PLDT Inc. navigated a challenging 2025, reporting a 7.12% dip in attributable net income to P30.01 billion. Despite headwinds, the company demonstrated resilience, rebounding in the latter half of the year after a difficult start.
Chairman Manuel V. Pangilinan emphasized the stability of the core business amidst broader economic uncertainties. Disciplined investments proved crucial, bolstering free cash flow and providing a foundation for future growth.
Increased competition within the telecommunications sector significantly impacted performance, contributing to a 3% decline in telco core income, reaching P33.93 billion. This reflects the intense pressure to maintain market share and innovate.
However, overall gross revenue experienced a modest 1% increase, climbing to P218.39 billion. The majority of this revenue, P212.19 billion, stemmed from service offerings, with the remainder generated from non-service revenue streams.
Total expenses also saw a slight rise, increasing by 1% to P168.04 billion. Careful expense management remains a key priority for sustaining profitability in a competitive landscape.
Looking ahead to 2026, PLDT anticipates capital expenditure in the mid-P50 billion range, a slight decrease from the approximately P60 billion invested in 2025. This strategic adjustment allows for focused allocation of resources.
A bright spot emerged from the Maya Group, which achieved its first full-year profit in 2025, posting a net income of P1.7 billion. Improved execution and cost control, coupled with platform ownership, fueled this positive turnaround.
Plans for an initial public offering (IPO) of Maya are still underway, initially targeting the United States market before a potential listing on the Philippine Stock Exchange. This move aims to raise capital and provide opportunities for existing investors.
A significant shift in strategy involves PLDT’s data center business, VITRO, Inc. The company is now pursuing a Real Estate Investment Trust (REIT) listing, pivoting from earlier plans to sell a minority stake.
Negotiations with potential investors stalled due to their insistence on majority control, a condition PLDT was unwilling to concede. This led to the exploration of a REIT structure as a viable alternative.
The company is actively evaluating new regulations regarding REITs applicable to data centers, specifically focusing on the potential to list nine of its mature data center facilities. Maintaining control of these valuable assets is paramount.
PLDT inaugurated VITRO Sta. Rosa last year, a sprawling five-hectare facility in Laguna representing the country’s largest data center campus with a capacity of up to 50 megawatts. VITRO’s total combined capacity across all sites approaches 100 MW.
The decision to explore a REIT listing also aligns with efforts to reduce debt, currently standing at P284.7 billion as of the end of December 2025. A healthy debt-to-EBITDA ratio of 2.56x is being maintained.
Ultimately, PLDT views its data center assets as a catalyst for future growth, and retaining control through a REIT structure is considered the most strategic path forward. This reflects a long-term commitment to innovation and market leadership.
