PHI · PLDT Inc.

PLDT Inc.'s Q1 2026 results reflect modest top-line growth amid selective cost pressures and strategic shifts in subscriber mix. Revenue rose 2% year-on-year to Php56.5 billion, primarily supported by continued expansion in broadband services — where subscribers grew 9% to 4.29 million — and resilient wireless service revenues. However, this growth was partially offset by a 3% decline in fixed line voice subscribers and a 5% increase in total expenses, which outpaced revenue growth and contributed to a 5% drop in income before tax. Net income declined 2% to Php8.9 billion, though core income improved 2% to Php9.1 billion, signaling underlying operational strength outside non-recurring or non-core items. The divergence between core income (+2%) and Telco core income (−2%) suggests pressure on legacy telco operations, possibly due to competitive pricing or infrastructure modernization costs. EBITDA grew 2% to Php28.3 billion, maintaining a stable 52% margin, affirming disciplined cost management in high-margin service delivery. Operationally, the 4% rise in total subscribers to 68.8 million reflects successful broadband monetization, while the 5% reduction in headcount to 14,128 — especially pronounced in wireless (−9%) — points to ongoing efficiency initiatives. Liquidity remains robust: cash and equivalents rose 22% quarter-on-quarter to Php14.5 billion, even as capital expenditures remained elevated at Php12.4 billion, underscoring sustained investment in network infrastructure. With no forward-looking guidance disclosed in the filing and no material changes to debt structure or governance, the report serves as a baseline confirmation of PLDT’s transition toward data-centric, broadband-led growth — a trend investors will monitor closely against upcoming capex efficiency metrics and subscriber ARPU trends.