PHI

Afternoon, everyone. Thank you for waiting. Apologies for that delay. Thank you for joining us today. My name is Gina Gabrillas. I am the Head of Investor Relations here at PLDT, and it is my pleasure to welcome you to our first half 2025 financial and operating results briefing. Joining us today to share insights into PLDT's performance and strategic direction are PLDT Chief Operating Officer, Mr. Butch Jimenez, our OIC CFO, Mr. Leo Posadas. We also have here with us SVP and Head of Consumer Home Business, Mr. John Palanca. We also have our Head, or OIC for Smart Communications, Mr. Lloyd Manaloto, and our Chief Legal Counsel, Attorney Joan De Venecia-Fabul. We will also be joined later by our other key officers for our enterprise business as well as our data center business.

Before we begin, I would like to remind everyone that we will have a Q&A session after the presentation. You may submit your questions via the MS Teams Q&A panel. Thank you also to those who have submitted the questions beforehand, and we will make sure to address those during the call. To start, I would like to invite our Chief Operating Officer, Mr. Butch Jimenez, to walk us through PLDT's financial and operating performance.

Good afternoon, everyone, and thank you for joining us today. I will take you through PLDT's first half 2026 financial and operating results. For the first half, gross service revenues grew 2% to PHP 108.7 billion, while service revenues net of interconnection costs increased 1% to PHP 97.8 billion. Both were tempered by softer consumer spending and wireless and the lagged revenue impact of first quarter installation constraints in Home, partly offset by continued enterprise growth. Cash OpEx subsidies and provisions were broadly flat at PHP 41.7 billion, supporting EBITDA of PHP 56.1 billion in a stable 52% margin.

Below EBITDA, depreciation and amortization increased 6%, reflecting our past investments in network and infrastructure. Telco core income declined 2% to PHP 16.6 billion, while stable financing costs, contribution from Maya, and asset sales helped stabilize core income at PHP 17.3 billion. Overall, the business remained resilient with stable margins and continued financial discipline.

Looking more closely at the top line, consolidated service revenues were up 1% to PHP 97.8 billion for the first half. Excluding legacy services, revenues grew 2% to PHP 89.2 billion and now account for 91% of total. Wireless revenues were broadly stable at PHP 42.1 billion, with mobile data and fixed wireless access grew 2% to PHP 38.7 billion. Home revenues were PHP 30 billion, down 1%, reflecting the revenue lag from the installation constraints we experienced in the first quarter. Enterprise remains our strongest growth driver, with revenues up 5% to PHP 24.8 billion by corporate data and ICT. While overall growth remains measured, the mix continues to shift toward data and ICT services. Let me now take you through the performance of each of our major business units. Starting with wireless, where we saw an improvement in trends through the second quarter.

Wireless consumer revenues were PHP 42.1 billion this half, broadly stable year-on-year. Data and fixed wireless access revenues grew 2% to PHP 38.7 billion and now account for 92% of wireless consumer revenues. More importantly, the trajectory within the first half has improved. Monthly year-on-year top-ups moved from -3% in March to flat in April and May and positive 1% in June. This brought wireless revenues back to roughly flat for the first half. The usage numbers back this up. Active data users reached 24.1 million. Data traffic increased 12% year-on-year to 3,273 PB. 5G devices increased to 12.5 million, now representing 21% of the device base. ARPU also remained resilient despite the softer consumer spending environment. Wireless started the year under pressure and is ending the half on firmer footing. A lot of that comes down to how we're approaching pricing and customer engagement.

Let me show you what we're doing on that end. Two things are driving better monetization. First, we are being more deliberate on pricing, selectively moving some prepaid offers to higher price points while adding more data and benefits so customers still see good value. For example, the selected prepaid offers moved from PHP 99-PHP 109 with additional data in the package. Second, we are getting much better at engaging individual customers. Our hyper-personalized offers use each customer's behavior and usage patterns to make promotions more relevant. The results have been encouraging. App-based hyper-personalized offers are converting at as much as 5% versus around 0.2% for generic SMS broadcast offers. That's as much as 25x higher. These actions are helping us support higher spend while keeping ARPUs resilient in a softer consumer environment. Our network experience also remains a key strength.

In Opensignal's latest July report, Smart earned eight mobile experience awards with outright wins across gaming, voice apps, 5G upload and 5G coverage, and joint wins in video. What's worth noting is that Opensignal looks at coverage in the places people live, work, and travel, rather than simply measuring land area or population covered. It is designed to reflect the coverage users can reasonably expect in their day-to-day lives. Smart's network performance was also recognized in Ookla Speedtest Awards for the first half of 2026. Smart was named the Philippines' fastest mobile network, best mobile network, and best mobile video experience. Sharper pricing, better personalization, and a strong network experience are giving us a better path to improved monetization. Turning to home revenues were PHP 30 billion for the first half, down 1%, with fiber also down 1% at PHP 29.4 billion. It's worth remembering how home works.

It's a 99% postpaid business, so there's a natural three to four-month lag between an installation and when it shows up meaningfully in revenue. Each new installation adds to the recurring revenue base, so the benefit builds as new subscribers accumulate. That's why the first half numbers still carry from the installation constraints we saw in the first quarter. The OSS migration slowed how quickly customer orders were converted into completed installations. The good news is that we started seeing recovery signs in the second quarter as installation volumes picked up and postpaid net adds turned positive in May. On fundamentals, ARPU remains best in industry at PHP 1,330 for the first half, though down from a year ago. Net churn is industry leading at 1.8%, with postpaid churn improving to 1.4%. Lastly, fiber net adds improved to 97,000 in the second quarter, more than double the first quarter trend.

Let me show you those operating indicators in more detail because that's really where the recovery story is clearest. You can see the improvement more clearly in the operating indicators. Postpaid installations increased steadily through the second quarter, with June reaching the highest monthly level so far this year. As installations throughput improved, postpaid net additions turned positive for May. Churn also remains well managed, with monthly postpaid churn at 1% in June. We also continue to strengthen the home proposition beyond connectivity. Fiber Unli All brings fiber together with Cignal, HBO Max, and Smart data in one package. The idea is to give customers more value from their relationship and support deep engagement and retention. We continue to improve the service experience. Star Genie, our AI-enabled frontline service tool, helps our customer-facing teams resolve inquiries directly and much faster. Inquiry resolution is now around 10 times faster.

Ticket escalations have been cut by half, and more than 61,000 hours of customer waiting time have been avoided. The operating recovery is already underway as installations rebuild the recurring subscriber base. We expect revenues to follow with the usual lag. Let me now turn to enterprise, which was our strongest growth business in the first half. Enterprise revenues increased 5% to PHP 24.8 billion, while corporate data and ICT revenues also grew 5% to PHP 18.4 billion. The mix continues to shift toward higher growth services. ICT revenues increased 22% in the first half, led by 35% growth in tech services. This more than offset the continued decline in legacy services. We are also seeing good growth across underlying infrastructure base. Fiber lines increased 6%, SD-WAN lines grew 18%, and contracted third-party racks across our Vitro data centers increased 6%. A key part of the strategy is One Enterprise.

We bring together PLDT, Smart, ePLDT, PLDT Global, and Vitro to offer clients a broad set of solutions under one relationship. Increasingly, our wins involve more than one part of the group, combining connectivity with cloud, managed IT, cybersecurity, and data center services. That breadth is reflected in the growth we are seeing across the different enterprise businesses. You can see that momentum across the different businesses supporting our enterprise customers. PLDT Global's enterprise revenues grew 30%, supported by hyperscaler and carrier demand for international connectivity, cable capacity, and co-location. Smart's enterprise business grew 15%, driven by services such as A2P, GIGA, Enterprise Postpaid, and IoT. ePLDT Tech Services grew 37%, reflecting continued demand for managed IT, cloud, cybersecurity, and customer experience solutions. Vitro data center revenues grew 13%, supported by enterprise, cloud, and hyperscaler demand.

What ties these businesses together is the ability to serve more of our customers' digital requirements from connectivity all the way through to the cloud, cybersecurity, and data centers. I'd like to spend a little more time on Vitro, where we see a particularly strong growth runway. Vitro data center revenues grew 13% in the first half, supported by demand from enterprises, the public sector, and hyperscalers. Today, Vitro has approximately 34 MW of activated IT-ready capacity across its portfolio, making us the largest data center operator in the Philippines by live colocation IT capacity, and we have significant room to scale from here. The next 10 MW at VITRO Santa Rosa are targeted for activation by the end of this year. Beyond that, identified expansion opportunities across Santa Rosa, Clark, and Cebu too could take total IT-ready capacity to 62.4 MW.

That represents more than 80% growth from our current activated capacity. We also see a supportive backdrop for the industry. Executive Order No. 119 reinforces the importance of secure in-country hosting for sensitive government data. More broadly, it strengthens the case for building digital infrastructure locally and could support further cloud and hyperscale investment in the Philippines. Vitro is well-positioned for that opportunity, given its track record, scale, nationwide footprint, and its integration with PLDT's broader ecosystem. We are also continuing to build a platform to global standards. VITRO Santa Rosa is TIA-942 Rated III and LEED Gold certified, while S&P Global Ratings assigned Vitro a light green shade of green assessment. Turning now to operating expenses. Cost management remained disciplined in the first half. Total cash expenses, subsidies, were slightly lower at PHP 47 billion, despite continued investments to support the business.

The main increases came from repairs and maintenance, up 3%, and contract-specific service costs, which rose 26% in line with higher project activities. Subsidies were also higher, reflecting our continued push to drive device adoption and customer engagement. These increases were largely offset by lower compensation and benefits, selling and promotions, and taxes and licenses. Overall, we were able to keep the cash cost base stable while continuing to fund areas that support growth and customer experience. This cost discipline helped preserve margins, which I'll discuss on the next slide. Turning to EBITDA. The semestral trend shows a steadily expanding earnings base. EBITDA reached PHP 56.1 billion in the first half, marking the fifth consecutive semester of growth from PHP 53.9 billion in the first half of 2024. This has been supported by a combination of steady revenues and disciplined cost management.

This allowed us to maintain EBITDA margin at 52%, broadly consistent with the levels we have sustained over the past several periods. Moving below EBITDA, Telco core income was PHP 16.6 billion, down 2% year-on-year, mainly reflecting the higher depreciation and amortization. Maya continued to contribute positively, with PLDT share of core income reaching PHP 559 million for the first half, compared with PHP 406 million last year. Maya's second quarter contribution was lower, mainly due to one-time accounting adjustments rather than a weakening in the underlying business. Excluding these effects, the contribution would have been stronger. We also recognized around PHP 0.3 billion from asset sales. These helped stabilize core income at PHP 17.3 billion. Reported income was PHP 16.4 billion, down 6% year-on-year. Losses in foreign exchange and derivatives, which moved from a net gain last year to a net loss in the first half of 2026.

Overall, while higher depreciation weighed on Telco core earnings, Maya and asset sales helped cushion the impact on core income. Turning to CapEx. We continued to bring investment intensity down while maintaining focus on growth and network quality. CapEx for the first half was PHP 20.7 billion, down from PHP 27.4 billion last year. This brought CapEx intensity down to 19% of service revenues from 26% a year ago. We continue to prioritize investments that support growth and customer experience, including new cell sites, both fiber ports, AI, submarine cables, and IT modernization. For the full year, we continue to expect CapEx in the mid-PHP 50 billion range. Our objective remains the same, continue bringing CapEx intensity down over time while sustaining positive free cash flow and investing where we see the best returns.

Turning to the balance sheet, net debt stood at PHP 287.3 billion at the end of June, with net debt to EBITDA at 2.57x. We continue to manage the debt profile proactively with a well-spread maturity schedule. Only 3% of total debt matures in 2026, while more than half matures beyond 2031. Average debt maturity remains healthy at over six years. Our average pre-tax interest costs also improved to 5.05% from 5.43% at the end of 2025.

Foreign currency exposure remains limited. US dollars denominated debt accounts for 14% of total debt, with only a small portion left unhedged. PLDT remains investment grade, rated BBB by S&P Global and Baa2 by Moody's. Our focus remains on maintaining positive free cash flow and steadily bringing net debt to EBITDA towards two times. Finally, on dividends, the board declared a cash dividend of PHP 46 per share for the first half of 2026.

This represents consistent with our dividend policy. PLDT continues to offer an attractive return to shareholders with a trailing 12-month dividend yield of around 8% based on the June 30 share price. At the same time, we are balancing shareholder returns with the need to strengthen the balance sheet. Our focus remains on sustaining positive free cash flow, continuing our asset monetization programs, and bringing leverage down over time. In the second quarter of 2026, Maya continued to scale its integrated ecosystem and remain profitable. Through one platform, Maya enables consumers to save, borrow, and transact, while helping businesses accept payments, manage cash flow, and access financial solutions. This integrated model creates strong network effects across consumers and businesses, reinforcing Maya's position as the Philippines' leading digital bank and merchant acquirer. Maya sustained strong growth across both digital banking and payments.

As of end June 2026, Maya's deposit balance reached PHP 86 billion, while loans outstanding rose to PHP 39 billion. In merchant acquiring, Maya accounts for 53% of POS terminals nationwide as of December 2025, based on BSP industry data and Maya's corresponding regulatory submission under the same reporting definitions. On digital banking, Maya deposit balance grew 71% year-on-year, while loans outstanding increased 56% year-on-year, reflecting continued demand for its savings and credit products. The loan-to-deposit ratio stood at 45%, supporting the continued expansion of the lending portfolio. Asset quality remained stable, with gross NPL ratio of 4.8%, while annualized net interest margins stood at 17.3% for the first half of 2026, reflecting strong lending margins. Maya expanded payment flexibility for consumers through Maya Mini Payments, which allows Maya credit card users to convert any purchase into monthly payments without requiring a merchant tie-up.

For businesses, the new Maya Business app brings together payments, banking, lending, cash flow management, and business insights and analytics in one app for the MSMEs. Maya also enabled Apple Pay acceptance through Maya Terminals and Maya Checkout, giving Apple Pay users a simple, secure, and convenient way to pay at Maya-powered businesses in-store and online. These products and services demonstrate how Maya continues to innovate across both the consumer and business sides of its integrated reach. On sustainability, we continue to strengthen the depth and transparency of our reporting. As complements to our 2025 Annual and Sustainability Report, we published five focus reports covering business continuity and network resilience, gender equality, human rights and environmental due diligence, just transition, and materiality and impact assessment. These reports help convey an even more holistic corporate narrative for PLDT.

PLDT continues to participate in industry forums and thematic discussions covering areas such as finance, accounting, human capital, child protection, and nature-based sustainability. These platforms allow us to share what we have learned, exchange best practices, and contribute to the broader conversation on integrating sustainability into business. To wrap up, the first half showed a resilient performance despite a softer operating environment. Wireless trends improved through the second quarter. Home's operating indicators are moving in the right direction, and Enterprise continued to deliver solid growth. At the same time, disciplined cost and capital management helped us protect margins, strengthen cash generation, and maintain our focus on deleveraging. We believe these trends give us a firm base as we move into the second half of the year. With that, we thank you for your time, and we are happy to take your questions.

Thank you very much, Butch, for that presentation. Before we open the floor for your questions, let me just acknowledge the presence of some of our other key officers here. We have also with us, SVP Blums Pineda, who heads our Enterprise business. We also have

He went to the bathroom.

Attorney Mava, our corporate secretary. Thank you for joining us as well. Please feel free to go ahead and put in your questions in the Q&A box if you feel free to do so. Or if you wish, you can also raise your hand, and I can unmute you, and you can ask your question live on the audience. A number of you have sent in your questions before the meeting started, so let me go ahead and ask those questions. This first question is from Marky Carunungan of F. Yap Securities. Question is for our mobile business. You have highlighted the improvement in top-ups from negative 3% in March to positive 1% in June. How are you seeing July and early August trends, and do you now view the improvement as a structural recovery in consumer spending, or are customers simply responding to the price and offer changes?

Thank you for the question. The first part of the question is, are we seeing improvement in top-ups? For July, we are looking at roughly a +3% top-ups. In August, we are standing somewhere between 2% and 3%. That is good to. In response to the second part of the question, what part is structural and what part is driven by marketing interventions? Recall that around in March, we went down to -3%. April, probably around -2%. Sometime around May, we saw an improvement in gasoline, the diesel prices, which have very positive effects with mobility. All told, if we were looking at the numbers, it seems that from -2% to flat, that is driven by structural improvements in gasoline prices. From June, we saw a +1%, July, a +3%, and roughly around maybe a +2% around August.

That roughly +2% is now driven by our interventions. It is half structural and probably half driven by our marketing activities.

Mm-hmm. Thank you, Lloyd Manaloto. Before I go to the next question, apologies, people. I forgot to acknowledge your presence here. We also have Biboy Genuino , the President and CEO of PLDT and Vitro, our data center business. If you have questions for that side of the business as well, please feel free to ask the question. All right. This second question is for our home business. This is also from Marky Carunungan of F. Yap Securities. Given that installations and postpaid net adds have turned positive in May, should we expect the revenue and selection to become visible at around August or September, or is there still a longer lag from the OSS disruption?

Yes, Marky, right?

Marky.

Hi. Hi, Marky. Thank you for your question. Actually, we're very encouraged by the leading indicators that we've seen. As we mentioned during the briefing, our installation rates went up to pre-disruption levels. We've also seen the conversion rates improve and the churn rates go down. All these factors will add to the compounding of the installed revenue moving from month-to-month to higher levels. Yes, we are encouraged to see this impact very soon. I'd like to say that it would be sooner than later, but we will see what the impact of this is. But I can say, based on the initial figures that we're seeing, that we will see year improvements for sure. Thank you.

Thank you. As a follow-up to that, John, would you be able to share if there are any installation run rates that you need to reach for Home to return to positive revenue growth, or is this something

Well, as a matter of principle, Marky, too. As a matter of principle, our net adds is really a function of our gross adds and our churn rates. As long as we keep it on the positive side, this will compound. In fact, our challenge in catching up was really the shortfall of the Q1 disruption that carried over, also compounded negatively into the first half. But we're seeing that we are now positive net adds and at an increasing rate at that. Also, we're seeing that the customers that we are acquiring are in the postpaid segment, which provides a much higher ARPU for us. As long as we continue to do that for the balance of the year and moving on to the next year, then we should be okay. Thank you.

Thank you, John. All right. Next question, also from Marky. This is on Maya, and I'll be taking that question. Maya remains profitable, but its contribution to PLDT's core income was slightly lower both Q&Q and year-on-year. In the second quarter, is it because of non-recurring accounting adjustments? If you exclude those adjustments, how should we think about underlying earnings per share for Maya in the second half of 2026? Also to follow through to that question, with Maya's loan book up 56%, would that cause management to slow credit growth? What early warning indicators would tell you that the current 4.8% NPL ratio is no longer sustainable? Just to address the Q&Q and year-on-year decline for Maya.

The movement in that is really not reflective of the underlying performance of the business, and it's really primarily true to certain accounting treatments of expenses and non-recurring expenses for the quarter. If it were not for those accounting adjustments that are one time, definitely year-on-year and both quarter-on-quarter contributions to PLDT would have been much stronger and positive. Regarding the question about credit growth, it did grow 56%. If you do look at the LDR, loan to deposit ratios of Maya, which is published in the bsp.gov.ph website, it is still in the low 40s. There definitely is quite a bit of room to expand. Usually if you look at Maya, it really is hand-in-hand with the BSP in really pushing financial inclusion in the Philippines.

If we look at the credit quality of Maya, as well as the credit quality that is published by the BSP, based on that, Maya really hasn't observed any broad-based deterioration in credit quality. In fact, Maya's loans continue to grow. Our NPLs continue to improve to 4.8%. Maya really continues to monitor repayment behavior, portfolio performance, and developments across the customer segments very closely. I think for now they're at a comfortable position on that. Okay. This next question is from Jojo Gonzales of Philippine Equity Partners. Many thanks for sending ahead of the call. My questions are around the cost side. This would be for our finance team. As OpEx appears to have outpaced the growth of revenue. Sorry, let me read that again.

As OpEx appears to have outpaced the growth of revenues, especially in 2Q, specifically depreciation, interconnection, and the cost of devices and accessories, what is behind the seemingly faster rate of growth of these items? Thank you. Okay.

