● Starting with 2.8M HOMES
PASSED YE 2016, we are now
covering over 3M HOMES
PASSED and well on our way
to reach the 4.4M target by
year-end 2017
Launch of Fibr powered
‘PLDT SmartCity’ Program,
which will bring the best
broadband experience
all over the country
19
Enterprise Service Revenues
Net of Interconnect
SUSTAINING ACCELERATED
GROWTH IN Q1 ALL BUSINESS PILLARS GROWING BY
DOUBLE DIGIT
2016Q1 2017Q1 Fixed Wireless ICT
7.5B
+13%
0.97
8.47B
+13%
+15%
+11%
01 02
13%
vs Q4 2016
vs Q1 2016
7%
1Q 2017 HIGHLIGHTS: ENTERPRISE BUSINESS
20
Banking & Financial : 14%
In support of industry demand for
secure and reliable ICT solutions
FASTER THAN
MARKET GROWTH
Outsourcing : 17%
Empowering a 1.3M+ strong
agent workforce
SME : 10%
Enabling enterprises to be more
competitive and embrace digital
IT and Gaming : 20%
Key player in PH transition to a
global IT and Gaming hub
04
6%
15%
9%
7%
INDUSTRY
GROWTH
1Q 2017 HIGHLIGHTS: ENTERPRISE BUSINESS
ENTERPRISE BUSINESS IS GROWING
IN THE RIGHT AREAS 03
40% 34%
VOICE, SMS and
OTHERS
60% 66% % OF
TOTAL
REVENUE
-4% DATA and ICT
24%
Q1 2016 Q1 2017 Q1 2016 Q1 2017
21
CLEAR LEADERSHIP IN THE DATA CENTER
SPACE, MAKING PLDT WELL POSITIONED TO
CAPITALIZE ON FUTURE GROWTH IN THE AREAS
OF SMACS AND MANAGED SERVICES
05 06 CONTINUED MOMENTUM IN DRIVING
RELEVANT SOLUTIONS TO BETTER SERVE
THE NEEDS OF THE ENTERPRISE MARKET
SOS Dispatch Media Launch
Cisco Collaboration
redefining
Enterprise Experience (EX)
Digital Enablement
“She’s the Boss”
Event
Cybersecurity Summit 70% Share of outsourced DC
market
More than
3X capacity vs. the next largest
competitor
New market-relevant capabilities such as cyber security services
Q1 2017 DC new mandates greater than
FY 2016
RISK ASSESSMENT
MANAGEMENT &
MONITORING
INCIDENT RESPONSE
1Q 2017 HIGHLIGHTS: ENTERPRISE BUSINESS
22
01
QUARTERLY NET SERVICE REVENUE
Q1 2016 Q1 2017
17.98B
14.75B
DECLINE IN NET SERVICE
REVENUE VS LAST YEAR
SUBS BASE
In Millions
ARPU ARPU
PhP
CONTRIBUTORS:
Q1 2016 Q1 2017
Q1 2016 Q1 2017
₱110 ₱97
1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS
68.2M 63.1M
In Pesos Billions
23
02 HOLDING THE LINE IN NET SERVICE REVENUE
ON A DAILY BASIS 03
GREEN SHOOTS OF
PROGRESS IN Q1
SUBS
Millions
ARPU
PhP
62.8M
Q4 2016 Q1 2017
Q4 2016 Q1 2017
₱100 ₱100
Normali
zed
63.1M
1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS
₱97
QUARTERLY NET SERVICE
REVENUE
In Pesos Billions
17.98 17.44 15.84 15.10 14.75
198 192 172
164 164
DAILY NET SERVICE REVENUE
In Pesos Millions
24
DELIVERING THE BEST CUSTOMER
EXPERIENCE LIKE NEVER BEFORE WITH
SMART’S NEWEST AND FASTEST LTE
NETWORK
04
Validated by
1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS
25
FURTHERING COMMITMENT TO IMPROVE EXPERIENCE IN PUBLIC AREAS
AS WE PROVIDE THE BEST WIFI OFFLOAD EXPERIENCE TO OUR
SUBSCRIBERS
THE YARD XAVIERVILLE Quezon City
THE YARD UNDERGROUND Pasig
STREAT FOOD PARK
Maginhawa MATINA TOWN SQUARE
Davao
05
Experience Data Like Never Before with SMARTSPOTS!
1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS
26
1Q 2017 HIGHLIGHTS: WIRELESS INDIVIDUAL BUSINESS
UPSELLING CONTENT AND DIGITAL SERVICES TO
CREATE MORE VALUE AND DEMAND FOR DATA 06
Experience Content
Like Never Before!
