This article first appeared on GuruFocus .
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Gross Service Revenues:Grew 2% to PHP108.7 billion for the first half of 2026.
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Service Revenues (net of interconnection costs):Increased 1% to PHP97.8 billion.
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EBITDA:Reached PHP56.1 billion, marking the fifth consecutive semester of growth, with a stable 52% margin.
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Cash OpEx, Subsidies, and Provisions:Broadly flat at PHP41.7 billion.
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Telco Core Income:Declined 2% to PHP16.6 billion.
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Core Income:Stabilized at PHP17.3 billion, supported by stable financing costs, Maya's contribution, and asset sales.
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Reported Income:PHP16.4 billion, down 6% year on year.
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Wireless Revenues:Broadly stable at PHP42.1 billion, with data and fixed wireless access revenues growing 2% to PHP38.7 billion.
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Home Revenues:PHP30 billion, down 1%, with fiber revenues also down 1% at PHP29.4 billion.
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Enterprise Revenues:Increased 5% to PHP24.8 billion, with corporate data and ICT revenues growing 5% to PHP18.4 billion.
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ICT Revenues:Increased 22% in the first half, led by 35% growth in tech services.
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CapEx:PHP20.7 billion for the first half, down from PHP27.4 billion last year, bringing CapEx intensity down to 19% of service revenues from 26%.
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Net Debt:Stood at PHP287.3 billion at the end of June, with net debt to EBITDA at 2.57 times.
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Dividend:Board declared an interim cash dividend of PHP46 per share for the first half of 2026.
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Maya Contribution:PLDT's share of Maya's core income reached PHP559 million for the first half, compared with PHP406 million last year.
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Wireless revenue trends improved through Q2, with monthly year-on-year top-ups turning positive in June and continuing to grow in July and August.
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Enterprise remains the strongest growth driver, with revenues up 5% and ICT revenues surging 22%, led by a 35% increase in tech services.
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EBITDA reached PHP56.1 billion in the first half, marking the fifth consecutive semester of growth, with a stable 52% margin.
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CapEx intensity declined significantly to 19% of service revenues from 26% a year ago, supporting positive free cash flow and deleveraging.
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Maya continues to scale profitably, with deposits up 71% and loans up 56% year-on-year, contributing positively to PLDT's core income.
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VITRO Data Center revenues grew 13%, and the planned REIT listing is expected to unlock value and reduce net debt-to-EBITDA to approximately 2.4 times.
Negative Points
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Consolidated service revenues grew only 1%, tempered by softer consumer spending in wireless and the lag impact of Q1 installation constraints in home.
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Home revenues declined 1% due to the OSS migration disruption, with a 3-4 month lag before new installations translate into revenue.
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Telco core income declined 2% year-on-year, weighed down by a 6% increase in depreciation and amortization from past network investments.
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Reported income fell 6% year-on-year, impacted by losses in foreign exchange and derivatives, which moved from a net gain to a net loss.
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Mobile subscriber churn increased across all segments, partly due to a cleanup of inactive subscribers, though this was not demand-driven.
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Competitive pressure in broadband is rising, with competitors focusing on low-ARPU prepaid fiber, while PLDT's postpaid-heavy model faces a revenue lag.
Q & A Highlights
Q: How are you seeing July and early August trends in mobile top-ups, and do you view the improvement as a structural recovery in consumer spending or simply a response to price and offer changes? A: Orlando Vea, President and CEO of PLDT Communications and Energy Ventures Inc, stated that July top-ups were roughly plus 3%, with August trending between 2% and 3%. He attributed the improvement to a mix of factors: roughly half of the recovery (from minus 2% to flat) was driven by structural improvements like lower gasoline and diesel prices, while the additional growth (from flat to plus 2-3%) was driven by PLDT's marketing interventions and hyper-personalized offers.