Sure. In terms of the depreciation, there have been investments predominantly related to the network, upgrading our core services. We also plan to build out in terms of the transport, as well as the core network. Also to solidify our position. We want to make sure that our 5G coverage is better. We are increasingly focusing on that within the boundaries of our CapEx guidelines, which this year we've signaled around a PHP 55, mid-50s billion CapEx target for this year. For us, that CapEx, which started, and will continue in the second half, has elevated some of the depreciation associated, and we have to invest to grow the business. I think the challenge for us is to be prudent in terms of our cost management, but also looking with a view towards pushing on and driving the growth in the top line.

This is what we are focusing on, and we'll look to improve in the second half.

Thank you. All right, this next question is from Michael Fernandez of Metrobank. I think this is in regards to CapEx as well. How much is CapEx spend in the first half of 2026? That should be in your slide. Is guidance for 2026 still in the mid PHP 50 billion levels? What is CapEx guidance for 2027? How much of CapEx will be funded by debt?

Sure. In terms of the CapEx, as you saw last year, the CapEx for the first half was PHP 27.4 billion. This year, what we have done in the first half is lower than that, PHP 20.7 billion. From an intensity perspective, the CapEx intensity last year of 26% has reduced down to 19%. Why we are focused on that is the ability to then ensure the free cash flow generation. When we look at those measures, including, for instance, EBITDA less CapEx, that's where we're showing the improvement that we have been able to do through the reduction. Now, having said that, as I mentioned earlier, our target for the full year, though, still remains in the mid-PHP 50s.

Therefore, you would see an increase in the second half as we look to continue, as I mentioned, to support our network. We want better coverage. We want better quality in terms of our services that we provide across the board. We are going to be continuing our investments. In terms of guidance for next year, 2027, it's a little premature, but I think the message here is we want to continue to maintain our discipline on CapEx. We are looking very closely at the return on invested capital for the new CapEx that we're making. We want to make sure that it's spent in the right areas that will generate growth for our businesses as well in terms of the top line and provide an adequate return on that invested capital.

For next year, I think we would look to continue to seek to reduce, if possible, from the 55 below that. But in terms of the amount and the quantity at this point, it is too early to say.

Okay. Thank you very much for that. This next question also from Michael Fernandez is for Vitro. So Biboy Genuino , this will be for you. Can management provide an update on the proposed Vitro REIT transaction?

Yeah. Excellent question. We are still targeting Q4 listing, but obviously this will be subject to market conditions. We have done our cornerstone roadshow already internationally and locally. Interest has been very positive. I think it is close to the view that it will be one of the only digital infrastructure REIT platforms in the country. But we will see by Q4 as to whether we will proceed.

Thank you. All right. This message, let me keep it within the Vitro space. So this is from Matteo Lorenzo. On Vitro REIT, could you help us understand why it is the right time from both PLDT's and Vitro's perspective to list? PLDT is already in a lower CapEx and positive free cash flow and deleveraging phase, while Vitro still has significant growth upside. How much of the timing is about accelerating PLDT's own financial trajectory versus the current rates and yield environment, versus what the REIT can unlock for Vitro? So I guess, Biboy Genuino can take the timing from Vitro's perspective, and then we can take the timing from PLDT's perspective.

Yeah. I think it is a good time. From our nine data centers currently, we have eight that we are injecting into the REIT. That is 24 MW in total. Our ninth data center, the newest one, is VITRO Santa Rosa. It is 36 MW in capacity. I think it is a good opportunity to come in and capitalize the 25 years of experience of us running data centers in the country. We are the largest data center platform in terms of number of sites. We are the largest data center in terms of capacity. We are the most carrier-dense data center in the Philippines today. We are the home of the Philippine internet. We host over half of the internet exchanges in the Philippines today, and it bodes well to the platform that we have built over 25 years.

We are very proud of the platform, and we think it is a good opportunity to list now. But as you said, the upside is still huge. A lot of development plans on Executive Order No. 119, a lot of development plans of hyperscalers looking at expanding here in the Philippines. And of course, we have our crown jewel, VITRO Santa Rosa, to be injected in the future in the Vitro REIT.

Yeah. From the PLDT perspective, what I can say is that the timing is, of course, there is a lot of interest in this space. As you are aware, the recent Executive Order No. 119 has created an opportunity to scale up in this industry. The REIT itself is a portfolio of eight data centers which are mature, which have been around, some even over 20 years. As a result of it, and as the capacity of those are higher, this allows us to offer investors an attractive vehicle where they can invest into an attractive dividend yield business that is listed. Then, in the future, we would look to grow by continuing to build on the data centers.

As Biboy Genuino just alluded to, the developments in this market with Executive Order No. 119, even without it, we are seeing a lot of growth on the corporate side and the traditional colocation businesses. Now with the interest coming from hyperscalers and AI-based providers, this is creating a lot of supply on the demand side for data centers. I think the opportunity to list would be one to then raise some capital, and perhaps some of that would go into the future investment. But also, as mentioned earlier, it is also part of the overall group plan to delever the debt where we are now today at 2.6x net debt to EBITDA. We would like to see that come down. Any proceeds that could be generated from a listing, that would help us in terms of reducing and improving and strengthening our balance sheet.

This is an opportunity. It could be this year, but it does not necessarily have to. To build the business as we fill up the capacity of VITRO Santa Rosa and we look to further develop others in the future, I think that that is really where the strategy of the business is recognizing the growth in this industry and wanting to be a continued participant and increase our leadership in this category.

I think, just to add to that, I think you even had admitted in your question, right? The market conditions is what we talk about, like how would it price in that period when we explore the listing. I think we are obviously paying attention to that. We want to make sure that it is pricing in the upside and the growth that we are factoring into the Vitro REIT and how the data centers are performing. I just wanted to highlight that as well.

Thank you. All right. I will take some live questions now. I see John Talbott , UBS, with a raised hand. Let me go ahead and allow you to unmute. Please go ahead and ask your question, John. Are you able to Apologies, John. Perhaps you can send me your message offline if you are not able to ask it live. Let me go ahead and move back to the Q&A side while I figure out the live question. Apologies about that, John. All right. This question, also in the Q&A box is This is from Lisa Lang of Papa Securities. This is for our mobile segment. Mobile subscribers saw churn across all segments this quarter. Are you seeing more aggressive pricing from competitors, or just a case of subscribers self-selecting into lower-priced providers amid inflation?

All right. Our end, obviously, just did a cleanup on our subscriber base. It is not a churn driven by the subscribers, but rather we saw some subscribers who do not make sense already with the network because they are just using data source. That is basically a cleanup. For us, for ours. Good morning.

Thank you. All right. This is from Michael Xavier Alonso. This is in regards to Pax Silica. Maybe you, Leo, or Biboy Genuino can comment on this. Do you anticipate any potential disruption or increased competition in the data center business arising from the Pax Silica development?

I can take that. As we understand, I think we are still really waiting for details on what exactly Pax Silica is. While I think, obviously, both the U.S. government and the Philippine government have been in talks. This is yet to trickle down in terms of significant implications to which private sector locators are going to drive the investors, specifically which U.S. companies are going to lead the charge. The last time when we talked to different parties, it is not that clear yet. That said, I think a lot of the Pax Silica focus is really on advanced manufacturing and rare minerals and that type of processing. I think data center and other digital infrastructure, particularly connectivity, is much more of servicing those different industries.

We are prepared, as always, to respond to that, as we do in any other site type location, industrial zones, et cetera. I think we are waiting for more details. In fact, we have had maybe some independent inquiries. It could be considered within the same industries as what Pax Silica is targeting, already asking. That is just part of business as usual to engage them and talk to them for both connectivity as well as their data center needs.

Thank you. All right. Going back to the Q&A box. This is from Michael Fernandez as well, from Metrobank. How much of PLDT's debt can we expect to go down as a result of the Vitro REIT transaction? Understand that it was previously mentioned that a portion of the proceeds will be used to pay down debt.

In terms of the debt reduction from a net debt to EBITDA ratio, we would see an improvement from the 2.6x to approximately 2.4x.

On the B plan, I think it's a little under PHP 13 billion, a little over PHP 12 billion, that will be used to pay down debt. All right. This is from Francis Giles Puno. This is in regards to costs as well, depreciation and CapEx. Would you say that the growth in depreciation, despite tempered CapEx in the past few quarters, is related to old 4G investments becoming more outdated as you migrate further to 5G? How long do you expect depreciation growth to remain elevated?

Sure. Yeah. That's 2026 figures assuming moderate increase in depreciation, which reflects some of the prioritized network and digital investments, for instance, fiber and wireless expansion, capacity, resilience, upgrades. We want to sustain the CapEx intensity improvement through tighter prioritization and the discipline in terms of the execution. There's also an impact from IFRS 16, some of the step-ups as we use more of these back network investments. So depreciation on the right of use is also contributing to the increase in the CapEx in the depreciation.

Thank you. All right. John, I'm going to try to unmute you again. John, can you ask your question now?

Sure. Thank you. First question on mobile. I understand it is macro-linked, although your competitor showed stronger growth. Anything you think they are doing differently?

I think fundamentally on our network, first, there are two maybe interesting things that we're looking at as comparison to them. One is on our network, we're focusing our rollouts in 5G primarily because of the revenue. We see for them it's the other way around. More CapEx to roll on the rest of the country. That's one. The other item that we're seeing they are a little ahead is that they have, I think on the IT side, they have better reach on their hyper-personalization, particularly because of reach of GCash. What we intend to do now is figure a way to actually extend our hyper-personalization capabilities to go beyond their current applications, SMS, and I can get into more partnerships with the wallets and with the social media providers.

That should allow us now to double the game with regard to our marketing efforts, in particular new add subscribers.

Very clear. Thank you. Second question on broadband. I think one of your competitors also accelerated revenue growth whereas two of the three slowed this quarter. I guess the question is: how would you characterize the competitive landscape given these factors?

Yes. Thank you for that. PLDT remains to be the clear leader in the high-value fiber or premium market. We have the highest ARPU today. We have the lowest churn, and we are 52% of the postpaid fiber market. A lot of the industry growth have nine separate growth around the growth in the prepaid segment very disproportionately. This is driven by, of course, the ARPU prepaid fiber and acquisition by our competitors more in that segment. PLDT owns underlying fundamentals have been growing and they turned positively in Q2.

Because PLDT is 99% postpaid, there is a certain lag for us to convert those new installations to recurring revenue. We need to wait for that impact to compound. In our business, the second half is really very straightforward. We just need to accelerate and ride on this wave of Q2 improvements while building prepaid as a potential growth engine. As long as we do not sacrifice the economics, which we are looking at very carefully today, then this is a segment that we would like to be active in as well. Thank you.

Okay, very clear. Third question, just on the topic of CapEx. I think it was mentioned that there are new ROIC targets for new CapEx. Could we share some of those? I guess the question is also coming from depreciation has been growing faster than revenue for the past few quarters. I guess the second part of that question is whether we could actually expect CapEx to sales to drop to low 20s or even high teens as other ASEAN markets have shown this trend.

Yeah. On the return on invested capital point, when we look at key initiatives, for instance, if we have an initiative around the network, we want to improve the 5G cycle, for instance, then we would evaluate, depending on which locations, and opportunities that would generate increases in revenues, weighed against the cost, and therefore is it accretive to our returns and what kind of investments and returns and payback and so forth are we going to get? This is one specific example, but as part of our review in terms of our investments in the capital, then that also goes into the allocation in terms of which of the businesses, recognizing that we have the home, we have the mobile as well as enterprise and key initiatives in ensuring that we have a stronger network, then it is the allocation among that.

It is a measure that we review internally. It can be also specific to projects themselves, but the net effect is what impacts not just our top-line growth, we are invited to grow, but also what would be the income and the net margins that would stem from that capital investment. It is a discipline that for us is very high in terms of our priority. Given our focus to reduce our capital spend overall in terms of CapEx reduction from the past, then we have to be more efficient and effective with it. So that is really the color around how we approach the returns.

Thank you. All right, so this next question is from Raymond Trangia. Is there scope to increase the dividend payout ratio, despite the focus on, I guess, with the focus on deleveraging?

At this point, the focus, it has been at the 60% core income payout. I think that for now, that is still the intent and the plan of the group.

Thank you. Also from Raymond, this is a question on Maya. Can you give a pesos value for Maya's recurring net income contribution for the second quarter? I am not able to comment on the actual recurring net income contribution, but I can tell you how much they contributed to PLDT's core income, and that is PHP 559 million for the first half. But again, that does include some of those one-off accounting adjustments that resulted in the lower contribution for the second quarter. But again, that should be non-recurring, so there is that little blip that you have in the second quarter. All right. I think this next question from Raymond was already asked earlier in regards to the trends that we are seeing in mobile top-ups as it moved positive to June. How does July show month-to-date?

I will just get back to you on that since it was already addressed by Lloyd earlier in the call. Let me just go ahead and go back to the Q&A box. This is from Paolo Misael Co of COL. With regards to the copper assets, is there an update to the timeline? Are you seeing a more favorable environment to sell these assets?

We are in discussions and exploring the opportunities to sell copper, which will stem from some of the legacy assets of the business. In terms of the environment and timing of the pricing, as you have seen in the spot prices, the price of copper has increased even within this year and the past 18 months. Today, the spot is around $6.50 US per pound. It is a commodity that is increasing in value. Of course, that helps when you are looking at a sale in terms of the pricing. As I mentioned, discussions are ongoing, and as and when a transaction would be completed, then the appropriate disclosures will be made.

Thank you. This next question is from Michael Fernandez of Metrobank. This is in regards to also asset monetization, but tower sales now. Can we expect any tower sales this year? How much can we expect?

The approximate proceeds that we would seek to generate from the sales would be PHP 2 million. That would be the target. Of course, subject to discussions and finalization of this process.

All right. I think that brings us up to the hour. Again, thank you so much for joining us today. I know there are quite a number of questions in the Q&A box still, so apologies for not being able to get through to all of that. But if we do have time, I will take these questions in and then we can answer them offline. In terms of our next earnings announcement, we will see you all in November. But thank you again very much for your time today. We hope to continue to see you in future events. Thank you. Have a good day. Bye-bye.

Thank you.

Thank you.

Good afternoon, everyone, and welcome to PLDT's first quarter 2026 financial and operating results. My name is Tringa Nogreles. I am the Head of Investor Relations here at PLDT, and it's my pleasure to welcome you this afternoon. Joining us today to share insights into PLDT's performance and strategic direction are PLDT's Chief Financial Officer, Mr. Danny Yu, PLDT's Chief Operating Officer, Mr. Butch Jimenez, Jr., PLDT Chief Legal Counsel, Attorney Joan De Venecia-Fabul, SVP and Head of Consumer Business Home, Mr. John Palanca, SVP and Head of Enterprise Business Group, Mr. Blums Pineda, Smart Communications Officers-in-Charge, Mr. Lloyd Manaloto. I think later, oh, Marge is just joining us as well. I think perhaps later we'll be joined by some other key PLDT officers as well.

Before we begin, I'd like to remind everyone that we have a Q&A session later in the presentation, you may definitely submit your questions via the MS Teams Q&A panel. You can also send those to me on my phone if you'd prefer to do it that way. To start, I'd like to invite our Chief Financial Officer, Mr. Danny Yu, and he will walk us through PLDT's financial performance.

Good afternoon, everyone, and thank you for joining us today. Please allow me to present PLDT's financial and operating highlights for the first quarter of 2026. Our gross service revenues were PHP 54.9 billion, up 3%, or PHP 1.5 billion year-on-year. Our net service revenue was stable at PHP 48.9 billion. The top line was helped by temporary factors. For Home, a system migration from a legacy platform affected activations and installs. For wireless, revenues were weighed down by lower mobility and pressured consumer wallets brought about by spring fuel prices. Despite this, EBITDA improved 2% to PHP 28.3 billion. EBITDA margin was 32%, supported by our focus on cost control as cash subsidies applications came down by PHP 0.5 billion, or 2%. Telco core income was PHP 8.6 billion, down 2%, mainly due to higher depreciation. Net financing costs were kept steady as we successfully negotiated better rates with our creditors.

Core income improved 2% to PHP 9.1 billion, supported by Maya's continued profitability and asset sales. Overall, first quarter was softer, mainly due to the temporary impact on Home operational support migration and Middle East related pressure on consumer wallets. Some wallet pressure may carry into the second quarters as prices remain elevated. Home orders, on the other hand, and installed are now normalizing. We remain focused on stabilizing installs, continued monetization in our wireless segment, and sustained growth in our enterprise while keeping tight control on cost. While net service revenues were flat first quarter, revenues excluding legacy services grew 2% to PHP 44.6 billion. These growing segments now account for 91% of our total service revenues. While data and fixed wireless remained positive, up 1%, however, this was offset by the continued decline in legacy services such as voice and SMS.

As a result, wireless consumer revenues came in at PHP 21 billion, down 1% year-on-year. Home revenues were PHP 15 billion, down 1% year-on-year. Fiber revenues were broadly flat at PHP 14.7 billion, as installs were temporarily constrained during the quarter. More on this later. More importantly, customer demand remained healthy with orders at pre-migration levels. Enterprise was the bright spot for the first quarter as revenues grew by 4% to PHP 12.4 billion, driven by corporate data, ICT, and A2P. Overall, the growth areas of the business remain intact. Let's take a closer look at each of the business segments. Enterprise were our main growth driver this quarter. Enterprise revenues reached PHP 12.4 billion, up 4% year-on-year. Corporate data and ICT, which includes A2P or application to person, grew 5% to PHP 9.3 billion and now accounts for 75% of the enterprise revenues.

Growth was led by areas where we have been investing and building scale. ICT revenues, which include data centers, were up 17%. If you look at the tech services on its own, revenue grew even faster at 25%. This is an important part to the story because it shows strong demand for high-value solutions such as managed IT, cloud, cybersecurity, data, and AI. We also saw growth in SD-WAN lines, fiber lines, and third-party routes. A key driver for this success is our One Enterprise model. PLDT has the largest enterprise footprint in the country with many of our client relationships starting from connectivity. We are now modernizing the base through high-value solutions like SD-WAN. Simply put, SD-WAN helps clients manage their network across many branches and site through one platform with better control, security, and reliability.

From there, we also bring in more services across cloud, data center, A2P, business loads, and global services. This help us deepen client relationship and move the business beyond basic connectivity. We also had good wins during the quarter, including government contracts, cloud productivity deals, and international connectivity accounts. These help offset the continued decline in legacy services. Overall, enterprise continued to show good momentum, where demand is moving increasingly towards solutions that help clients digitize, automate, improve security, and manage cost. To give more color and enterprise, we would like to show where the growth is coming from across the group. First is PLDT Global, our international connectivity business. PLDT Global supports hyperscalers, carriers, enterprises that need secure and reliable links between the Philippines and the overseas market. Revenues grew 26%, driven by demand for high-capacity IPLC, strategic connectivity, and carrier-grade colocation.

Our wireless arm, Smart Enterprise, is also showing promise. Smart supports corporate and public sector clients through mobile connectivity, A2P messaging, IoT, and load disbursement platforms. Revenues grew 13%, driven by higher A2P SMS traffic, mobile load disbursement, and the Bayanihan SIM program, which supports digital inclusion for more Filipinos. These are recurring enterprise use cases, from customer alerts and authentication to workforce mobility and bulk load distribution. One of our fastest growing subs is PLDT, rather, ePLDT, our ICT solutions business. ePLDT supports enterprises and government clients across managed IT, cloud, cybersecurity, data, and AI. ePLDT tech service revenues grew 34%, supported by steady demand from both private and public sector clients. These solutions help organization improve efficiency, strengthen security, and modernize their operations. Finally, VITRO, our data center business. It is the pioneer and the leading data center provider in the Philippines.

Revenues grew 10%, driven by enterprise and the hyperscale workloads. In the first quarter alone, VITRO contracted 254 new racks and 680 kilowatts of incremental. Overall, this shows that the enterprise growth is coming from several areas, including international connectivity, wireless enterprise solutions, ICT, and data centers. This gives us a broader base for growth beyond traditional connectivity. Let me now move to Home. Home revenues were PHP 15 billion, down 1% year-on-year. Fiber revenues were broadly stable at PHP 14.7 billion and now account for 98% of Home revenues. While the headline number was soft, the underlying demand remained strong. More specifically, order pipeline remained healthy. The constraint was not in customer interest, but in converting those orders into completed installs. This was due to the migration from our 21-year legacy OSS system.

