PLDT revenue Php163.3B; EBITDA Php82.8B in year-to-date

Filing Impact

(Neutral)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

PLDT Inc. (PHI) filed a Form 6-K furnishing its Philippine SEC 17-Q for the nine months ended September 30, 2025. Consolidated revenues were Php163,283 million (up 1%), driven by higher service revenues of Php158,903 million (up 3%) and softer non-service sales. Net income was Php25,135 million (down 11%) as expenses and other charges rose, while EBITDA reached Php82,845 million (up 3%) with a 52% margin.

Wireless revenues dipped 3% to Php76,468 million, with data gains offset by weaker voice/SMS and device sales; Fixed Line grew 5% to Php100,248 million on Home broadband and ICT, partly offset by legacy corporate data. Telco core income was Php25,264 million (down 5%).

Operating cash flow was Php75,765 million; payments for property and equipment were Php52,093 million. Interest-bearing liabilities stood at Php297,536 million and equity at Php120,326 million. Regular dividends of Php47 and Php48 per common share were declared in 2025. Shares outstanding were 216,055,775 as of September 30, 2025.

Insights

Stable top line; margins hold, earnings softer on costs.

PLDT delivered year-to-date revenue of Php163,283 million (up 1%) with service revenues rising and non-service sales lower. EBITDA was Php82,845 million (margin 52%), but net income declined to Php25,135 million as depreciation, interconnection, and financing costs increased.

Segment mix diverged: Wireless softened on voice/SMS and device sales, while Fixed Line benefited from Home broadband and ICT, partly offset by legacy corporate data. Telco core income was Php25,264 million, down on higher financing and D&A.

Cash generation remained solid with operating cash flow of Php75,765 million and capex payments of Php52,093 million. Interest-bearing liabilities were Php297,536 million at period-end; the company declared regular dividends of Php47 and Php48 per share. Overall stance: neutral given modest growth and manageable leverage.

11/12/2025 - 06:14 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

November 11, 2025

PLDT INC.

(Translation of registrant’s name into English)

Ramon Cojuangco Building

Makati Avenue, Makati City

Philippines

(Address of registrant’s principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.


Registrant: PLDT Inc.


Signature and Title:	/s/ Manuel V. Pangilinan
	Manuel V. Pangilinan
	Chairman, President and Chief Executive Officer


Signature and Title:	/s/ Danny Y. Yu
	Danny Y. Yu
	Senior Vice President and PLDT Group Chief Financial Officer
	(Principal Financial Officer)


Signature and Title:	/s/ Gil Samson D. Garcia
	Gil Samson D. Garcia
	First Vice President
	(Principal Accounting Officer)

Date: November 11, 2025


SEC Number	PW-55
File Number

PLDT Inc.

(Company’s Full Name)

Ramon Cojuangco Building

Makati Avenue, Makati City

(Company’s Address)

(632) 82500254

(Telephone Number)

Not Applicable

(Fiscal Year Ending)

(month & day)

SEC Form 17-Q

Form Type

Not Applicable

Amendment Designation (if applicable)

September 30, 2025

Period Ended Date

Not Applicable

(Secondary License Type and File Number)

November 11, 2025

The Philippine Stock Exchange, Inc.

6/F Philippine Stock Exchange Tower

28th Street corner 5th Avenue

Bonifacio Global City, Taguig City


Attention:		Atty. Johanne Daniel M. Negre
		Officer-In-Charge - Disclosure Department

Securities & Exchange Commission

7907 Makati Avenue, Salcedo Village

Barangay Bel-Air, Makati City


Attention:		Atty. Oliver O. Leonardo
		Director – Markets and Securities Regulation Department

Gentlemen:

In compliance with Section 17(b) of the Securities Regulation Code and SRC Rule 17.3, we submit herewith a copy of SEC Form 17-Q with Management’s Discussion and Analysis and accompanying unaudited consolidated financial statements for the nine (9) months ended September 30, 2025 of PLDT Inc.

This submission shall also serve as our compliance with Section 17.1 of the Securities Regulation Code regarding the filing of reports on significant developments.


Very truly yours,

/s/ Mark David P. Martinez
MARK DAVID P. MARTINEZ
Assistant Corporate Secretary

COVER SHEET


SEC Registration Number
P	W	-	5	5

Company Name

Principal Office (No./Street/Barangay/City/Town/Province)

     Form Type

     Department requiring the report

     Secondary License Type, If Applicable

PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Our consolidated financial statements as at September 30, 2025 (unaudited) and December 31, 2024 (audited) and for the nine months ended September 30, 2025 and 2024 (unaudited) and related notes (pages F-1 to F-121) are filed as part of this report on Form 17-Q.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

In the following discussion and analysis of our financial condition and results of operations, unless the context indicates or otherwise requires, references to “we,” “us,” “our” or “PLDT Group” mean PLDT Inc. and its consolidated subsidiaries, and references to “PLDT” or “the Company” mean PLDT Inc., not including its consolidated subsidiaries (please see Note 2 – Summary of Material Accounting Policies to the accompanying unaudited consolidated financial statements for the list of these subsidiaries, including a description of their respective principal business activities and PLDT’s direct and/or indirect equity interest).

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited consolidated financial statements and the related notes. Our unaudited consolidated financial statements, and the financial information discussed below, have been prepared in accordance with Philippine Financial Reporting Standards (PFRS Accounting Standards) which is virtually converged with International Financial Reporting Standards as issued by the International Accounting Standards Board. PFRS Accounting Standards differs in certain significant respects from generally accepted accounting principles (GAAP) in the U.S.

The financial information appearing in this report and in the accompanying unaudited consolidated financial statements are stated in Philippine Peso. Unless otherwise indicated, in this report and in the accompanying unaudited consolidated financial statements, the exchange rate used to convert the U.S. Dollar amounts into the Philippine Peso was Php58.15 to US$1.00, the Philippine Peso-U.S. Dollar exchange rate as quoted through the Bankers Association of the Philippines as at September 30, 2025.

Some information in this report may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current beliefs, expectations and intentions as to facts, actions and events that will or may occur in the future. Such statements generally are identified by forward-looking words such as “believe,” “plan,” “anticipate,” “continue,” “estimate,” “expect,” “may,” “will” or other similar words.

A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We have chosen these assumptions or bases in good faith. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual results may differ materially from information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the risk factors. When considering forward-looking statements, you should keep in mind the description of risks and other cautionary statements in this report. You should also keep in mind that any forward-looking statement made by us in this report or elsewhere speaks only as at the date on which we made it. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect us. We have no duty to, and do not intend to, update or revise the statements in this report after the date hereof. In light of these risks and uncertainties, you should keep in mind that actual results may differ materially from any forward-looking statement made in this report or elsewhere.

Financial Highlights and Key Performance Indicators


	Nine Months Ended September 30,						Increase (Decrease)
	2025			2024			Amount			%
(amounts in million Php, except for EBITDA margin and earnings per common share)
Consolidated Income Statement
Revenues		163,283			160,942			2,341			1
Expenses		123,385			119,087			4,298			4
Other expenses – net		(7,180	)		(4,792	)		(2,388	)		(50	)
Income before income tax		32,718			37,063			(4,345	)		(12	)
Net income		25,135			28,224			(3,089	)		(11	)
Core income		25,823			25,793			30			—
Telco core income		25,264			26,578			(1,314	)		(5	)
EBITDA		82,845			80,718			2,127			3
EBITDA margin(1)		52	%		52	%
Reported earnings per common share:
Basic		115.83			129.71			(13.88	)		(11	)
Diluted		115.83			129.71			(13.88	)		(11	)
Core earnings per common share(2):
Basic		119.31			119.18			0.13			—
Diluted		119.31			119.18			0.13			—


	September 30,		December 31,		Increase (Decrease)
	2025		2024		Amount			%
(amounts in million Php, except for net debt to equity ratio)
Consolidated Statements of Financial Position
Total assets		629,556		623,275		6,281			1
Property and equipment		325,310		318,069		7,241			2
Cash and cash equivalents and short-term investments		10,102		10,147		(45	)		—
Total equity attributable to equity holders of PLDT		120,326		115,419		4,907			4
Long-term debt, including current portion		297,536		281,586		15,950			6
Net debt(3) to equity ratio	2.40x		2.37x			—			—

(1)

EBITDA margin for the period is measured as EBITDA divided by service revenues.

(2)

Core earnings per common share (EPS) for the period is measured as core income divided by the weighted average number of outstanding common shares for the period.

(3)

Net debt is derived by deducting cash and cash equivalents, short-term investments and debt instruments at amortized cost from total interest-bearing financial liabilities (principal amount of long-term debt, including current portion i.e., excluding debt issuance cost).