Q: Given that installations and postpaid net-adds have turned positive in May, should we expect the revenue inflection for the Home business to become visible around August or September, or is there a longer lag from the OSS disruption? A: John Palanca, SVP and Head of Consumer Home Business, said the company is encouraged by leading indicators, including installation rates returning to pre-disruption levels, improved conversion rates, and lower churn. He noted that these factors will compound the installed revenue base month-over-month, and while he expects to see the impact "sooner than later," he emphasized that the positive net-adds, particularly in the higher-ARPU postpaid segment, should drive improvements for the balance of the year and into next year.
Q: Can management provide an update on the proposed VITRO REIT transaction, and why is it the right time to list from both PLDT's and VITRO's perspectives? A: Victor Emmanuel S. Genuino, First Vice President, confirmed the target for a Q4 listing, subject to market conditions, noting that cornerstone roadshows have generated very positive interest. From VITRO's perspective, it is a good time to capitalize on 25 years of experience and its position as the largest data center platform in the Philippines. From PLDT's perspective, the REIT listing offers investors an attractive dividend-yield vehicle, while proceeds would help deleverage the balance sheet, potentially improving net debt-to-EBITDA from 2.6 times to approximately 2.4 times.
Q: How much is CapEx spend in the first half of 2026, is guidance for 2026 still in the mid-PHP50 billion range, and what is the CapEx guidance for 2027? A: The company representative confirmed first-half CapEx was PHP20.7 billion, down from PHP27.4 billion last year, bringing CapEx intensity down to 19% of service revenues from 26%. Full-year guidance remains in the mid-PHP50 billion range, with an expected increase in the second half to support network investments. For 2027, it is premature to give specific guidance, but the company aims to continue reducing CapEx intensity while maintaining discipline and focusing on return on invested capital.
Q: Mobile subscribers saw churn across all segments this quarter. Are you seeing more aggressive pricing from competitors, or is it a case of subscribers self-selecting into lower-priced providers amid inflation? A: The company representative clarified that the churn was not driven by subscribers leaving for competitors, but rather a deliberate cleanup of the subscriber base. PLDT removed subscribers who were not generating meaningful revenue and were merely consuming network resources, which is a strategic move to improve the quality of the subscriber base.
Q: Would you say that the growth in depreciation, despite tempered CapEx in the past few quarters, is related to old 4G investments becoming outdated as you migrate to 5G? How long do you expect depreciation growth to remain elevated? A: The company representative explained that the 2026 depreciation increase reflects prioritized network and digital investments in fiber and wireless expansion, capacity, and resilience upgrades. Additionally, IFRS 16 leaseback network investments are contributing to higher right-of-use depreciation. The company aims to sustain CapEx intensity improvements through tighter prioritization and disciplined execution.
Q: On mobile, your competitor showed stronger growth. Anything you think you are doing differently? A: The company representative acknowledged two key differences: PLDT is focusing its network rollouts on 5G, while the competitor has better reach in hyper-personalization due to its partnership with GCash. To counter this, PLDT plans to extend its hyper-personalization capabilities beyond its own apps and SMS to include partnerships with wallets and social media providers, which should enhance marketing efforts and subscriber acquisition.
Q: How would you characterize the competitive landscape in broadband, given that one competitor accelerated revenue growth while others slowed? A: Menardo Jimenez, COO, stated that PLDT remains the clear leader in the high-value fiber or premium market, with the highest ARPU, lowest churn, and 52% of the postpaid fiber market. He noted that industry growth headlines have been driven disproportionately by the low-ARPU prepaid fiber segment, where competitors are acquiring customers. PLDT Home's fundamentals turned positive in Q2, and the company will focus on driving this momentum while building prepaid as a potential growth engine, without sacrificing economics.
Q: Is there scope to increase the dividend payout ratio despite the focus on deleveraging? A: The company representative confirmed that the current focus remains on the 60% core income payout ratio, and that this is still the intent and plan of the group for now.
Q: With regards to the copper assets, is there an update on the timeline, and are you seeing a more favorable environment to sell these assets? A: The company representative stated that discussions are ongoing to sell copper from legacy assets. The environment is favorable, as copper spot prices have increased to around USD 6.50 per pound, which helps in pricing negotiations. Appropriate disclosures will be made when and if a transaction is completed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