This system was outdated and fragmented. We needed to move to a more modern platform that can support a better digital customer journey, better order flow, and future AI-enabled capabilities. However, during the migration period, account installations and activations slowed, impacting fiber net adds. While churn remained low, we ended the quarter with 44,000 fiber net adds, lower than the previous quarters due to bottleneck. ARPU was also affected by two short-term factors. First, we extended temporary payment relief to subscribers affected by typhoons. This was part of our support for customers who needed time to get back on their feet. Most of these customers were covered, which helped preserve the base, but it weighed on ARPU in the short term. Second, the migration slowed some of the higher value fiber installs.

At the same time, prepaid fiber continued to grow because it was easier to activate during the period. This created a temporary customer mix impact on ARPU. The important point is that the business fundamentals remain sound. The demand remains healthy. We are also seeing stabilization in the second quarter as install conversion improves. The focus is now to bring installation throughput back to normal levels and rebuild home fiber momentum from the second quarter onward. For Home, we continue to focus on improving the customer experience. We are pleased to note that our NPS score improved by 12 points in 2025. NPS measures how likely customers are to recommend PLDT. It also looks at the key factors behind that rating, including how important each factor is to customers and how well we perform on each one.

The good news is that PLDT scores improved in the areas that matter most to Home subscribers Network reliability, broadband quality, and value. On network reliability, customers are seeing more stable connectivity, more consistent speeds, and fewer slowdown issues. This was supported by around PHP 3 billion in broadband capacity investments last year across peering, backbone, and caching. Network slowdown tickets were also down 38% in 2025. We also saw better feedback on the day-to-day broadband experience, including streaming, low ping, and peak time performance. On product offers, we continue to strengthen value through bundles, which customers recognize as a key advantage of PLDT Home. PLDT has been the first to market on several relevant bundles, including Netflix, HBO, IoT, and PC gaming. This help us improve value perception without relying on price cuts.

Taken together, these improvements strengthen the home value proposition as it helps improve customer stickiness, reduce churn rate risk, and create more room to upsell over time. Let's now move to wireless consumer. While total wireless consumer revenues were down 1% to PHP 21 billion, the core data business remained resilient. Data revenues, including fixed wireless, grew 1% to PHP 19.4 billion and now account for 92% of wireless consumer revenues. Active data user reached 44.1 billion. Wireless data traffic, including fixed wireless, rose 10%. 5G individual data devices grew 34% to 12.2 million and now making up 20% of the device base. The softness was mainly in revenue. With higher fuel prices, lower mobility, and tighter consumer wallets, subscribers became more careful with their daily spending. Many also stayed home more and shifted part of their usage to Wi-Fi.

While subscriber remained connected, some top up less than often by stretching their current offers. Fixed wireless remained a bright spot, with revenues up 18%, supported by stay-at-home data demand. To address the pressure, we're managing the base in a more targeted way. We're using hyper-personalized offers to match the right offer to the right subscriber. For some users, this means keeping them active with more affordable offers. For others, it means moving them to high-value offers where they have the capacity to pay. We're also using dynamic pricing to improve monetization. Lastly, 5G adoption continues to move up. As more customers move to 5G, they tend to use more data and take up bigger offers. This also helps improve experience across both 5G and LTE. Overall, wireless was affected by wallet pressure in the third quarter, rather in the first quarter, but the subscriber base remains intact.

Data usage continued to grow, we're taking a more targeted approach to monetization. Let me now move to operating expenses. Total cash expenses, subsidies, and provisions came down to PHP 20.6 billion, lower by PHP 0.5 billion or 2% year-on-year. Compensation and benefits were down 4%, supported by workforce productivity efforts. Selling and promo were also lower, down 9%. Taxes and licenses were also down 23%. Repairs and maintenance were broadly stable, down 1%. These savings more than offset the increase in contract-specific service costs. That increase was tied mainly to growth areas, including ICT projects, cloud, data center, and content costs. We're keeping a tight grip on OpEx while still supporting the areas that drive growth and service quality. For the first quarter of 2026, EBITDA, excluding MRP, reached PHP 28.3 billion in the first quarter, up 2% year-on-year. EBITDA margin remained steady at 52%.

This was achieved despite flat service revenues, mainly because of lower cash expenses. Telco core income was at PHP 8.6 billion, down 2% year-on-year. The decline was mainly due to higher depreciation as we continue to invest in the network and infra. This was partly offset by Maya's continued contribution. Maya contributed PHP 285 million to PLDT's core income in the first quarter. We also booked PHP 0.3 billion from property sales. This is part of our broader asset monetization program as we continue to unlock values from our non-core assets. As a result, core income improved to PHP 9.1 billion, up 2% year-on-year. Reported income was PHP 8.9 billion, down 2%. This reflects unrealized Forex losses and MRP cost. Overall, while the telco core was slightly lower, group core income improved, supported by Maya and asset monetization. Let me now move to CapEx and free cash flow.

CapEx for the first quarter was PHP 10 billion, lower than PHP 10.8 billion last year. CapEx intensity continued to come down from 20% in the first quarter last year to 18% this quarter. This reflects our continued focus on discipline and better pricing and terms. At the same time, we continue to invest in the areas that matter for growth and service quality. These include new cell sites, home fiber ports, AI, submarine cables, data centers, and network and IT upgrades. EBITDA less CapEx improved to PHP 18.3 billion from PHP 17 billion last year. We remain focused on sustaining positive free cash flow while bringing CapEx intensity down over time. For 2026, our guidance remains in the mid PHP 50 billion range. Let me now move to our debt profile. I'll start with a key point. PLDT sustained positive free cash flow as at the end of March.

Net debt was PHP 282.3 billion, while net debt to EBITDA was at 2.53 times, slightly better than 2.56 times in December 2025. Gross debt was PHP 297.3 billion, and our maturity profile remains long-dated, with 50% of our maturities are post-2031. This keeps near-term refinancing needs manageable. Interest cover remains healthy at 3.3 times. Average interest costs improved to 5.08% from 5.43% as of end of 2025. This reflects the work that we have done with our banks to negotiate more favorable funding terms, which resulted in keeping net financing costs flat year-over-year. Our debt mix remains balanced, with 32% fixed rate loans and 68% floating rate loans. We will also continue to maintain our investment grade ratings from both S&P Global and Moody's.

Looking ahead, our focus is to maintain positive free cash flow in 2026 and work towards around 2.0 times net debt to EBITDA, supported by our asset monetization plans. In the first quarter of 2026, Maya, the Philippines' leading digital financial services platform, sustained its growth and profitability. Its integrated payments and digital banking platform helps consumers manage their finances. It also gives business tools to improve cash flow and access financing. This supports Maya's position as the country's leading digital bank and merchant acquirer. During the quarter, Maya continues to enhance its banking, credit, and payment suite using its proprietary data-led underwriting platform. By end of March 2026, Maya's deposit increased 73% year-over-year to PHP 76 billion. Its loan portfolio reached PHP 33 billion, driven by growth across multiple credit products.

Demand and adoption stayed across consumer and enterprise segments, including merchant scaling through Maya Business for integrated payment acceptance, business deposits, and credit solutions. Results were driven by Maya's proprietary technology platform and AI capabilities. On the funding side, Maya Savings, Maya Personal Goals, Maya Time Deposit Plus continue to attract customers with competitive rates. In the first quarter of 2026, Maya accelerated credit growth across Maya Easy Credit, personal loans, Maya Black Credit Card and Landers Cashback Everywhere Credit Card, and SME loans. Asset quality remained stable with an NPL ratio of 4.9%. Maya delivered a net interest margin of 17.1%, underscoring strong lending margins. Maya's momentum continues to earn industry recognition, including Neo Bank of the Year, Best Digital Fraud Protection Experience at The Asset Triple A Awards, as well as inclusion in Forbes World's Best Bank of 2026. Beyond financial results, Maya broadened partnerships to advance financial inclusion.

Through its collaboration with the IT and Business Process Association of the Philippines, Maya is extending digital banking credit access to 1.9 million digital workers, helping build formal credit histories and enhancing payroll and disbursement processes for participating companies. After PLDT's inclusion in the S&P Global Sustainability Yearbook for 2025 and 2026, PLDT was also apprised of its inclusion in the universe of eligible companies for potential inclusion in the Dow Jones Best-in-Class Index. While the company was not included in the final list of constituents, PLDT remains focused on embedding sustainability in the business and advancing its environmental, social, and governance commitments. PLDT remained active in the broader sustainability community in the pursuit of shared goals. The group's program on digital farmers and innovation in agriculture were also featured in international events.

Other examples of embedding sustainability in the business are the solarization of lease cell sites, which meet our triple goals of cost savings, service reliability, and decarbonization. Combating cyber crimes and online harms remain a priority and are part of our keeping our customers safe online. Finally, we are able to use our e-waste program in marketing, particularly for younger markets. That concludes our prepared remarks for PLDT's first quarter results. We are now open for questions.

Thank you, Danny, for the insights on our growth initiatives and key developments across our business units. Before we open the floor to your questions, allow me to reintroduce the business leaders in the room who can also help you with your queries. Again, we have PLDT CFO, Mr. Danny Yu, PLDT's Chief Operating Officer, Mr. Butch Jimenez, Jr., Chief Legal Counsel, Attorney Joan De Venecia-Fabul, SVP and Head of Consumer Business Home, Mr. John Palanca, SVP and Head of Enterprise Business, Mr. Blums Pineda, and our Smart Communications Officers in charge, Ms. Marjorie Garrovillo, and Mr. Lloyd Manaloto. Before we begin, I'd like to remind everyone that we do have a Q&A box for you to be able to send your questions through. Please feel free to go ahead and do that. You may also raise your hand, and I'd be happy to unmute you as well.

For those who sent over your questions via SMS, thank you for doing that, and I'll read your questions as well. Let me see. It looks like we have a question from Arthur Pineda of Citi. Arthur, please go ahead. Arthur? I'm sorry.

Hi. Can you hear me? Hello.

We just raised the volume.

Oh, hi. Okay. Yes. Thanks for the opportunity. Two questions, please. Firstly, are you able to elaborate on the monthly consumption trends? How this has changed going to March, April, and May? I'm just wondering if there's any change in consumer spending given the impact of inflation. Second question I had is with regard to your Maya business. You've seen a recovery in this quarter. I'm just wondering what your expectations are in the trends. Any added stresses on the lending side given all the consumer pressures? Thank you.

Yeah. Sorry, we missed the beginning part of your first question. Allow me to take your question first on Maya, and then we can go back to your first question earlier. You mentioned that you've seen Maya continue to grow, and you were wondering if there were any pressures that we're seeing. Maya has continued to grow really strongly, and it did improve its profitability in the first quarter, and that was driven by growth in both the payments and digital banking side. As you saw, Maya's loan book grew by 52% in the first quarter, and that's year-on-year. If you look at quarter-on-quarter, that grew at 10%, right? That really represents consumers continuing to adopt the service.

Our NPL ratio also came down from 6.1 to 4.9, that really reflects the strong portfolio growth, as well as the effectivity of Maya's proprietary underwriting platform. Right? Provisioning remains aligned with Maya's risk appetite. When looking at the effects of the Middle East crisis, really when we've spoken to Maya on this, they mentioned that they have not observed any material impact on overall business performance. Activity actually remains stable. They expect that to continue in growth. They definitely are monitoring key metrics across. As of now, they're not seeing pressure points yet.

I'll take that question. Lloyd Manaloto here for Wireless Consumer. What we initially saw was that from January to February, we had an increase in top-ups. Starting March, we're starting to see the softening in terms of top-ups, due because the subscribers, in terms of their top-up frequency, are slowing down. This does not mean it's all subscribers, but segments of our subscribers where we see this behavior. Having said that, we've instituted certain programs and product and capabilities like our hyper-personalization, wherein we were now offering targeted offers to these subscribers to get them to adjust in terms of their top-up behavior. We're seeing some improvements in April. In general, we do see the slowing down of top-up behavior.

Understood. Thank you.

Thank you. John of UBS, I see you have your hand raised. You may go ahead.

Hi, good afternoon. Three questions for me. First is on mobile. I think you characterized the softness quarter on quarter on mobility restrictions. Could you comment on, I guess, how the competitive landscape was in the first quarter? Because I think your competitor alluded to some price hikes that were implemented, so I was wondering whether you see the same trends. Second, on broadband, how long can we expect this systems migration to continue? Or put another way, how much are we finished with this process? And how, I guess, it would affect future net adds in probably the second or third quarter. Third is, I think I observed a spike in both international voice revenues and the corresponding increase in interconnection costs. I was wondering what the interplay between these two accounts were and why the sudden spike in the first quarter. Thank you.

I'll take the first question. I think to characterize the quarter changes in consumer behavior, competitive behavior, I would characterize part one to be more benign compared to previous quarters. The key now is for the industry to go after the subscribers in order for them to top up more, either with more frequency, or for those subscribers who can afford it, they would, if we could actually price up on certain SKUs. Not saying that we're doing it for all, but there are certain SKUs where we can actually do some tactical pricing increases. Having said that, we're really leveraging on our capabilities for hyper-targeting and hyper-personalization because we can't do blanket pricing place. What we need to do is target the right product and service to match the economic needs of that consumer and also their context at that point in time.

If I may just add, just to provide context for our consumers, what is different today is that connectivity is actually one of their basic needs already. Even as a consumer wallet starts to shrink, staying connected still becomes part of their main need. Therefore, there is a certain level of resilience on how they will be connecting. In that way, the real role of wireless is to make sure that we are able to offer them the most price-effective offers that they can actually avail of at that point. In that way, we should be able to keep the subscribers engaged with the network.

The question is in regards to the OSS migration.

That's correct. Hi, John. Thank you for that question. Just for context, we've been operating and offering fiber services for a couple of decades now, and the current operation support system that we are using is actually one that is legacy driven. We've been using it for over 20 years, and it is no longer able to scale and innovate as much as we want to. We embarked on a modernization program, and we consciously accepted a very short-term softness resulting from a migration of such magnitude. We actually experienced some temporary operational friction. We began the OSS migration in December of 2025, and we actually are stable as of the first week of March. We are seeing that the flow-throughs have been enhanced and the processing of our orders from order to fulfillment have greatly accelerated.

That is giving us the capacity to even accept more applications and serve more customers. More importantly, the operation support system serves as our foundation for future modernization, such as the BSS stack, the digital stack for unassisted channels, and our, of course, move to AI. I think we have the modernization for this particular stage of the OSS transformation behind us now. We have stabilized, and we are now postured for growth Q2 onwards. Thank you.

I think the third question is in regards to our international voice revenues and the corresponding interconnection costs.

We have a wholly owned subsidiary named PLDT Global. PLDT Global sells or trades international traffic volume to different operators. This one has a margin of only less than 2%. That's why you can see that you have a high revenue with a high cost of interconnection. That explain the increase in interconnection cost as well as the gross revenues or the gross trunk. Do you get it, Jan? Sorry if I'm not sure if you get it, Jan.

Yeah. That was helpful. Is this business new? Because I think this was-

We've been doing that for a while actually, Jan. We've been doing that for the last five years. It's giving us income. So far so good, no?

Yeah.

That's why I think you can better analyze our financials by taking that out. Actually, if you look at our management report, we usually don't include that. It's separately accounted for. If you look-

Okay

If you look at our operating expenses, you don't see interconnection costs there because we try to separate the hubbing business from the service revenues.

Airlines to be-

That was helpful. Thank you.

Just read some of the questions that came in earlier this afternoon. This one is from Marky Carunungan. Okay, this is for our mobile business. Last briefing, management highlighted hyper-personalization and improving ARPUs as a key driver for mobile recovery. However, in first quarter, data traffic grew 10%, while wireless data revenues grew 1%. Could you give us some color on what is limiting monetization conversion despite the stronger metrics?

The power of that service, the capabilities, we're actually analyzing behaviors of our subscribers. We're seeing segments of our subscribers who are actually fully using up their load wallets

Before, they would actually top up with some available data and then continue to load up. What we're seeing now, I think as a response to the inflation pressures, is that these segments of subscribers are actually eating up all the wallets. There's no breakage on those data revenues. Having said that, what we're also now doing as part of our hyper-personalization is, aside from upselling, we're also offering next best offer services to these subscribers because we know they're now under pressure because of the inflation. We try to give them the next best offer at maybe a slightly lower price, but we keep them in the system. As you can see from our subscriber base, it's fairly stable right now, and churn rates are stable at about 2.5% for prepaid. It's not going up, and our subbase is slightly increasing. It's because of post-paid services.

Essentially, what we're doing now, we're not just using the capabilities of hyper-personalization, upselling. We're also using it to protect the base, keep churn low, and also get them to the next best offer. Does that clarify?

Thank you, Lloyd. Looks like this question is for Home. John, this is in regards to the ARPUs. You mentioned that ARPU softness is characterized by partly mix-driven rather than structural pricing pressure. With fiber ARPU declining this quarter, has your view changed regarding the long-term pricing environment in broadband?

The question was from?

This is from Marky Carunungan, sir.

Hi, Marky. Good afternoon. Thank you for that. Yes, I recall during the last investor meeting that we were going to really put a lot of focus on the product mix and ensure that we sustain our ARPUs. We are still continuing that effort. However, during the OSS modernization exercise. Well, first let me answer what is OSS. OSS is our operation support system. It flows in our orders, from order taking to validation to provisioning, activation, and fulfillment. During that period of modernization and migration in the first quarter, the prepaid orders were flowing much easier because they had to go through less gates, and the mix kind of got skewed a little bit more towards prepaid. We never over-indexed. There was just a slight increase. Thus, you will see the slight dip.

Moreover, we did have some subscribers that were affected by the disasters that occurred in the third and fourth quarter of last year, in 2025. We wanted to keep them on the network, give them a chance to stay on as extended repairs resulting from reoccurrences of the earthquakes, and the typhoons in the same areas. Because of that, we zeroed out their revenue so that we do not see any inflated revenue figures in Q1. However, as you can imagine, since they are active in the system, that has a dilution effect on our ARPUs. Again, that too is temporary, and that too was something that we accepted would be part of the recovery efforts for the typhoon. That has since been normalized as we already cleaned up our base, and you will see a regularization of the ARPUs Q2 forward.

From what I recall, John, a lot of these customers who extended assistance to have come back.

Yes. I won't disclose how many, but we lost only about 17 to 17.5% of those that were affected by the typhoons. They really appreciated the gesture of extending and not billing them during the typhoons. Thank you. The earthquakes. Thank you.

Thank you. All right, this question is for our enterprise business, this is from Matteo Lorenzo. Good afternoon. On the One Enterprise model, are you already seeing measurable cross-sell uplift from existing connectivity clients into cloud data centers, SD-WAN, A2P, and managed IT? Is the current enterprise growth still mostly driven by standalone product demand?

Yes. Thank you for the question, Matteo. We are really beginning to see that growth already, I think. We focused on the larger corporate and larger enterprises with that push out, where basically a single relationship manager carries the full bag, if you will, of enterprise solutions, whether that be fixed, wireless, or ICT. We're seeing healthy attach rates, especially in companies that are scaling up on the digital infra side. I think they're seeing the value of being able to come to one company for this. For example, with tech native companies or even all the way up to big hyperscalers, being able to come to one place for your big circuit connectivity, your data center requirements, et cetera, is a big plus.

Yes, we're beginning to see it, we're continuing to roll that out to the rest of the large accounts, and hope to get more lift from them. Thank you.

Thank you, John. I think this message is from Marky as well, which he said earlier, this is in regards to KPA. Attorney Joan, have there been any meaningful developments since the last on KPA? How do you assess the potential impact on the industry pricing and infra competition?

Thank you for that question. Since our last board meeting, there's been some movement on the KPA, particularly on the drafting of the initial access list. As you know, there's a technical working group comprised of the DICT, the PCC, and the NTC, and they are in charge of formulating the initial access list. They have sought, and we have given our views on the initial access list, and I think other telco players, as well as access seekers, were also asked for their views. The access list should have been released per the timeline of the IRR last March. However, it's already May, and this is because there are many views that they had to consider.