	Nine Months Ended September 30,						Change
	2025			2024			Amount			%
(amounts in million Php, except for operational data)
Consolidated Statements of Cash Flows
Net cash from operating activities		75,765			68,118			7,647			11
Net cash used in investing activities		(49,584	)		(47,207	)		(2,377	)		(5	)
Payment for purchase of property and equipment, including capitalized interest		(52,093	)		(48,676	)		(3,417	)		(7	)
Net cash used in financing activities		(26,164	)		(26,132	)		(32	)		—
Operational Data
Total number of subscribers		67,099,341			67,857,250			(757,909	)		(1	)
Number of mobile subscribers:		59,282,637			60,271,009			(988,372	)		(2	)
Prepaid		56,937,086			58,061,522			(1,124,436	)		(2	)
Postpaid		2,345,551			2,209,487			136,064			6
Number of broadband subscribers:		4,122,521			3,858,368			264,153			7
Fixed Line broadband		3,668,384			3,394,975			273,409			8
Fixed Wireless broadband		454,137			463,393			(9,256	)		(2	)
Number of fixed line voice subscribers		3,694,183			3,727,873			(33,690	)		(1	)
Number of employees:		14,420			15,014			(594	)		(4	)
Fixed Line		10,476			10,874			(398	)		(4	)
LEC		9,301			9,613			(312	)		(3	)
Others		1,175			1,261			(86	)		(7	)
Wireless		3,944			4,140			(196	)		(5	)


Exchange Rates – per US$	Month end rates		Weighted average rates during the year
September 30, 2025		58.15		57.12
December 31, 2024		57.85		57.28
September 30, 2024		56.02		57.01
December 31, 2023		55.42		55.62

Performance Indicators

We use a number of non-GAAP performance indicators to monitor financial performance. These are summarized below and discussed later in this report.

EBITDA and EBITDA Margin

EBITDA for the period is measured as net income excluding depreciation and amortization, amortization of intangible assets, asset impairment on noncurrent assets, financing costs – net, interest income, equity share in net earnings (losses) of associates and joint ventures, foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net, provision for (benefit from) income tax and other income (expenses) – net. EBITDA margin is calculated as EBITDA divided by service revenues. EBITDA and EBITDA margin are monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment. EBITDA and EBITDA margin are presented because our management believes that it is widely used by investors in their analysis of our performance and can assist them in their comparison of our performance with those of other companies in the technology, media and telecommunications sector. Companies in the technology, media and telecommunications sector have historically reported EBITDA as a supplement to financial measures in accordance with PFRS Accounting Standards. EBITDA and EBITDA margin should not be considered as alternatives to net income as indicators of our performance, nor should EBITDA and EBITDA margin be considered as alternatives to cash flows from operating activities, as a measure of liquidity or as alternatives to any other measure determined in accordance with PFRS Accounting Standards. Unlike net income, EBITDA does not include depreciation and amortization, or financing costs and, therefore, does not reflect current or future capital expenditures or the cost of capital. We compensate for these limitations by using EBITDA and EBITDA margin as only one of several comparative tools, together with PFRS Accounting Standards-based measurements, to assist in the evaluation of operating performance. Such PFRS Accounting Standards-based measurements include income before income tax, net income, and operating, investing and financing cash flows. We have significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in EBITDA. Our calculation of EBITDA and EBITDA margin may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

Core Income and Telco Core Income

Core income for the period is measured as net income attributable to equity holders of PLDT (net income less net income attributable to noncontrolling interests), excluding foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net (excluding hedge costs), impairment on noncurrent assets, other non-recurring gains (losses), net of tax effect of aforementioned adjustments, as applicable, and similar adjustments to equity share in net earnings (losses) of associates and joint ventures. Core income results are monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment.

Meanwhile, telco core income for the period is measured as net income attributable to equity holders of PLDT (net income less net income attributable to noncontrolling interests), excluding foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net (excluding hedge costs), impairment on noncurrent assets, non-recurring gains (losses), net of tax effect of aforementioned adjustments, as applicable, and similar adjustments to equity share in net earnings (losses) of associates and joint ventures, adjusted for the effect of the share in Maya Innovations Holdings, Pte. Ltd. (MIH) and Kayana Solutions, Inc. (Kayana), formerly Limitless Growth Ventures, Inc. income (losses), asset sales, and depreciation due to change in accounting estimate. Telco core income is used by the management as a basis for determining the level of dividend payouts to shareholders and one of the bases for granting incentives to employees.

Core income and telco core income should not be considered as alternatives to income before income tax or net income determined in accordance with PFRS Accounting Standards as an indicator of our performance. Unlike net income, core income and telco core income do not include certain items, among others, foreign exchange gains and losses, gains and losses on derivative financial instruments, impairments on non-current assets and non-recurring gains and losses. We compensate for these limitations by using core income and telco core income as few out of several comparative tools, together with PFRS Accounting Standards-based measurements, to assist us in the evaluation of our operating performance. Such PFRS Accounting Standards-based measurements include income before income tax and net income. Our calculation of core income may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

Overview

We are one of the leading telecommunications and digital services providers in the Philippines serving the fixed line, wireless and broadband markets. Through our three principal business segments, Wireless, Fixed Line and Others, we offer a wide range of telecommunications and digital services across our extensive fiber optic backbone and wireless and fixed line networks.

As at September 30, 2025, we serve 67.1 million customers through the provision of mobile, fixed line and data services.

Our three business units are as follows:

•

Wireless  Our Wireless business segment focuses on driving the growth of our data services while managing our legacy business of voice and short messaging services (SMS). We generate data revenues across all segments of our wireless business, whether through the access of mobile internet via smartphones, mobile broadband using pocket WiFi or home WiFi using fixed wireless broadband devices. We provide the following mobile telecommunications services through our wireless business: (i) mobile services, (ii) fixed wireless broadband services, and (iii) other services.

•

Fixed Line  We are the leading provider of fixed line telecommunications services throughout the Philippines, servicing retail, corporate and small and medium-sized enterprises (SME) clients. Our Fixed Line business segment offers data, voice, and miscellaneous services. We also offer secure data center, multi-cloud, cyber security, data and artificial intelligence (AI) solutions through ePLDT Inc. and Vitro Inc. (“Vitro”), our ICT subsidiaries.

•

Others  Our Other business segment consists primarily of our interests in digital platforms and other technologies, including our interests in MIH and Kayana.

Management’s Financial Review

In addition to consolidated net income, we use EBITDA, EBITDA Margin, core income and telco core income to assess our operating performance. Set forth below is a reconciliation of our consolidated net income to our consolidated EBITDA and EBITDA Margin, and a reconciliation of our consolidated net income to our consolidated core income and consolidated telco core income for the nine months ended September 30, 2025 and 2024.

The following table shows the reconciliation of our consolidated net income to our consolidated EBITDA and EBITDA Margin, by business segment, for the nine months ended September 30, 2025 and 2024:


	Wireless			Fixed Line			Others			Elims			Consolidated
	(amounts in million Php)
For the nine months ended September 30, 2025
Consolidated net income		5,288			24,163			413			(4,729	)		25,135
Add (deduct) adjustments:
Depreciation and amortization		28,829			20,019			—			(7,028	)		41,820
Financing costs – net		7,455			6,971			14			(979	)		13,461
Provision for (benefit from) income tax		1,474			6,163			(13	)		(41	)		7,583
Manpower rightsizing program (MRP)		96			1,030			—			—			1,126
Foreign exchange losses (gains) – net		(49	)		154			48			(48	)		105
Impairment on noncurrent assets		—			1			—			—			1
Equity share in net losses (gains) of associates and joint ventures		—			150			(463	)		—			(313	)
Interest income		(431	)		(124	)		(9	)		13			(551	)
Gain on sale and leaseback of telecom towers – net of transaction costs		(871	)		—			—			—			(871	)
Gains on derivative financial instruments – net		(234	)		(1,177	)		—			—			(1,411	)
Others – net		(1,473	)		(8,019	)		4			6,248			(3,240	)
Total adjustments		34,796			25,168			(419	)		(1,835	)		57,710
Consolidated EBITDA		40,084			49,331			(6	)		(6,564	)		82,845
Service revenues		72,441			99,894			—			(13,432	)		158,903
EBITDA margin(1)		55	%		49	%		—			49	%		52	%

For the nine months ended September 30, 2024
Consolidated net income (loss)		8,318			27,116			(1,099	)		(6,111	)		28,224
Add (deduct) adjustments:
Depreciation and amortization		24,992			19,369			1			(7,029	)		37,333
Financing costs – net		7,112			5,188			—			(1,328	)		10,972
Provision for (benefit from) income tax		2,527			5,998			(12	)		326			8,839
MRP		9			1,433			—			—			1,442
Equity share in net losses of associates and joint ventures		—			145			974			—			1,119
Impairment on noncurrent assets		—			67			—			—			67
Interest income		(545	)		(182	)		(12	)		21			(718	)
Gain on sale and leaseback of telecom towers – net of transaction costs		(896	)		—			—			—			(896	)
Foreign exchange losses (gains) – net		(1,075	)		(323	)		78			(69	)		(1,389	)
Gains on derivative financial instruments – net		(816	)		(1,250	)		—			—			(2,066	)
Others		(1,341	)		(9,742	)		(32	)		8,906			(2,209	)
Total adjustments		29,967			20,703			997			827			52,494
Consolidated EBITDA		38,285			47,819			(102	)		(5,284	)		80,718
Service revenues		72,905			95,118			—			(13,028	)		154,995
EBITDA margin(1)		53	%		50	%		—			41	%		52	%

(1)

EBITDA margin for the period is measured as EBITDA divided by service revenues.

