PLDT (NYSE:PHI) Releases Quarterly Earnings Results

Key Points

• PLDT delivered mixed quarterly results: earnings per share came in at $0.61, below the $0.66 analyst consensus, while revenue of $903.22 million exceeded estimates of $880.27 million. First-half service revenue and EBITDA increased, but core and reported income declined amid higher depreciation and foreign-exchange losses.
• Operating momentum improved across key businesses. Wireless top-ups returned to growth, fiber additions more than doubled sequentially, and enterprise revenue rose 5%, led by 22% growth in ICT and 35% growth in technology services.
• Cost and capital measures may support deleveraging. First-half capital spending fell to PHP 20.7 billion, while a potential Vitro REIT transaction could generate slightly more than PHP 12 billion for debt repayment; analysts maintain an overall “Hold” rating.

PLDT (NYSE:PHI - Get Free Report) released its quarterly earnings results on Thursday. The technology company reported $0.61 earnings per share for the quarter, missing analysts' consensus estimates of $0.66 by ($0.05), FiscalAI reports. The company had revenue of $903.22 million during the quarter, compared to analyst estimates of $880.27 million. PLDT had a net margin of 13.62% and a return on equity of 27.37%.

Here are the key takeaways from PLDT's conference call:

• PLDT maintained resilience but reported mixed earnings. First-half service revenue rose 1% to PHP 97.8 billion and EBITDA reached PHP 56.1 billion with a 52% margin, while telco core income fell 2% to PHP 16.6 billion and reported income declined 6% amid higher depreciation and foreign-exchange losses.
• Wireless trends improved materially during the quarter. Monthly top-ups moved from negative 3% in March to positive 1% in June, approximately positive 3% in July and 2%–3% in August, supported by selective price increases, personalized offers and strong network performance.
• Home operating indicators began recovering after first-quarter installation constraints. Fiber net additions more than doubled sequentially to 97,000 in the second quarter, postpaid net adds turned positive in May, and churn remained low, although revenue improvement is expected to lag the installation recovery by several months.
• Enterprise remained the strongest growth engine. Revenue increased 5%, ICT revenue rose 22% and tech services grew 35%, while Vitro data-center revenue climbed 13% with activated capacity potentially expanding from 34 megawatts to 62.4 megawatts.
• Lower capital spending and potential asset monetization support deleveraging. First-half CapEx fell to PHP 20.7 billion from PHP 27.4 billion, full-year guidance remains in the mid-PHP 50 billion range, and a potential Vitro REIT transaction could provide slightly over PHP 12 billion for debt repayment, reducing net debt-to-EBITDA from about 2.6 times to approximately 2.4 times.

PLDT Stock Performance

Shares of PHI traded down $0.11 on Thursday, reaching $19.50. 53,239 shares of the stock traded hands, compared to its average volume of 136,613. The stock's 50-day moving average price is $18.68 and its 200-day moving average price is $20.48. The company has a debt-to-equity ratio of 2.10, a current ratio of 0.42 and a quick ratio of 0.40. The firm has a market cap of $4.21 billion, a price-to-earnings ratio of 8.13, a P/E/G ratio of 2.89 and a beta of 0.60. PLDT has a 12 month low of $17.05 and a 12 month high of $24.51.

Institutional Investors Weigh In On PLDT

Institutional investors and hedge funds have recently bought and sold shares of the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in PLDT in the fourth quarter worth about $26,000. Arax Advisory Partners increased its position in PLDT by 429.4% in the 4th quarter. Arax Advisory Partners now owns 1,710 shares of the technology company's stock valued at $37,000 after acquiring an additional 1,387 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of PLDT by 155.1% in the second quarter. EverSource Wealth Advisors LLC now owns 3,069 shares of the technology company's stock worth $67,000 after acquiring an additional 1,866 shares during the last quarter. Quadrant Capital Group LLC acquired a new position in shares of PLDT during the third quarter worth approximately $78,000. Finally, Evergreen Capital Management LLC bought a new stake in shares of PLDT during the second quarter valued at approximately $201,000. Institutional investors own 2.26% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Zacks Research raised PLDT from a "strong sell" rating to a "hold" rating in a research note on Monday, July 20th. TD Cowen reiterated a "hold" rating on shares of PLDT in a report on Thursday. Finally, Weiss Ratings cut shares of PLDT from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, June 3rd. Four equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of "Hold".

PLDT Company Profile

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.

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