In fact, the PLDT group met with the TWG just two days ago to share some more information about our technical and operational capabilities to meet the demands of the initial access list. Given the situation, we believe that maybe the initial access list may come out in the next month or so. This means that per the timeline set in the IRR, we have two months to issue the reference access offer. We told the TWG candidly two days ago that it is virtually impossible to meet the two-month deadline for the reference access offer because the pricing itself, which you mentioned in your question, would take at least a year. In other jurisdictions, like in Saudi Arabia, it took them more than a year to formulate a reference access offer.

We informed them of this, and we urged them to also do a survey of their own, and they considered our views in the latest meeting. Definitely a lot of movement, there are some delays that are understandable given the number of players that want to participate and get their views and voices out there. For spectrum management, there was an initial invitation for us to participate, not much movement there because we understand that the TWG is taking it one item at a time. We imagine that spectrum management might be pushed back to end of this year or even next year. That's it for now on the KPA. Definitely everything on pricing is still up in the air. We are starting to work on that from our end, no definitive movement there yet. Thank you.

Thank you, Attorney Joanne. There are a couple questions here in the Q&A box from Fernandez Michael. The first is in regards to a potential REIT listing. Would this still push through this year? Is there an envisioned listing date? How much does PLDT expect to raise? Will proceeds be used to pay down debt? While there's no certainty on this, go ahead anyway.

Yeah. The REIT is a key priority project as part of our asset monetization program. Unfortunately, we cannot really divulge about the timing, again, this is a very important project, it's quite urgent for us. We can't also divulge the amount to be raised, sorry.

In regards to any asset monetization proceeds, whether it be sales.

Yes, all of these will go to debt reduction.

Sure

pay down debts.

Also from Michael, and this is for you, Danny, as well. Do you expect any margin compression as a result of the US-Iran war? I guess on costs, how we're managing those, and how that would be managed.

We're managing the costs, I think efficiently, except that we really don't know. If it's prolonged, then it's likely to impact our operating costs.

It's really very fluid at this point in time.

It's not easy.

We've definitely taken measures to mitigate those costs as well. This question is from Paolo Manansala of COL. It looks like this is in regards to Maya. Just wanted to ask for more color on Maya's contributions, given the sharp improvement in profits. Should we expect this level of profitability for the rest of the year, or are there one-off gains booked in this period? I guess to answer your question, Paolo, it is both, right? There were, of course, very good improvements in regards to the core business, both on the payment side as well as the banking side. We did show the metrics earlier regarding loan growth, which has grown substantially. NIMs remain very healthy, and the NPLs are actually trending down. That's very good on our part, right?

In terms of the payment business, that is also expanding, and they have a very strong hold on the merchant acquiring business as well. Definitely that business continues to grow. It's a well-diversified business, and they expect to continue to contribute in that way. With that said, there are also some one-offs that were booked by Maya, as well as some catch-up provisions that we recognized this quarter as well. There are one-offs, and these are non-recurring in nature. Yeah. Non-core.

Is it referring to the PHP 285?

Well, the 285.

PHP 285 million is core, but it does include catch-up adjustments.

Mm-hmm.

We normally finish our financials before February 28th, but in the case of Maya, they finish it only after April 15, or say, on April 15th. There are catch-up adjustments. That's part of the core income that we book in the first quarter.

On slide 12, you'll see Maya's contribution to PLDT's core income. In our financials, you'll see the impact as well on reported net income, which in that line would include some of the one-offs. Okay. There are some hands raised. Let me just go ahead with that. Raymond Franco, you have your hand raised. Let me go ahead and allow you to unmute. Please go ahead.

Thank you. Just checking first if you can hear me. Okay. To continue on the Maya thread, just three questions on Maya. First, has there been a significant increase in the average term of the loan book? Second question, does Maya also, like the banks, employ an expected credit loss model? If yes, does this ECL model impute the higher level of inflation as well as the weaker GDP growth? Third question, any update on potential or planned listing of Maya? Those are all of my questions. Thank you.

Yeah. Thank you, Raymond. First on the IPO, we're unable to comment on any speculation regarding whether it would happen or any timing on that. In regards to the increase in the loan book of Maya, what I can say is that really, their bread and butter would be the Maya Easy Credit, right? Which is a very popular short term, 30-day, maximum PHP 30,000 type of product. I would say that this primarily makes up a good chunk of their loan book. I don't know if there's any significant changes to that, although I do know that, of course, they do have a very diversified business. They have a consumer business, they have an enterprise business as well. As that mix changes, we would definitely see some changes in the absolute loan tenor as well.

Regarding a credit loss model, I'm unable to comment on that in detail, but they are very well covered in terms of their loan provisioning. If you would look at the BSP statistics, they're about 100% covered there. I hope that answers your questions, Raymond.

Yes. Thank you. That's all from me. Thank you.

Thank you. Arthur, you have your hand raised as well. Please go ahead.

Hi. Sorry, just to follow up on Maya as well. Just to clarify, when I look at slide 34, you have PHP 1.08 billion in equity contributions versus the PHP 200 billion-PHP 300 billion that you've mentioned. Just wanted to check what accounts for that big difference?

Yes. Basically, those are some value adjustments.

Fair value adjustments on the convertible and exchangeable bonds.

Yeah.

That's the fair value adjustments on convertible and exchangeable bonds.

Okay, it's a one-time adjustment. We should really be looking at the PHP 0.2 billion-PHP 0.3 billion.

That's the one time, the one below the core income.

If you look at the earlier slide 12, that would include the contributions of Maya to PLDT's core income. That would, I guess, more accurately show contributions from the business.

The PHP 285, okay.

Including some value adjustments as well.

Okay. Thank you.

Thank you. Just check the Q&A box. Okay, some other questions from Fernandez Michael, "What is your CapEx guidance for 2027?" We don't have our budget yet for that. I guess the general direction is to continue to be very prudent on CapEx, bring our CapEx intensity down, since we do intend to make sure that we hit positive free cash flows and hopefully two times net debt to EBITDA.

Continue to sustain.

Continue to sustain, yes, of course. Hit two times net debt to EBITDA in the medium term. Okay. There's a question from Neil. I think we read that already on the enterprise book model. Let me just check my phone. Okay, this is a follow-up question from John Te of UBS. "Is there any guidance for 2026?

Given the current condition, it's hard to give guidance, I think.

Yes, very fluid environment. The guidance we can give now is in regards to our CapEx, as well as our continued efforts to be free cash flow positive. Another question from Fernandez Michael, "How much does PLDT expect to raise from tower sales in 2026?

Around PHP 2 billion-PHP 4 billion.

Okay. We have a few minutes left here. I don't see any other questions from the Q&A box. No raised hands as well, I think that's it for today. Thank you so much for joining us this afternoon. We hope we were able to answer all of your questions. If you missed any, please feel free to reach out to me via PLDT Investor Relations box or via my phone. We look forward to seeing you in our next earnings briefing come August. Thank you again, and have a great afternoon.

Thank you very much.

Thank you.

Good afternoon, everyone, and thank you for joining us today. I'm Jinggay Nograles, Head of Investor Relations here at PLDT, and it's my pleasure to welcome you to our full year financial and operating results briefing. Joining us today to share insights into PLDT's performance and strategic direction, we have PLDT's CFO, Mr. Danny Yu; PLDT's Chief Operating Officer, Mr. Butch Jimenez; our Chief Legal Counsel, Attorney, Joan De Venecia-Fabul; our Corporate Secretary, Attorney, Marilyn Victorio-Aquino. We also have our business unit heads, our Head of Consumer Business Home, Mr. John Palanca; our Head of Enterprise, Mr. Blums Pineda; and our OICs for Smart Communications, Ms. Marjorie Garrovillo and Mr. Lloyd Manaloto. We also have online with us ePLDT and VITRO President, Viboy Genuino. [Operator Instructions] Right, to start, I'd like to invite our Chief Financial Officer, Mr. Danny Yu, to walk us through PLDT's financial performance.

Good afternoon, everyone, and thank you for joining us today. Please allow me to present PLDT's financial and operating highlights for the full year 2025. Our gross service revenues reached PHP 212.2 billion, up 2% or PHP 3.8 billion. Net service revenues reached PHP 196.2 billion, marking a record Cash OpEx subsidies and provisions came down to PHP 84.9 billion, down 1%, reflecting our focus on spending control even as we support the growth areas. EBITDA, excluding MRP costs, rose 3% to PHP 111.2 billion with margin steady at 52%. Telco core income was PHP 33.9 billion, down 3%, mainly due to higher financing costs and depreciation as we continue to invest in network upgrades. Core income improved to PHP 34.6 billion, up 1%, supported by Maya's swing to profitability. Overall, our fiscal year results show a stable top line, resilient EBITDA, improving contribution from our digital business and stronger cash as CapEx came down. Our consolidated service revenues reached PHP 196.2 billion, up 1% or PHP 1.5 billion year-on-year. If we exclude legacy services, revenue would have grown 3% or PHP 5.5 billion to PHP 176.9 billion. This now makes up about 90% of total service revenues versus 88% a year ago. For wireless, mobile data and fixed wireless reached PHP 77.2 billion, up 1%, making up 91% of wireless revenues versus 89% last year. Wireless consumer revenues were PHP 85 billion, steady year-on-year. For Home, fiber continues to lead the story. Fiber revenues grew 6% to PHP 59.4 billion, accounting for 98% of Home revenues versus 92% a year ago. As a result, Home revenues reached an all-time high of PHP 61 billion, up 3%. For Enterprise, corporate data and ICT grew 3% to PHP 36.3 billion, now 75% of Enterprise revenues versus 72% last year. ICT on its [indiscernible] 25% year-on-year. Overall, Enterprise revenues grew to a record PHP 48.4 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. To close the year, we ended fourth quarter stronger versus 3 quarter, Q3, building on the momentum that we saw last quarter. Consolidated service revenue in the fourth quarter were PHP 50.3 billion, up 3% quarter-on-quarter. Wireless consumer revenues were PHP 21.8 billion, up 4%, driven by mobile data and fixed wireless access. Enterprise revenues were PHP 12.7 billion, up 5%, led by corporate data and ICT. Home was flat quarter-on-quarter due to multiple major calamities in the fourth quarter, including 2 earthquakes and 4 super typhoons, which affected installation activity as resources were diverted to repair and restoration. Let's take a closer look at each of the business units. As mentioned earlier, Home delivered record revenues in 2025. On this slide, I will focus on the drivers behind the performance. Subscriber growth stayed strong and quality led. Fiber net adds reached 392,000 in 2025, up 98% year-on-year, bringing total fiber subs to 3.76 million. This was supported by faster installs, improved service reliability and more affordable fiber options that help broaden adoption. Customer economics stayed healthy, supported by our bundling strategy. ARPU was stable at PHP 1,447 for the full year. Churn remained very manageable at 1.82%. We continue to strengthen our content bundles with Cignal, Netflix and HBO Max. We also expanded beyond streaming into home services through Home Life, which offers starter kits for home security and everyday living. And through iGV Game Pass, we give subscriber access to over 200 PC games. Overall, we continue to grow Home in a disciplined way, turning CapEx into stronger revenues while keeping margins resilient. Wireless consumer revenues held steady in a highly competitive market. Here, I'll focus on key drivers of the business, particularly hyper personalization, 5G adoption and fixed wireless access. Worth noting is that the gains in the third quarter were carried on to the fourth quarter as we streamline offers and customer management while continuing to invest in network quality. We also saw sequential ARPU improvement with smart prepaid up 4% quarter-on-quarter and TNT up 3% quarter-on-quarter, supported by better targeting and more relevant offers. Usage continued to rise. Mobile data traffic grew 7% to 5,900 petabytes in 2025 and active data users reached 43.2 million as of end of December. 5G adoption also continues to expand, and this supports revenues as 5G users typically consume more data and take up bigger plans. 5G devices were up 35% to 11.2 million, while 5G data traffic rose 88%. 5G devices now make up 19% of the total base. As more traffic moves to 5G, it also helps decongest LTE, improving the experience across the network. Fixed wireless access remains a key [indiscernible]. Fixed wireless revenues were up 22% year-on-year, supported by the shift from 4G to 5G fixed wireless access, which improves service and help us use network capacity more efficiently. Lastly, our core modernization is now underway. This strengthens analytics and targeting, improves marketing efficiency and supports ARPUs. Enterprise delivered its highest revenues in 2025, and we ended the year stronger. In Q4, revenue rose 5% quarter-on-quarter, supported by ICT contract wins and better delivery momentum. The mix continues to shift beyond pure connectivity with more customers taking the solution-led services alongside core connectivity. ICT is the key growth driver. ICT revenues grew 25% for the full year, led by managed IT services, which jumped 211%; and data center colocation, which expanded by 15%. In Q4, ICT was up 19% year-on-year and 15% quarter-on-quarter, supported by contract wins and better delivery. We also strengthened our security stack with SmartSafe SilentAccess, a network-powered sign-in solution that moves beyond SMS OTPs and aligned with the BSP's push for stronger digital authentication. Lastly, SME also contributed to growth with revenues up 3% year-on-year, supported by fiber and mobile access and scalable ICT offers, including SME engagement series with government and partners. Overall, enterprise is back in growth mode anchored on ICT and digital infra. I'll zero in on VITRO and Pilipinas AI on the next slide. VITRO is now on its 25th year, and it remains the market leader with the widest data center footprint in the Philippines. That matters because enterprise, cloud, AI workloads all depend on the uptime, security and trust. In April 2025, we launched the country's first operational hyperscale facility through VITRO. VITRO Santa Rosa is designed for enterprise, hyperscalers and public sector workloads, with about 4,500 racks and up to 50,000 megawatts once fully energized. It now hosts live NVIDIA GPU servers powering ePLDT's AI stack solutions. Demand remains still with colocation up 36%, supported by a 19% increase in rack deployments. On top of the infra, we're also building the AI layer Pilipinas AI, the country's first sovereign AI solution stack. This tool allows enterprises and the PH government to adopt AI without heavy upfront build-out while keeping data and workload hosted locally. To make this tangible, we already have live AI use cases running in VITRO today. These include AI-powered contact center tools that automate routine steps, improve response quality and give agents better prompts and insights. We also run conversational AI or top course that can handle [ publish ] and multistep conversation for customer support and lead generation. Lastly, we also have AI assistance that improve productivity in collection and other workloads by guiding next best actions and reducing handling time. VITRO and Pilipinas AI strengthen PLDT's position in data center and AI and support our long-term plan to scale this business with discipline. As we continue to invest in the business, we are also keeping a tight grip on costs as operating expenses came in lower for the third consecutive year. For the full year 2025, total cash CapEx subsidies provisions came in at PHP 84.9 billion, down PHP 1.2 billion or 1% year-on-year. The biggest savings came from compensation and benefits, down 6%, reflecting continued workforce discipline and productivity efforts. We also spent less on selling and promotions, down 9%, supported by better targeting and spend efficiency. Provisions and subsidies were both lower year-on-year, reflecting more disciplined customer acquisition and tighter credit screening in device-led plans. Offsetting some of these, contract-specific services increased, tied to the ramp-up of key ICT projects. Repairs and maintenance was also higher, reflecting ongoing network rollout and uptick. All told, we are managing OpEx -- rather OpEx carefully while still funding the priorities that support growth and service quality. For the full year 2025, EBITDA reached PHP 111.2 billion, up 3% year-on-year with margin steady at 52%. This was driven by a PHP 1.5 billion increase in service revenues alongside a PHP 1.2 billion decline in operating costs. The EBITDA margin held firm at 52% for the year, reflecting our ability to defend profitability even in a competitive market. Telco core income was PHP 33.9 billion, down 3% year-on-year, mainly due to higher depreciation and financing costs as we continue to invest in network and infra. Core income improved to PHP 34.6 billion, up 1%, supported by Maya's milestone year. Our share in Maya's core income was PHP 0.7 billion, improving from PHP 1 billion loss last year or PHP 1.3 billion upswing. Reported income was PHP 30 billion, down 7% year-on-year. This mainly reflects the lower ForEx and derivative gains versus last year. Overall, core earnings held up, supported by the steady operation and Maya's improving contribution. Meanwhile, our modernization work position us for the next phase of growth. Let me now move to CapEx and free cash flow. First, we sustained positive free cash flow through end 2025, building on what we achieved last quarter. Full year 2025 CapEx was PHP 60.3 billion, down from PHP 78.2 billion last year. CapEx intensity improved to 28% from 38% a year ago, reflecting tighter discipline and better pricing and terms. For 2026, our CapEx guidance is in the mid PHP 50 billion range with the same focus on growth and quality. Our goal is to steadily bring CapEx and CapEx intensity down while sustaining positive free cash flow. Let me now move to our debt profile as of December 2025. I'll start with a key point. PLDT sustained positive free cash flow as of end of 2025, supporting our deleveraging path. Net debt was PHP 284.7 billion, while net debt-to-EBITDA was at 2.56x. Gross debt was PHP 296.9 billion, and our maturity profile remains long dated with 49% of our maturities are post 2031. This keeps our near-term refinancing needs manageable. Interest cover remains healthy at 3.3x. Average debt maturity is 6.5 years, with 33% fixed rate and 67% floating as we anticipate lower rates moving into 2026. Finally, our recent annual review, PLDT continues to be rated investment grade by S&P and Moody's with stable outlooks. Looking ahead, our focus is to maintain positive free cash flow in 2026 and works toward around 2.0x net debt to EBITDA, supported by our asset monetization plans. For 2025, total dividends amount to PHP 94 per share, reflecting a 16% regular dividend payout aligned with our policy. A final dividend of PHP 46 per share for 2025 was declared today. PLDT continues to focus on deleveraging to generate positive free cash flows. As of end of 2025, PLDT's 12-month trailing dividend yield stood at 8%, positioning us as one of the most attractive dividend plays in the market. On to Maya. Maya operates as an integrated digital financing platform covering payments, savings and lending. The platform serves both consumers and businesses with scale driving higher transactions, broader product usage and stronger network effects. These dynamics support Maya's leadership in digital financial services in the Philippines. Maya closed 2025 with robust growth and achieved full year profitability. As of December 2025, Maya remained as the leading digital bank and merchant acquirer in the Philippines. Deposit balances reached approximately PHP 68 billion, up 72% year-on-year. Total loans disbursed since 2022 reached PHP 256 billion. The Maya Group delivered PHP 1.7 billion in net income for 2025, marking its first full year of profitability. Performance was supported by Maya's proprietary technology platform and AI capabilities. On the funding side, deposit products continue to attract customers with competitive interest rates. In 2025, Maya accelerated credit expansion through the launch of the Maya Black credit card and continued scaling of easy credit and personal loans. Credit quality remains stable with a gross NPL ratio of 6.1% as portfolio continued to mature. Maya continues to expand access to formal banking across the country. Its customer base is predominantly young with majority located outside Metro Manila. So through digital banking and credit products, Maya enables consumers to save securely, spend flexibly and access credit responsibly. In 2025, Maya expanded partnership across the private and public sectors. Private sector collaboration included Cebuana Lhuillier for new-to-credit consumers and Pepsi-Cola Philippines and Ultra Mega to enable purchase financing for micro businesses. Maya also partnered with Philippine Airlines to integrate airline miles into Maya app and supported digital engagement and voting platforms such as Pinoy Big Brother and Miss Universe Philippines. In the public sector, partnership with agencies, including the Department of Education, the Philippine Sports Commission and the National Power Corporation help improve access to digital financial services. Based on the performance of its products and partnership, Maya continues to redefine digital finance in the Philippines. From PLDT's perspective as a shareholder, Maya's first full year of profitability reflects the strength of its platform-led model and the long-term growth potential. PLDT continues to make notable gains in sustainability. For the second straight year, PLDT was included in the S&P Global Sustainability Yearbook after posting the highest CSA score among the Philippine companies at 77. On 848 out of 9,200 companies assessed were included, further evidencing the improvement it has made in ESG. PLDT also earned a B rating from CDP for both climate and water, performing in line with global and industry averages on climate while exceeding averages on water. PLDT remained at the forefront of adopting global reporting framework on ESG to further improve transparency and communication of progress to its various stakeholders. During the quarter, the Board approved policies on water and energy management to support energy efficiency and greenhouse gas reduction objectives, energy audits and energy management trainings were conducted nationwide. In support of our advocacy of creating a safe online environment, we continued to block access to malicious domains and URLs. We also deployed in-house innovation using AI to enhance risk assessment for both the enterprise and our employees. A summary of our latest ESG ratings that manifest the progress that we have made can be found in the Sustainability section of the presentation. Now that concludes our prepared remarks for PLDT's full year 2025 results. We are now open for questions.

