PLDT Q1 2022 Consolidated Service Revenues Rise To ₱46.4B, A New All-Time High

Committed to supporting customers’ shifting digital lifestyles as COVID-19 restrictions ease, PLDT Inc. (PSE: TEL) (NYSE: PHI) (PLDT) grew Consolidated Service Revenues (net of interconnection costs) by 3% or ₱1.5 billion to an all-time high of ₱46.4 billion in the first quarter of 2022, led by Home and Enterprise. Data and broadband, which grew by 8% or ₱2.8 billion to ₱36.6 billion, contributed 79% to consolidated service revenues.

Photo Insert: The positive results were led by Home and Enterprise. Data and broadband, which grew by 8% or ₱2.8 billion to ₱36.6 billion, contributed 79% to consolidated service revenues.

Consolidated EBITDA also grew 10% or ₱2.2 billion year-on-year to a record ₱25.5 billion, marking seven (7) consecutive quarters of growth. EBITDA margin was at 53% in the first quarter of 2022, from 51% in the previous year. Normalized for the impact of Typhoon Odette, EBITDA for the first quarter of 2022 would have been higher by 12% year-on-year to ₱26.1 billion.

Telco Core Income, excluding the impact of asset sales and Voyager Innovations, reached ₱8.2 billion, up 9% or ₱0.7 billion from the same period last year, in line with guidance. Reported Net Income jumped by ₱3.3 billion or 56% to ₱9.1 billion.

“We’re moving in lockstep with our customers’ shifting needs as COVID-19 restrictions ease. Our superior, reliable integrated network continues to sustain hybrid work and learning set-ups, keep loved ones connected online, deliver entertainment content, as well as support businesses and e-commerce,” said Alfredo S. Panlilio, PLDT and Smart President and CEO.

Consolidated Net Debt as of the first quarter of 2022 amounted to US$4,424 million while net-debt-to-EBITDA stood at 2.33x. Gross Debt was at US$4,997 million, with maturities well spread out. Only 16% of Gross Debt is denominated in US dollars and 4% is unhedged. PLDT maintained its credit ratings from Moody’s and S&P Global at investment grade.

Affirming the Company’s balanced approach to capital management and consistent returns to shareholders, PLDT has been included in the recently launched PSE Dividend Yield Index (PSE DivY). Out of 20 companies included in the PSE DivY, PLDT shares the top position with a weight of 10%.

The PSE DivY focuses on companies that consistently give high-yielding dividends, with the selection criteria including liquidity, free float, financials, and the company’s three-year average dividend yield performance.

In a groundbreaking transaction, the PLDT Group recently announced a ₱77 billion sale and leaseback deal in connection with 5,907 telecom towers and related passive telecom infrastructure - the largest-ever acquisition of assets in the Philippines by international investors, representing a strong endorsement of the country’s recovery from the pandemic and its long-term growth prospects.

PLDT envisions a staggered closing for this transaction due to the quantum of towers to be transferred; the first closing is expected towards the end of May for about half of the towers, with the balance over the third and fourth quarters of the year.

The terms of the lease agreements are in line with running costs for Smart. Proceeds from the transaction are to be deployed largely for debt prepayment and debt avoidance which will translate to reduced financing costs. As a result, we expect earnings accretion of 10% post-completion, in addition to the one-time significant gain on disposal to be recognized.

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