The following table shows the reconciliation of our consolidated net income to our consolidated core income and telco core income, by business segment, for the nine months ended September 30, 2025 and 2024:


	Wireless			Fixed Line			Others			Elims			Consolidated
	(amounts in million Php)
For the nine months ended September 30, 2025
Consolidated net income		5,288			24,163			413			(4,729	)		25,135
Add (deduct) adjustments:
Accelerated depreciation and amortization		1,698			923			—			—			2,621
MRP		96			1,030			—			—			1,126
Amortization of debt discount from debt modification		86			37			—			—			123
Foreign exchange losses (gains) – net		(49	)		154			48			(48	)		105
Core income adjustment on equity share in net losses of associates and joint ventures		—			72			20			—			92
Impairment of noncurrent assets		—			1			—			—			1
Net income attributable to noncontrolling interests		(12	)		(49	)		—			(3	)		(64	)
Income from prescription of liability on Subscriber Investment Plan		—			(672	)		—			—			(672	)
Gain on sale and leaseback of telecom towers – net of transaction costs		(871	)		—			—			—			(871	)
Gains on derivative financial instruments – net, excluding hedge costs		(271	)		(1,283	)		—			—			(1,554	)
Net tax effect of aforementioned adjustments		(154	)		(48	)		(12	)		(5	)		(219	)
Total adjustments		523			165			56			(56	)		688
Consolidated core income		5,811			24,328			469			(4,785	)		25,823
Add (deduct) adjustments:
Share in MIH income		—			—			(603	)		—			(603	)
Share in Kayana losses		—			—			44			—			44
Total adjustments		—			—			(559	)		—			(559	)
Telco core income (loss)		5,811			24,328			(90	)		(4,785	)		25,264

For the nine months ended September 30, 2024
Consolidated net income (loss)		8,318			27,116			(1,099	)		(6,111	)		28,224
Add (deduct) adjustments:
MRP		9			1,433			—			—			1,442
Amortization of debt discount from debt modification		94			44			—			—			138
Impairment on noncurrent assets		—			67			—			—			67
Core income adjustment on equity share in net income of associates and joint ventures		—			(56	)		(10	)		—			(66	)
Income from prescription of liability on redeemable preferred shares		—			(71	)		—			—			(71	)
Net income attributable to noncontrolling interests		(10	)		(47	)		—			(97	)		(154	)
Gain on sale and leaseback of telecom towers – net of transaction costs		(896	)		—			—			—			(896	)
Foreign exchange losses (gains) – net		(1,075	)		(323	)		78			(69	)		(1,389	)
Gains on derivative financial instruments – net, excluding hedge costs		(860	)		(1,378	)		—			—			(2,238	)
Net tax effect of aforementioned adjustments		681			57			(19	)		17			736
Total adjustments		(2,057	)		(274	)		49			(149	)		(2,431	)
Consolidated core income (loss)		6,261			26,842			(1,050	)		(6,260	)		25,793
Add (deduct) adjustments:
Share in MIH losses		—			—			931			—			931
Gain on deconsolidation of Kayana		—			(146	)		—			—			(146	)
Total adjustments		—			(146	)		931			—			785
Telco core income (loss)		6,261			26,696			(119	)		(6,260	)		26,578

Results of Operations

The following table shows the contribution by each of our business segments to our consolidated revenues, expenses, other income (expense), income (loss) before income tax, provision for (benefit from) income tax, net income (loss)/segment profit (loss), EBITDA, EBITDA margin, core income (loss) and telco core income (loss) for the nine months ended September 30, 2025 and 2024. In each of the nine months ended September 30, 2025 and 2024, majority of our revenues are derived from our operations within the Philippines. Our revenues derived from outside the Philippines consist primarily of revenues from incoming international calls to the Philippines.


	Wireless			Fixed Line			Others			Inter-segment Transactions			Consolidated
	(amounts in million Php, except for EBITDA margin)

For the nine months ended September 30, 2025
Revenues		76,468			100,248			—			(13,433	)		163,283
Expenses		65,309			71,967			6			(13,897	)		123,385
Other income (expenses) – net		(4,397	)		2,045			406			(5,234	)		(7,180	)
Income before income tax		6,762			30,326			400			(4,770	)		32,718
Provision for (benefit from) income tax		1,474			6,163			(13	)		(41	)		7,583
Net income/Segment profit		5,288			24,163			413			(4,729	)		25,135
EBITDA		40,084			49,331			(6	)		(6,564	)		82,845
EBITDA margin(1)		55	%		49	%		—			—			52	%
Core income		5,811			24,328			469			(4,785	)		25,823
Telco core income (loss)		5,811			24,328			(90	)		(4,785	)		25,264

For the nine months ended September 30, 2024
Revenues		78,535			95,435			—			(13,028	)		160,942
Expenses		65,271			68,486			103			(14,773	)		119,087
Other income (expenses) – net		(2,419	)		6,165			(1,008	)		(7,530	)		(4,792	)
Income (loss) before income tax		10,845			33,114			(1,111	)		(5,785	)		37,063
Provision for (benefit from) income tax		2,527			5,998			(12	)		326			8,839
Net income (loss)/Segment profit (loss)		8,318			27,116			(1,099	)		(6,111	)		28,224
EBITDA		38,285			47,819			(102	)		(5,284	)		80,718
EBITDA margin(1)		53	%		50	%		—			—			52	%
Core income (loss)		6,261			26,842			(1,050	)		(6,260	)		25,793
Telco core income (loss)		6,261			26,696			(119	)		(6,260	)		26,578

Increase (Decrease)
Revenues		(2,067	)		4,813			—			(405	)		2,341
Expenses		38			3,481			(97	)		876			4,298
Other income (expenses) – net		(1,978	)		(4,120	)		1,414			2,296			(2,388	)
Income (loss) before income tax		(4,083	)		(2,788	)		1,511			1,015			(4,345	)
Provision for (benefit from) income tax		(1,053	)		165			(1	)		(367	)		(1,256	)
Net income (loss)/Segment profit (loss)		(3,030	)		(2,953	)		1,512			1,382			(3,089	)
EBITDA		1,799			1,512			96			(1,280	)		2,127
Core income (loss)		(450	)		(2,514	)		1,519			1,475			30
Telco core income (loss)		(450	)		(2,368	)		29			1,475			(1,314	)

(1)

EBITDA margin for the period is measured as EBITDA divided by service revenues.

On a Consolidated Basis

Consolidated

Revenues

We reported consolidated revenues of Php163,283 million for the nine months ended September 30, 2025, an increase of Php2,341 million, or 1%, as compared with Php160,942 million in the same period in 2024, primarily due to higher consolidated revenues from data and voice services, partially offset by lower consolidated non-service revenues.

Our consolidated service revenues of Php158,903 million for the nine months ended September 30, 2025, increased by Php3,908 million, or 3%, from Php154,995 million in the same period in 2024. Our consolidated non-service revenues of Php4,380 million for the nine months ended September 30, 2025, decreased by Php1,567 million, or 26%, from Php5,947 million in the same period in 2024.

Consolidated service revenues, net of interconnection costs of Php13,003 million, amounted to Php145,900 million for the nine months ended September 30, 2025, an increase of Php1,007 million, or 1%, from Php144,893 million in the same period in 2024.

The following table shows the breakdown of our consolidated revenues by service for the nine months ended September 30, 2025 and 2024:


	Wireless		Fixed Line		Inter- segment Transactions			Consolidated
			(amounts in million Php)
For the nine months ended September 30, 2025
Service Revenues
Wireless		72,441				(525	)		71,916
Mobile		71,007				(487	)		70,520
Fixed Wireless broadband		1,396				—			1,396
Other services		38				(38	)		—
Fixed Line				99,894		(12,907	)		86,987
Voice(1)				24,489		(952	)		23,537
Data				75,360		(11,955	)		63,405
Home broadband				39,927		(13	)		39,914
Corporate data and ICT				35,433		(11,942	)		23,491
Miscellaneous				45		—			45
Total Service Revenues		72,441		99,894		(13,432	)		158,903
Non-Service Revenues
Sale of devices and accessories		4,027		354		(1	)		4,380
Total Non-Service Revenues		4,027		354		(1	)		4,380
Total Revenues		76,468		100,248		(13,433	)		163,283
For the nine months ended September 30, 2024(2)
Service Revenues
Wireless		72,905				(611	)		72,294
Mobile		71,754				(573	)		71,181
Fixed Wireless broadband		1,113				—			1,113
Other services		38				(38	)		—
Fixed Line				95,118		(12,417	)		82,701
Voice(1)				21,955		(1,194	)		20,761
Data				73,115		(11,223	)		61,892
Home broadband				38,466		(14	)		38,452
Corporate data and ICT				34,649		(11,209	)		23,440
Miscellaneous				48		—			48
Total Service Revenues		72,905		95,118		(13,028	)		154,995
Non-Service Revenues
Sale of devices and accessories		5,630		317		—			5,947
Total Non-Service Revenues		5,630		317		—			5,947
Total Revenues		78,535		95,435		(13,028	)		160,942

(1) Consolidated voice service revenues include wholesale international voice of Php12,411 million and Php9,312 million, with corresponding costs of Php12,242 million and Php9,126 million, for the nine months ended September 30, 2025 and 2024, respectively.

(2) Certain amounts for the nine months ended September 30, 2024 were reclassified to conform with the current year presentation.

