Telecommunications giant PLDT reported an 8% decline in net income to P21.7 billion in the first nine months of 2026, even as service revenues increased and its enterprise and data center businesses posted growth.
In a disclosure to the Philippine Stock Exchange on Thursday, Nov. 12, PLDT said its net income attributable to shareholders fell from P23.7 billion in the same period last year, reflecting higher depreciation and other expenses.
Consolidated gross service revenues increased 2% to P161.2 billion, while net service revenues, excluding interconnection costs, rose 1% to P146.9 billion.
Data and broadband services accounted for 86% of net service revenues at P126.5 billion, compared with 85% a year earlier.
Consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda) increased 1% to P83.2 billion, with the Ebitda margin remaining at 52%.
However, consolidated core income declined 4% to P24.4 billion from P25.6 billion, while telco core income dropped 6% to P23.5 billion.
PLDT chairman and CEO Manuel V. Pangilinan acknowledged the challenges facing the company despite the modest revenue growth.
“We managed to grow revenues in a tough market, a tougher environment. We obviously have a lot of work ahead of us. We’ve invested in our network, our technology, and our people. Now we need to turn those investments into better service for our customers and stronger growth for the business,” Pangilinan said.
PLDT reduced capital expenditures by 15% to P36.6 billion from P43 billion a year earlier, bringing its capital expenditure intensity down to 23% from 27%.
The company said it maintained positive free cash flow during the period.
Its consolidated net debt stood at P285.6 billion at the end of September, down from P287.3 billion at the end of June. Gross debt reached P300.2 billion.
Wireless business returns to growth
PLDT’s wireless consumer business, operated through Smart Communications, recorded a 1% increase in revenues to P63.5 billion in the first nine months.
Mobile data and fixed wireless access revenues grew 3% to P58.7 billion, accounting for 92% of the segment’s revenues.
After largely flat performance in the first half, wireless consumer revenues increased 3% year-on-year to P21.5 billion in the third quarter.
Blended monthly average revenue per user reached P120 during the quarter, up 3% from the preceding quarter and 1% from a year earlier.
Total data traffic increased 14% to 5,029 petabytes, while active data users reached 44.3 million at the end of September, compared with 42.4 million a year earlier.
The number of 5G-capable individual devices on the network also increased to 12.9 million, representing 22% of individual devices, up from 18% a year earlier.
Meanwhile, PLDT Home generated P44.8 billion in revenues during the nine-month period, with fiber services contributing P43.9 billion.
The company reported a combined postpaid and prepaid fiber subscriber base of 3.8 million at the end of September.
PLDT said its prepaid fiber subscriber base more than doubled year-on-year, although it did not disclose the actual number of subscribers.
More than 65% of new prepaid fiber subscribers had reloaded their service, according to the company.
Enterprise, cloud, and data center revenues expand
PLDT Enterprise recorded a 4% increase in net service revenues to P37.2 billion, driven by enterprise wireless services, international connectivity, and data center operations.
Excluding declining legacy services, enterprise net service revenues increased 8% to P31.2 billion.
Smart’s enterprise wireless revenues grew 16%, supported by application-to-person messaging, enterprise postpaid subscriptions, wireless broadband, and Internet of Things (IoT) services.
PLDT’s information and communications technology business reported a 6% increase in revenues, reflecting demand for cloud computing, data center services, and artificial intelligence solutions.
Within ePLDT, Infrastructure-as-a-Service revenues increased 40%, while data and AI solutions grew 19%.
The company’s Vitro data center portfolio posted 11% revenue growth, supported by a 10% increase in colocation revenues and a 15% rise in connectivity revenues.
PLDT said Vitro was preparing to make a total of 44 megawatts of IT power available by the end of 2026 to accommodate demand from enterprise customers, hyperscalers, and AI-related workloads.
PLDT Global Enterprise also reported a 36% increase in revenues to P2.3 billion, driven by demand for high-capacity international connectivity.
Network expansion and satellite trials
Despite lower capital spending, PLDT and Smart continued expanding their telecommunications infrastructure.
As of September 2026, the group’s domestic and international fiber network spanned approximately 1.26 million cable kilometers.
The companies activated 260 new network sites during the third quarter, including six in geographically isolated and disadvantaged areas.
PLDT also disclosed tests of alternative connectivity technologies intended to improve network resilience.
In Taguig City, the company tested laser-based wireless backhaul during heavy monsoon rainfall, demonstrating its potential to restore connectivity following fiber cuts.
Smart also conducted a direct-to-device satellite connectivity test using LTE smartphones aboard vessels traveling between Batangas and Oriental Mindoro.
The company said the technology could supplement terrestrial mobile networks in coastal and remote areas, particularly during emergencies.
PLDT and Smart are also offering fraud-prevention services through their Open API initiative, allowing financial institutions to detect SIM changes, verify device locations, and authenticate customers without relying solely on SMS one-time passwords.
Maya contribution increases
PLDT reported a 39% increase in Maya’s contribution to consolidated core income during the nine-month period.
The digital financial services platform continued expanding its deposit and lending operations.
As of September, Maya’s deposit balances reached P95 billion, an increase of 68% year-on-year, while outstanding loans rose 58% to P44 billion.
Its gross non-performing loan ratio improved to 4.9% from 6.1% at the end of 2025.
Maya also reported a net interest margin of 17.6% for the first nine months of the year.
The fintech company has been expanding its consumer and business services, including digital payments, banking, lending, and financial management tools for small businesses.
Cybersecurity measures
PLDT and Smart also disclosed that their networks blocked 407 billion attempts to access malicious domains during the first nine months of 2026.
The companies said they disabled approximately 642,000 mobile numbers linked to phishing, smishing, and voice phishing activities.
They also prevented 1.5 million attempts to access online content associated with the sexual abuse and exploitation of children.
The financial results were based on PLDT’s unaudited consolidated statements for the nine months ended Sept. 30, 2026.
