PLDT Inc. Reported a PHP 26.6 Billion Net Income in 2023, Up 154%

Despite an increasingly difficult macroeconomic environment, PLDT Inc. (PLDT) stated that its Gross Service Revenues increased by 3%, or P6.5 billion, to P201.8 billion, while Consolidated Service Revenues (net of interconnect costs) increased by 1%, or P2.2 billion, to a record P191.4 billion in 2023. Excluding sales from legacy operations, data and data-related net service revenues increased by 6% year on year.

Data and broadband, which increased by 4% or P5.9 billion to P157.6 billion, accounted for 82% of total service revenues.

“PLDT is aiming not just for higher profits but to return PLDT and Smart to their premier positions, where they rightfully belong. This requires a commitment to excellence all around—encompassing the quality of our network, the efficiency of our installations and repairs, the innovations we pursue and the speed of our services,” said Manuel V Pangilinan, PLDT and Smart Chairman and CEO.
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Consolidated EBITDA increased by 4%, or P3.7 billion, year on year to a record P104.3 billion in 2023, also an all-time high, driven by stronger revenues and lower operating expenses. EBITDA margin was 52% over time.

Telco Core Income, excluding the impact of asset sales and Maya Innovations Holdings (previously Voyager Innovations Holdings), was P34.3 billion, up 3%, or P1 billion, from the previous year, exceeding expectations.

Reported net income increased by 154% to P26.6 billion in 2023 from the previous year.

As of the end of December, consolidated net debt totaled P239.8 billion, with a net debt-to-EBITDA ratio of 2.30x. Gross debt stood at P256.9 billion, with maturities evenly dispersed. Only 16% of Gross Debt is denominated in US dollars, with 5% unhedged. Moody's and S&P Global maintained their investment grade credit ratings for PLDT.

In accordance with PLDT's dividend policy of paying out 60% of core earnings, a final cash dividend of P46 per share would be paid on April 5 to stockholders on record as of March 21. An intermediate dividend of P49 per share was paid in September 2023, bringing the total dividend declared from 2023 earnings to P95 per share. Based on the closing share price of P1,279 on the final trading day of 2023, the dividend yield was 7.4%.

In 2023, PLDT and Smart clinched Company of the Year at the 20th Quill Awards and 59th Anvil Awards. The Quill recognition is a back-to-back win, given by the International Association of Business Communicators Philippines. PLDT Group meanwhile sustained its recognition at the Anvils for a fourth year in a row. PLDT was also among six Philippine companies cited in TIME Magazine’s World’s Best Companies 2023, where it scored highest in sustainability. For maintaining the highest ethical standards and best corporate governance practices, PLDT again garnered the 3-Golden Arrow Award at the ASEAN Corporate Governance Scorecard organized by the Institute of Corporate Directors. PLDT also received a “Leader” status in the 2023 Children’s Rights and Business Benchmark by the Global Child Forum, which has been assessing companies on how well they address children’s rights in their operations.

2024 Outlook

Consolidated service revenues and EBITDA are forecast to expand in the mid-single digits, driven by ongoing topline growth and a sustained focus on cost management. Telco's core income is expected to exceed P35.0 billion.
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“PLDT is charting a bold, new course, armed by strategic foresight and our unwavering commitment to excellence. Our updated vision is to reshape the PLDT Group, strengthening our market leadership, pursuing growth and value, and spearheading our transformative drive towards becoming a Digico. To this end, we are pleased to announce the formation of a digital entity that will harness the data assets of the MVP Group of Companies and provide new growth opportunities for them. Co-owned by PLDT, Smart, Meralco, and Metro Pacific Investments Corporation, Digico’s goal is to create an integrated platform that will bring a unified customer experience across the MVP Group and its partners. This represents the first step in our collective effort to drive new growth using technology across the MVP group.” Pangilinan said.