PLDT reels from one-time charges, tough competition

Telco giant PLDT, Inc. posted a 7-percent drop in profit in 2025, as lower noncore gains and higher nonrecurring charges offset modest revenue growth amid intense competition.

PLDT’s net income fell to P30 billion last year from P32.31 billion in 2024, largely due to weaker foreign exchange and derivative gains.

This came even as gross service revenues rose 2 percent to P212.2 billion. Net service revenues edged up 1 percent to a record P196.2 billion.

Core income improved 1 percent to P34.6 billion, though telco core income slipped 3 percent to P33.9 billion.

“The first half of the year was tough, but we regained momentum in the second half, with our third quarter gains carrying us through to the end of 2025,” said Mannuel Pangilinan, chair and CEO of PLDT and Smart.

“Our core business has remained stable, especially considering the challenges in the wider economy. We likewise saw our disciplined and focused investments strengthen our free cash flow,” Pangilinan added.

At a media briefing, PLDT chief finance and risk officer Danny Yu said heightened competition tempered industry growth, noting that rival Globe Telecom had also reported a decline in earnings.

Despite this, PLDT’s cash flow, as measured by earnings before interest, taxes, depreciation and amortization, rose 3 percent to a record P111.2 billion, with margins holding steady at 52 percent.

Data and broadband remained the main growth drivers, generating P166.5 billion in revenues and accounting for 85 percent of net service revenues.

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Wireless consumer revenues reached P85 billion, up 1 percent, with data revenues at P77.2 billion.

PLDT Home posted record revenues of P61 billion, up 3 percent. Fiber internet revenues climbed 6 percent to P59.4 billion, accounting for 98 percent of home revenues.

Yu said that excluding legacy services, net service revenues would have grown 3 percent to P176.9 billion.

“By and large, the continued shift towards fiber, wireless data and ICT is what is driving the growth, more than offsetting the decline in legacy services,” he said.