PLDT (NYSE:PHI) reported full-year 2025 results showing modest revenue growth, stable profitability, lower capital spending, and a swing to full-year profitability at its fintech unit Maya, according to management’s remarks during the company’s year-end briefing.
Revenue mix shifts toward data, fiber, and ICT
Chief Financial Officer Danny Yu said gross service revenues rose 2% to PHP 212.2 billion, while net service revenues reached a record PHP 196.2 billion. Consolidated service revenues were also cited at PHP 196.2 billion, up 1% year-over-year. Yu added that if legacy services were excluded, revenue would have grown 3% to PHP 176.9 billion, representing about 90% of total service revenues versus 88% a year earlier.
- Wireless: Mobile data and fixed wireless revenue totaled PHP 77.2 billion, up 1%, accounting for 91% of wireless revenues versus 89% last year. Wireless consumer revenue was PHP 85 billion, flat year-over-year.
- Home: Fiber revenue increased 6% to PHP 59.4 billion and represented 98% of Home revenues versus 92% a year ago. Total Home revenue hit an all-time high of PHP 61.0 billion, up 3%.
- Enterprise: Corporate data and ICT rose 3% to PHP 36.3 billion, representing 75% of Enterprise revenues versus 72% last year. ICT revenue alone was up 25%, and total Enterprise revenue reached a record PHP 48.4 billion.
Fourth-quarter momentum, with weather disruptions impacting Home
Yu said results strengthened in the fourth quarter versus the third quarter, with consolidated service revenue of PHP 50.3 billion, up 3% quarter-on-quarter. Wireless consumer revenue rose 4% to PHP 21.8 billion, and Enterprise revenue increased 5% to PHP 12.7 billion.
Home revenue was flat quarter-on-quarter, which Yu attributed to “multiple major calamities” in the fourth quarter—including two earthquakes and four super typhoons—that affected installation activity as resources were diverted to repair and restoration.
In response to investor questions, PLDT Home head John Palanca said the second half of 2025 was “ridden with calamities,” describing a shift from wind-driven damage to flooding, which required more in-home repair work such as replacing wires and modems. Palanca said 293,000 PLDT homes were affected, and the company retained 73% of those customers while continuing work with the remaining 68,000. On ARPU, he said the environment was more price-sensitive and entry-level tiers were driving growth, while demand remained stable for mid- to high-tier postpaid plans. He described the ARPU movement as portfolio mix optimization rather than structural price erosion, and said prepaid participation would be selective and return-driven.
Palanca also explained why Home revenue grew 3% while fiber grew 6%, pointing to a decline in legacy services. He said legacy Home services fell from PHP 3.2 billion in 2024 to PHP 1.5 billion in 2025, creating a drag despite fiber growth.
Wireless strategy: hyper-personalization, 5G adoption, and fixed wireless
Management said the wireless consumer business held steady in a highly competitive market, with emphasis on streamlined offers, customer management, and network quality. The company cited sequential ARPU improvement, with Smart Prepaid ARPU up 4% quarter-on-quarter and TNT up 3% quarter-on-quarter.
Operational indicators shared on the call included:
- Mobile data traffic grew 7% to 5,900 petabytes in 2025, with active data users reaching 43.2 million at year-end.
- 5G device count rose 35% to 11.2 million, while 5G data traffic increased 88%. 5G devices represented 19% of the total base.
- Fixed wireless access revenue increased 22% year-on-year, supported by migration from 4G to 5G fixed wireless.
In Q&A, executives attributed fourth-quarter wireless growth to hyper-personalized offers that enabled upselling and higher ARPUs, as well as higher gross activations (described as up roughly 10% to 15%) with churn holding firm. Lloyd Manaloto said roughly 40 million subscribers had provided consent to be targeted under PLDT’s customer data management capabilities, and management was aiming for a further 2% ARPU uplift. Executives also cited improved network resiliency during natural disasters and seasonal demand patterns as contributors to fourth-quarter performance.
Enterprise and data centers: ICT growth and VITRO’s utilization
PLDT said Enterprise returned to growth, led by ICT. Yu cited full-year ICT revenue growth of 25%, driven by managed IT services (up 211%) and data center colocation (up 15%). In the fourth quarter, ICT revenue was up 19% year-on-year and 15% quarter-on-quarter, supported by contract wins and improved delivery momentum.