Thank you, Danny, for those valuable insights on our growth initiatives and key developments. As you've seen today, we remain confident in our market position, supported by our improving operational fundamentals, strategic investments in digital infrastructure and the promising growth trajectory of Maya. Before we open the floor to your questions, allow me to reintroduce our business leaders who are here with us, who can also help answer your queries. We have our Chairman and CEO, Mr. Manuel V. Pangilinan; of course, our CFO, Mr. Danny Yu; our COO, Mr. Butch Jimenez; our Corporate Secretary, Attorney, Marilyn Victorio-Aquino; our Chief Legal Counsel, Attorney, Joan De Venecia-Fabul. We have our business unit heads, our consumer -- our Head of Consumer Business Home, Mr. John Palanca; our Head of Enterprise Business, Mr. Blums Pineda; the OICs for Smart Communications, Ms. Marjorie Garrovillo and Mr. Lloyd Manaloto. We also have with us President and CEO of ePLDT and VITRO, Mr. Viboy Genuino. Now I'd like to open the floor to your questions. [Operator Instructions] And I've also received a number of questions here before the meeting started. I see we have a hand raised by John Te of UBS.

Let me go over my questions one by one, if you don't mind. First is on Mobile. I just want to understand the 5% growth quarter-on-quarter, which was relatively consistent with what Globe reported. But the drivers differed. We saw ARPU growth for PLDT and subscriber growth for Globe. So do you mind explaining what you think drove that difference in this quarter?

Sorry, we didn't hear the beginning part of your question, but I suppose this is in regards to our wireless business and the growth of 5% had different drivers for Smart and PLDT. So I'll turn the question over to you...

So our drivers for growth for the quarter 4 were including our launch of high personalization offers, which allowed us to upsell and therefore, drive our ARPUs. Moreover, if you look at our subscriber base, if you break it down to the numbers, our gross activations actually increased by roughly about 10%, 15%, while our churn held firm. So that basically shows us also an increase in our subscriber base plus the fact that our ARPUs also increased.

My second question is on broadband. It was flat quarter-on-quarter, and we saw some softness in ARPU, although offset by subscriber adds. So was this, I guess, driven mostly by prepaid acquisitions or anything that could have influenced ARPU?

This is John from PLDT Home. The second half of 2025, as you know, was really one that was ridden with calamities. We had a few major calamities, including earthquakes and typhoons, including super typhoons, Tino and Uwan. These activities or these events actually caused us to balance our growth with customer trust. And we had to redeploy our resources to ensure that our existing customers were restored. We were impacted by these events and the redeployment of our resources, our repair resources to -- in our growth path. So our installation slightly went down, but it was a good balance of maintaining a growth trajectory as well as restoring those affected areas. The big difference, I believe, between the previous years was that while the previous calamities were driven by strong winds, today, they're driven by floods. And flooding means extra restoration work for us as we would have to go into the homes to replace the wires and the modems. Last year, 22 million were actually affected by the typhoons that began in July and ended in December plus the 3 earthquakes and 293,000 homes were actually affected from PLDT. Glad to say that we feel that the trust remained because we were able to keep 73% of those customers, and we continue to work with the remaining 68,000 to handhold them and make sure that we do everything we can to keep them on the network. On the second part of your question on the ARPU softening, as you know, we're operating in a more price-sensitive environment today. And the entry-level tiers are really our growth drivers. However, there is still a very stable demand in the pipeline for our mid- to high-tier postpaid plans. Moreover, our upsell activities from the entry-level tiers remain to be healthy. So the movement is not really any structural price erosion. Rather, it more reflects our portfolio and the mix optimization to balance growth with lifetime value. Prepaid does expand our overall market. It opens up another -- you asked about prepaid, let me reply. It is a growth driver. It opens up our market to an additional 12 million rooms, but we choose to participate selectively. We still have headroom in our existing facilities, which brings us more margins, but less capital intensity. So we will only participate where the returns are within our thresholds. Thank you.

Okay. I'll just combine my third and fourth question. Maybe a quick update on a Konektadong Pinoy, what are your overall thoughts on what might happen? And the second question is just an update on the data center and the potential IPO for Maya, which we -- I guess, we've seen in the press the past few days.

This is Joan. I will respond to the question on Konektadong Pinoy. So as you may know, the IRR, or the implementing rules of the KP Act were implemented last December and took effect. And the next steps would be the issuance of the eligibility criteria for data transmission industry participants, or DTIPs that has already been released. The performance standards are also forthcoming. And the guidelines on the big ones policy are also about to be issued. Now the crucial next step would be the issuance by the DICT, PCC and NTC of the initial access list. So as you may know, that should come out in March. However, we note that the TWG has not yet been formally constituted for that, and the industry has also not yet been invited to participate in the formulation of the draft access list. So that's where we are. The trigger for the issuance of the reference access offer of the DTIPs, including the incumbent telcos is, of course, the issuance of the initial access list. So prior to that issuance, there is no basis for us to move with a reference access offer because we don't know what products, infrastructure or services would be included in the initial access list. So we will continue to provide updates on this as the days and months pass. Thank you.

And allow me to answer your question on Maya's IPO. Apologies, John, but we're not able to comment on the news surrounding Maya's IPO at this time. I hope you understand.

And just 2 quick follow-ups. The data center stake sale, what the update on that? And then just separately on Konektadong Pinoy, I think we didn't touch on the loss pertaining to spectrum. I think that was an equally important part of the bill.

Yes. On the -- we're seriously considering a REIT IPO for our data center, John. Unfortunately, we cannot discuss about the timing. But yes, an international bank is helping us on this one.

On the spectrum management policy framework, which is required as well in the Konektadong Pinoy law, this is supposed to be released by the NTC by end of year 2026 or one more year after that. So we have no information as of now as to whether this has already been considered by the NTC because there are several deadlines that have to be met by them before this particular deadline on spectrum. So we can expect that the movement on spectrum discussions will happen in Q3, Q4, thereabouts. Yes. So in so far as PLDT Smart is concerned, we are utilizing our spectrum. And I think the management policy framework of the NTC will really tackle more the underutilized or unutilized spectrum and for possible recalls. So we have no issues with this actually.

Thank you, Attorney Joan and John. Allow me to move to some of the questions here in the Q&A box. This one is for our Home business from Paolo Manansala of COL. Just wanted to ask how broadband revenues are up 3%, but fiber is up 6%. What is the drag in growth for the Home broadband line?

Paolo, yes, we actually grew our fiber business from PHP 56 billion to PHP 59.4 billion, up PHP 3.4 billion. However, we do have some drag from our legacy services. That includes our copper facilities that remain to be in the numerous buildings across the country. And there are a few voice-only lines that remain to be migrated into voice plus data over fiber. Our legacy services in 2024 used to amount to PHP 3.2 billion. We've reduced that in 2025 to PHP 1.5 billion. So therefore, the total home business grew by 3%, accounting for the reduced revenues that we enjoy from the legacy services by PHP 1.7 billion.

Thank you, John. All right. This next question is from Zhiwei Foo of Macquarie, and this is on Maya. There was a step-up in loans disbursed during the fourth quarter of 2025, yet there was a Q-on-Q decline in share of earnings. Could you help me understand what happened here? So regarding Maya on the decline in Q4 profits, I do want to say that the revenues remain highly diversified across payments, transactions and digital banking services, and that's for both the consumer side as well as the business side, right? And I do want to emphasize as well that for 2025, Maya posted positive net income, which was a turnaround from the losses last year. The quarter-on-quarter decline was primarily driven by nonoperating and onetime items. So that includes fair value adjustments and foreign exchange movements as well as some investments in new products such as credit cards, new capabilities, including AI. Now there was some impact from the delinking of the gaming applications during the quarter, but that is -- the impact of that is not as large as those onetime items, and that has fully washed through the fourth quarter results. All right. I have a raised hand here from [ Raymond Franco ].

Can you hear me?

Yes.

Okay. My first 2 questions were answered just now. If you can -- but this is still on Maya. Can you share the numbers on total provisioning levels on the lending side of Maya? And how does that compare to 2024? And then the second question is, can you break out the loans extended in Q4 between credit cards and others?

I don't think we disclosed the breakdown in loans. But in regards to provisioning, the credit cards were launched Maya Black and Landers were launched within the last year, and there were some provisioning in relation to the launch of the credit cards. I think this was mentioned during our 9-month results. So just because of this new business line, there's that difference in provisions. You can think about it in that way. But I can't give exact figures on that. Right. We also have some questions here that came in before the meeting started. This question is on our data centers, and it's from [ Mackie Carunungan of FPF Securities ]. I'll direct this to Viboy or to Blums. Can you provide IRR or payback expectations for your AI-ready data center investments? How do returns compare versus traditional data centers and regular connectivity such as mobile and fiber infrastructure. There's a follow-up here on the data center REIT, but I'll ask that afterwards. So Blums or Viboy, would you like to take this question?

Yes. It's a new product that we launched for our data center business. Traditionally, we just have colocation and connectivity, but now we have a new service called Pilipinas AI. We're very happy to launch the first sovereign AI stack in the Philippines, which is getting a lot of interest from both the private sector and the public sector. Now customers have an option. If you want to run POCs or use cases on AI, you now have a couple of choices, either you go to the public cloud or you build your own sovereign on-premise stack or you can co-locate to VITRO Santa Rosa, wherein the AI stack is now available. So now customers have an option. But if your data is very sensitive, then the choice for customers would be keeping your data on-prem, and this is what VITRO Santa Rosa offers. Thank you.

Thank you, Viboy. A follow-up question on the data center REIT, if it is pursued, is the objective -- and I think this question is for Danny. Is the objective to deleverage or unlock value multiples? Would a partial divestment dilute long-term earnings versus retaining full ownership? Are we going to be using the proceeds? Is the REIT IPO there deleverage?

Yes. The REIT IPO, the proceeds will be primarily used to pay off debt. That's the primary objective.

And do you believe that will this unlock valuation multiples for the data center?

Partly yes, but the REIT will only cover the 8 data centers and it does not include the VITRO Santa Rosa. So it's a partial unlocking of value.

All right. Next question here is from Gregg Ilag of BPI Securities. This is on interest expense. On interest expense, the growth seems to be faster than the rise in total debt. Would you provide some color on what's driving that? So the growth in interest expense is faster than the growth in total debt. What is driving that? Is that higher interest rates or higher debt level?

The increase in financing cost is a function of interest rate loan balance as well as the accretion on lease liabilities, right? So if you try to dissect the increase in financing charges in 2025, 35% of that was mainly due to interest rate, 40 to loan balances, about 25 to accretion of lease liabilities. On interest rate, we have started the negotiation with the local banks on a smaller spread as well as on reduced repricing period. And so far, we have been quite successful, and this will give us considerable savings. Now with respect to loan balances, we expect to pay -- we started -- we think that we can start paying off debt by the latter part of 2026. So we should be able to bring down our total debt in 2026 versus 2025.

Thank you, Danny. This other question is also from Gregg, and it's for our Mobile business. On Mobile, quarter-on-quarter growth was around 5% despite a very weak GDP print. Can you provide some color on what drives that demand? For March, I believe.

Can you -- the last...

Sorry, so Mobile grew faster than GDP. So what's driving that step-up in demand versus a slow economy overall?

So as mentioned earlier, with regards to Mobile, we were able to execute a few hyper-personalizations, which allowed us to upsell. The other item as well is we've actually improved our network in terms of resiliency, which actually helped us during the last quarter where we had to deal with some natural disasters, and we were able to recover quickly, thanks to our network teams for being able to do that. So that helped and actually set us up for the annual seasonality in terms of Mobile. That helped our numbers for Mobile in the past quarter.

Thank you, Lloyd. All right. It looks like Raymond, you have your hand raised for another question. Go ahead.

Yes. Just a quick follow-up on Maya. Can you share the recurring net income for 2025, if you take out all of the one-offs?

We're not able to provide that at this time. Let me go to some other questions here that were sent before the meeting started. This is also for Mobile. Mobile is showing some improvement in the second half versus the...

The profits of Maya for 2025 was about PHP 1.7 billion. In 2024, it was a loss of PHP 2.5 billion in '24. PHP 2.5 billion loss in '24 and a profit of PHP 1.7 billion for 2025. What's the other question?

The question is what's the recurring income.

So it's hard to distinguish in the case of Maya, there were some subsidies on the credit card that flowed into the P&L for 2025, which will flow again into the P&L in 2026, maybe even beyond. So I think you could take the PHP 1.7 million as more or less recurring income for [indiscernible]. Is there another part to your question?

Raymond?

No, that's all I have.

Thank you, MVP. All right. Let me move to a question on Mobile. I think this is partly connected to the first, but Mobile is showing some improvement in momentum in the second half versus the first half. Was there something done differently in the second half? And do you anticipate this momentum to carry on to 2026?

So the Smart performances for the second half has actually been quite consistent. We'll see a quarter-on-quarter growth as a trend. This is largely driven by a consistent growth in our subscriber base, along with new activations. And that is also -- in the back of that is also our churn numbers have also not dramatically decreased and has been quite constant. When you pair this together with the hyper-targeting offers that we've been mentioning earlier, we've actually been able to add not just the subscribers, but to actually increase the ARPU levels per subscriber. And that put together has actually given us the increase in our revenues quarter-on-quarter.

Thank you, Marj. Right. This other question also came in. Could you comment on the earnings trends that you're seeing across the industry? And how do you compare against Globe's recent disclosure?

The Philippine telco industry was kind of anemic in 2025. But comparing the 2 entities in terms of net service revenues, our revenues grew by 1% this year compared to flat for Globe or in fact, it was slightly lower at PHP 200 million. So in terms of core income, PLDT was up by 1%, while the core income was 3% lower compared to the previous year. But if you strip off the fintech contribution and talk purely on telco core income, PLDT was slightly down only by 3%, while our nearest competitor was down by more than 10%. In fact, based on our estimate, it's kind of about 15% to 17%. But we are seeing also market repair in the second half of the year. In fact, it's quite more paramount in the fourth quarter of the year. So we could see improvement in the fourth quarter. And hopefully, both Globe, PLDT along with the industry players will do better in 2026.

Thank you, Danny. Looks like we have a question here from Arthur Pineda of Citi.

Can you hear me?

Yes.

Several questions. First, any growth guidance on revenue and EBITDA for 2026? In addition, are you able to give us any flavor on VITRO's capacity take-up? I'm just trying to figure out how it will contribute further into 2026 based on the pipeline that you have.

Viboy, would you like to take the question on capacity takeup for VITRO?

Yes. Thank you, Arthur, for that question. So we have 9 data centers in total. Of the 8 of those data centers are our data centers spanning Clark in Metro Manila, in Pasig, in Cebu and in Davao. These are our older sites, if you may, and they have a total capacity utilization of close to 80% currently. The ninth data center that we have is called VITRO Santa Rosa, which we inaugurated April of last year. Out of the 36 megawatts of total capacity there, we have already sold 6 megawatts. So that is our total capacity take-up to date. We are anticipating additional workloads to hopefully come in once government passes a department order or an executive order on data sovereignty and data localization in the Philippines because, as you know, government is the single largest owner of data in the country. Thank you, Arthur.

Arthur, we can't really give guidance at the moment. I think it's just too early at this point. So -- but one thing for sure is our CapEx is going to be mid PHP 50 billion, so -- that's it.

Sorry, it went silent for a while after you said PHP 50 billion, was there any...

What I'm saying is that we could not give guidance at the moment. I think it's too early to tell. We're just in February. So what is certain though is our CapEx guidance is going to be in mid PHP 50 billion. So it's between PHP 53 billion and PHP 57 billion.

And Danny, this question is for you as well, and this is in regards to our positive free cash flows after the 2 quarters where we were positive. Can we expect this to be sustainable into 2026? And in terms of deleveraging, what can we expect?

I think the -- I think positive free cash flow is sustainable for as long as we rationalize and moderate our CapEx and pursue all the asset monetization programs.

Thank you, Danny. Okay, let me check the Q&A box. There are some questions here as well. Okay. This is from Zhiwei Foo of Macquarie on Mobile. You mentioned being able to drive higher ARPUs from hyper-personalization, which shows that consumers have room to spend more. How much more do you think the consumer can spend and lift ARPUs further? And what percentage of subs is using this hyper-personalization and raising ARPU?

So I'll answer the last question first. But roughly based on our CBM capabilities, we've got consent for roughly 40 million of our subscriber base to actually be targeted for these offers. So that's the first question. With regards to our guidance on the ARPU, we're looking at driving a further 2% of the ARPU to help improve our revenues.

Thank you, Lloyd. And this question is for Blums on Enterprise business. It looks like there's some momentum in the second half. Are these mostly from recurring businesses or onetime large deals? How sustainable is the run rate moving forward? Blums, are you there?

Yes, sorry, can you repeat the back end of the question?

Basically, is the uptick in revenues due to recurring revenues we can expect to carry forward or large onetime deals?

Yes. It's a mix of both actually. So obviously, we had some very big wins in particular, Q3 and Q4 last year. The emergency 911 national contract was a big one. We were beginning to see part of that in Q4. But those will deliver recurring revenues in 2026. So there's a mix of onetime one-off as well as things that really drive monthly recurring charges on both the connectivity side as well as some of the managed IT services side. So it's a combination.

Thank you, Blums. Arthur, I still see your hand raised. Is there another question from you?

No, sorry. Let me put it down.

I don't see any other questions in the queue. Let me just wait a couple of moments here, if there are any other questions from the live audience. If not, then perhaps I may invite our CEO, MVP, for some closing remarks.

Thank you. Well, first of all, thank you for joining us this afternoon. But maybe add a bit more color to what my colleagues -- not prepared, so let's take my neck out. In respect of the -- our ability to -- just addressing the cash flow issue, especially the free cash flow. If you assume that we're able to maintain our EBITDA in 2025 over to 2026, which I think we can, let's say, it was PHP 111 billion, right, for 2025. And if you assume what Danny indicated to you that our CapEx will land somewhere around PHP 55 billion. Our interest expense this year or 2025 was around PHP 17 billion. I think we're positive cash flow in the last quarter this year 2025. We could probably maintain interest expense at around PHP 17 billion and taxes at PHP 7 billion. When you do your sums, the free cash flow available for dividends is about PHP 32 billion. Our dividends will probably be around PHP 21 billion or thereabouts, PHP 22 billion next year or rather [ '26 ]. So we could probably be able to start reducing our debt to the tune of at least PHP 10 billion in the second half of 2026. So those are the broad numbers from a cash standpoint. We do anticipate some slight growth in profitability for 2026. For one, we think that Maya will likely improve its profit performance in 2026 compared to 2025. Now where we are in Maya in respect of IPO because I hope -- unfortunately, in Meralco interview with media briefing -- well, media briefing at Meralco. Anyway, yes, at the behest or at the initiative of KKR, KKR engaged 2 banks late last year to do a market scan, especially in the States of what -- whether an IPO would be possible in 2026 or 2027. And what that market scan, they have engaged us also in a discussion about the potential IPO for Maya. Currently, the potential terms of an IPO are being discussed with them, including the size of the offering, the timing and the like. So if anything moves, it will be probably in the second half, not in this first half. So it could spill over to 2027. So we don't know at this stage the exact timing. We know who the banks are. PLDT probably will have to engage with own financial adviser at some point in the year. So that's where we are. I think beyond that, we can't comment as to terms. Thank you. So thank you. Hope to see you guys after we announce our first quarter results.

Thank you, MVP, and thank you, everybody. For those -- Kervin, I see your hand raised, I can take your question offline, and I can pick that one. And thank you, everybody, for joining. That's about all the time we have today, and we will see you in May for our first quarter results for 2026. Have a good afternoon.

Good afternoon, everyone, and thank you for joining us today. I'm Jinggay Nograles, Head of Investor Relations here at PLDT. And it's my pleasure to welcome you all to our 9-month financial and operating results briefing. Joining us today to share insights into PLDT's performance and strategic direction are PLDT's Chief Financial Officer, Mr. Danny Yu; PLDT's Chief Operating Officer, Mr. Butch Jimenez; PLDT Corporate Secretary, Marilyn Victorio-Aquino; PLDT Chief Legal Counsel, Attorney, Joan De Venecia-Fabul; Head of Consumer Business, Mr. John Palanca; Head of Enterprise Business, Mr. Blums Pineda; ePLDT President and CEO, Viboy Genuino as well as our OICs for Smart, Lloyd Manaloto and Ms. Marjorie Garrovillo. All right. So before we begin, I'd like to remind everyone that we will have a Q&A session after the presentation [Operator Instructions]. To start, I'd like to invite our Chief Financial Officer, Mr. Danny Yu, to walk us through PLDT's financial performance.