The following table shows the breakdown of our consolidated revenues by business segment for the nine months ended September 30, 2025 and 2024:


													Change
	2025			%			2024			%			Amount			%
	(amounts in million Php)
Wireless		76,468			47			78,535			49			(2,067	)		(3	)
Fixed Line		100,248			61			95,435			59			4,813			5
Inter-segment transactions		(13,433	)		(8	)		(13,028	)		(8	)		(405	)		(3	)
Consolidated		163,283			100			160,942			100			2,341			1

Expenses

Consolidated expenses increased by Php4,298 million, or 4%, to Php123,385 million for the nine months ended September 30, 2025 from Php119,087 million in the same period in 2024, primarily due to higher depreciation and amortization, and interconnection costs, partially offset by lower general operating costs and cost of devices, accessories and contract-specific services.

The following table shows the breakdown of our consolidated expenses by business segment for the nine months ended September 30, 2025 and 2024:


													Change
	2025			%			2024			%			Amount			%
	(amounts in million Php)
Wireless		65,309			53			65,271			55			38			—
Fixed Line		71,967			58			68,486			57			3,481			5
Others		6			—			103			—			(97	)		(94	)
Inter-segment transactions		(13,897	)		(11	)		(14,773	)		(12	)		876			6
Consolidated		123,385			100			119,087			100			4,298			4

Other Income (Expenses) – Net

Consolidated other expenses – net amounted to Php7,180 million for the nine months ended September 30, 2025, an increase of Php2,388 million, or 50%, from Php4,792 million in the same period in 2024, primarily due to the combined effects of the following: (i) higher net financing costs by Php2,489 million; (ii) net foreign exchange losses of Php105 million in 2025 as against net foreign exchange gains of Php1,389 million in the same period in 2024; (iii) lower net gains on derivative financial instruments by Php655 million; (iv) equity share in net earnings of Php313 million in 2025 as against equity share in net losses of Php1,119 million in the same period in 2024; and (v) higher other miscellaneous income – net by Php985 million.

Net Income

Consolidated net income decreased by Php3,089 million, or 11%, to Php25,135 million for the nine months ended September 30, 2025 from Php28,224 million in the same period in 2024. The decrease was mainly due to the combined effects of the following:
(i) higher consolidated expenses by Php4,298 million; (ii) higher consolidated other expenses – net by Php2,388 million; (iii) higher consolidated revenues by Php2,341 million; and (iv) lower provision for income tax by Php1,256 million. Our consolidated basic and diluted EPS decreased to Php115.83 for the nine months ended September 30, 2025 from Php129.71 in the same period in 2024. Our weighted average number of outstanding common shares was approximately 216.06 million for each of the nine months ended September 30, 2025 and 2024.

EBITDA

Our consolidated EBITDA amounted to Php82,845 million for the nine months ended September 30, 2025, an increase of Php2,127 million, or 3%, as compared with Php80,718 million in the same period in 2024.

The following table shows the breakdown of our consolidated EBITDA by business segment for the nine months ended September 30, 2025 and 2024:


													Change
	2025			%			2024			%			Amount			%
	(amounts in million Php)
Wireless		40,084			48			38,285			47			1,799			5
Fixed Line		49,331			60			47,819			59			1,512			3
Others		(6	)		—			(102	)		—			96			94
Inter-segment transactions		(6,564	)		(8	)		(5,284	)		(6	)		(1,280	)		(24	)
Consolidated		82,845			100			80,718			100			2,127			3

Core Income (Loss)

Our consolidated core income amounted to Php25,823 million for the nine months ended September 30, 2025, an increase of Php30 million as compared with Php25,793 million in the same period in 2024, mainly on account of higher EBITDA, equity share in net earnings of associates and joint ventures in 2025 as against equity share in net losses in 2024, higher other miscellaneous income and lower provision for income tax, partially offset by higher financing costs, and depreciation and amortization. Our consolidated basic and diluted core EPS increased to Php119.31 for the nine months ended September 30, 2025 from Php119.18 in the same period in 2024.

The following table shows the breakdown of our consolidated core income by business segment for the nine months ended September 30, 2025 and 2024:


													Change
	2025			%			2024			%			Amount			%
	(amounts in million Php)
Wireless		5,811			23			6,261			24			(450	)		(7	)
Fixed Line		24,328			94			26,842			104			(2,514	)		(9	)
Others		469			2			(1,050	)		(4	)		1,519			145
Inter-segment transactions		(4,785	)		(19	)		(6,260	)		(24	)		1,475			24
Consolidated		25,823			100			25,793			100			30			—

Telco Core Income

Our consolidated telco core income amounted to Php25,264 million for the nine months ended September 30, 2025, a decrease of Php1,314 million, or 5%, as compared with Php26,578 million in the same period in 2024, mainly due to higher financing costs, and depreciation and amortization, partially offset by higher EBITDA and other miscellaneous income, and lower provision for income tax.

The following table shows the breakdown of our consolidated telco core income by business segment for the nine months ended September 30, 2025 and 2024:


													Change
	2025			%			2024			%			Amount			%
	(amounts in million Php)
Wireless		5,811			23			6,261			24			(450	)		(7	)
Fixed Line		24,328			96			26,696			100			(2,368	)		(9	)
Others		(90	)		—			(119	)		—			29			24
Inter-segment transactions		(4,785	)		(19	)		(6,260	)		(24	)		1,475			24
Consolidated		25,264			100			26,578			100			(1,314	)		(5	)

On a Business Segment Basis

Wireless

Revenues

We generated revenues of Php76,468 million from our Wireless business segment for the nine months ended September 30, 2025, a decrease of Php2,067 million, or 3%, from Php78,535 million in the same period in 2024.

The following table summarizes our total revenues by service from our Wireless business segment for the nine months ended September 30, 2025 and 2024:


									Increase (Decrease)
	2025		%		2024		%		Amount			%
	(amounts in million Php)
Service Revenues:
Mobile		71,007		93		71,754		91		(747	)		(1	)
Fixed Wireless broadband		1,396		2		1,113		2		283			25
Other services(1)		38		—		38		—		—			—
Total Wireless Service Revenues		72,441		95		72,905		93		(464	)		(1	)
Non-Service Revenues:
Sale of devices and accessories		4,027		5		5,630		7		(1,603	)		(28	)
Total Wireless Revenues		76,468		100		78,535		100		(2,067	)		(3	)

(1) Includes facility service fees.

Service Revenues

Our wireless service revenues decreased by Php464 million, or 1%, to Php72,441 million for the nine months ended September 30, 2025 as compared with Php72,905 million in the same period in 2024, primarily due to lower revenues from our legacy mobile services (voice and SMS), partially offset by higher revenues from mobile data and fixed wireless broadband services. As a percentage of our total wireless revenues, service revenues accounted for 95% and 93% for the nine months ended September 30, 2025 and 2024, respectively.

Wireless service revenues, net of interconnection costs of Php724 million, amounted to Php71,717 million for the nine months ended September 30, 2025, a decrease of Php474 million, or 1%, from Php72,191 million in the same period in 2024.

Mobile Services

Our mobile service revenues amounted to Php71,007 million for the nine months ended September 30, 2025, a decrease of Php747 million, or 1%, from Php71,754 million in the same period in 2024. Mobile service revenues accounted for 98% of our wireless service revenues in each of the nine months ended September 30, 2025 and 2024.

The following table shows the breakdown of our mobile service revenues for the nine months ended September 30, 2025 and 2024:


									Increase (Decrease)
	2025		%		2024(1)		%		Amount			%
	(amounts in million Php)
Mobile Services:
Data		59,038		83		58,678		82		360			1
Voice		6,388		9		7,124		10		(736	)		(10	)
SMS		4,721		7		5,101		7		(380	)		(7	)
Others(2)		860		1		851		1		9			1
Total		71,007		100		71,754		100		(747	)		(1	)

(1) Certain amounts for the nine months ended September 30, 2024 were reclassified to conform with the current year presentation.

(2) Refers to other non-subscriber-related revenues.

Data Services

Mobile revenues from our data services, which include mobile internet, mobile broadband, and other data services, increased by Php360 million, or 1%, to Php59,038 million for the nine months ended September 30, 2025 from Php58,678 million in the same period in 2024 mainly due to higher mobile internet revenues, partially offset by lower mobile broadband revenues.

Data services accounted for 83% and 82% of our mobile service revenues for the nine months ended September 30, 2025 and 2024, respectively.

The following table shows the breakdown of our mobile data service revenues for the nine months ended September 30, 2025 and 2024:


									Increase (Decrease)
	2025		%		2024		%		Amount			%
	(amounts in million Php)
Data Services:
Mobile internet(1)		56,561		96		55,561		95		1,000			2
Mobile broadband		1,266		2		1,843		3		(577	)		(31	)
Other data		1,211		2		1,274		2		(63	)		(5	)
Total		59,038		100		58,678		100		360			1

(1) Includes revenues from web-based services, net of discounts and content provider costs.

Mobile internet

Mobile internet service revenues increased by Php1,000 million, or 2%, to Php56,561 million for the nine months ended September 30, 2025 from Php55,561 million in the same period in 2024, primarily due to our mobile data offerings, such as Power All, Magic Data and Unli 5G offers. Smart continues to drive usage and top-ups via Smart App, the Smart Online Store, digital touchpoints and its retailer network. The increase in data traffic was driven by the 5G network expansion, growth of 5G devices, leading to higher 5G data usage.

Smart has also rolled out 5G offers and device financing through partnerships with credit card companies to drive more users on 5G. Smart also launched iPhones on prepaid to drive 5G adoption in the prepaid category.

Mobile internet services accounted for 80% and 77% of our mobile service revenues for the nine months ended September 30, 2025 and 2024, respectively.

