PLDT (PHI) Q3 2025: Fiber Subscriptions Jump 67% as Data, ICT Drive 4% Revenue Lift
PLDT’s Q3 marked a decisive pivot to digital, as fiber net adds surged and enterprise ICT revenues rebounded, offsetting legacy declines. Cost control, positive free cash flow, and Maya’s digital banking traction signal a business increasingly anchored in data, cloud, and fintech. Management’s focus on asset monetization and prudent capex keeps leverage in check as regulatory uncertainty and spectrum policy loom for 2026.
Summary
- Digital Ecosystem Expansion: Fiber, data, and ICT revenues now dominate growth, with legacy drag receding.
- Asset Monetization Drive: Data center stake sale and capex discipline underpin positive free cash flow and deleveraging plans.
- Regulatory Shifts Ahead: Open access law and spectrum policy changes introduce industry volatility and strategic uncertainty.
Performance Analysis
PLDT’s Q3 2025 results underscore a strategic transition from legacy telecom to digital infrastructure and fintech leadership. Consolidated service revenues rose 2% year-on-year, with all major business units posting positive growth despite ongoing legacy revenue attrition. Excluding legacy, total revenues climbed 4%, propelled by 7% fiber growth and a 27% jump in ICT, now central to both home and enterprise portfolios.
Home business momentum was driven by 265,000 net fiber subscriber additions year-to-date, up 67% over the prior year, with fiber now comprising 97% of home revenues. Enterprise returned to growth as delayed government projects resumed, while ICT services surged 51% in Q3 alone. Wireless data, including fixed wireless, grew 3% in the quarter, supported by expanding 5G adoption. Disciplined cost control drove a 2% reduction in cash opex, with EBITDA margin steady at 52%. Maya, the digital banking arm, delivered its third consecutive profitable quarter, nearly doubling deposits and expanding its lending base, though net income dipped due to product launch provisions and regulatory impacts.
- Fiber Penetration Acceleration: Net adds and ARPU stability reflect successful expansion into prepaid and underserved markets.
- Enterprise Digital Pivot: ICT and data center demand, especially from government and AI use cases, underpin segment recovery.
- Fintech Scale: Maya’s ecosystem growth is driving both financial inclusion and cross-sell, with profitability sustained despite higher provisioning.
Capex fell sharply to 43 billion pesos year-to-date, with full-year guidance lowered to 60 billion, reflecting project completion and improved procurement. Positive free cash flow was achieved ahead of schedule, and net debt remains within target range, though interest costs ticked up due to higher rates and refinancing activity.
Executive Commentary
"Our nine-month results show a stable top line. We see yet even an improving contribution from digital businesses. Consolidated service revenues reached 145.9 million, up 1% year-on-year. If we exclude legacy services, total revenues rose 3%, showing the continued expansion of our people growth areas."
Danny Yu, Chief Financial Officer
"I don't see [government digital investment] slowing down, and I think that after realizing that they've spent too much on flood controls, 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."
B. Boyd Hendino, President and CEO
Strategic Positioning
1. Fiber and Home Connectivity Leadership
PLDT’s aggressive fiber rollout has cemented its lead in home connectivity, with fiber now accounting for nearly all home revenues. The operator’s targeted expansion into prepaid fiber and underserved municipalities is driving subscriber growth without sacrificing ARPU or profitability. The introduction of air fiber and laser internet further extends reach into hard-to-serve areas, supporting both top-line and market share gains.
2. Enterprise Digital Transformation and Data Centers
Enterprise is pivoting to high-value digital services, with ICT and data center revenue now representing 75% of segment turnover. The launch of Pilipinas AI, a sovereign AI platform, and SmartSafe, a secure authentication solution, positions PLDT as a partner for public sector digitalization and AI adoption. The group’s data center capabilities, including the introduction of NVIDIA H200 GPUs, are attracting both government and private clients seeking local AI infrastructure.
3. Maya: Digital Banking Scale and Inclusion
Maya’s integrated fintech platform is scaling rapidly, with deposit and lending growth outpacing the market. The business is democratizing credit access, with 40% of new premium cardholders as first-time users, and over half of borrowers new to formal lending. Maya’s focus on younger and rural demographics is expanding financial inclusion, though loan book growth brings elevated provisioning as the portfolio matures.