27
Renewal of Smart Franchise
* Net of interconnection costs
Smart Franchise has been extended by Republic Act No. 10926 for another 25 years from the
date of effectivity of the Act Published in the Philippine Star on May 4, 2017 and will take effect 15 days after such publication or on May 20, 2017
Republic Act No. 10926 signed into law by the President of the Republic of the Philippines on
April 21, 2017 Originated from the House of Representatives; passed by the House of Representatives on January 16, 2017
Amended by the Senate on March 13, 2017
Concurred in by the House of Representatives on March 14, 2017
Acceptance of the franchise must be given to the Congress of the Philippines within 60 days
from effectivity of the Act
Salient Terms Tax Provisions. Amended to be at par with the tax benefits granted to Globe under its franchise
Listing of Shares. Smart is not required to list its shares for as long as it is wholly owned by a publicly listed
company with at least 30% of whose authorized capital stock is publicly owned
Mobile Number Portability. Smart is required to provide mobile number portability to all its subscribers subject to the
issuance of the applicable rules and regulations by the NTC which will take effect upon the applicability of mobile
number portability to all other telecommunication franchise grantee ("sunrise clause")
Equality Clause. Added an equality clause consistent with the equality provision set out in the Public
Telecommunication Policy Act of 1995
Penalty Clause. Penalty for failure to submit the required annual report to Congress will increase to P1,000.00 (from
P500.00) per working day of non-compliance upon the applicability of the same increase in penalty to all other
telecommunication franchise grantees
28
PLDT Group: Guidance for 2017
EBITDA: P70bn Capex: P46bn
Dividend Payout: 60%
To grow by P8.8bn from P61.2bn in 2016 impact of P4.6bn in subsidies and provisions in 2016
which will not recur in 2017
Low-single digit growth in consolidated service
revenues
Double-digit growth in data/broadband to continue
Continuing declines in toll, cellular voice and SMS
revenues
Reduction in cash opex to result from tighter
management of costs
Recurring core income from telco operations to rise to
P21.5bn P1.5bn increase due to the combined effect of:
Higher EBITDA partly offset by increases in depreciation
and financing costs resulting from the higher capex
Lower equity in earnings due to reduced ownership in
Beacon, and losses and amortization of purchase price
acquisition related to the Vega Tel transaction
Including asset sales, core income anticipated at P25bn
or higher Anticipated gain from asset sales to be offset by expected MRP
expense
* Normalized to exclude asset sales and impact of higher provisions
Higher by P3.2bn from P42.8bn in 2016 Includes carry-over of capex started in 2016 to be completed/accepted
in 2017
Anticipated increase in fixed line capex to support push to further grow
the Home and Enterprise businesses
Dividend policy: Regular dividend payout of 60% of core
income
Takes into consideration: Technology roadmap/capex requirements
Management of cash and gearing levels
Plans to invest (on opportunistic basis) in new adjacent
businesses that will complement the current business and provide
future sources of profits and dividends
Recurring Core Income: P21.5bn
29
Other Details
30
38.2 37.6 36.1 35.8 35.6
1Q16 2Q16 3Q16 4Q16 1Q17
15.4 15.5 15.9 16.3 16.9
1Q16 2Q16 3Q16 4Q16 1Q17
(Php in billions)
Fixed Line
Consolidated
1Q17 vs 1Q16:
-7% or -P2.6bn
Service Revenue Mix:
Data/broadband 38% 40% 41% 43% 44%
Service Revenues Mix:
Data/broadband
59% 59% 60% 61% 62%
24.7 24.0 22.3 21.6 20.8
1Q16 2Q16 3Q16 4Q16 1Q17
Wireless
Service Revenue Mix:
Data/broadband
28% 30% 32% 33% 33%
-0.6
-1%
+0.1
--
-1.5 -4%
-0.6
-2%
+0.4
+2%
PLDT Group: Service Revenues*
-0.3 -1%
* Net of interconnection costs
-1.8
-7%
-0.7
-3% vs 1Q16:
-16% or
-P3.9bn +0.4
+2% vs 1Q16:
+10% or
+P1.5bn
