PLDT Inc. Reports Audited Consolidated Financial Results for FY2025

Key Highlights and Investor-Relevant Insights from First Pacific’s Disclosure

First Pacific Company Limited has announced the audited consolidated financial results of its major operating associate, PLDT Inc., for the year ended 31 December 2025. The announcement, made in compliance with disclosure requirements for the Hong Kong Stock Exchange and Inside Information Provisions, is significant for shareholders and potential investors, as it provides a comprehensive view of PLDT’s financial health, operational performance, and potential implications for share value.

1. Summary of PLDT’s Audited Results and Ownership Structure

• PLDT Inc., incorporated in the Philippines, is listed on both the Philippine Stock Exchange (PSE) and the New York Stock Exchange (NYSE) via American Depositary Receipts.
• First Pacific and its Philippine affiliates hold a 25.57% attributable economic interest in PLDT.
• The audited results were approved and released on 26 February 2026.

2. Key Financial Results for the Year Ended 31 December 2025

Income Statement Highlights (in million pesos)

Key Observations for Investors

• Revenues: Service revenues grew modestly by 1.8% year-on-year, indicating stable core operations. However, non-service revenues declined for the second consecutive year, which may warrant further inquiry from investors regarding diversification and ancillary revenue streams.
• Expenses: General operating costs decreased, but interconnection costs rose sharply (from PHP 10,418 million in 2023 to PHP 16,010 million in 2025), possibly pointing to increased network or partnership costs.
• Profitability: Net income decreased by 7.2% year-on-year (from PHP 32,555 million in 2024 to PHP 30,218 million in 2025), and earnings per share dropped accordingly. The decline in bottom-line profitability, despite revenue growth, could be a material consideration for investors.
• Shareholder Returns: There was no net loss from discontinued operations in 2025 and 2024, compared to a small loss in 2023, indicating operational focus.

3. Balance Sheet Overview (as at 31 December 2025 and 2024)

Assets

• Total Assets: PHP 634,828 million in 2025 (up from PHP 623,275 million in 2024).
• Noncurrent Assets: Major increases in property and equipment (PHP 327,989 million), and right-of-use assets (PHP 48,777 million).
• Current Assets: Cash and cash equivalents rose to PHP 11,866 million, and inventories declined significantly, possibly reflecting improved inventory management or lower device sales.

Liabilities & Equity

• Total Liabilities: Remained stable at PHP 506,745 million.
• Current Liabilities: Notably, accounts payable and accrued expenses dropped, suggesting improved working capital management or reduced spending.
• Noncurrent Liabilities: Interest-bearing financial liabilities increased significantly to PHP 278,868 million from PHP 258,246 million, a potential area of concern regarding leverage and future interest expense.
• Total Equity: Increased to PHP 128,083 million, indicating retained earnings growth and a reduction in other comprehensive loss.

4. Potential Price-Sensitive and Shareholder-Relevant Issues

• Declining Net Income and EPS: Although PLDT remains profitable, the decrease in net income and EPS may affect dividend expectations and investor sentiment.
• Rising Debt: The significant increase in long-term interest-bearing liabilities could impact future profitability and cash flow, especially if interest rates rise.
• Improved Equity Position: The rise in total equity and reduction in other comprehensive loss signals strengthening of the balance sheet, which could support future investments or higher dividends in the longer term.
• Operational Focus: No net loss from discontinued operations in 2025 suggests improved operational discipline.

5. Governance and Board Composition

• The board continues to be led by Manuel V. Pangilinan (Managing Director and CEO), with Anthoni Salim as Chairman and a mix of executive, non-executive, and independent directors.

6. Key Takeaways for Investors

• Stable revenues and assets position PLDT as a resilient player in the telecommunications sector.
• However, declining profit and rising debt are risk factors that may weigh on investor sentiment and future share performance.
• Shareholders are advised to monitor management commentary and further disclosures regarding cost control, debt management, and strategies to revive earnings growth.

7. Where to Find More Information

Investors should review PLDT’s original filings on the PSE and NYSE, or visit the First Pacific and HKEX websites for the full disclosures.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are urged to perform their own due diligence and consult with professional advisors before making investment decisions. The information herein is based on publicly disclosed documents and may be subject to change or updates from the company or regulators.

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