Good afternoon, everyone, and thank you for joining us today. Allow me to present PLDT's financial and operating highlights for the first 9 months of the year. Our service revenues net of interconnection cost reached PHP 145.9 billion, up 1% year-on-year, driven by steady demand across fiber, data and ICT. Cash OpEx, subsidies and provisions were down 2%, showing our focus on spending control and even as we support growth areas. EBITDA rose 3% to PHP 82.8 billion with margin steady at 52%, amidst higher revenues and lower OpEx. Telco core income came in at PHP 25.3 billion, down 5%, mainly due to higher depreciation and financing costs from network and IT investments. On the other hand, core income was stable at PHP 25.8 billion, supported by Maya's sustained profitability. Our share in Maya's core net income reached PHP 603 million for the period, a PHP 1.5 billion turnaround from last year's loss. Maya remained profitable for the third consecutive quarter, showing consistency that it solidifies its position as the country's leading fintech ecosystem. In summary, our 9-month results show a stable top line, resilient EBITDA and improving contribution from digital businesses. Consolidated service revenues reached PHP 145.9 billion, up 1% year-on-year. If we exclude legacy services, total revenues rose 3%, showing the continued expansion of our growth areas. Within these growth segments, fiber revenues grew 7%, reflecting solid demand for reliable connectivity. Mobile data and fixed wireless revenues were up 1%, with usage and 5G adoption continuing to rise. Please note that beginning this quarter, we will now include fixed wireless access, FWA, within our growth segments for our wireless business. The base numbers have been adjusted accordingly to provide like-for-like comparison and reflect organic growth. Fixed wireless growth is driven by the expanding 5G base and stronger network coverage. For enterprise, corporate data and ICT revenues grew 2%, returning to growth in the third quarter as government and public sector projects started to ramp up after election-related delays in the first half. ICT on its own grew 27%. Overall, the shift towards these growth areas, namely fiber, data, fixed wireless and ICT continues to offset the decline in legacy revenues. Focusing on the third quarter, I'd like to point out that all major business units delivered positive growth even with legacy drags showing recovery, especially for our mobile and enterprise groups. Consolidated service revenues rose 2% year-on-year to PHP 48.8 billion. Excluding legacy services, total revenues rose 4%. Wireless consumer revenues were up 1% with mobile data and fixed wireless delivering 3% growth year-on-year. Home revenues climbed 3%, while fiber revenues were up 6%. Enterprise, as mentioned earlier, is now back on its growth path, still a 2% increase year-on-year with corporate data and ICT up 5%, while ICT services on its own grew 51% year-on-year, as government projects begin pushing through. Overall, third quarter marked a broad-based recovery with improvements in both mobile and enterprise, reflecting steady execution and disciplined growth across the group. Now let's take a closer look at each of the business units. Home revenues grew 4% year-on-year to PHP 45.7 billion, driven mainly by continued fiber demand. Fiber revenues were up 7% to PHP 44.5 billion, now accounting for 97% of total home revenues. We added 265,000 net fiber subs year-to-date, up 67% versus last year. Total fiber base is now 8% higher year-on-year. On prepaid, we have selectively introduced prepaid fiber in appropriate growth markets, specifically targeting quality subs, who have a high probability of topping up regularly. In this way, we not only secure revenue growth but also sustainable profits in the long run. Prepaid sub count has grown 15x since end of 2024. ARPU held steady at PHP 1,470, the highest in the industry, driven by our value-based bundles such as video and gaming. Churn remained low at 1.9%, reflecting strong customer loyalty and consistent network quality. To further extend our reach, we have launched Air Fiber and Laser Internet providing fiber-like speeds in hard-to-reach areas at lower cost. This technology expands our coverage and improve service availability in underserved locations. Overall, Home continues to deliver solid growth, underpinned by fiber leadership, high ARPU and expanding access through new technologies. Let's now move on to Enterprise. Year-to-date revenues reached PHP 35.6 billion for the first 9 months, broadly steady year-on-year, while corporate data and ICT revenues rose 2% year-on-year to PHP 26.7 billion. Within this, ICT revenues grew 27% year-on-year, driven by strong demand for managed IT services up 115%, data center colocation up 25%, cybersecurity services up 12%. Importantly, the business unit returned to growth during the third quarter, reversing early year softness as delayed government projects pushed through. Enterprise revenue rose 5% versus the second quarter with corporate data and ICT up 7%, led by a 40% increase in ICT services. Corporate data and ICT now account for 75% of total enterprise revenues, reflecting our continued shift toward high-value services. PLDT also continues to strengthen its leadership in AI and data infra, positioning the group at the forefront of the country's digital transformation. We recently launched Pilipinas AI, the country's first sovereign AI platform hosted at VITRO Santa Rosa. This platform enables the enterprise to build and deploy AI models locally, giving businesses access to GPU-powered computing on demand. For our wireless business, revenues reached PHP 63.2 billion for the first 9 months, down slightly by PHP 0.3 billion versus last year due to legacy brands. Data revenues, which now include mobile data and fixed wireless rose 1% year-on-year to PHP 57.3 billion, accounting for 91% of total wireless revenues. For the third quarter alone, data revenues were up 3% year-on-year, reflecting steady demand and continued monetization discipline. Fixed wireless sustained strong momentum with revenues up 18% year-on-year as Smart leads the market by revenue share. If we remove fixed wireless, mobile data revenues rose 1% to PHP 56 billion. Performance was supported by stable data traffic growth, disciplined monetization, customer value management initiatives that help optimize spend and reduce marketing costs. 5G adoption continues to expand with the number of 5G devices up 39% year-on-year to 10.5 million, while data traffic rose 6% year-on-year to 4,393 petabytes. The share of 5G devices in the total base improved to 18%, driving higher data usage and improved customer experience. As we continue to innovate on the product side, we also stay focused on cost discipline across the group. Total cash OpEx, subsidies and provisions for the first 9 months of the year came in at PHP 63.1 billion, down PHP 1.1 billion or 2% versus last year. The biggest savings came from compensation and benefits down 7%, reflecting continued workforce optimization. Selling and promotions were also lower by 18%, driven by better campaign targeting and spend efficiency. Subsidies were also down by 25%, reflecting Smart's deliberate shift towards higher quality acquisition and tighter credit screening for postpaid device plans. On the other hand, repairs and maintenance rose 4% to PHP 23.6 billion, reflecting ongoing network expansion and site rollouts. Contract-specific services were up 25%, tied to the ramp-up of key enterprise and ICT projects. For the first 9 months of 2025, EBITDA reached PHP 82.8 billion, up 3% year-on-year with margin steady at 52%. This performance reflects the combined impact of a PHP 1 billion rise in revenues along a PHP 1.1 billion discipline for decline in operating costs. The 52% EBITDA margin has held firm, demonstrating our ability to defend profitability even in a very competitive environment. Telco core income reached PHP 25.3 billion, down 5% year-on-year, mainly due to higher depreciation and financing costs from network and infra investments. Core income was steady at PHP 25.8 billion, supported by continued earnings from Maya, whose consolidated core income hit PHP 1.6 billion year-to-date. Maya remained profitable for the third straight quarter, continuing to gain scale through higher transaction volumes, growing deposits and steady expansion in its lending and merchandise businesses. This quarter also includes PHP 2.6 billion in accelerated depreciation and noncash charge related to modernization of our core and IT systems and the retirement of legacy assets. Reported income stood at PHP 25.1 billion, lower year-on-year, mainly reflecting the absence of last year's higher ForEx and derivative gains as well as the accelerated depreciation booked this quarter. CapEx for the first 9 months stood at PHP 43 billion, down from PHP 52.3 billion for the same period last year. CapEx intensity improved to 27% from 33% a year ago, driven by lower spend on network and IT as major projects near completion. For the full year, 2025 CapEx guidance is lowered further to PHP 60 billion, lower than the original guidance of PHP 68 billion to PHP 73 billion. This is mainly due to more favorable pricing and terms. We continue to invest in new cell sites, LTE and 5G upgrades, home fiber ports, data center development and submarine cables. These projects will strengthen network quality and support the growth of enterprise and digital services. As at end of September, net debt stood at PHP 289 billion, translating to a net debt-to-EBITDA ratio of 2.61x, slightly higher than the prior quarter, but still within our target range. Our gross debt was at PHP 299 billion with 60% of maturities falling beyond 2030, providing a long runway and minimal near-term refinancing pressure. About 13% of total debt is U.S. dollar-denominated. With only 5% unhedged, keeping ForEx exposure very manageable. The average interest cost was 5.49%, up slightly from last year's 5.08% as lower rate maturities are refinanced. Our interest coverage ratio remains healthy at 3.37x, while our average debt maturity is 6.5 years. PLDT remains investment grade with ratings from S&P and Moody's. In terms of cash flow, we recorded PHP 1.1 billion in proceeds from tower sales and completed a PHP 20.5 billion final dividend payment for 2024 during the period. Incidentally, PLDT hit positive free cash flow as of September 2025, ahead of its forecasted 2026 target. Looking ahead, we are working towards reducing leverage to around 2.0x net-debt-to-EBITDA, which will be supported by our asset monetization program as well as lower CapEx. Now let me now discuss Maya, the Philippines all-in-one fintech platform powered by Maya Bank and Maya Philippines. It's a fully integrated platform that unites digital payments, savings and lending for both consumer and enterprises. Maya has created a powerful 2-sided network where more customers drive more transactions, generating richer insights, which enables higher cross-sell of products and ultimately, delivering scale and profitability. Maya continues to lead with strong performance across deposits, loans and payments. Maya remains the #1 merchant acquirer and card payment processor. It delivered PHP 532 million in net income in the third quarter, sustaining profitability while growing. Banking customers nearly doubled year-on-year to 9 million, while its cumulative borrower base grew 81% to 2.4 million. Deposit reached PHP 57 billion, up 59% year-on-year and total loans disbursed since its inception hit PHP 187 billion. Maya continues to onboard millions into the formal financial system, especially younger users and underserved segments. It continues to be the digital bank of choice for young customers across the country. Of the 9 million customers in just over 3 years, 84% comprise Gen Z and millennials and 76% are based outside of Metro Manila. Of the 2.4 million borrowers that Maya has given credit to, over half are first-time borrowers with no previous lending history. Maya's deposit base has grown to PHP 56.7 billion as of September, more than doubling from end of 2023. It disbursed PHP 36 billion in quarter 3 alone, bringing its total loan disbursement since launch to PHP 187 billion. The loan book now stands at PHP 27 billion with loan-to-deposit ratio at 48%. Net interest margin rose to 18.9% for the first 9 months, while maintaining a healthy portfolio with an NPL ratio of 6.3%. Maya continues to expand its fintech ecosystem through product innovation and strategic partnerships. Maya launched Maya Black, its premium credit card in quarter 3, receiving a very strong response from the customers. Around 40% of Maya Black cardholders are first-time credit users, underscoring Maya's role in democratizing credit access to Filipinos. Maya also launched an innovative personal loans product in the previous quarter that incentivize users to make periodical savings habit by offering higher rates. Maya is also leveraging its relationship with established businesses like Cebuana Lhuillier to expand credit to unbanked customers through over 3,500 branches and 25,000 agents nationwide. In summary, Maya's strong growth across payments, deposit lending reflect the power of a fully digital integrated ecosystem. PLDT continues to mark progress in its sustainability journey as manifested in its latest ESG ratings, which continue to register improvements as you will see on the slide. We continue to align with global best practices, and we have started to take part in global conversations. At the Climate Week in New York, PLDT and Smart represented the Philippines at the United Nations Global Compact Leaders' Summit, which we showcased a homegrown innovation that integrates localized mapping of natural hazards and remote monitoring of network facilities into a single visual dashboard. We were also featured in the Philippines 2025 Voluntary National Review presented by the Department of Development, highlighting the country's progress on sustainable development goals. Other highlights during the quarter includes a workshop with our supply chains where we cascaded our biodiversity policy, particularly in the context of network rollouts. Smart also secured a PHP 2 billion green loan with proceeds to be used to accelerate the rollout of our 5G network nationwide, which is more energy efficient. Now that concludes our prepared remarks for PLDT's 9 months results. We're now open for questions.

Thank you so much, Danny, for your insights. Before we open the floor to your questions, allow me to reintroduce our business leaders in the room. I'd like also to recognize our COO, Mr. Butch Jimenez; Aayush Jhunjhunwala of Maya. The CIO of Maya has also joined us as well. And just to remind everyone, those who are in the room with us are our Head of Consumer Business Home, Mr. John Palanca; our Head of our Enterprise business; Mr. Blums Pineda; ePLDT and Vitro President, Viboy Genuino; our OICs for Smart, Lloyd Manaloto and Marjorie Garrovillo. Of course, we have our CFO, Mr. Danny Yu; our Chief Legal Officer, Ms. Joan De Venecia-Fabul and our Corporate Secretary, Ms. Marilyn Victorio-Aquino. [Operator Instructions] The first question here is from Nicky Franco of Abacus Securities. This is for Maya. Given that Maya's lending was still strong in 3Q '25, what were the main drivers for the drop in net income for the period? Were there any one-offs that were attributed to this? Aayush, would you like to take that?

Sure, Jinggay. Thanks for the question. So there are a couple of factors that resulted in a slight drop. One was the slight impact of the removal of gaming links, the effect of which started to come in the August of 2023 as per BSP's direction. And secondly, as Danny mentioned, we launched Maya Bank Black Credit card. And as I mentioned in the previous call as well that we had launched our personal loans. So as we scale these longer duration loans, they will continue to have some provision -- some excess provision impact in the near to medium term before the -- until the portfolio matures. So these are the 2 sort of main factors for that.

Thank you, Aayush. All right. It looks like we also have some questions here from Arthur Pineda of Citi.

Several questions, please. Firstly, with regard to the KPA and the IRRs, which have been released by -- and signed by the President, how do you see this impacting your profitability as well as your investment profile going forward? I'm just wondering, do you see the new revenue opportunities as outweighing the revenue risks with regard to upcoming competition? Second question I had is with regard to mobile. I mean we've seen this has been -- it has been trailing that of your competitor for the third straight quarter. What's driving this difference in performance? Is there any issue that the company needs to work out? And the third question is on enterprise. You mentioned an uptake in government projects earlier. I'm just wondering, are you seeing sustained uptake into the fourth quarter, given that we've seen a slowdown in the broader macro momentum and government spending?

Thank you, Arthur. Okay. We have 3 questions here. Perhaps we can take your first question -- your second question first, which is on wireless. It's been trailing for a while. Is there any difference in performance that you'd like to highlight? So Marjorie or Lloyd, would you like to take this question?

All right. So for the wireless business, whilst we have been trailing behind Globe in actual revenue, when you actually review the growth rates, we could actually see that the Smart Wireless group has actually achieved a flattish growth rate for year-to-date 2025 versus Globe. It's actually more of a negative. Number two, the actual Q3 achievement versus last year, Smart is also ahead, right, versus Globe. Now what's interesting is that what we've actually managed to do is using tools like hyper targeting, we actually have been able to secure higher quality subs space so much so that our ARPUs for Smart have actually improved. So we're actually at a positive 2.5% on our ARPU for Smart versus Globe, for example, which is at negative 5.5%. We do believe that with tools like this and actually focusing on how we could generate more positive growth, we should be able to at least stabilize and actually sustain our mobile resilience.

Also, I'd like to add to the fact that if you look at fixed wireless -- for example, on wireless network rapidly growing, and this is driven by our investment in 5G and investment in 5G devices. So that's one area we're also focusing on as a total portfolio because we see the bigger growth in that.

Thank you, Marjorie. Thank you, Lloyd. Let's take your question on Enterprise next in terms of the sustained uptick in the fourth quarter. Blums, would you like to take that?

Yes, sure. Thanks for the question, Arthur. So with PLDT Enterprise, yes, we are seeing the continued momentum, as we mentioned before, into the fourth quarter and also into early Q1. As you can imagine, some of the nature of the projects will probably result in some slippage of award dates, et cetera, which is quite normal. But we're seeing still that level of investment and activity. There's a lot of -- across both national government agencies and LGUs, continued demand here that we're serving on both the connectivity and the ICT side.

Can I add to that?

Yes, of course.

Just, I guess, a couple of insights on where the government is going to land in terms of sustaining their investments in digital connectivity. Of course, I can't speak for the government at this point in time. But generally, what we see is that they are going to continue their trust and their investments in being able to connect the Philippines digitally. I don't see that slowing down. And I think that after realizing that they've spent too much on flood control, they've started to sense that maybe they should start shifting some of that expense or that spend to other areas and digitizing or providing digital connectivity to various aspects of Philippine society is something that they are talking about prioritizing. So first, let's talk about data centers. The government or PBBM has already given the DICT an order for public sector data sovereignty. That becomes a big driver for the enterprise group in terms of possible revenues in the future, principally because we do have the biggest data center in the Philippines, and we are the only ones at this point in time that can provide GPU as a Service leading towards AI. Aside from that, the GIDA site investment or initiative of the government has just finished its bidding. PLDT, Globe has gotten its fair share of rolling out in GIDA sites. So that is going to add revenue for our company, at the same time, continue the investments of the government in connectivity. Now tomorrow, I will be presenting to the PSAC, the Private Sector Advisory Council, a couple of more initiatives to digitize state universities in the Philippines and the other one is health care centers in the Philippines. So it looks like they are realizing that we are far behind our Asian or ASEAN neighbors when it comes to digital connectivity, and it's one of the priorities that I think the President and the government is going to push forward in 2026 and beyond. So looking forward to a sustained investment of the government in connectivity.

Thank you, sir, Butch. The last question, which is on Konektadong Pinoy. Marilyn MAVA would you like to take this one?

Lot of opportunities. It's difficult to assess the opportunities right now because this is the first country where they are going to roll out the open access for all assets model. So we don't know in what shape or form it will -- it will basically be form in the Philippines. But aside from that, if there are new players that are with the vision and philosophy that allows them and are committed to invest in the Philippines, invest in new infrastructure that will complement and supplement our network, that is an opportunity that we can consider because it will strengthen our network together. And we may be able to improve the connectivity for the entire country and maybe that will help in the vision of the connecting Filipino to have more connectivity even in the GIDAs area and also improve the Internet connectivity in the entire country. But that requires -- but that is something that we can find an opportunity that we can explore and exploit and create new partnerships around that. But if it is pure access, it's hard to assess the opportunity right now because we don't know how it will be rolled out in the Philippines, the open access for all assets.

So no indications on the IRRs based on what's been signed by the President so far?

I'm sorry?

Indications on -- how we feel about the IRR?

Well, how we feel about the IRR. Mr. Pangilinan answered that earlier in the media briefing. Maybe Jinggay will read his answer.

Sure, sure. So he had a very -- he had a statement earlier that he shared with the media. So I'll just quote what he mentioned, and I'll share it with you, Arthur. So when he was asked about PLDT's overall view on the final IRR, he answered by turning the question around, right? Do we think that the law as written actually achieves what it's set out to do, cheaper Internet for all, wider coverage, more infrastructure because the law and its IRR right now do not impose any obligation on new entrants to build infrastructure. There's no requirement to start in geographically isolated or disadvantaged areas. And there is no service obligations to ensure coverage or quality. And if you recall, in the Ramos administration, there was a sound model under the service area scheme, where telcos were assigned specific regions and targets like reaching the number of households to be connected, right? And that created real infrastructure build-out at that time. And the Konektadong Pinoy law, on the other hand, does not have such provisions. So really, the question remains on whether it will truly deliver on its promises. So that was the statement shared by MVP earlier on the IRR. All right. We have another hand raised from Ranjan Sharma.

My questions are related to the KPA as well. Can you help us understand what -- how the wholesale access pricing mechanism is going to be set? When you're being asked to open up your network, on what basis are wholesale access prices that you would be charging any access seekers? Is this completely on commercial terms? Is there a cost model associated with it? And the second question is on the spectrum. I think there's also spectrum management provisions as well, which includes clawback of underutilized spectrum. Can you help us understand how that might impact the industry as well?

