Pldt Inc. Sees Lower 2026 Core Profit On Economic Headwinds

PANGILINAN-LED PLDT Inc. expects its telecommunications core income to decline this year amid economic uncertainties, as its third-quarter (Q3) attributable net income fell 15.4% to P5.23 billion from P6.18 billion a year earlier.

PLDT Chief Financial Adviser Stanley H. Yang said the company’s full-year earnings would likely remain below last year’s level, following a 6.2% decline in telco core income during the first nine months of 2026.

“We have not had our guidance yet but as you have seen from the nine-month results, our telco core is down by about 6%. So, it will be down from last year for sure,” Mr. Yang said during the company’s financial briefing on Thursday.

He said December, traditionally one of PLDT’s strongest months, could provide some relief, although the company still expects weaker full-year earnings.

For the July-to-September period, PLDT’s consolidated revenues increased 0.9% to P54.20 billion from P53.69 billion a year earlier, according to its quarterly financial results released on Thursday.

Expenses rose 0.6% to P42.62 billion from P42.38 billion, while net other expenses increased to P4.75 billion from P3.27 billion.

For the first nine months of 2026, PLDT’s attributable net income declined 8.4% to P21.67 billion from P23.65 billion in the same period last year, as higher depreciation and other expenses weighed on earnings.

Telco core income, which excludes certain nonrecurring items and the impact of Maya Innovations Holdings, fell 6.2% to P23.48 billion from P25.02 billion a year earlier.

Consolidated core income, which includes the contribution from Maya, declined 4.5% to P24.43 billion from P25.58 billion.

“We managed to grow revenues in a tough market, a tougher environment. We obviously have a lot of work ahead of us. We’ve invested in our network, our technology, and our people. Now we need to turn those investments into better service for our customers and stronger growth for the business,” PLDT and Smart Communications, Inc. Chairman and Chief Executive Officer Manuel V. Pangilinan said.

PLDT’s consolidated revenues for the January-to-September period rose 1.8% to P166.21 billion from P163.19 billion a year earlier.

Service revenues accounted for P161.25 billion, while nonservice revenues reached P4.96 billion.

Wireless consumer revenues grew 1% to P63.5 billion, while the home and enterprise businesses generated P44.8 billion and P37.2 billion, respectively.

The wireless consumer business returned to growth in the third quarter, posting P21.5 billion in revenues, up 3% year on year, following a largely flat first half.

Enterprise net service revenues increased 4% to P37.2 billion in the first nine months, supported by higher usage of wireless services, international connectivity, and data center services.

Excluding legacy services, enterprise revenues grew 8% to P31.2 billion.

PLDT’s information and communications technology business recorded 6% revenue growth, supported by demand for cloud, data, artificial intelligence, and data center services.

Meanwhile, consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 1% to P83.22 billion from P82.52 billion, with the EBITDA margin unchanged at 52%.

However, consolidated expenses rose 3.1% to P127.50 billion from P123.62 billion a year earlier.

General operating expenses reached P56.42 billion, while depreciation and amortization increased to P43.49 billion from P41.82 billion.

PLDT reduced capital expenditures by 15% to P36.6 billion from P43 billion a year earlier, while maintaining positive free cash flow.

Consolidated net debt stood at P285.6 billion as of end-September, down from P287.3 billion at end-June.

VITRO PLANS
Meanwhile, Mr. Pangilinan said PLDT is still considering a potential strategic partnership for its data center business, even as the company reassesses the timing of its planned real estate investment trust (REIT) listing.

In October, PLDT deferred the planned initial public offering (IPO) of VITRO REIT, Inc. to 2027, citing market conditions and rising interest rates.

Mr. Pangilinan said he continues to favor the REIT structure but acknowledged the need to assess its financing implications.

“It’s a yield game. It is a debt game when you look down at it. The yield to the investors will be higher than the borrowing cost of PLDT,” he said.

VITRO, the data center business of PLDT subsidiary ePLDT, Inc., operates 11 data centers nationwide with a combined capacity of nearly 100 megawatts.

The proposed REIT offering seeks to raise up to P24.2 billion through the sale of 1.91 billion secondary common shares, with an overallotment option of 286.96 million shares, at an offer price of up to P11 apiece.

Proceeds from the offering are intended to support debt reduction and the company’s reinvestment commitments under REIT regulations.

PLDT said its VITRO data center portfolio recorded 11% revenue growth in the first nine months, supported by higher colocation and connectivity revenues.

The company expects to have 44 MW of available information technology power capacity by yearend to serve demand from enterprises, hyperscale operators, and artificial intelligence applications.

At the local bourse on Thursday, PLDT shares fell P30, or 2.69%, to close at P1,084 apiece.

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose