PLDT first-half telco core income slips 2% on softer operations

Insider Spotlight

• PLDT’s telco core income fell 2 percent to P16.6 billion in the first half.
• Higher depreciation and amortization and softer telco operations weighed on earnings.
• Core income stayed broadly flat at P17.33 billion, helped by Maya’s profitability.
• Service revenues rose 2 percent to P108.73 billion, while EBITDA gained 1 percent.
• Management expects business momentum to improve in the second half.
  
  
  
  

PLDT Inc.’s telco core income slipped 2 percent to P16.60 billion in the first half from P17.01 billion a year earlier as higher depreciation and amortization and softer telecommunications operations weighed on earnings.

Why it matters

The decline showed that modest top-line growth has yet to translate into stronger underlying earnings at PLDT’s main telecommunications business.

In its disclosure to the bourse on Thursday, Aug. 13, 2026, the firm said service revenues rose 2 percent to P108.73 billion, while net service revenues after interconnection costs increased just 1 percent to P97.77 billion.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) nevertheless gained 1 percent to P56.05 billion, keeping its margin steady at 52 percent.

Pressure points

Depreciation and amortization climbed 9 percent to P28.55 billion, while interconnection costs jumped 19 percent to P10.96 billion.

Total expenses rose 4 percent to P84.88 billion, faster than the 2 percent increase in total revenues to P112.01 billion.

Attributable net income consequently fell 6 percent to P16.45 billion, while income before tax declined 7 percent to P21.28 billion.

The offset

Overall core income was broadly unchanged at P17.33 billion, partly supported by Maya’s sustained profitability.

Enterprise provided another growth engine, with revenues rising 5 percent to P24.80 billion as information and communications technology revenues surged 22 percent.

Wireless consumer revenues were broadly flat at P42.10 billion, although data revenues grew 2 percent and fixed wireless access revenues jumped 21 percent. Home fiber revenues were broadly stable at P29.40 billion.

Cash check

PLDT reduced capital expenditure to P20.70 billion from P27.40 billion and sustained positive free cash flow. Net debt stood at P287.30 billion, with net debt-to-EBITDA at 2.6 times.

What’s next

“Growth remains measured, but we are optimistic that the second half of the year will be better, as we build on our momentum and focus on executing with discipline,” PLDT and Smart chair and CEO Manuel Pangilinan said.

Improving wireless top-ups, enterprise growth and Maya’s profitability could help counter continued pressure on the core telco business.

— Edited by Daxim L. Lucas