Mobile broadband

Mobile broadband revenues generated from the use of pocket WiFi, amounted to Php1,266 million for the nine months ended September 30, 2025, a decrease of Php577 million, or 31%, from Php1,843 million in the same period in 2024, primarily due to lower demand for pocket WiFi devices.

Mobile broadband services accounted for 2% and 3% of our mobile service revenues for the nine months ended September 30, 2025 and 2024, respectively.

Other data

Revenues from our other data services, which include value-added services (VAS) and domestic leased lines, decreased by Php63 million, or 5%, to Php1,211 million for the nine months ended September 30, 2025 from Php1,274 million in the same period in 2024.

Voice Services

Mobile revenues from our voice services, which include all voice traffic, decreased by Php736 million, or 10%, to Php6,388 million for the nine months ended September 30, 2025 from Php7,124 million in the same period in 2024, due to subscribers’ shift to alternative calling options, digital teleconferencing solutions, and other OTT services. Mobile voice services accounted for 9% and 10% of our mobile service revenues for the nine months ended September 30, 2025 and 2024, respectively.

SMS Services

Mobile revenues from our SMS services, which include all SMS-related services, decreased by Php380 million, or 7%, to Php4,721 million for the nine months ended September 30, 2025 from Php5,101 million in the same period in 2024, mainly on account of the decline in SMS volumes resulting from the increased adoption of alternative messaging solutions such as OTT messaging, social media and chat applications. Mobile SMS services accounted for 7% of our mobile service revenues in each of the nine months ended September 30, 2025 and 2024.

Other Mobile Services

Mobile revenues from other services increased by Php9 million, or 1%, to Php860 million for the nine months ended September 30, 2025 from Php851 million in the same period in 2024.

Subscriber Base, ARPU and Churn Rates

The following table shows our mobile subscriber base as at September 30, 2025 and 2024:


					Increase (Decrease)
	2025		2024		Amount			%
Mobile subscriber base(1)
Prepaid		56,937,086		58,061,522		(1,124,436	)		(2	)
Smart(2)		21,420,767		22,416,116		(995,349	)		(4	)
TNT		35,516,319		35,645,406		(129,087	)		—
Postpaid		2,345,551		2,209,487		136,064			6
Total		59,282,637		60,271,009		(988,372	)		(2	)

(1)

Includes mobile broadband subscribers.

(2)

Includes KiQ subscribers.

In view of R.A. No. 11934, or the SIM Registration Act, we recognize a prepaid mobile subscriber as active upon registration of the SIM card. We consider a prepaid mobile subscriber as churned if the subscriber does not reload within 180 days after the full usage or expiry of the last reload.

The average monthly churn rates for Smart Prepaid subscribers were 2.5% and 1.8% for the nine months ended September 30, 2025 and 2024, respectively, while the average monthly churn rates for TNT subscribers were 2.2% and 1.8% for the nine months ended September 30, 2025 and 2024, respectively.

The average monthly churn rate for Postpaid subscribers was 1.2% and 1.1% for the nine months ended September 30, 2025 and 2024, respectively.

The following table summarizes our average monthly ARPUs for the nine months ended September 30, 2025 and 2024:


	Gross(1)				Increase (Decrease)						Net(2)				Increase (Decrease)
	2025		2024		Amount			%			2025		2024		Amount			%
	(amounts in Php)

Prepaid
Smart		132		134		(2	)		(1	)		119		121		(2	)		(2	)
TNT		112		113		(1	)		(1	)		102		102		—			—
Postpaid		711		734		(23	)		(3	)		663		693		(30	)		(4	)

(1)

Gross monthly ARPU is calculated by dividing gross mobile service revenues for the period, including interconnection income, but excluding inbound roaming revenues, gross of discounts, and content provider costs, by the average number of subscribers in the period.

(2)

Net monthly ARPU is calculated by dividing gross mobile service revenues for the period, including interconnection income, but excluding inbound roaming revenues, net of discounts, and content provider costs, by the average number of subscribers in the period.

Fixed Wireless Broadband

Revenues from our Fixed Wireless broadband services amounted to Php1,396 million for the nine months ended September 30, 2025, an increase of Php283 million, or 25%, from Php1,113 million in the same period in 2024.

Other Services

Revenues from our other services amounted to Php38 million in each of the nine months ended September 30, 2025 and 2024.

Non-Service Revenues

Our wireless non-service revenues consist of sale of mobile handsets, broadband data modems, devices and accessories. Our wireless non-service revenues decreased by Php1,603 million, or 28%, to Php4,027 million for the nine months ended September 30, 2025 from Php5,630 million in the same period in 2024, primarily due to tighter credit parameters resulting in lower number of mobile handsets issued.

Expenses

Expenses associated with our Wireless business segment amounted to Php65,309 million for the nine months ended September 30, 2025, an increase of Php38 million from Php65,271 million in the same period in 2024. The increase was mainly attributable to higher depreciation and amortization, partially offset by lower cost of devices, accessories and contract-specific services, and general operating costs. As a percentage of our total wireless revenues, expenses associated with our Wireless business segment accounted for 85% and 83% for the nine months ended September 30, 2025 and 2024, respectively.

The following table summarizes the breakdown of our total wireless-related expenses for the nine months ended September 30, 2025 and 2024 and the percentage of each expense item in relation to the total:


									Increase (Decrease)
	2025		%		2024		%		Amount			%
	(amounts in million Php)
General operating costs		29,754		46		31,354		48		(1,600	)		(5	)
Depreciation and amortization		28,829		44		24,992		38		3,837			15
Cost of devices, accessories and contract-specific services		5,509		8		7,563		12		(2,054	)		(27	)
Interconnection costs		724		1		714		1		10			1
Asset impairment		493		1		648		1		(155	)		(24	)
Total		65,309		100		65,271		100		38			—

General operating costs decreased by Php1,600 million, or 5%, to Php29,754 million for the nine months ended September 30, 2025 from Php31,354 million in the same period in 2024, primarily due to lower expenses related to selling and promotions, rent, compensation and employee benefits, and professional and other contracted services, partially offset by higher expenses related to repairs and maintenance expense, and taxes and licenses.

Depreciation and amortization charges increased by Php3,837 million, or 15%, to Php28,829 million for the nine months ended September 30, 2025 from Php24,992 million in the same period in 2024, mainly on account of accelerated depreciation recognized for the modernization of certain technology equipment, combined with the depreciation of newly capitalized property and equipment, and higher amortization of capitalized leases arising from the sale and leaseback of telecom towers.

Cost of devices, accessories and contract-specific services decreased by Php2,054 million, or 27%, to Php5,509 million for the nine months ended September 30, 2025 from Php7,563 million in the same period in 2024, primarily due to lower number of units issued for mobile handsets and lower SIM printing costs.

Interconnection costs increased by Php10 million, or 1%, to Php724 million for the nine months ended September 30, 2025 from Php714 million in the same period in 2024.

Asset impairment decreased by Php155 million, or 24%, to Php493 million for the nine months ended September 30, 2025 from Php648 million in the same period in 2024, primarily due to lower provision for inventory obsolescence.

Other Income (Expenses) – Net

The following table summarizes the breakdown of our total wireless-related other income (expenses) – net for the nine months ended September 30, 2025 and 2024:


							Change
	2025			2024			Amount			%
	(amounts in million Php)
Other Income (Expenses) – Net:
Interest income		431			545			(114	)		(21	)
Gains on derivative financial instruments – net		234			816			(582	)		(71	)
Foreign exchange gains – net		49			1,075			(1,026	)		(95	)
Financing costs – net		(7,455	)		(7,112	)		(343	)		(5	)
Other income – net		2,344			2,257			87			4
Total		(4,397	)		(2,419	)		(1,978	)		(82	)

Our Wireless business segment’s other expenses – net amounted to Php4,397 million for the nine months ended September 30, 2025, an increase of Php1,978 million, or 82%, from Php2,419 million in the same period in 2024, primarily due to the combined effects of the following: (i) lower net foreign exchange gains by Php1,026 million mainly on account of revaluation of net foreign currency-denominated liabilities; (ii) lower gains on derivative financial instruments by Php582 million on account of lower depreciation of the Philippine peso relative to the U.S. dollar in 2025 as compared with the same period in 2024; (iii) higher net financing costs by Php343 million mainly due to higher interest rates and higher weighted average outstanding principal amounts; (iv) lower interest income by Php114 million; and (v) higher other income – net by Php87 million.

Provision for Income Tax

Provision for income tax amounted to Php1,474 million for the nine months ended September 30, 2025, a decrease of Php1,053 million, or 42%, from Php2,527 million in the same period in 2024, mainly due to lower net income before tax.

Net Income

As a result of the foregoing, our Wireless business segment’s net income decreased by Php3,030 million, or 36%, to Php5,288 million for the nine months ended September 30, 2025 from Php8,318 million in the same period in 2024.

EBITDA

Our Wireless business segment’s EBITDA increased by Php1,799 million, or 5%, to Php40,084 million for the nine months ended September 30, 2025 from Php38,285 million in the same period in 2024. EBITDA margin increased to 55% for the nine months ended September 30, 2025 from 53% in the same period in 2024.

Core Income

Our Wireless business segment’s core income decreased by Php450 million, or 7%, to Php5,811 million for the nine months ended September 30, 2025 from Php6,261 million in the same period in 2024, mainly on account of higher depreciation and amortization, and financing costs, partially offset by higher EBITDA and lower provision for income tax.