By Business Segment
-0.2 -1%
-0.8
-4%
+0.7
+4%
31
9.6
7.3 7.4 8.4 8.3
1Q16 2Q16 3Q16 4Q16 1Q17
24.7 24.0 22.3 21.6 20.8
1Q16 2Q16 3Q16 4Q16 1Q17
PLDT Group: Fixed and Wireless Financial Highlights
(Php in billions)
EBITDA and EBITDA Margin
EBITDA Margin
36% 28% 31% 35% 37%
-1.3
-14%
Service Revenues (net of interconnection costs)
-0.8
-4%
-3.9
-16%
--
-1%
Ave.Daily Rev (mns): P242.1 P234.6 P230.7
-2% -3%
EBITDA and EBITDA Margin
Wireless Fixed
15.4 15.5 15.9
16.3
16.9
1Q16 2Q16 3Q16 4Q16 1Q17
+0.7
+4%
+1.5
+10%
+0.4
+2%
Service Revenues (net of interconnection costs)
EBITDA Margin
39% 39% 42% 37% 43%
6.6 6.5 7.1 6.6
7.8
1Q16 2Q16 3Q16 4Q16 1Q17
+1.2
+17%
+1.2
+18%
32
Data and
Broadband LEC and
Others
+1.5 +16%
+0.3 +6%
Service Revenue Mix 1Q16 1Q17
Data/Broadband/Digital Platforms 28% 35%
SMS 31% 28%
Domestic Voice/Others 32% 29%
International Voice 9% 8%
Service Revenue Mix 1Q16 1Q17
Data/Broadband 59% 62%
LEC/Others 31% 30%
International Voice/Domestic Voice 10% 8%
(Php in billions)
Fixed Line*
Wireless*
1Q16 1Q17
Higher by P1.5bn or 10%
15.4 16.9
-0.2 -16%
International and
domestic voice
1Q16 1Q17
Lower by P3.9bn or 16%
24.7
20.8
+0.3** +4%
-2.0 -25%
-0.5 -22%
Data, broadband,
digital platforms
Domestic
voice and
others International
voice
* Net of interconnection costs
(Php in billions)
PLDT Group: Service Revenues*
-1.7 -23%
SMS
Service Revenues (Php in mi l l ions) 1Q16 1Q17
Data/Broadband/Digital Platforms 6,936 7,232
SMS 7,517 5,815
Domestic Voice/Others 7,961 5,976
International Voice 2,237 1,743
Total 24,651 20,766
Corporate data and data center revenues
represent 38% of total fixed line revenues
1Q17 vs 1Q16
1Q17 vs 1Q16
Data/broadband, now 33% of total wireless
service revenues, overtook SMS and
domestic voice which account for 28% and
27%, respectively
** Includes growth in: -- Mobile internet by 20% or P0.8bn -- Digital platforms by 137% or P0.2bn
Service Revenues (Php in millions) 1Q16 1Q17
Data/Broadband 9,096 10,563
LEC/Others 4,761 5,034
International Voice/Domestic Voice 1,578 1,330
Total 15,435 16,927
33
Service Revenue Mix 1Q16 1Q17
Mobile Data 31% 37%
Mobile Domestic Voice 35% 33%
SMS 33% 30%
Others 1% 0%
Service Revenue Mix 1Q16 1Q17
Data/Broadband 59% 61%
LEC 38% 36%
Domestic Voice 3% 3%
Others 0% 0%
7.0 7.8
18.0
14.7
33
(Php in billions)
LEC
+8% +0.2
Home
1Q17 1Q16
Data/
broadband
+16% +0.6
Fixed Line
Domestic
Voice and Others
-8% ---
Higher by P0.8bn or 12%
Individual
Mobile
domestic
voice
-23% -1.4
Mobile data
-3% -0.1
Others
-18% ---
Lower by P3.2bn or 18%
1Q17 1Q16
SMS
-27% -1.6
PLDT Group: Home and Individual Service Revenues*
* Consolidated and net of interconnection costs
(Php in billions)
Service Revenues (Php in mi l l ions) 1Q16 1Q17
Data/Broadband 4,124 4,771
LEC 2,632 2,831
Domestic Voice 209 186
Others 0 6
Total 6,965 7,794
Service Revenues (Php in mi l l ions) 1Q16 1Q17
Mobile Data 5,599 5,451
Mobile Domestic Voice 6,267 4,819
SMS 6,000 4,382
Others 118 97
Total 17,984 14,749
1Q17 vs 1Q16
1Q17 vs 1Q16
Fixed home broadband revenues of
P4.1bn grew by 19% or P0.7bn year-
on-year and account for 52% of
total Home revenues
Mobile internet revenues rose by
14% or P0.5bn to P3.9bn in 1Q17
representing 27% of total Individual
revenues
Note:
Fixed Home Broadband: +19%, +P0.7bn
Wireless Home Broadband: -4%, -P27mn
Note:
Mobile Internet: +14%, +P0.5bn
Dongles: -29%, -P0.6bn
34
7.5
8.5
(Php in billions)
Enterprise*
Fixed and
Mobile
ILD/NLD
+6% ---
Corp. Data
+19% +0.8
Mobile
domestic
voice
-41% -0.1
Mobile
Data
+75% +0.3
LEC
+1% ---
Higher by P1.0bn or 13%
1Q17 1Q16
SMS
-5% ---
Data and broadband
up by P1.1bn or 24%
SMS/mobile voice
lower by P0.2bn or
27%
Others
+1% ---
PLDT Group: Enterprise Service Revenues*
* Consolidated and net of interconnection costs
1Q17 vs 1Q16
Service Revenue Mix 1Q16 1Q17
Data/Broadband 60% 66%
Voice 35% 30%
SMS 3% 2%
Others 2% 2%
Service Revenues (Php in mi l l ions) 1Q16 1Q17
Data/Broadband 4,492 5,570
Voice 2,634 2,538
SMS 202 191
Others 169 170
Total 7,497 8,469
