PLDT expects mid-single-digit growth in 2023, slashes capex

CEBU, Philippines — The PLDT Group is looking at mid-single-digit growth in revenue for 2023, calibrating a capital expenditure between P80 billion to P85 billion.

PLDT and Smart president and chief executive officer (CEO) Alfredo S. Panlilio made this pronouncement during the company’s national virtual press briefing, as the company reported all-time high Service revenues (net of interconnection costs) of P190.1 billion in 2022, up four percent compared with a year ago.

In the fourth quarter of 2022, Consolidated Service Revenues grew by four percent, or P2.0 billion to P48.2 billion, compared with the same period last year.

“We breached P100 billion in EBITDA for the first time in 2022, and we will only continue to grow from there. We are looking to increase our revenues by mid-single digits and Capex will recalibrate to between P80-85 billion,” Panlilio said.

PLDT Chairman Manuel V Pangilinan emphasized that these targets can only be achieved by improving the company’s processes and controls and looking at digital businesses that can enhance the value of PLDT.

“2022 demanded practically everything that we had. Despite the adversities, I remain convinced that PLDT will not only survive but thrive; our core business is strong; and our people endured, inspired by our singular mission of safeguarding and enhancing shareholder value. As we approach PLDT’s 100th year, we forge ahead in pursuit of the Group’s North Star—enabling a digital life for every Filipino and improving lives,” said Pangilinan.

Consolidated EBITDA  (earnings before interests, taxes, depreciation, and amortization) also reached an all-time high, growing four percent year-on-year to P100.5 billion, excluding Manpower Rightsizing Program expenses of P5.0 billion, driven by higher service revenues. This marks the first time the company breached the P100-billion mark. EBITDA margin was at 51 percent in 2022.

Data and broadband, which grew by nine percent or P12.7 billion to P152.5 billion, contributed 80 percent of Consolidated Service Revenues.

“Our core business remains to be sound, and continues to show solid EBITDA numbers,” said Panlilio.

Driven by sustained execution in serving strong market demand, Home’s fiber-only service revenues grew by 45 percent, or P15 billion, from P33.5 billion to a record ?48.5 billion, capturing 59 percent of the total Fiber industry growth in 2022.

This brought total Home revenues to an all-time high of P57.4 billion for the full year 2022, up P9.6 billion, or 20 percent, marking the second consecutive year of double-digit revenue growth for the segment.

Despite multiple challenges in 2022, PLDT Home installed a total of 1.1 million new fiber customers and migrated 0.1 million customers to fiber for the full year 2022. Noting the continued growth of the Home business.

“We are looking to consolidate the broadband market, which has been our growth pillar for the past two years while strengthening our position,” added Panlilio.

As of end-2022, PLDT had deployed 1.5 million fiber ports nationwide, bringing the total number of fiber ports to 6.08 million covering around 17,700 barangays. Port utilization for the year was at 60 percent.

PLDT’s Individual Wireless segment posted P82 billion in revenues in 2022, driven by a two percent growth in Data Revenues. Individual Wireless revenues however declined by five percent.

Faced with even higher inflation and tighter competition in the fourth quarter, the Individual Wireless segment registered P20.4 billion in revenues in the fourth quarter of 2022, steady versus the third quarter, buoyed by more competitive flagship offers and promos that were able to ride the Christmas uplift such as Power All and Double Giga, while at the same time leveraging promise to bring joy to Filipinos.

PLDT Home’s fiber subscribers as of end-December 2022 stood at 2.9 million, with 514,000 net additions for the year, capturing 59 percent of Fiber customer industry growth for 2022. Fiber-only revenues accounted for 84 percent of total Home revenues, up 70 percent compared with a year ago.