PHI

PLDT Inc. Form 6-K Summary: Six Months Ended June 30, 2026

Business Context and Reporting Period

This filing is a Form 6-K (Report of Foreign Issuer) submitted by PLDT Inc. on August 13, 2026, covering the unaudited consolidated financial results for the six-month period ended June 30, 2026. PLDT is a leading telecommunications and digital services provider in the Philippines, operating through three primary segments: Wireless (Smart), Fixed Line (PLDT), and Others (investments in digital platforms like MIH and Kayana). The company serves approximately 68.1 million subscribers as of the reporting date.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Growth: Consolidated revenues increased by 2% (Php2,505 million) driven by higher data and voice service revenues. Wireless segment revenues grew 2%, while Fixed Line revenues declined 2%.
• Profitability Decline: Net income decreased by 6% (Php979 million) primarily due to a 4% increase in consolidated expenses (Php3,647 million) and higher other expenses (net), which offset revenue growth. Expenses were driven by higher depreciation, interconnection costs, and device costs.
• Segment Performance:
  • Wireless: Net income increased 26% to Php6,078 million, supported by a 6% rise in Adjusted EBITDA and improved margins (58%). Mobile data revenues grew 3%.
  • Fixed Line: Net income decreased 15% to Php11,645 million. Adjusted EBITDA fell 7% due to lower data service revenues and higher depreciation/amortization.
  • Others: Net income increased significantly to Php1,101 million, largely due to higher equity share in net earnings from associates (specifically MIH).
• Capital Expenditures: CapEx decreased significantly by 30% (Php10,342 million) to Php23,736 million, reflecting a reduction in network expansion spending compared to the prior year.
• Foreign Exchange: The company recorded net foreign exchange losses of Php1,365 million in 2026, compared to net gains of Php1,406 million in 2025, due to the depreciation of the Philippine Peso against the U.S. Dollar.

Guidance, Outlook, and Risks

• Regulatory Environment: The "Konektadong Pinoy Act" (KP Act) took effect in September 2025, introducing an open-access regime for data transmission and mandatory infrastructure sharing. Management monitors the potential long-term impact on competitive positioning and margins but does not expect immediate material asset impairment.
• Strategic Developments:
  • VITRO REIT: Filed for a proposed Initial Public Offering (IPO) in June 2026 to list on the Philippine Stock Exchange.
  • Radius Acquisition: Approved the acquisition of the remaining 65.1% equity interest in Radius Telecoms to achieve 100% ownership.
• Dividend Policy: The company maintains a policy of paying regular dividends based on 60% of Telco Core Income. A regular dividend of Php46.00 per share was declared for the period.
• Risks: Key risks include foreign currency exchange fluctuations (approx. 13% of debt is USD-denominated), regulatory changes under the KP Act, and competitive intensity in the telecommunications market.

Key Facts for Investor Verification

• Subscriber Growth: Total subscribers grew 2% to 68.1 million, with mobile subscribers increasing 2% and broadband subscribers increasing 9%.
• Debt Covenants: The company remains in compliance with all debt covenants, including financial ratio tests for PLDT, Smart, and VITRO.
• Accounting Revisions: Prior period comparative financial statements (2025) were revised due to an error in hedge recycling gains associated with call spread option derivatives. Management states these revisions do not materially affect key operating metrics or dividend payouts.
• Asset Impairment: Total asset impairment charges were Php1,909 million, primarily related to trade receivables.
• Investment in Associates: Significant equity share in net earnings from MIH (Maya Innovations Holdings) contributed positively to the "Others" segment performance.