4. Cost Discipline and Capital Allocation
Cost controls remain central, with workforce optimization, lower selling costs, and targeted device subsidies offsetting inflationary pressures from network expansion. Capex intensity has declined, and management is actively pursuing asset monetization—including a potential 49% data center stake sale and REIT listing—to further deleverage and fund digital investments.
5. Regulatory and Industry Policy Navigation
Regulatory changes are a looming wildcard. The open access law and new spectrum management framework introduce both competitive threats and partnership opportunities. Management highlights uncertainty around pricing, service obligations, and spectrum recall definitions, with the risk of policy-driven margin compression or forced infrastructure sharing in 2026 and beyond.
Key Considerations
PLDT’s Q3 shows a business in active transformation, balancing digital growth with legacy drag and regulatory flux. Investors should focus on the following:
- Fiber Monetization and Churn Management: Sustaining low churn and high ARPU as prepaid fiber expands will be critical to maintaining profitability in home connectivity.
- Enterprise AI and Data Center Demand: Government and private sector appetite for local AI and cloud solutions could drive a step-change in enterprise revenue, but execution and competitive response remain watchpoints.
- Maya Credit Quality: Rapid loan book growth brings credit risk; provisioning trends and NPL ratios need close monitoring as new borrowers are onboarded.
- Asset Monetization Execution: Timely completion of data center stake sale or REIT listing is key for deleveraging and funding new growth bets.
- Policy and Regulatory Clarity: The lack of detail on open access pricing and spectrum policy creates uncertainty for both PLDT’s investment case and industry structure.
Risks
Regulatory risk is rising as open access and spectrum management rules are finalized, with potential for forced infrastructure sharing, price regulation, and spectrum recall. Maya’s rapid lending growth could expose the group to credit losses if borrower quality deteriorates. Competitive intensity in mobile and broadband, especially from incumbent rivals and new entrants, may pressure margins and subscriber growth if execution falters.
Forward Outlook
For Q4 2025, PLDT expects:
- Continued growth in fiber and ICT revenues, supported by government digitalization projects and prepaid fiber expansion.
- Stable or improving EBITDA margin, with cost discipline offsetting inflation and network investment.
For full-year 2025, management lowered capex guidance to 60 billion pesos and targets:
- Net debt to EBITDA reduction toward 2.0x over the next three to four years, aided by asset monetization.
Management highlighted several factors that frame the outlook:
- Asset monetization and lower capex are expected to sustain positive free cash flow into 2026.
- Regulatory clarity on open access and spectrum policy is a key swing factor for 2026 strategy and investment.
Takeaways
PLDT’s Q3 confirms digital infrastructure and fintech as the new core, with fiber and Maya driving both growth and margin stability. The pivot to ICT and data centers in enterprise is gaining traction, but regulatory and credit risks loom large for 2026.
- Digital Growth Outpaces Legacy Decline: Fiber, ICT, and Maya are now the primary revenue engines, with disciplined cost management defending margins.
- Balance Sheet Flexibility Hinges on Monetization: Data center stake sale and capex discipline are central to deleveraging and funding next-gen investments.
- 2026 Will Be a Regulatory Inflection: Open access and spectrum rules could reshape industry economics, requiring agile strategy and execution.
Conclusion
PLDT’s Q3 performance demonstrates a resilient digital pivot, with fiber, ICT, and Maya offsetting legacy drag and supporting early free cash flow inflection. Success in asset monetization and navigation of regulatory change will set the tone for 2026 and beyond.
Industry Read-Through
PLDT’s results reinforce the shift to digital infrastructure as the growth engine for Southeast Asian telcos. Fiber and data center investments are now the primary battleground, while fintech arms race to capture unbanked and underbanked consumers. Regulatory volatility—especially around open access and spectrum—will test incumbents’ pricing power and capital discipline. Operators able to scale digital ecosystems, monetize infrastructure, and manage policy risk will define sector leadership in the coming cycle.