Fixed Line

Revenues

Revenues generated from our Fixed Line business segment amounted to Php100,248 million for the nine months ended September 30, 2025, an increase of Php4,813 million, or 5%, from Php95,435 million in the same period in 2024.

The following table summarizes our total revenues by service from our Fixed Line business segment for the nine months ended September 30, 2025 and 2024:


									Increase (Decrease)
	2025		%		2024(1)		%		Amount			%
	(amounts in million Php)
Service Revenues:
Data		75,360		75		73,115		77		2,245			3
Voice		24,489		25		21,955		23		2,534			12
Miscellaneous		45		—		48		—		(3	)		(6	)
Total Fixed Line Service Revenues		99,894		100		95,118		100		4,776			5
Non-Service Revenues:
Sale of devices and accessories		354		—		317		—		37			12
Total Fixed Line Revenues		100,248		100		95,435		100		4,813			5

(1)

Certain amounts for the nine months ended September 30, 2024 were reclassified to conform with the current year presentation.

Service Revenues

Our fixed line service revenues increased by Php4,776 million, or 5%, to Php99,894 million for the nine months ended September 30, 2025 from Php95,118 million in the same period in 2024, primarily due to higher revenues from our voice and data services.

Fixed Line service revenues, net of interconnection costs of Php13,238 million, amounted to Php86,656 million for the nine months ended September 30, 2025, an increase of Php2,130 million, or 3%, from Php84,526 million in the same period in 2024.

Data Services

Our data services, which include Home broadband, corporate data, and ICT, posted revenues of Php75,360 million for the nine months ended September 30, 2025, an increase of Php2,245 million, or 3%, from Php73,115 million in the same period in 2024, primarily due to higher revenues from Home broadband and ICT services, partially offset by lower revenues from corporate data services. The percentage contribution of this service segment to our fixed line service revenues accounted for 75% and 77% for the nine months ended September 30, 2025 and 2024, respectively.

The following table shows information of our data service revenues for the nine months ended September 30, 2025 and 2024:


									Increase (Decrease)
	2025		%		2024		%		Amount		%
	(amounts in million Php)
Data Services:
Home broadband		39,927		53		38,466		53		1,461		4
Corporate data and ICT		35,433		47		34,649		47		784		2
Total		75,360		100		73,115		100		2,245		3

Home Broadband

Home broadband data revenues amounted to Php39,927 million for the nine months ended September 30, 2025, an increase of Php1,461 million, or 4%, from Php38,466 million in the same period in 2024, mainly driven by the increasing demand for broadband services. Home broadband revenues accounted for 53% of fixed line data service revenues in each of the nine months ended September 30, 2025 and 2024.

Corporate Data and ICT

Corporate data services amounted to Php28,849 million for the nine months ended September 30, 2025, a decrease of Php348 million, or 1%, as compared with Php29,197 million in the same period in 2024, mainly due to lower revenues from legacy data

networking services. Corporate data revenues accounted for 38% and 40% of our total data service revenues for the nine months ended September 30, 2025 and 2024, respectively.

ICT revenues increased by Php1,132 million, or 21%, to Php6,584 million for the nine months ended September 30, 2025 from Php5,452 million in the same period in 2024, mainly due to higher revenues from data center, managed IT services, and data and AI solutions. The percentage contribution of this service segment to our total data service revenues accounted for 9% and 7% for the nine months ended September 30, 2025 and 2024, respectively.

Voice Services

Revenues from our voice services increased by Php2,534 million, or 12%, to Php24,489 million for the nine months ended September 30, 2025 from Php21,955 million in the same period in 2024, primarily due to higher revenues from wholesale international voice of PLDT Global driven by higher traffic volume. Excluding wholesale international voice revenues of Php12,664 million and Php9,664 million for the nine months ended September 30, 2025 and 2024, respectively, our voice services decreased by Php466 million, or 4%, to Php11,825 million for the nine months ended September 30, 2025 from Php12,291 million in the same period in 2024.

The percentage contribution of total voice service revenues to our fixed line service revenues accounted for 25% and 23% for the nine months ended September 30, 2025 and 2024, respectively.

Miscellaneous Services

Miscellaneous service revenues decreased by Php3 million, or 6%, to Php45 million for the nine months ended September 30, 2025 from Php48 million in the same period in 2024.

Non-service Revenues

Non-service revenues amounted to Php354 million for the nine months ended September 30, 2025, an increase of Php37 million, or 12%, from Php317 million in the same period in 2024.

Expenses

Expenses related to our Fixed Line business segment totaled Php71,967 million for the nine months ended September 30, 2025, an increase of Php3,481 million, or 5%, as compared with Php68,486 million in the same period in 2024. The increase was primarily due to higher interconnection costs, cost of devices, accessories and contract-specific services, and depreciation and amortization, partly offset by lower general operating costs. As a percentage of our total fixed line revenues, expenses associated with our Fixed Line business segment accounted for 72% for each of the nine months ended September 30, 2025 and 2024.

The following table shows the breakdown of our total fixed line-related expenses for the nine months ended September 30, 2025 and 2024 and the percentage of each expense item in relation to the total:


									Increase (Decrease)
	2025		%		2024		%		Amount			%
	(amounts in million Php)

General operating costs		32,798		46		33,585		49		(787	)		(2	)
Depreciation and amortization		20,019		28		19,369		28		650			3
Interconnection costs		13,238		18		10,592		16		2,646			25
Cost of devices, accessories and contract-specific services		3,553		5		2,519		4		1,034			41
Asset impairment		2,359		3		2,421		3		(62	)		(3	)
Total		71,967		100		68,486		100		3,481			5

General operating costs decreased by Php787 million, or 2%, to Php32,798 million for the nine months ended September 30, 2025 from Php33,585 million in the same period in 2024, primarily due to lower expenses related to compensation and employee

benefits, communication, training and travel, professional and other contracted services, and taxes and licenses, partially offset by higher expenses related to rent, selling and promotions, and repairs and maintenance.

Depreciation and amortization charges increased by Php650 million, or 3%, to Php20,019 million for the nine months ended September 30, 2025 from Php19,369 million in the same period in 2024, mainly due to higher amortization of subscriber contract cost to fulfill and capitalized leases, partially offset by lower depreciation of property and equipment.

Interconnection costs increased by Php2,646 million, or 25%, to Php13,238 million for the nine months ended September 30, 2025 from Php10,592 million in the same period in 2024, primarily due to higher cost of wholesale international voice of PLDT Global driven by higher traffic volume. Excluding cost of wholesale international voice of Php12,495 million and Php9,478 million for the nine months ended September 30, 2025 and 2024, respectively, our interconnection costs decreased by Php371 million, or 33%, to Php743 million in 2025 from Php1,114 million in 2024.

Cost of devices, accessories and contract-specific services increased by Php1,034 million, or 41%, to Php3,553 million for the nine months ended September 30, 2025 from Php2,519 million in the same period in 2024, primarily due to higher cost of content and services from third-party vendors.

Asset impairment amounted to Php2,359 million for the nine months ended September 30, 2025, a decrease of Php62 million, or 3%, from Php2,421 million in the same period in 2024.

Other Income (Expenses) – Net

The following table summarizes the breakdown of our total fixed line-related other income (expenses) – net for the nine months ended September 30, 2025 and 2024:


							Change
	2025			2024			Amount			%
	(amounts in million Php)
Other Income (Expenses) – Net:
Gains on derivative financial instruments – net		1,177			1,250			(73	)		(6	)
Interest income		124			182			(58	)		(32	)
Equity share in net losses of associates and joint ventures		(150	)		(145	)		(5	)		(3	)
Foreign exchange gains (losses) – net		(154	)		323			(477	)		(148	)
Financing costs – net		(6,971	)		(5,188	)		(1,783	)		(34	)
Other income – net		8,019			9,743			(1,724	)		(18	)
Total		2,045			6,165			(4,120	)		(67	)

Our Fixed Line business segment’s other income – net amounted to Php2,045 million for the nine months ended September 30, 2025, a decrease of Php4,120 million from Php6,165 million in the same period in 2024, primarily due to the combined effects of the following: (i) higher net financing costs by Php1,783 million mainly due to higher weighted average outstanding principal amounts, higher interest rates, and lower capitalized interest; (ii) lower other income – net by Php1,724 million mainly due to lower dividend income recognized from the subsidiaries of our Wireless business segment; (iii) net foreign exchange losses of Php154 million in 2025 as against net foreign exchange gains of Php323 million in the same period in 2024 mainly on account of revaluation of net foreign currency-denominated liabilities; (iv) lower gains on derivative financial instruments by Php73 million; (v) and lower interest income by Php58 million.

Provision for Income Tax

Provision for income tax amounted to Php6,163 million for the nine months ended September 30, 2025, an increase of Php165 million, or 3%, from Php5,998 million in the same period in 2024 mainly due to higher taxable income.

Net Income

As a result of the foregoing, our Fixed Line business segment registered a net income of Php24,163 million for the nine months ended September 30, 2025, a decrease of Php2,953 million, or 11%, as compared with Php27,116 million in the same period in 2024.