Enterprise head Blums Pineda said the second-half momentum reflected a mix of large wins and recurring revenue. He cited the national emergency 911 contract as a “big” win, with part of it beginning to contribute in the fourth quarter and expected to deliver recurring revenues in 2026. He said the mix includes one-off items as well as services that generate monthly recurring charges in connectivity and managed IT services.
Management also discussed VITRO and its AI-related offerings. Yu said VITRO launched the country’s first operational hyperscale facility in April 2025 (VITRO Santa Rosa), designed for enterprise, hyperscalers, and public sector workloads, and that it hosts live NVIDIA GPU servers powering PLDT’s ASTAP solutions. The company said demand remained steady, with colocation up 36% supported by a 19% increase in rack deployments.
On capacity, executives said PLDT has nine data centers. The eight older sites across locations including Clark, Metro Manila, Pasig, Cebu, and Davao were described as having utilization “close to 80%.” For VITRO Santa Rosa, management said that out of 36 megawatts of total capacity, 6 megawatts had been sold to date, and additional workloads could follow if government issues policy related to data sovereignty and localization.
Profitability, cash flow, leverage, and dividends
Yu said cash operating expenses, subsidies, and provisions fell 1% to PHP 84.9 billion, with key savings in compensation and benefits (down 6%) and selling and promotions (down 9%). Provisions and subsidies were also lower, though repairs and maintenance rose amid network rollout and upkeep, and contract-specific services increased with the wrap-up of ICT projects.
EBITDA excluding MRP costs rose 3% to PHP 111.2 billion, with EBITDA margins steady at 52%. Telco core income was PHP 33.9 billion, down 3%, which management attributed to higher depreciation and financing costs tied to ongoing investment. Core income improved 1% to PHP 34.6 billion, supported by Maya’s profitability. Yu also cited reported income of PHP 30.0 billion, down 7%, reflecting lower foreign exchange and derivative gains.
CapEx fell to PHP 60.3 billion from PHP 78.2 billion in 2024, and management guided 2026 CapEx in the mid-PHP 50 billion range. Executives said the company sustained positive free cash flow through end-2025 and intended to maintain it in 2026 through moderated CapEx and asset monetization initiatives.
On leverage, Yu reported net debt of PHP 284.7 billion and net debt-to-EBITDA of 2.56x, with a long-dated maturity profile (49% of maturities post-2031) and interest cover of 3.3x. He said PLDT’s focus was to maintain positive free cash flow in 2026 and work toward around 2.0x net debt-to-EBITDA, supported by asset monetization plans.
For shareholders, management said total dividends for 2025 were PHP 94 per share and that a final dividend of PHP 46 per share was declared. The company also cited a 12-month trading dividend yield of 8% as of end-2025.
During closing remarks, Chairman and CEO Manuel V. Pangilinan provided a cash flow framework for 2026 based on maintaining 2025 EBITDA, CapEx around PHP 55 billion, interest expense around PHP 17 billion, and taxes around PHP 7 billion. He said this would imply free cash flow available for dividends of about PHP 32 billion, with dividends “probably” around PHP 21 billion to PHP 22 billion, and potential debt reduction of at least PHP 10 billion in the second half of 2026.
Pangilinan also said Maya was likely to improve profit performance in 2026 versus 2025, and noted that at KKR’s initiative, banks had been engaged to conduct a market scan on whether an IPO could be possible in 2026 or 2027. He said timing was uncertain and any movement would likely be in the second half of the year and could extend into 2027. Earlier in the call, executives said they could not comment on press reports about a Maya IPO, but later acknowledged discussions around potential terms, size, and timing.
About PLDT (NYSE:PHI)
Philippine Long Distance Telephone Company (PLDT) is the largest integrated telecommunications provider in the Philippines, offering a comprehensive suite of fixed‐line, wireless, broadband Internet, and digital solutions to residential, enterprise, and government customers. Founded in 1928, PLDT has played a pivotal role in the development of the country’s communications infrastructure, evolving from a traditional operator of long‐distance telephone lines into a diversified digital services provider.
PLDT operates two main business segments: its fixed‐line and broadband operations under the PLDT brand and its wireless services through subsidiary Smart Communications.