Yes. In terms of the pricing, I don't think there has been any specific model that was shared in the IRR, right? The way it was drafted was that the incumbents are to submit our price list in the reference access offer and that will be reviewed by the regulators to determine if it is fair, reasonable and nondiscriminatory. So I think there's really no specifics at this time, Ranjan, on using any specific model.

Maybe I add to that. In fact, it is not clear to us because we already have open access, bilateral contractual commitments, right. We do open access on a contractual basis. But it's not clear to us, for example, whether or not the pricing that we have assumed based on voluntary contracts with counterparties will be the same price that will be approved by the regulator. And there is also a provision in the IRR, which says if it's a significant market player, then the regulator may scrutinize your pricing. And what that means is not clear to us, whether or not significant market players will be required to price down their offering compared to contractual commitments that they entered into before Konektadong Pinoy. It's not very clear to us. So on the spectrum underutilization, is that the question?

Spectrum management provisions, how we see this impacting our business?

Well, it will have an impact on the business, but please appreciate that right now, there is no standard for underutilization. It really depends on how you use the spectrum. If you use the spectrum as a macro site, the utilization might be different. If you use the spectrum to cover that basically blind spots or if you use it to have continuous trouble, the utilization would be different. And so the spectrum management policy is intended to, I think, come up with that. And hopefully, there will be a consultation with the stakeholders like us, who are using the spectrum. And hopefully, there will be a transition period if they set -- if they define, for example, underutilization as such, then the next day, they will start recording the spectrum that might not be fair because it's basically a totally new definition of underutilization, which we are unable to comply, if the next day, they will start recording. So that is what's not clear. But I think they will have a period from the effectivity of the IRR to come up with a spectrum management policy framework, but that's not very clear right now.

Okay. Looks like we have some questions here as well from [indiscernible]. So 2 questions on net debt. You mentioned that net-debt-to-EBITDA will be reduced to 2x, which year is this expected to be achieved? So that's the first question. Second question, net debt to EBITDA is increasing a lot faster than net profits. Where is the -- where in the business is that going into?

We continue to spend on IT network rollout and data center development. So that's where the EBITDA -- that's where the debt go to now. With respect to projection, I think it will be about 3 to 4 years from now going to the 2.0. But certainly, I think the positive news is that we finally achieved positive free cash flow as of September, ahead of our forecast in 2026. That's one good news. And we hope to sustain this with lower CapEx moving forward as well as with our monetization program.

And we also have a question related to that regarding our positive free cash flows, how confident are we that we can sustain this into 2026?

We're confident because we will have lower CapEx moving forward, again, as mentioned earlier, because of our asset monetization program.

And also, this is a common question that was sent to us earlier. Any updates on the current asset monetization programs, namely the data center stake sale as well as the copper sales?

On the data center, we're currently in talks with prospective investor, who intends to take around 49% of the business. At the same time, we're also exploring the possibility of doing a REIT listing for our data center, just in case the other falls true.

Thank you, Danny. All right. We have another question here from John Te of UBS.

Two questions. First is on the fixed broadband net adds, quite strong, 95,000 compared to your run rate of 70,000 in the first half. So how much of this was prepaid? How much of this was postpaid? And what drove the acceleration there?

[indiscernible], would you mind taking this?

So thank you for the question. Yes, we've actually been able to build up the install rates over the last quarter. We leased up not just our channels, but our installed team. So we're able to gather more. I can't -- all I can say is that in the third quarter, we've seen more than a threefold increase in the prepaid subscriptions. And we're doing this in a very different way. I think I mentioned in the previous quarter that while we are growing the pie to ensure that the ARPUs remain at the high level and not cannibalize postpaid, our acquisition of prepaid has been very targeted to areas where prepaid applies. So growing the pie from Tier A and Tier B municipalities to what is now probably Tier C and probably opportunities is very selective. So we will not be seeing the same volumes, but what we will be seeing are the quality subscribers who have the high propensity to top up. We -- as mentioned from the beginning of the year, we have grown more than 3x already, 3.3x to be exact. And once we're ready to release the figures, I think we have a sizable market -- rather subscriber base on prepaid, then we will do so. So at the moment, the majority of it is coming from our postpaid acquisitions.

Okay. A quick follow-up on for -- maybe for Danny. On depreciation, there was PHP 2-plus billion charge in 9 months, but safe to assume that most of it came from the third quarter. And the related question on interest expense, given that debt really hasn't changed, but there was a spike on year-on-year interest expense. Would this mainly come from, I guess, leases for towers, et cetera?

I'll take the second question first. The reason for the increase in interest is mainly due to increase in the weighted average rate by around 49 basis points. That's one. The second reason for that is that also increase in the weighted loan average by around PHP 19 billion compared to the previous year. So that's for the second. What was the first question again?

Accelerated depreciation of PHP 2.6 billion...

It's mainly retirement of legacy assets as well as modernization of our IT and network core system and the accelerated depreciation is a fast-paced capital-intensive industry, and it's rapidly changing. So we have to continually review the economic life of these assets.

And most of it occurred in the third quarter, right?

Yes, in the third quarter. I think we recorded that in July of this year.

Okay. So some questions that were sent in as well. This one is for Enterprise. You recently launched SmartSafe as well as Pilipinas AI. How do you see these contributing to your revenues moving forward?

I'll tackle SmartSafe and I guess I have Vitro President of ePLDT and Vitro, Viboy Genuino will tackle the Pilipinas AI announcement. So on the SmartSafe, yes, we have actually been bringing this to customers already even in Q3, but we did a commercial launch just last week. Basically, with SmartSafe, this takes advantage of specific technology on the Smart network that makes it as secure for someone to have a transaction on a mobile app that's enabled for this so that they don't need an OTP. So it's a very seamless log on, but also just as secure as an OTP type motion. You bypass the risk of your OTP being intercepted, et cetera, which is very common nowadays. From a revenue standpoint, of course, this is a capability we need to work with other B2B companies that have app, so the banking, government apps, et cetera, for them to build this into -- very simple to do it -- for them to build it into the next release of their app. So that's a motion that's happening now. We're quite excited that we have several institutions with apps that are interested in this and looking to launch it as soon as possible. So we'll keep the team posted in terms of what that is. Turning over to Viboy.

Yes. Thank you, Jinggay, for the question on Pilipinas AI. So yes, we launched this in the third quarter of this year. And the basic concept is to be able to offer a platform for enterprises to be able to run AI use cases. The main issue of enterprises now is that they want to run AI use cases or proof of concepts, but they don't know how to utilize it and how to build the infrastructure around it. They have to source for the GPUs. They need to talk to a staff provider. They need to talk to a data center. They need to provide the connectivity and the cybersecurity requirement. We're basically taking this pain point away from the customer and letting them run these different applications on a ASU model wherein they can run the POCs on an hourly, daily, weekly or a monthly view. And we've seen a lot of interest coming from enterprise customers, who really want to experiment and run AI use cases. So we're very happy to be able to offer this service to our customers. We're the first company in the Philippines to actually bring in NVIDIA H200 GPUs, the most advanced GPUs of NVIDIA currently, and we're seeing a lot of interest in it.

Thank you Viboy. This question is from [indiscernible]. And this question is for Danny. Noting that your debt levels have increased this year despite continuous lower CapEx guidance. Is this mainly for refinancing? Increased net debt despite lower CapEx guidance. So is the increased debt because of mostly refinancing? Or is there -- are there new...

Mostly refinancing. Yes, mostly refinancing.

All right. And from Tony Watson, any thoughts -- this is for Aayush. Any thoughts that you can share on a potential Maya IPO or spin-off?

I think we'll stay clear of that. I think we are focused on driving the business and any IPO decisions, et cetera, will be led by the shareholders. But we, as management, are sort of fully focused on just executing and scaling our products.

Thank you, Aayush. Just doing a last scan for questions here. If there's any from the floor. Okay. It looks like there are no further questions. With that said, I'd like to thank everybody for your time today and joining us for our 9-month briefing. If you have any further questions that you'd like to send to us, please feel free to reach out to us via e-mail. And with that said, we look forward to presenting our full year results by February of next year. All right. Thank you, everyone. Have a good afternoon.

Thank you.

Thank you.

Thank you.

Good afternoon, everyone, and thank you for joining us today. I'm Jinggay Nograles, Head of Investor Relations here at PLDT, and it's my pleasure to welcome you to our first half financial and operating results briefing. Joining us today to share insights into PLDT's performance and strategic direction are PLDT Chief Operating Officer, Mr. Butch Jimenez; PLDT Financial Officer, Mr. Danny Yu; PLDT Corporate Secretary, Marilyn Victorio-Aquino; PLDT Chief Legal Counsel, Attorney Joan De Venecia-Fabul; PLDT Head of Consumer Home, Mr. John Palanca; PLDT Head of Enterprise, Blums Pineda; PLDT President, [indiscernible]; and PLDT Treasurer, Leo Posadas. Later during the call, we will also be joined by Smart Communications Chief Operating Officer, Mr. Boy Martirez. Go ahead, Danny.

Yes. Good afternoon, everyone. Allow me to present PLDT's first half 2025 performance covering key results and business highlights. Our service revenues net of interconnection costs reached PHP 97.1 billion, a touch higher year-on-year. EBITDA came in at PHP 55.5 billion, up 3% from last year. EBITDA margin remained steady at 52%. This was supported by steady growth from our fiber and disciplined cost management. Cash OpEx subsidies provisions [indiscernible], 3%, reflecting continued spending discipline. Telco core income landed [indiscernible], down 4%, mainly due to higher depreciation and financing costs [indiscernible] investment in our network in infra to improve quality of service. Core income, on the other hand, reached PHP 17.6 billion, up 1%, lifted by Maya's positive earnings. PLDT share in Maya's core earnings amounted to PHP 406 million in the first half, its first profitable semester, marking a PHP 1.1 billion turnaround from the PHP 693 million loss last year. This strong result reflects continued growth in deposits, lending and payments volume. In summary, we delivered stable core results and maintained our EBITDA margin, driven by careful cost management and ongoing revenue growth in key areas. PLDT service revenues remained stable, driven by sustained demand across 3 segments: Mobile data, fiber, corporate data and ICT. Starting with Home, revenues grew 4% year-on-year, reaching PHP 30.4 billion, led by strong steady fiber demand. Enterprise was slightly lower at PHP 23.5 billion, down 1% due to continued declines in legacy businesses. Positively, corporate data and ICT revenues held steady despite last year's closure of affordable connectivity. Within these segments, ICT stands out growing 15% year- on-year to PHP 3.2 billion. While our connectivity business is in transition, we continue to build a pipeline of new opportunities powered by emerging tech solutions. Turning to Individual, revenues totaled PHP 42.3 billion, slightly down in part due to weaker legacy offerings. Mobile data [indiscernible] to PHP 37.4 billion, now making up 89% of the segment's revenues. We remain encouraged by the robust adoption of 5G and the continued increase in data usage, supporting future growth and better [indiscernible]. Overall, mobile data and fiber and corporate data ICT now represent 90% of our total revenues versus 88% last year, more than offsetting legacy declines. Excluding legacy services, total net service revenues rose by 3%. Now let's take a closer look at the Home segment. Home revenues grew 4% year-on-year to PHP 13.4 billion, led by strong fiber demand. Fiber revenues reached PHP 29.5 billion, up 7% versus last year and now make up 97% of total home revenues. Subscriber momentum remains strong with 169,000 net fiber adds in the first half, over 3x higher than last year's 50,000 net adds. This growth reflects the impact of our accelerated port rollout program. We continue to lead in ARPU and churn. ARPU held steady at PHP 1,485 for the semester, the highest in the industry. Churn improved quarter-on-quarter, a testament to network reliability and brand strength. Our bundled offerings also continue to resonate while over 80% of new subscribers opted for higher value [indiscernible] PHP 1,299 and above. These integrated broadband mobile and content bundles help drive customer stickiness and support revenues. Enterprise revenues for the first half reached PHP 23.5 billion, slightly down by 1% from last year due to known headwinds. This includes the full impact of lost POGO connectivity as well as lower public sector deal closures tied to the May elections and leadership changes in government agencies. We expect these delayed awards to be booked in the second half. Corporate data and ICT remained stable at PHP 17.4 billion and now account for 74% of total enterprise revenues. ICT continues to be a bright spot with segment revenues up 15% year-on-year. Data center colocation grew by 36%, while cybersecurity services expanded by 24%. Other growth areas include fiber, up 4% year-on-year; SD-WAN up 19% as demand for secure flexible enterprise connectivity continues to rise. We also saw meaningful traction from Asia Direct Cable, which supported high bandwidth deal closures with hyperscalers and carriers in the second quarter. While connectivity revenues are in transitional phase, our broader enterprise business remains resilient, supported by advanced digital solutions and a growing customer pipeline. In April, PLDT through its data center arm VITRO, inaugurated VITRO Santa Rosa, the country's first operational AI-ready hyperscale facility and the largest in our portfolio. This rated 3 certified mega facility delivers 50 megawatts of power capacity and houses over 4,500 racks built to meet the stringent requirements of enterprises, hyperscalers, the public sector and AI workloads. The facility now hosts live NVIDIA GPUs powering ePLDT's AI solutions, giving Philippine enterprises [indiscernible] to on-demand, high-performance AI computing without the heavy capital cost of building their own infra. As the country's first true AI enabler, VITRO offers low latency and the computing skills needed for enterprise to innovate and compete. VITRO continues to deliver strong growth with colocations revenues up 36% in the first half, driven by a 19% increase in rack deployments across our data center network. With VITRO Santa Rosa and our broader ecosystem, PLDT is building the infra backbone to position the Philippines as a regional hub for digital services and AI innovation. Individual revenues reached PHP 42.3 billion for the first half, down 1% from last year, reflecting continued drag from legacy services and a softer second quarter. Mobile data revenues were stable at PHP 37.4 billion, making up 89% of the segment. While Q2 was slightly slower, we continue to see healthy data usage and stickiness from our customer base. ARPU have remained broadly stable despite competitive pressures, thanks to our hyperpersonalized offers that match customer needs while helping us manage marketing costs more efficiently. Total mobile data traffic grew 5% year-on-year to 2,766 petabytes, supported by the continued rise in 5G adoption. 5G traffic surged 84% versus last year and 5G [indiscernible] devices now make up 17% of our base, up from 11% a year ago. This reflects network improvements and the impact of affordable 5G device offers. Another bright spot is fixed wireless. With the introduction of our new 5G modem, we saw revenues from this segment growing 12% year-on-year, driven by the strength and reliability of our 5G network, especially in areas where fiber is not yet available. We remain focused on giving customers the best experience, not only in network quality, but also in how we design products that match their preferences and needs. This approach allows us to maintain ARPU, spur demand and increase loyalty. Innovations remain a key lever as we took shape the next phase of growth. To share more about our latest digital initiatives targeting younger Filipinos, I'd like to turn it over to our Smart COO, Mr. Boy Martirez.

After months of hard work by our internal teams and technology partners, it is my pleasure to present to you the first of a series of innovations that we have embarked on, our [indiscernible] mobile service called KiQ. KiQ is the Philippines first and only app-based mobile service that offers a personalized digital telco experience. KiQ is also one of the first in the world to offer such groundbreaking experience. KiQ is our ode to the Gen Z market. The Gen Z between 19 to 20 years old is this young generation redefining how they live, share and stay connected. They are disruptors, and we've seen their influence in powering the results of our latest Philippine elections. Their rebellious yet authentic nature, their ability to know exactly when to swipe left or to double tap, make up a generation that will never compromise freedom control. With this in mind, we have built KiQ, a mobile experience that gives Gen Z complete freedom and flexibility to personalize and control their mobile journey on their own terms. With the KiQ app, users can build their own plan, choose their own data allocation, choose their call and text inclusions, choose their numbers, choose their validity period and more, unlocking a very personalized experience for Gen Zs. It's my pride to show you our television commercial that was launched last Sunday. [Presentation]

There will be more innovations that we will be introducing. In fact, the ink hasn't even dried up on this innovation that we launched last Sunday. We'll be launching another one this coming Monday. So stay tuned.

Thanks, Boy. As we continue to innovate on the product side, we're also staying focused on disciplined cost management. Now let me walk you through our operating expenses. Total cash OpEx, subsidies and provisions for the first half came in at PHP 41.6 billion, down PHP 1.4 billion or 3% from the same period last year. Breaking it down, compensation and benefits, excluding MRP, declined by PHP 900 million or 8%, helped by ongoing rightsizing efforts. Selling and promotions were down 22%, reflecting better campaign targeting and improved spend efficiency. Subsidies fell 21%, mainly due to lower device issuance and better control on subsidy per unit. On the other hand, repairs and maintenance rose by 4% to PHP 15.6 billion, driven by network expansion and new site rollouts. Overall, the 3% year-on-year reduction in cash operating expenses highlights our ongoing efforts to optimize spend while ensuring support for growth areas like fiber, mobile data, enterprise ICT and digital innovations. For the first half, consolidated EBITDA reached PHP 55.5 billion, up 3% year-on-year despite flattish top line growth and known headwinds. This reflects the resilience of our business model with earnings supported by a stronger mix of fiber, ICT and personalized mobile offers. This growth was driven mainly by lower OpEx with total cash OpEx down by PHP 1.4 billion or 3% year-on-year. Our EBITDA margin held steady at 52%, underscoring our ability to defend profitability in a competitive market. This stability gives us a strong platform heading into the second half, where we expect additional upside from enterprise deal closures and traction from new product launches. Telco Core income for the first half came in at PHP 17.2 billion, slightly lower year-on-year as higher depreciation and financing costs weighing on the results. That said, a clear bright spot is Maya, which delivered PHP 406 million in core income, its first profitable semester and a meaningful turnaround from a loss last year. Maya has now cemented its position as the largest digital bank and merchant acquirer in the country. Its gamified all-in-one ecosystem continues to attract, retain, grow users creating a profitable and sustainable financial platform that is now materially contributing to PLDT's core income now and moving forward. Including Maya's contribution, consolidated core income rose to PHP 17.6 billion, up 1% versus the same period last year. Reported income was slightly lower at PHP 18.1 billion, mainly reflecting lower net ForEx and derivative gains. We'll share more on Maya's performance and growth momentum in a dedicated section later in this presentation. Now let's move on to CapEx and our debt profile. CapEx for the first half of 2025 stood at PHP 27.4 billion. We're now guiding full year CapEx of about PHP 63 billion, lower than our original guidance of PHP 68 billion to PHP 73 billion. This reduction is not due to scaling back our efforts, but rather the result of more favorable pricing and negotiated terms with vendors and suppliers. We remain focused on network quality and expansion with continued momentum in new site rollouts, LTE and 5G upgrades, fiber port builds and investment in submarine cables and AI infra. We're also investing in AI-ready data center and upgrades that improve service quality and long-term efficiency. CapEx intensity for the first half declined to 26%, in line with our plan to bring down the ratio down and support stronger free cash flow. As of end of June, our net debt stood at PHP 282.6 billion with a net debt-to-EBITDA ratio of 2.57x. Our interest cover remains healthy at 3.52x, giving us ample headroom to manage debt service. We have continued to manage maturities proactively with 55% of our debt maturing beyond 2030 and only 5% maturing in 2025. U.S. dollar-denominated debt is modest at 13% with only 5% unhedged. Our overall debt portfolio remains diversified with a balanced mix of fixed and floating rates and an average tenure of 6.4 years. We remain investment-grade rated by both S&P and Moody's, underscoring confidence in our fundamentals and risk profile. We maintain our guidance of returning to positive free cash flow by 2026 and are working toward our target net debt-to-EBITDA ratio of 2.0x over a medium term. The Board declared an interim cash dividend of PHP 0.48 per share earlier today, in line with our regular payout policy of 60% of Telco Core income. This corresponds to a Telco Core earnings per share of PHP 0.80 for the first half and reflects our commitment to stable shareholders' return while managing leverage. Based on PLDT's closing share price as of June 30, the 12-month trailing yield stands at about 8%. Now let me discuss Maya, the fintech -- rather the #1 fintech ecosystem in the Philippines comprising of Maya, the leading digital bank and Maya Philippines, the top omnichannel payment processor. What makes Maya unique? It is a fully integrated platform that unites digital payments, banking and lending for both consumers and businesses. This creates a powerful flywheel, more users drive more transaction, generating richer insights, enabling better product adoption and ultimately delivering scale and profitability. These strong network effects are firmly established across both consumer and business segments. Next, Maya remains the Philippines' #1 digital bank and leading payment processor in [indiscernible] and QR merchant payments. As of June 2025, Maya had 8.2 million customers, 2.1 million borrowers, PHP 50.4 billion in deposit and PHP 150 billion in total loans disbursed since inception. In 2Q of 2025, Maya posted its second consecutive quarter of sustainable profitability with PHP 582 million in net income, a growth of 60% over the first quarter of 2025. Now let me now break down Maya's banking performance. Maya's deposits rose to PHP 50.4 billion by end of June, up 54% year-on-year, showing sustained growth and stronger customer trust. Loan disbursement hit PHP 32 billion in Q2, up 147% year-on-year, bringing total life-to-date disbursal to PHP 152 billion across consumer loans, MSME loans and partner-led loan channeling. Outstanding loans grew to PHP 25 billion, raising LDR to 49% and boosting net interest margin to 20.2%. NPL inch up to 5.2% with new products and services, but these remain healthy. Maya also expected to stabilize as the portfolio matures. In summary, Maya is unlocking the full value of its platform by linking consumer and merchant ecosystems. Maya recently launched the Maya Black credit card, a premium lifestyle card and the Maya Black Preferred Rewards program, giving cardholders up to 10x rewards within the ecosystem. Maya remains the only digital bank in the Philippines issuing credit cards with over 230,000 issued since August 2024, many to first-time users. Maya is also expanding credit access to partners like [indiscernible], JuanHand. In a sports strategic alliance such as the Landers co-branded card and Pulse [indiscernible] integration. With its ecosystem firing all cylinders, Maya is setting the pace for future of digital finance in the Philippines. Now allow me to cite a few sustainability highlights during the quarter. PLDT and Smart signed agreements with MPower to source additional renewable energy for operations. This will result not only in cost savings but also support our decarbonization road map. PLDT's progress in the area of sustainability is manifested in several recognitions. PLDT was again included in the FTSE4Good Index where our score was higher than the telecom industry, the mobile [indiscernible] center and country averages. Its PHP 2 billion social loan was cited as the Social Infra Deal of the Year by The Asset in 2025 in the ASEAN region category. During the quarter, PLDT submitted its communication on progress, which affirmed its commitment to the United Nations Global Compact's 10 Principles on human rights, labor, environment and anticorruption. The PLDT team was named the overall winner of the UNGC Innovation Accelerator for young professionals and will be the Philippines submission to the UNGC Leaders Summit in New York in September. More details of our initiatives can be found in the Sustainability section of this presentation. Now that concludes our prepared remarks for the first half of 2025. We appreciate your continued interest and support, and we would be happy to open the floor for your questions. Thank you.