EBITDA

Our Fixed Line business segment’s EBITDA increased by Php1,512 million, or 3%, to Php49,331 million for the nine months ended September 30, 2025 from Php47,819 million in the same period in 2024. EBITDA margin decreased to 49% for the nine months ended September 30, 2025 from 50% in the same period in 2024.

Core Income

Our Fixed Line business segment’s core income decreased by Php2,514 million, or 9%, to Php24,328 million for the nine months ended September 30, 2025 from Php26,842 million in the same period in 2024, primarily due to higher financing costs and lower other income, partially offset by higher EBITDA.

Others

Revenues

Revenues generated from our Other business segment amounted to nil for each of the nine months ended September 30, 2025 and 2024.

Expenses

Expenses related to our Other business segment decreased by Php97 million, or 94%, to Php6 million for the nine months ended September 30, 2025 from Php103 million in the same period in 2024.

Other Income (Expenses) – Net

The following table summarizes the breakdown of other income (expenses) – net for Other business segment for the nine months ended September 30, 2025 and 2024:


							Change
	2025			2024			Amount			%
	(amounts in million Php)
Other Income (Expenses) – Net:
Equity share in net income (losses) of associates and joint ventures		463			(974	)		1,437			148
Interest income		9			12			(3	)		(25	)
Financing costs		(14	)		—			(14	)		(100	)
Foreign exchange losses – net		(48	)		(78	)		30			38
Other income (expenses) – net		(4	)		32			(36	)		(113	)
Total		406			(1,008	)		1,414			140

Our Other business segment’s other income – net amounted to Php406 million for the nine months ended September 30, 2025, a change of Php1,414 million as against other expenses – net of Php1,008 million in the same period in 2024, primarily due to equity share in net income of MIH for the nine months ended September 30,2025 as against equity share in net losses in the same period in 2024.

Net Income (Loss)

As a result of the foregoing, our Other business segment registered a net income of Php413 million for the nine months ended September 30, 2025, a change of Php1,512 million as against net loss of Php1,099 million in the same period in 2024.

Core Income (Loss)

Our Other business segment’s core income amounted to Php469 million for the nine months ended September 30, 2025, a change of Php1,519 million as against core loss of Php1,050 million in the same period in 2024.

Liquidity and Capital Resources

The following table shows our consolidated cash flows for the nine months ended September 30, 2025 and 2024, as well as our consolidated capitalization and other consolidated selected financial data as at September 30, 2025 and December 31, 2024:


	Nine Months Ended September 30,
	2025			2024
	(amounts in million Php)
Cash Flows
Net cash flows from operating activities		75,765			68,118
Net cash flows used in investing activities		(49,584	)		(47,207	)
Payment for purchase of property and equipment, including capitalized interest		(52,093	)		(48,676	)
Net cash flows used in financing activities		(26,164	)		(26,132	)
Net increase (decrease) in cash and cash equivalents		81			(3,871	)


	September 30,		December 31,
	2025		2024
	(amounts in million Php)
Capitalization
Long-term portion of interest-bearing financial liabilities – net of current portion:
Long-term debt		280,130		258,246

Current portion of interest-bearing financial liabilities:
Long-term debt maturing within one year		17,406		23,340
Total interest-bearing financial liabilities		297,536		281,586
Total equity attributable to equity holders of PLDT		120,326		115,419
		417,862		397,005

Other Selected Financial Data
Total assets		629,556		623,275
Property and equipment		325,310		318,069
Cash and cash equivalents		10,092		10,011
Short-term investments		10		136

Our consolidated cash and cash equivalents and short-term investments totaled Php10,102 million as at September 30, 2025. Principal sources of consolidated cash and cash equivalents in 2025 were: (1) cash flows from operating activities amounting to Php75,765 million; (2) proceeds from availment of long-term and short-term debt of Php33,150 million and Php1,122 million, respectively; (3) proceeds from disposal of property and equipment of Php1,083 million, mainly from the sale and leaseback of telecom towers; (4) return of capital from investment in joint venture of Php600 million, mainly from Vega Telecom, Inc. (“VTI”); (5) interest received of Php534 million; and (6) proceeds from maturity of short-term investments of Php126 million. These funds were used principally for: (1) purchase of property and equipment, including capitalized interest, of Php52,093 million; (2) cash dividends paid of Php20,576 million; (3) long-term debt principal and interest payments of Php17,522 million and Php9,430 million, respectively; (4) settlement of obligations under lease liabilities of Php10,693 million; and (5) payment of short-term debt of Php1,022 million.

Our consolidated cash and cash equivalents and short-term investments totaled Php12,408 million as at September 30, 2024. Principal sources of consolidated cash and cash equivalents in 2024 were: (1) cash flows from operating activities amounting to Php68,118 million; (2) proceeds from availment of long-term debt of Php25,300 million; (3) proceeds from disposal of property and equipment of Php3,480 million, mainly from the sale and leaseback of telecom towers; (4) interest received of Php700 million; and (5) proceeds from redemption of investment in debt securities of Php200 million. These funds were used principally for: (1) purchase of property and equipment, including capitalized interest, of Php48,676 million; (2) cash dividends paid of Php20,744 million; (3) long-term debt principal and interest payments of Php10,084 million and Php7,285 million, respectively; (4) settlement of obligations under lease liabilities of Php8,994 million; (5) payment for redemption of perpetual notes of Php4,200 million; and (6) payments for acquisition of investments in associates and joint ventures of Php3,692 million, mainly PLDT's respective investments in Radius Telecom Inc. (“Radius”) and Kayana, and PCEV's additional investment in MIH.

Operating Activities

Our consolidated net cash flows from operating activities increased by Php7,647 million, or 11%, to Php75,765 million for the nine months ended September 30, 2025 from Php68,118 million in the same period in 2024 primarily due to higher level of collection of accounts receivables, lower level of settlement of accounts payable and higher operating income, partially offset by higher level of settlement of accrued expenses and other current liabilities, and higher pension and other employee benefits.

Cash flows from operating activities of our Wireless business segment decreased by Php755 million, or 2%, to Php37,633 million for the nine months ended September 30, 2025 from Php38,388 million in the same period in 2024, primarily due to higher prepayments and higher level of settlement of accrued expenses and other current liabilities, partially offset by lower level of settlement of accounts payable, higher level of collection of receivables and higher operating income. Cash flows from operating activities of our Fixed Line business segment increased by Php11,969 million, or 33%, to Php48,727 million for the nine months ended September 30, 2025 from Php36,758 million in the same period in 2024, primarily due to higher level of collection of accounts receivables and lower prepayments, partly offset by lower operating income and higher level of settlement of accounts payable. Cash flows used in operating activities of our Other business segment amounted to Php239 million for the nine months ended September 30, 2025, a change of Php2,400 million as against cash flows from operating activities of Php2,161 million in the same period in 2024, primarily due to higher level of settlement of accounts payable.

Investing Activities

Consolidated net cash flows used in investing activities amounted to Php49,584 million for the nine months ended September 30, 2025, an increase of Php2,377 million, or 5%, from Php47,207 million in the same period in 2024, primarily due to the combined effects of the following: (1) higher payment for purchase of property and equipment, including capitalized interest, by Php3,417 million; (2) lower proceeds from disposal of property and equipment by Php2,397 million, mainly due to lower proceeds from the sale and leaseback of telecom towers; (3) lower proceeds from redemption of investment in debt securities by Php175 million; (4) lower interest received by Php166 million; (5) net proceeds from investments in associates and joint ventures of Php416 million in 2025 due to partial redemption of preferred shares and return of deposit for future stock subscription in VTI, net of Smart’s additional investment in Dream Fearlessly Technologies, Inc. (“DFTI”) in 2025, as against payments for investments in associates and joint ventures of Php3,692 million in 2024, mainly PLDT’s respective investments in Radius and Kayana, and PCEV’s additional investment in MIH.

Our consolidated payment for purchase of property and equipment, including capitalized interest, for the nine months ended September 30, 2025 totaled Php52,093 million, an increase of Php3,417 million, or 7%, as compared with Php48,676 million in the same period in 2024. Smart’s payment for purchase of property and equipment, including capitalized interest, decreased by Php279 million, or 1%, to Php23,420 million for the nine months ended September 30, 2025 from Php23,699 million in the same period in 2024. PLDT’s payment for purchase of property and equipment, including capitalized interest, increased by Php2,564 million, or 13%, to Php22,541 million for the nine months ended September 30, 2025 from Php19,977 million in the same period in 2024. The balance represents other subsidiaries’ capital spending.

As part of our growth strategy, we may from time to time, continue to make acquisitions and investments in companies or businesses.

Financing Activities

On a consolidated basis, cash flows used in financing activities amounted to Php26,164 million for the nine months ended September 30, 2025, an increase of Php32 million from Php26,132 million in the same period in 2024, primarily due to the combined effects of the following: (1) higher payment of long-term debt by Php7,438 million; (2) higher interest paid by Php2,145 million; (3) higher settlement of obligations under capital lease by Php1,699 million; (4) settlements of derivative financial instruments of Php944 million in 2025 as against collections from derivative financial instruments of Php84 million in 2024; (5) payment for redemption of perpetual notes of Php4,200 million in 2024; and (6) higher proceeds from availment of long-term debt by Php7,850 million.