66% of Enterprise revenues are from data/broadband
P1.1bn increase in data/broadband revenues due to:
Rise of P0.8bn or 19% in corporate data and data center revenues
Growth in mobile data revenues mainly in mobile internet revenues which increased by P0.3bn or
83%
35
Home broadband revenues were higher by P0.6bn or 15% to P4.7bn
Broadband subscriber base, including Home Broadband and Corporate
Fixed Broadband subscribers, stood at about 1.8mn, with net adds of
over 50,000 or 3% from YE16
Goal: to transform households into a ‘Smart Home’ or ‘the HOME of
the future’
Via devices: Telpad, TVolution, FamCam, Fam Zone, Smart Watch
Recently launched the next generation Tvolution/ROKU-powered
streaming box
Triple-play (fixed line, broadband, IPTV) and quad-play (including
mobile) plans available, including data sharing plans
Roll out of high speed internet via Fibr bundled with great content, Fox+,
iFlix, iWantTv, and Netflix
6.2
15.9
4.9
4.7
6.1 6.4 6.3 6.2 6.2
4.2 4.2 4.1 4.5 4.9
4.1 4.3 4.5 4.6 4.7
1Q16 2Q16 3Q16 4Q16 1Q17
Mobile Data Corp. Data and Data Center Home Broadband
% to total Data and Broadband Consolidated Revenues*:
39% 31% 30%
(Php in billions)
Mobile Internet
Mobile data, including revenues from mobile Internet and
mobile broadband, rose by P0.1bn or 2% year-on-year to
P6.2bn
Mobile Internet revenues grew by 20% or P0.8bn to P4.6bn
and account for 29% of total data and broadband revenues
Data usage in 1Q17 increased by 56% to 50,860TB from
1Q16 and by 16% from 4Q16
Smartphone penetration: approximately 50% of our
subscriber base, with about 50% of whom pay for data
Goal: Enable and accelerate data adoption to drive usage
and build the data habit
• Launch of All Out Surf packages that include data
allocations bundled with calls and texts
• Arrangements with smartphone distributors for reverse
bundling (SIM included in the phone kits sold)
• Brand refresh highlighting superiority of Smart’s LTE
network: “Be there like never before”
Mobile broadband revenues or 10% of total data and
broadband revenues declined by P0.6bn or 28% to P1.6bn] as
usage shifts from dongles/pocket wifi devices to smartphones
Corporate Data and Data Centers
Corporate data and data center revenues, or 31% of total
data and broadband revenues, were higher by P0.7bn or 17%
at P4.9bn
PLDT is the nation’s largest data center operator with ten
data centers and a total rack capacity of about 9,000 by year-
end 2017
Home Broadband
Mobile
Data
Home
Broadband
Corp. Data and
Data Center
1Q17
+0.1 +2%
+0.7 +17%
+0.6 +15%
+1.5 +10%
-1%
+11%
+2%
+2%
+17%
+15%
Y-o-Y
+1.5
+10%
14.4 15.9
PLDT Group: Consolidated Data and Broadband*
+0.5 +3%
1Q17 vs 1Q16
14.9 14.9 15.3
* Consolidated, net of interconnection costs
36
Appendix
37
Mobile Subscribers (1) by Category:
Mobile Subscribers (1) by Brand:
(1) Includes Mobile Broadband subscribers
Subscriber Base: Mobile
Mobile Subscriber Base (1)
Prepaid 60,421,068 59,952,941 62,259,067 64,701,367 64,651,175
Smart Prepaid 21,933,462 21,643,963 23,560,542 24,185,165 24,836,433
Sun Prepaid 8,086,432 8,463,469 8,846,953 9,652,756 10,495,342
TNT 30,401,174 29,845,509 29,851,572 30,863,446 29,319,400
Postpaid 2,721,410 2,810,268 3,117,035 3,556,485 3,539,055
Smart Postpaid 1,365,709 1,383,830 1,482,672 1,573,147 1,610,670
Sun Postpaid 1,355,701 1,426,438 1,634,363 1,983,338 1,928,385
Total Mobile Subscribers 63,142,478 62,763,209 65,376,102 68,257,852 68,190,230
Sept-16 Mar-16Dec-16Mar-17 Jun-16
Mobile Subscriber Base (1)
Smart 23,299,171 23,027,793 25,043,214 25,758,312 26,447,103
Smart Prepaid 21,933,462 21,643,963 23,560,542 24,185,165 24,836,433
Smart Postpaid 1,365,709 1,383,830 1,482,672 1,573,147 1,610,670
TNT 30,401,174 29,845,509 29,851,572 30,863,446 29,319,400
Sun Cellular 9,442,133 9,889,907 10,481,316 11,636,094 12,423,727
Sun Prepaid 8,086,432 8,463,469 8,846,953 9,652,756 10,495,342
Sun Postpaid 1,355,701 1,426,438 1,634,363 1,983,338 1,928,385
Total Mobile Subscribers 63,142,478 62,763,209 65,376,102 68,257,852 68,190,230
