PLDT profits doubled to ₱26.61 billion; forms “Digico” joint venture within MVP group

PLDT bounced back to profitability in 2023, overcoming a previous budget overrun. Net income surged to Php26.61 billion, up from Php10.49 billion in 2022. This growth was driven by a 3% revenue increase to P210.95 billion, alongside a significant 24% decrease in expenses to Php158.47 billion.

PLDT achieved record consolidated service revenues of P191.4 billion, with data and broadband leading the way at 82% growth. PLDT Home’s fiber-only service revenues grew 9% to Php53 billion, while its B2B arm PLDT Enterprise’s net service revenues reached Php47.1 billion, fueled by its dynamic ICT business and core data offerings. The Individual Wireless segment also saw a 2% revenue increase, with mobile data revenues growing 6% to Php71.1 billion.

Looking ahead, PLDT aims for single-digit revenue growth and further expense reduction in 2024. This strategy is expected to bring core income to P35 billion and achieve a positive free cash flow by year-end. Capital expenditures are planned to be between P75 billion and P78 billion — significantly lower than its Php85.1 billion investment in 2023.

Potential data center sale, “Digico” joint venture

PLDT is exploring the sale of a stake in its data center business, valued in the hundreds of millions of dollars, to reduce debt and attract investment from foreign tech giants such as Amazon, Google, and Meta.

In a strategic move, PLDT announced the formation of “Digico,” — co-owned with fellow MVP Group companies PLDT, Smart, Meralco, and Metro Pacific Investments Corporation (MPIC).

It appears to be a unified platform with “payments and rewards systems” consolidating the Group’s multiple payments channels.

“This will be ‘the app’ for all Filipinos—their default platform for bills, payments, and rewards,” said Kat Luna-Abelarde, Digico Chief Commercial Officer in a press release.