Price shocks and weaker consumer spending are pushing PLDT Inc. to rely more on fintech, enterprise ICT and fixed wireless growth to cushion softer telecom operations.
Core income still rose 2 percent to P9.1 billion even as earnings from PLDT’s core telecom business slipped 2 percent, with Maya, enterprise services and asset sales offsetting pressure from legacy businesses and cautious consumer spending.
Gross service revenues climbed 3 percent to P54.9 billion, with data and broadband now making up 86 percent of revenues as traditional voice and other legacy segments continued shrinking.
“While we see the challenges, we’re management. We’re not allowed to use these challenges as an excuse,” PLDT chief operating officer Menardo "Butch" Jimenez Jr. said during a media briefing on Thursday.
“We’re quite optimistic or positive that it will not affect us as much as it may be affecting or as much as the industry might think we will get affected,” he added.
Wireless becomes pressure point
Consumer weakness is becoming most visible in wireless, where prepaid subscribers can easily reduce spending as fuel and living costs rise.
“[Wireless] is the slippery slope because as you know, the wireless business is predominantly prepaid. And because of that, the subscriber has the ability to load or not load. And so if they’re getting hit because of the macroeconomic circumstances that they’re experiencing, then the loading will probably become lower,” Jimenez said.
Wireless consumer revenues were down 1 percent to P21 billion, although mobile data and fixed wireless revenues still rose to P19.4 billion as demand for connectivity remained resilient.
Fixed wireless revenues also jumped 18 percent, reinforcing its role as a lower-cost alternative for households seeking prepaid home internet connectivity.
Maya and enterprise offset slowdown
Enterprise revenues rose 4 percent to P12.4 billion as businesses increased spending on cloud, AI and managed IT services, highlighting PLDT’s broader shift toward digital infrastructure beyond traditional telecom.
“Definitely enterprise is going to be leading the growth for us,” Jimenez said.
Maya meanwhile contributed P285 million in the first quarter, already equivalent to around 40 percent of its full-year 2025 contribution.
Maya deposits surged 73 percent to P76 billion while its loan book expanded to P33 billion.
PLDT also continued expanding AI-ready data centers and monetizing non-core assets, including property sales, to support cash flow.
Home recovery and cash flow stay in focus
Home revenues edged down 1 percent to P15 billion after PLDT’s migration to a new cloud-based operating system temporarily slowed fiber installations and subscriber additions in the quarter.
The system migration has stabilized, with activations recovering close to pre-migration levels by early May.
“So clearly we are on the path to growth in 2026. Innovations that we want to put in clearly should lead to better customer experience. Our customer has been clamoring for better service,” said John Palanca, head of consumer business home.
Capital spending fell to P10 billion in the quarter as PLDT tightened investment discipline while continuing to fund 5G, fiber and enterprise infrastructure expansion.
The company maintained positive free cash flow and said it expects full-year capital expenditures to remain within the mid-P50-billion range while maintaining its 60 percent dividend payout policy.
—Edited by Miguel R. Camus