Sept-16 Mar-16Dec-16Mar-17 Jun-16
38
Broadband Subscribers
Fixed Line Subscribers
Subscriber Base: Broadband and Fixed Line
BROADBAND
Home Broadband (Wireless) 264,227 270,203 271,572 265,473 248,675
Fixed Line Broadband 1,506,578 1,450,550 1,407,122 1,347,422 1,296,402
Total Broadband Subscribers 1,770,805 1,720,753 1,678,694 1,612,895 1,545,077
Mar-16Mar-17 Jun-16Sept-16Dec-16
Fixed Line Subscribers 2,487,601 2,438,473 2,404,893 2,380,390 2,339,001
Mar-17 Jun-16 Mar-16Dec-16 Sept-16
39
(1) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)
1Q2017: Consolidated Financial Highlights
1Q2016
(Unaudited, Php in millions) Fixed Line Others Consolidated Consolidated
Total Revenues 23,162 19,049 - 39,188 42,779 (8%)
Service Revenues 22,475 18,249 - 37,701 40,598 (7%)
Cash Operating Expenses (12,101) (9,998) (18) (18,715) (19,295) (3%)
Depreciation and Amortization (4,430) (3,120) - (7,550) (7,158) 5%
Financing Costs, Net (604) (1,308) (49) (1,900) (1,804) 5%
Income (Loss) before Income Tax 3,311 4,384 (439) 7,256 8,962 (19%)
Provision for Income Tax (1,081) (1,175) (31) (2,287) (2,729) (16%)
EBITDA 8,309 7,797 (18) 16,467 16,606 (1%)
EBITDA Margin(1) 37% 43% - 44% 41%
Net Income (Loss) Attributable to
Equity Holders of PLDT2,230 3,190 (469) 4,951 6,217 (20%)
Core income 2,298 2,856 175 5,329 7,211 (26%)
% Change1Q2017
Wireless
40
Underlying Core Income
2017
1Q 1Q 2Q 3Q 4Q FY
Core Income 5,329 7,211 10,489 4,036 6,121 27,857
Core Income Adjustments
One-Time Provisions and Subsidies (EBITDA Adjustments) - 1,011 2,034 1,605 - 4,650
Asset Sales - (970) (7,365) (396) (438) (9,169)
Accelerated Depreciation - - - - 4,084 4,084
Deferred Tax Asset Recognition - - - - (5,027) (5,027)
Net Tax Effect of Adjustments - (12) (611) (481) (1,094) (2,198)
Underlying Core Income 5,329 7,240 4,547 4,764 3,646 20,197
2016
(Unaudited, Php in millions)
41
Reconciliation of Core and Reported net income
1Q2016
Wireless Fixed Line Others Consolidated Consolidated
Net Income (Losses) Attributable to Equity Holders of 2,230 3,190 (469) 4,951 6,217 (20%)
Add (Deduct):
Foreign Exchange Losses (gains), Net 254 41 102 397 (970) 141%
Losses (Gains) on Derivative Financial Instruments, Net (157) (229) - (386) 369 (205%)
Asset Impairment - (201) 540 339 1,583 (79%)
Others - (1) (18) (19) (42) (55%)
Tax Effect (29) 56 20 47 54 (13%)
Core Income 2,298 2,856 175 5,329 7,211 (26%)
(Unaudited, Php in millions)% Change
1Q2017
42
Consolidated Service Revenues*
*Consolidated and Gross of Interconnection costs
(Unaudited, Php in millions) 1Q 1Q 2Q 3Q 4Q FY
Fixed Line 15,556 14,287 14,320 14,446 15,033 58,086
LEC 4,553 4,333 4,384 4,479 4,499 17,695
Fixed Line Voice - International 970 1,240 1,092 1,015 1,111 4,458
Fixed Line Voice - Domestic (NLD) 789 844 845 863 797 3,349
Home Broadband 4,074 3,413 3,615 3,781 3,920 14,729
Corporate Data and Data Center 4,951 4,237 4,189 4,098 4,474 16,998
Miscellaneous 219 220 195 210 232 857
Wireless 22,145 26,311 25,686 23,882 23,236 99,115
Mobile Services 21,069 25,305 24,806 22,826 22,129 95,066
Mobile Voice 7,594 10,240 9,458 8,272 8,011 35,981
SMS 6,910 8,688 8,643 7,873 7,532 32,736
Mobile Data 6,235 6,063 6,444 6,375 6,333 25,215
Inbound Roaming and Others 330 314 261 306 253 1,134
Home Broadband 652 679 670 696 713 2,758
Digital Platforms and Mobile Financial Services 309 133 57 219 300 709
MVNO and Others 115 194 153 141 94 582
Others - - - - 9 9
Total 37,701 40,598 40,006 38,328 38,278 157,210
20162017
43
(Unaudited, Php in millions) 1Q 1Q 2Q 3Q 4Q FY
Data/Broadband/Digital Platforms 16,221 14,525 14,975 15,169 15,749 60,418
Mobile Data 6,235 6,063 6,444 6,375 6,333 25,215
Mobile Internet 4,612 3,811 4,257 4,471 4,628 17,167
Mobile Broadband 1,623 2,252 2,187 1,903 1,704 8,046
Other Data - - - 1 1 2
Home Broadband 4,726 4,092 4,285 4,477 4,633 17,487
Fixed 4,074 3,413 3,615 3,781 3,920 14,729
Wireless 652 679 670 696 713 2,758
Corp. Data and Data Center 4,951 4,237 4,189 4,098 4,474 16,998