Thank you, Danny and Boy, for all the valuable insights and growth initiatives as well as key developments that you've shared across our business units. As you've seen today, despite some near-term challenges, we remain confident in our market position, supported by our strong operational fundamentals, strategic investments in digital infrastructure and promising growth in Maya. Now we'd like to open the floor to your questions. [Operator Instructions] Looks like we have Arthur Pineda of Citi with a question here.

Two questions, please. Firstly, on mobile. I'm just wondering what's driving the softness in trends for wireless revenues? I mean if you look at the revenues, it's down slightly on a Q-on-Q basis, but 1Q was saddled with a lot of work and school outages. Why aren't we seeing the uplift in revenues? And any guidance into the third quarter with regard to these trends? Second question I had is with regard to regulation. Can you get an update on Konektadong Pinoy Bill? Is there a deadline for the President to sign this or amend or return to Congress? How do you see this as playing out?

I guess you can take the first question on mobile.

Arthur, may I just ask you to speak a little bit slowly so I can get the first part of your question?

It's about the softness in mobile, mobile trends. So quarter-to-quarter, it looks like there was some softness. First quarter did have some challenges regarding mobility. So he was asking if the Q had similar effects and also your outlook for the third quarter.

Okay. Well, the dip is a normal fluctuation. We see that as normal fluctuation, and we expect it to go right back up. And more importantly, in the second half, where our innovations sit, we expect to have a better outlook in the second half. And I guess that just outlines our view. First time around that we met Arthur, I remember you asked me what I would do differently. So the most important thing that I'd like to outline here is, although Smart is a tech company, we are also a consumer-centric company. And as a consumer-centric company, we aim to, therefore, delight the customer. Delighting the customer is based on the innovations that we have. And the innovations -- each innovation is going to deliver value for money. The value for money is going to be the driver of how we will get the revenues up and how we will do market repair.

Thank you, Sir Boy. For the second question on Konektadong Pinoy?

I'll answer that first one. The first question is when will it become a law, right?

Any deadlines for the President?

Well, by August 24, if the President has not returned the bill, it will become a law by the passage of time. And what's the other question -- that's it.

Do you have any follow-up questions on Konektadong Pinoy, Arthur, or just the deadline?

I'm just wondering how you see this? Will there be any amendments which could take place? Do you just see this as passing through to law? Or do you think it's likely going to stall?

Well, our hope is the President will return this. Will veto the law and allow the Congress to enact a bill that will replace it in consultation with stakeholders, including the telcos. And we were heartened by the fact that the office of the Deputy Executive Secretary for Legal Affairs sent a letter to Smart requesting opinion or the position of Smart with respect to the bill, whether or not the President should veto the bill or approve the bill and sign it into law. But up to now, we don't know where -- what will be the end position in this matter. But if in the event that the President signs it into law, allows it to lapse into law, then we have to -- we as telco will have to assert our right and bring our issues before the Supreme Court. We believe that there are several unconstitutional issues that's contained in the bill, including the discriminatory treatment in favor of data transmission providers and satellite providers because the bill allows data transmission providers and satellite providers to use spectrum without any franchise. And in that respect, the bill is also unconstitutional because it contains more than one subject. The rule in the Philippines and in most democratic countries is a bill can only contain one subject. This bill contains 3 subjects: One, open access; number two, spectrum, allocation of spectrum and recall of spectrum; and third, enjoyment of the spectrum and operating without the franchise. So we will raise those issues. The other -- but the most important point in this is the bill goes against what the world basically has implemented as open access. The standard for open access -- the ability of data transmission providers to access the assets of telcos is very broad. As long as it's necessary, then they will have the right to access, whereas open access has adopted in other countries, a very strict standard, which is the asset must be indispensable and must be essential for the provisional services of the data [indiscernible] providers. It's like -- I liken it to a right of way. If the access to the asset is a necessary right away for the provision of the services, then that is a fair access. But if it is an access which allows them to have basically access to all our assets and basically, they can conduct a business without building their own infrastructure, then that's almost confiscatory because our assets are being accessed and the law is requiring us to provide access to our assets that will be used by a private sector. It's not even for public use. So in that score, it is confiscatory and we're not even allowed to basically negotiate the terms of the access. And when you have that situation, when the law was intended to provide for the additional build of infrastructure in the Philippines for data transmission providers. But the law failed to impose an obligation to build infrastructure on the data transmission providers. Instead, they are given the right to access all our assets. So it's like a freeloader situation. And when that happens, who will suffer? Our subscribers will suffer and there will be a disincentive to build because you know how expensive it is to build. But as we build, we are not given the assurance that we will have exclusivity on use of the assets that we're building. And the signal of the law is the data transmission providers will have access over the assets that we will build. So it's a disincentive to build further improvements to the infrastructure of telcos in the Philippines. But the other most important point here is under the constitution, the state has the ability, has the power and the right to take over facilities of entities of businesses that are public utilities or whose business are viewed with public or national interest. That one will not be available for satellite providers because the bill allows satellite providers to get spectrum and operate without any franchise. So satellite providers are basically outside of the physical jurisdiction of the Philippine government. And so in our case, if the Philippine government needs our assets, needs to take over our operations in order to ensure that national security is protected, for example, [indiscernible] communications. They can just knock on our doors and send the police and take over. In the case of satellite providers that are given spectrum and are operating without any franchise by the government, that's not possible. And that is depriving the state of the power to protect itself. So those are some of the unconstitutional points that we will raise if the bill is passed into law.

We have another question here from [indiscernible] of Metrobank. Can you share some guidance regarding what we can expect from refinancing activities for the maturing debt? Do we expect any upticks in our rates? Perhaps Leo, our Treasurer can take this.

Thank you for the question. So currently, interest rates are still at high levels when compared to a few years back when we [indiscernible] our maturing debts. So as an indication, as of June, the cost of our debt is approximately [indiscernible]. Now admittedly, as we refinance debt, the interest rates are high -- still at higher levels right now the benchmark rates. But what we have done is that we've negotiated for the spreads to contract a bit. So from a high, let's say, 75 to 100 basis points to today's 40 to 60 basis points. Now aside from that, in order to address also the high interest rate environment, we are borrowing long-term facilities with floating rate structured price at the shorter end of the curve. Now this is also to take advantage of declining interest rates following the easing of central banks. So while they may be a little bit higher now, there is potential in the way we structured our refinancing facilities of floating rates at the shorter end that will give us the ability to also enjoy as interest rates go down.

Thank you, Leo. All right. Another question that we have here is in regards to our 5G cities. Any updates on 5G cities after the successful launch in BGC? Are there additional cities slated for this? And what can we expect in this coming year?

Yes. Glad to answer that. Following the success that we have in 5G cities, we have decided to start to propagate them in the provinces. So we have selected Iloilo, the Queen City of the South as the first beneficiary of that. We're putting 5G [indiscernible] we're testing it there. And so far, I'm glad to announce that there's been some good acceptance, particularly with respect to the fact that we started that with the sunsetting of our 3G spectrum.

And as a follow-up to that, since we are talking about 5G, are there any measurable uplift in terms of ARPU for these 5G cities also from 5G users moving up from LTE?

Thank you again for the question. Short answer, ARPU 5G is PHP 300. The ARPU LTE is PHP 101. So definitely be assured that there will be a revenue lift. And we are very, very focused in really implementing our 5G network.

Thank you, Sir Boy. This next question I got from quite a number of investors. This is in regards to our asset monetization plans. Are there any updates on the data center sale as well as asset sales on top of the data center?

Okay on the data center, we continue to receive inquiries from interested parties, and we also consider other options for data center. So until we have finalized -- we will advise you once we have finalized those deals.

And in regards to copper?

Yes. I think we mentioned that.

Okay. So for copper, we will announce -- so it's an ongoing...

Continues to be one of the priorities.

I think maybe I can give them an update on the asset monetization program on our legacy assets. We've created a robust program to be able to monetize all our legacy assets. We're beginning with our copper. That is now under negotiations. And so I don't think I can disclose generally the price and how much we're going to get. But suffice it to say that we believe that we will get a substantial amount for our copper. But over and above that, there's a full program on being able to monetize our other legacy assets. For example, we are starting to shut down 3G. There will be a lot of equipment that is related to 3G, which we will also now start to monetize. And then eventually, all our other legacy assets, we will start to monetize. So we have a program for that whole ecosystem of monetizing legacy assets.

This next question is for home business. This is in regards to prepaid. So it looks like there was some uplift in the press release regarding take-up on prepaid. Can you give us more color on your plans and how this fits in your portfolio?

Yes. Well, prepaid is our strategic entry point into an emerging market that consists of price-sensitive households as well as first-time fiber users. We do not see prepaid as cannibalizing postpaid. An emerging customer base is there for those households that are hesitant to a monthly commitment or never tried fiber and are still using older or slower technologies. Prepaid is the perfect way to onboard these customers. And our growth driver in the next 6 months of the year will come from these emerging -- well, it will come from 2 places. It's from deepening our penetration in areas where we have coverage. And secondly, it's entering into these emerging markets consisting of price-sensitive households as well as first-time fiber users.

Thank you, Jorn. I'd also like to recognize the presence of our Chairman and CEO, Mr. Manny Pangilinan. So if you have any questions, please feel free to put them through the queue of the Q&A box here in the Teams meeting. Also, you may send it to me by a Viber or you may raise your hand as well. This next question is for Enterprise. Enterprise revenues declined 1% year-on-year. That's despite the 15% growth in ICT. You mentioned that there were some delays due to the elections and the POGOs. Do you anticipate to return to growth overall in the second half.

Yes. Thanks for the question. Yes, there were definitely on the public sector side, especially, as you can imagine, in local government, some of those deals were sliding because of the May elections and then waiting for any new elected officials to be announced. And on the national government agency as well, as you will remember, there was a loyalty check, et cetera. So while we had some closed deals substantially on the national government agency side in the first half, some of them did slide. I think it was reported in the news that PLDT won an award for the emergency 911 services. It's the national program announced by the President in persona. So we're waiting for the notice to proceed on that, but we're pleased. I think that's a marker of things to come on that sector. Similarly, with private sector, same thing, I think. So we're pushing hard on these things and hoping that it will impact our results positively in the second half.

And as a follow-up to that, regarding the new services from BSR regarding GPU as a service, any color regarding how early demand is shaping up?

Thank you for that question. VITRO Santa Rosa remains the premier data center hub of the Philippines today, a 5-hectare site, 50 megawatts in terms of capacity, 4,500 racks. And it is the only AI-ready data center in the Philippines today. We are taking full advantage of that. We are the first company in the Philippines to actually bring in NVIDIA GPU servers. And this is meant to address the growing AI demand that we see in the enterprise space today. Customers now are moving from use cases to actual deployment of AI, and we are capitalizing on that demand that's coming in. So we're happy to be the digital infra provider for AI in the Philippines today.

Also, I'd like to let everyone know that we also have Aayush Jhunjhunwala of Maya. He is the CIO of Maya. So if there are any Maya-related questions from the group, you may also post those questions here. [Operator Instructions] It looks like we have a question from Derrick of CLSA. Jan Derrick Guarin CLSA Limited, Research Division I do have questions on Maya. I noticed that NIMs increased to 20%. Is it fair to say that the credit card rates have been driving this improvement? And if that's the case, is it also driving the uptick in NPLs for the period? And what could be the normalized NPLs? Then still in Maya, is it possible for you to share the split in net income between banking and merchant acquiring?

Derrick, thanks for those questions. So partly correct. The overall growth in NIMs has not just been because of increasing NIMs for credit card. Of course, that's a factor. We have launched credit card very recently. We have scaled up personal loans, which was launched late last year. So the continued growth of these 2 businesses, in particular, as they're longer tenure products will continue to have some near-term adverse impact on NPLs, but we expect those to stabilize relatively quickly. I think NIMs continue to increase as we increased our LDRs, and we'll continue to drive those up. So LDRs are driving up, individual product NIMs are improving. And so these 2 factors are going to continue to drive the NIMs up. I think for NPLs, we continue -- if you see, we are quite focused on managing the risk of the business, risk of the portfolio. We take great measures in making sure that the risk profile is acceptable. And so you can see that NIMs have only inched up slightly. And I think we should expect these levels, maybe marginally up from these levels. But within the year or so, it should start to stabilize a bit more. So that's what I can sort of talk about NIMs and NPLs. I don't think we can split out at this stage much more on the P&L. But you do get to see more robust financials on the Maya Bank, which should come out soon. And so it's effectively, we do announce -- we do release the consolidated net income. And so you'll be able to see the difference between the 2 businesses. Just to remind you that the payments business is not just acquiring. It includes all payment-related services. So that will include acquiring, which is obviously one of the largest business, but also consumer payments, which is consumer wallet and any other transactional revenue on the wallet.

Thank you, Aayush. We have a question from Zhiwei of Macquarie. Is there going to be any guidance on revenue and margins for the second half of 2025?

Guidance on the revenues [indiscernible].

Perhaps you can share something else perhaps maybe on core income.

We're still trying to hit the core income of last year. But we're slightly behind right now, but we're trying to hit the core income that we had last year.

We won't be able to provide more than that at this time as we continue to navigate the business, but we do wish to maintain our profitability, of course, and then hopefully shoot for higher net. Okay. Any other questions for the group as well as for Maya? This question here is for Home regarding innovation. So there are some innovations coming from the mobile side of things. Can you talk about innovations that you are pursuing for the home fiber business?

Thank you, Jinggay. Yes, we have been looking at a lot of, I guess, value-added content, but the initial mission for innovation is to make PLDT, the digital hub of every home. So what does that mean? So aside from connectivity, we are looking at -- we already have partnered with the big names in entertainment, like Netflix, MAX. We've partnered with smart home vendors like TP-Link and Eufy. Very soon, we will be partnering with a big name in the electronic gaming industry in Esports and console gaming. That will be launched very shortly. And we are also looking at partnering with mWell in order to provide health from the home. So these are the few things. We are building the smart home and IoT platform for every home to ensure that we are able to provide this integrated service to the home. Furthermore, there is still a market for connectivity, and you will be seeing in the market very soon, a no frills brand that we have launched. This should also help bring in our break into the emerging markets, and we hope to capture this incrementally. Again, we do not see these emerging markets of price-sensitive households or first-time users to cannibalize postpaid. Our postpaid proposition remains very strong. Our ARPU has held up despite the fact that we have entered these markets beginning in the last quarter of last year and booming in the first and second quarter of this year. So this is a very strong indication that even lower ARPU subscribers once they're in and they determine their data usage do tend to come back and upgrade their subscriptions to faster speeds or add more content, which is helping us preserve our ARPU. So in short, I guess that being said, it's very important that this -- making each and every home in the Philippines a digital hub for PLDT is our mission. And we intend to do that through IoT, through smart home, through entertainment and health, among other things.

Thank you, Jorn. We have a question here for Maya from Niki. Is there a target or optimal loan-to-deposit ratio for Maya Bank? And second question, any plans for further capital raising or perhaps even an IPO? What's the time line looking for that?

I think for the loan-to-deposit ratio, we are still reasonably below the industry standard. So we'll continue to drive those up. I don't think we have a very fixed target at this point in time, but we are still less than 50%. So there is ample room to continue to grow. We also have an ability to dial up or dial down the deposit growth. And so it really depends on the scaling of the lending book that will enable us to maintain a healthy LDR ratios. I think in terms of capital raise/IPO, I mean, we, at the company, continue to remain focused on scaling the business. We are solidly cash flow generative. We are profitable. So we don't need to raise external capital to continue to drive growth. And so that's a good thing. And I think as far as any IPO or any other strategic alternatives are concerned, I think we'll let the shareholders decide and take appropriate action at the right time.

Thank you, Aayush. Okay. Looks like we have just a minute or so left. There are some questions here in the queue. This is a question from Zhiwei on Maya. So how do you see loan disbursement continuing to grow in the second half of 2025? You're tracking about the same amount of loans made with GCash in the second quarter, Maya PHP 32 billion, GCash PHP 34 billion. Curious to understand where you're driving the loan growth from and whether you are in direct competition with the same market as GCash?

Yes. We have a very strong suite of products that we offer now between both consumer and businesses, starting with a Maya Easy Credit, which favors a consumer who has never taken a loan before. So first to credit customers. These are very short-term small ticket loans. Then we have personal loans where we graduate consumers for longer duration, larger ticket sizes. We have just launched credit card. We launched Landers credit card last year, and we've just launched our own self-branded credit card last week. So it's a very robust set of products, credit products for the consumers. And similarly, we have a working capital product for businesses, both for fixed duration as well as for installment loan. So there is no one particular product that is driving all the disbursal. It's a fairly diversified book. It's a fairly diversified disbursals, and we'll continue to see escalation across the board and growth across the board. We do focus -- just in terms of our customer segmentation, we do focus on mass affluent and above customers. We have a very, very millennials, Gen Z-focused customer base. And so that's our continued focus. There are many products that we offer. We are the only ones, for example, amongst the digital banks or lenders to have a credit card. So we do continue to differentiate and offer products suitable to our customer base.

Thank you, Aayush. Okay. It looks like that's about all the time that we have for today. So that concludes today's briefing, and I'd like to thank everybody for their time and continued support of PLDT. But before we end the meeting, perhaps I'd like to invite our Chairman and VP, if he has any closing remarks.

Thank you for joining us this afternoon. And when we announce our results, September, right? So we should see you in September with the third quarter results. Thank you.

In November. Thank you, everyone. If you have any other questions that you weren't able to ask today, please feel free to send them over. I'd be happy to get to you by e-mail. Thank you. Have a great day.