Corp. Data and Leased Lines 4,333 3,678 3,595 3,704 3,978 14,955
Data Center and Information Technology 618 559 594 394 496 2,043
Digital Platforms and Others 309 133 57 219 309 718
SMS/Mobile Voice - Domestic/LEC/Others 17,923 21,697 20,912 19,335 18,645 80,589
SMS 6,910 8,688 8,643 7,873 7,532 32,736
Mobile Voice - Domestic 5,796 7,948 7,276 6,326 6,035 27,585
LEC 4,553 4,333 4,384 4,479 4,499 17,695
Others 664 728 609 657 579 2,573
ILD/Fixed Line - Domestic (NLD) 3,557 4,376 4,119 3,824 3,884 16,203
Fixed Line Voice - Domestic (NLD) 789 844 845 863 797 3,349
Fixed Line Voice - International 970 1,240 1,092 1,015 1,111 4,458
Mobile Voice - International 1,798 2,292 2,182 1,946 1,976 8,396
Total Consolidated Gross Service Revenues 37,701 40,598 40,006 38,328 38,278 157,210
Non-Service Revenues 1,487 2,181 2,499 1,774 1,598 8,052
Total Consolidated Gross Revenues 39,188 42,779 42,505 40,102 39,876 165,262
Deduct:
Cash Operating Expenses (18,715) (19,295) (19,434) (19,128) (18,947) (76,804)
Cost of Sales (2,646) (5,126) (5,519) (3,337) (2,771) (16,753)
Cost of Content (309) (107) (83) (107) (279) (576)
Writedown of Inventory and Provision for Doubtful AR (1,051) (1,645) (3,317) (2,571) (2,435) (9,968)
EBITDA 16,467 16,606 14,152 14,959 15,444 61,161
EBITDA Margin(1)
44% 41% 35% 39% 40% 39%
20162017
(1) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)
Consolidated Service Revenues* and EBITDA
*Consolidated and Gross of Interconnection costs
44
(1) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)
Wireless Service Revenues* and EBITDA
*Gross of Interconnection costs and before intersegment elims
(Unaudited, Php in millions) 1Q 1Q 2Q 3Q 4Q FY
Data/Broadband/Digital Platforms 7,281 6,944 7,270 7,375 7,428 29,017
Mobile Data 6,308 6,127 6,536 6,445 6,409 25,517
Mobile Internet 4,612 3,811 4,257 4,471 4,628 17,167
Mobile Broadband 1,655 2,276 2,209 1,926 1,736 8,147
Other Data 41 40 70 48 45 203
Home Broadband 655 683 674 700 716 2,773
Digital Plarforms 318 134 60 230 303 727
SMS/Mobile Voice - Domestic/Others 13,388 17,422 16,612 14,918 14,185 63,137
SMS 6,912 8,690 8,646 7,875 7,534 32,745
Mobile Voice - Domestic 6,029 8,221 7,551 6,594 6,300 28,666
Others 447 511 415 449 351 1,726
Mobile Voice - International 1,806 2,304 2,189 1,952 1,983 8,428
Total Wireless Gross Service Revenues 22,475 26,670 26,071 24,245 23,596 100,582
Non-Service Revenues 687 1,261 1,472 838 761 4,332
Total Wireless Gross Revenues 23,162 27,931 27,543 25,083 24,357 104,914
Deduct:
Cash Operating Expenses (12,101) (12,515) (12,576) (12,640) (11,847) (49,578)
Cost of Sales (1,905) (4,421) (4,748) (2,748) (2,223) (14,140)
Cost of Content (119) (31) (15) (35) (208) (289)
Writedown of Inventory and Provision for Doubtful AR (728) (1,335) (2,947) (2,237) (1,727) (8,246)
EBITDA 8,309 9,629 7,257 7,423 8,352 32,661
EBITDA Margin(1)
37% 36% 28% 31% 35% 32%
20162017
45
Fixed line revenues - net of interconnection costs*
(1) Non-service revenues include sale of PLP units, FabTAB, Tvolution, managed ICT equipment, Telpad, UNO equipment and managed PABX (2) EBITDA margin calculated as EBITDA divided by service revenues (gross of interconnection costs)
Fixed Line Service Revenues* and EBITDA
1Q 1Q 2Q 3Q 4Q FY
Data/Broadband 10,574 9,110 9,216 9,457 9,928 37,711
Home Broadband 4,134 3,434 3,655 3,835 3,972 14,896
Corp. Data and Other Network Services 5,622 4,938 4,793 4,970 5,279 19,980
Data Center and ICT 818 738 768 652 677 2,835
LEC/Others 5,035 4,761 4,806 4,922 4,968 19,457
LEC 4,580 4,357 4,408 4,503 4,524 17,792
Miscellaneous 455 404 398 419 444 1,665
Fixed Line Voice - International/Domestic 2,640 3,144 2,952 2,819 2,923 11,838
Fixed Line Voice - International 1,744 2,203 1,998 1,842 2,013 8,056
Fixed Line Voice - Domestic (NLD) 896 941 954 977 910 3,782
Total Fixed Line Service Revenues 18,249 17,015 16,974 17,198 17,819 69,006
Non-Service Revenues (1)
800 920 1,028 936 838 3,722
Total Fixed Line Gross Revenues 19,049 17,935 18,002 18,134 18,657 72,728
Deduct:
Cash Operating Expenses (9,998) (10,213) (10,255) (9,995) (10,689) (41,152)
Cost of Sales (741) (705) (772) (589) (551) (2,617)
Cost of Content (190) (76) (68) (72) (71) (287)
Writedown of Inventory and Provision for Doubtful AR (323) (310) (370) (334) (708) (1,722)
EBITDA 7,797 6,631 6,537 7,144 6,638 26,950
EBITDA Margin(2)
43% 39% 39% 42% 37% 39%
2017 2016
(Unaudited, Php in millions)
*Service revenues before intersegment elims
1Q 1Q 2Q 3Q 4Q FY
Fixed Line Service Revenues, Net
LEC 4,579 4,357 4,406 4,502 4,523 17,788
Fixed Line Voice - International 565 831 735 716 660 2,942
Fixed Line Voice - Domestic (NLD) 765 747 759 790 717 3,013
Home Broadband 4,134 3,434 3,655 3,835 3,972 14,896
Corp. Data and Other Network Services 5,611 4,924 4,779 4,957 5,267 19,927
Data Center and ICT 818 738 768 652 677 2,835
Miscellaneous 455 404 398 419 444 1,665
Total 16,927 15,435 15,500 15,871 16,260 63,066
(Unaudited, Php in millions)
2017 2016
46
Expenses
1Q2016
(Unaudited, Php in millions) Wireless Fixed Line Others Consolidated Consolidated
Operating Expenses
Compensation and Employee Benefits 1,943 3,548 - 5,487 5,231 5%
Repairs and Maintenance 1,852 1,456 - 3,160 3,671 (14%)
Selling and Promotions 1,089 427 - 1,508 1,718 (12%)
Rent 2,709 729 - 1,830 1,670 10%
Insurance and Security Services 310 178 - 462 463 -
Taxes and Licenses 620 349 2 971 1,322 (27%)
Professional and Other Contracted Services 1,597 1,713 16 2,698 2,174 24%
Communication, Training and Travel 199 144 - 304 301 1%
Interconnection Costs 1,709 1,322 - 2,091 2,436 (14%)
Other Expenses 73 132 - 204 309 (34%)
Cash Operating Expenses 12,101 9,998 18 18,715 19,295 (3%)
Depreciation and Amortization 4,430 3,120 - 7,550 7,158 5%
Asset Impairment 728 323 - 1,051 1,645 (36%)
Amortization of Intangible Assets 205 - - 205 272 (25%)
Non-Cash Operating Expenses 5,363 3,443 - 8,806 9,075 (3%)
Cost of Sales 1,905 741 - 2,646 5,126 (48%)
Cost of Content 119 190 - 309 107 189%
Total Expenses 19,488 14,372 18 30,476 33,603 (9%)
% Change1Q2017
47
Other Income (expenses)
1Q2016
(Unaudited, Php in millions) Wireless Fixed Line Others Consolidated Consolidated
Equity Share in Net Earnings (Losses) of Associates and Joint Ventures
Beacon - - 408 408 705 (42%)
Vega - - (269) (269) - -
Others (33) 67 20 54 (68) (179%)
Total Equity Share in Net Earnings (Losses) (33) 67 159 193 637 (70%)
Financing Costs, Net
Loans and Other Related Items (718) (1,325) (49) (2,031) (1,823) 11%
Accretion on Financial Liabilities (40) (20) - (60) (75) (20%)
Financing Charges (12) (4) - (16) (7) 129%
Capitalized Interest 166 41 - 207 101 105%
Total Financing Costs (604) (1,308) (49) (1,900) (1,804) 5%
Other Income (Expenses), Net
Gain on Sale of Properties - - - - 970 -
Investment Impairment (includes Rocket Internet Impairment) 127 201 (540) (212) (1,583) (87%)
Others 207 441 - 269 838 (68%)
Other Income (Expenses), Net 334 642 (540) 57 225 (75%)
Interest Income 60 199 111 309 255 21%
Gains (Losses) on Derivative Financial Instruments, Net 134 148 - 282 (497) 157%
Foreign Exchange Gains (Losses), Net (254) (41) (102) (397) 970 (141%)
Total Other Income (Expenses) (363) (293) (421) (1,456) (214) 580%
1Q2017% Change
48
ARPU
(1) Includes Mobile Broadband subscribers
Mobile ARPU, Net(1) :
Broadband ARPU, Net :
(2) Includes Corporate Fixed Broadband
1Q 1Q 2Q 3Q 4Q
Smart Postpaid 965 938 951 946 970 Smart Prepaid 104 112 110 102 104 TNT 71 80 77 71 75
Sun Postpaid 413 475 453 402 418
Sun Prepaid 78 80 81 84 85
20162017
1Q 1Q 2Q 3Q 4Q
Home Broadband (Wireless) 813 891 875 866 870
Fixed Broadband (2)
1,164 1,162 1,169 1,171 1,165
2017 2016
49
Earnings Per Share (EPS)
(Unaudited, Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted
Net Income Attributable to Equity Holders of PLDT 4,951 4,951 6,217 6,217
Dividends on Preferred Shares (15) (15) (15) (15)
Net Income for the Period Attributable to Common Equity Holders of PLDT 4,936 4,936 6,202 6,202
Weighted Average Number of Common Shares, End 216,056 216,056 216,056 216,056
EPS (Based on Reported Net Income) 22.84 22.84 28.71 28.71
Core Income 5,329 5,329 7,211 7,211
Dividends on Preferred Shares (15) (15) (15) (15)
Core Income Applicable to Common Shares 5,314 5,314 7,196 7,196
Weighted Average Number of Common Shares, End 216,056 216,056 216,056 216,056
EPS (Based on Core Income) 24.60 24.60 33.31 33.31
1Q2017 1Q2016
50
(1) Net Debt calculated based on nominal value of debts less cash and cash equivalents and short-term investments (2) Nominal value of total debt
Balance Sheet
March 31, 2017 December 31, 2016
(unaudited) (audited)
Total Assets 467,456 475,119
Nominal Value of Total Long-Term Debt 175,834 185,663
in US$ $3,501 $3,730
Less: Unamortized Debt Discount 686 631
Total Long-Term Debt 175,148 185,032
Cash and Short-Term Investments 39,953 41,460
Net Debt (1)
135,881 144,203
Equity 110,336 108,537
Total Debt(2)
/Equity 1.59x 1.71x
Net Debt(1)
/Equity 1.23x 1.33x
Total Debt(2)
/EBITDA 2.88x 3.04x
Net Debt (1)
/EBITDA 2.23x 2.36x
Consolidated
(Php in millions)
51
Debt Profile
Interest-Bearing liabilities
(US$ in millions) 2012 2013 2014 2015 2016 1Q2017
Debt Balance 2,851 2,353 2,920 3,429 3,730 3,501
Cash and Short-Term Investments 919 735 610 1,016 833 796
Net Debt 1,932 1,618 2,310 2,413 2,897 2,706
December 31,
2016
Carrying
Value
Unamortized Debt
Discount/Debt
Issuance
Face Value(Audited)
Face Value
Debt
PLDT $2,100 $6 $2,106 $2,212 ($106)
Smart 1,388 7 1,395 1,512 (117)
DIGITEL - - - 6 (6)
Total Debt $3,488 $13 $3,501 $3,730 ($229)
Change
(US$ in millions)
March 31, 2017
52
Ave. Period End
Forex rate, 1Q 2017 50.01 50.22
Forex rate, 1Q 2016 47.26 45.99 % of Peso depreciation vs US$ 5.8% 9.2%
Foreign Exchange Risk
Forex Impact on Core Income Forex Impact of B/S Revaluation
(in US$ millions)
US$ Revenues*
US$ Expenses
Cash Opex* (49.7)
Cost of sales (4.6)
Financing costs (12.0)
US$ Income before tax
Tax effect 19.8
Core Earnings
EBITDA
* Gross of interconnection costs amounting to: 17.0
Local exchange revenues (in million Php) 2,638.3
78.0
Forex sensitivity for every P1 change Conso - net of Elim
132.3
(66.3)
66.0
46.2
Debt (net of LT hedges & ST Forwards/options)*
Accounts Payable 212.2
Accrued Liabilities 165.0
Derivative Liabilities 2.0
Other Current & Non Current Liabilities 0.1
Total US$ denominated Liabilities 1,059.1
Cash and Cash Equivalents 294.1
Short-term Investments 163.5
Trade and other receivables 167.3
Derivative Assets
Investment in Debt Securities, Advances & Others 7.2
Total US$ denominated Assets 644.0
Forex Revaluation for every P1 change
* Debt 865.5
Less: LT hedges & ST forwards/options 185.7
Debt (net of LT hedges) 679.8
Conso
679.8
11.9
±415.1
Forex sensitivity for every P1 change on B/S
Revaluation (in US$ millions)
53
Except for historical financial and operating data and other information in respect of historical matters,
the statements contained herein are “forward-looking statements” within the meaning of Section 27A of
the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of
1934, as amended. The words “believe”, “intend”, “plan”, “anticipate”, “continue”, “estimate”, “expect”,
“may”, “will” or other similar words are frequently used to indicate these forward looking statements.
Any such forward-looking statement is not a guarantee of future performance and involves a number of
known and unknown risks, uncertainties and other factors that could cause the actual performance,
financial condition or results of operation of PLDT to be materially different from any future
performance, financial condition or results of operation implied by such forward-looking statement.
Among the factors that could cause actual results to differ from the implied or expected results are
those factors discussed under “Risk Factors” in Item 3 in PLDT’s annual report on Form 20-F.
For inquiries, please contact: PLDT INVESTOR RELATIONS (632) 816-8024 pldt_ir_center@pldt.com.ph
54
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