Debt Financing

Proceeds from availment of long-term and short-term debts for the nine months ended September 30, 2025 amounted to Php33,150 million and Php1,122 million, respectively, mainly from PLDT, Smart, Vitro and Multisys’ drawings related to refinancing of maturing debt obligations and financing of capital expenditure requirements. Payments of principal on our long-term and short-term debts amounted to Php17,522 million and Php1,022 million, respectively, while payments of interest on our total debt amounted to Php9,422 million for the nine months ended September 30, 2025.

Our consolidated long-term and short-term debts increased by Php15,950 million, or 6%, to Php297,536 million as at September 30, 2025 from Php281,586 million as at December 31, 2024 primarily due to drawings from our long-term facilities, partially offset by debt amortization and the revaluation of foreign currency-denominated debt. As at September 30, 2025, PLDT’s long-term debt level increased by Php4,405 million, or 3%, to Php174,907 million from Php170,502 million as at December 31, 2024, Smart’s long-term debt level increased by Php6,408 million, or 6%, to Php109,901 million as at September 30, 2025 from

Php103,493 million as at December 31, 2024, Vitro's long-term debt level increased by Php5,037 million, or 66%, to Php12,628 million from Php7,591 million as at December 31, 2024, and Multisys' short-term debt of Php100 million.

See Note 20 – Interest-bearing Financial Liabilities – Long-term Debt to the accompanying unaudited consolidated financial statements for a more detailed discussion of our long-term and short-term debts.

Debt Covenants

PLDT’s debt instruments contain restrictive covenants, including covenants that require us to comply with specified financial ratios tests, at relevant measurement dates, principally at the end of each quarterly period. Smart’s debt instruments contain certain restrictive covenants that require Smart to comply with specified financial ratios and other financial tests at semi-annual measurement dates. Vitro’s debt instruments contain certain restrictive covenants that require Vitro to comply with specified financial ratios and other financial tests at quarterly measurement dates.

As at September 30, 2025 and December 31, 2024, we are in compliance with all of our debt covenants.

See Note 20 – Interest-bearing Financial Liabilities – Compliance with Debt Covenants to the accompanying unaudited consolidated financial statements for a more detailed discussion of our debt covenants.

Financing Requirements

We believe that our available cash, including cash flows from operations, will provide sufficient liquidity to fund our projected operating, investment, capital expenditures and debt service requirements for the next 12 months; however, we may finance a portion of these from external sources if we consider it prudent to do so.

As part of our capital allocation strategy, we regularly assess the appropriateness of dividend payments in the context of operating cash flows and broader financial objectives.

The following table shows the dividends declared to shareholders for the nine months ended September 30, 2025 and 2024:

      
     Date

     Amount

     Class

     Approved

     Record

     Payable

     Per Share

     Total

      
     (in million Php, except per share amount)

     For the nine months ended September 30, 2025

     Common

Regular Dividend

February 27, 2025

March 13, 2025

April 3, 2025

47

10,155

August 12, 2025

August 28, 2025

September 10, 2025

48

10,371

     Preferred

Series IV Cumulative Non-convertible
   Redeemable Preferred Stock(1)

January 28, 2025

February 11, 2025

March 15, 2025

—

12

May 15, 2025

May 22, 2025

June 15, 2025

—

12

August 12, 2025

August 26, 2025

September 15, 2025

—

12

Voting Preferred Stock

March 20, 2025

April 3, 2025

April 15, 2025

—

2

June 10, 2025

June 24, 2025

July 15, 2025

—

3

August 12, 2025

September 15, 2025

October 15, 2025

—

3

Charged to Retained Earnings

20,570

     For the nine months ended September 30, 2024

     Common

Regular Dividend

March 7, 2024

March 21, 2024

April 5, 2024

46

9,938

August 13, 2024

August 27, 2024

September 11, 2024

50

10,804

     Special Dividend

     Preferred

Series IV Cumulative Non-convertible
   Redeemable Preferred Stock(1)

January 30, 2024

February 14, 2024

March 15, 2024

—

12

May 9, 2024

May 24, 2024

June 15, 2024

—

13

August 13, 2024

August 28, 2024

September 15, 2024

—

12

           Voting Preferred Stock

March 21, 2024

April 5, 2024

April 15, 2024

—

2

June 11, 2024

June 28, 2024

July 15, 2024

—

3

August 13, 2024

September 16, 2024

October 15, 2024

—

2

Charged to Retained Earnings

20,786

(1)

Dividends were declared based on total amount paid up.

Our dividends declared after September 30, 2025 are as follows:

      
     Date

     Amount

     Class

     Approved

     Record

     Payable

     Per Share

     Total

      
     (in million Php, except per share amount)

     Preferred

Series IV Cumulative Non-convertible
   Redeemable Preferred Stock(1)

November 11, 2025

November 25, 2025

December 15, 2025

—

12

Charged to Retained Earnings

12

(1)

Dividends were declared based on total amount paid up.

See Note 19 – Equity to the accompanying unaudited consolidated financial statements for further details.

Changes in Financial Conditions

Assets

Our total assets amounted to Php629,556 million as at September 30, 2025, an increase of Php6,281 million, or 1%, from Php623,275 million as at December 31, 2024, primarily due to higher noncurrent assets by Php8,164 million, partly offset by lower current assets by Php1,883 million.

Noncurrent Assets

Property and equipment increased by Php7,241 million, or 2%, mainly due to higher capital expenditures, partially offset by depreciation for the period.

Right-of-use assets increased by Php6,556 million, or 17%, mainly due to additional sites leased, partially offset by depreciation for the period.

Investments in associates and joint ventures increased by Php487 million, or 1%, mainly due to equity share in net earnings in MIH, PLDT’s subscription to Kayana’s additional common shares and Smart’s additional investment in DFTI, partially offset by return of capital from investment in VTI.

Deferred income tax assets decreased by Php4,554 million, or 31%, mainly due to lower unearned revenues, unamortized past service pension costs, and pension and other employee benefits.

Other noncurrent assets decreased by Php1,566 million, or 1%, mainly due to lower prepayments – net of current portion and other non-financial assets, partially offset by higher investment properties.

Current Assets

Cash and cash equivalents increased by Php81 million, or 1%, mainly due to the combined effects of cash flows from operating activities of Php75,765 million, cash flows used in investing activities of Php49,584 million, and cash flows used in financing activities of Php26,164 million.

Trade and other receivables decreased by Php1,597 million, or 5%, mainly due to lower receivables from dealers, agents and others, partly offset by higher receivables from retail subscribers.

Inventories and supplies decreased by Php1,134 million, or 34%, mainly due to net issuances of commercial inventories.

Other current assets increased by Php767 million, or 4%, mainly due to higher current portion of prepayments and other non-financial assets, and current portion of derivative financial assets.

Liabilities

Our total liabilities amounted to Php508,064 million as at September 30, 2025, an increase of Php1,524 million from Php506,540 million as at December 31, 2024, primarily due to higher noncurrent liabilities by Php26,604 million, partially offset by lower current liabilities by Php25,080 million.

Noncurrent and current interest-bearing financial liabilities increased by Php15,950 million, or 6%, primarily due to drawings from our long-term facilities and the revaluation of foreign currency-denominated debt, partially offset by debt amortizations.

Other noncurrent liabilities increased by Php4,720 million, or 8%, primarily due to higher lease liabilities – net of current portion.

Accounts payable decreased by Php11,693 million, or 18%, primarily due to lower payables to suppliers and contractors.

Other current liabilities decreased by Php7,453 million, or 8%, primarily due to lower accrued expenses and other current liabilities and income tax payable, partially offset by higher lease liabilities.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely to have any current or future effect on our financial position, results of operations, cash flows, changes in stockholders’ equity, liquidity, capital expenditures or capital resources that are material to investors.

Equity Financing

The PLDT Board of Directors approved the amendment of our dividend policy on August 2, 2016, reducing our dividend payout rate to 60% of our core earnings per share as regular dividends. This was in view of our elevated capital expenditures to build-out a robust, superior network to support the continued growth of data traffic, plans to invest in new adjacent businesses that will complement the current business and provide future sources of profits and dividends, and management of our cash and gearing levels. We began basing our dividend payout on telco core income in 2019. In declaring dividends, we take into consideration the interest of our shareholders, as well as our working capital, capital expenditures and debt servicing requirements. The retention of earnings may be necessary to meet the funding requirements of our business expansion and development programs. Depending on business funding requirements and investment opportunities, we may consider the option of returning additional cash to our shareholders in the form of special dividends of up to the balance of our core earnings or to undertake share buybacks. We were able to pay out approximately 100% of our core earnings for seven consecutive years from 2007 to 2013, approximately 90% of our core earnings for 2014, 75% of our core earnings for 2015, 60% of our core earnings from 2016 to 2018, and 60% of our telco core income from 2019 to 2024. In addition, we paid special dividends of 28% of our telco core earnings in 2022, bringing the total payout ratio to 88% for that year. The accumulated equity in the net earnings of our subsidiaries, which form part of our retained earnings, are not available for distribution unless realized in the form of dividends from such subsidiaries. Dividends are generally paid in Philippine pesos. In the case of shareholders residing outside the Philippines, PLDT’s transfer agent in Manila, Philippines, as the dividend-disbursing agent, converts the Philippine peso dividends into U.S. dollars at the prevailing exchange rate and remits the dollar dividends abroad, net of any applicable withholding tax and fees, in the case of the American Depositary Shares (ADS).

Our subsidiaries pay dividends subject to the requirements of applicable laws and regulations and availability of unrestricted retained earnings, without any restriction imposed by the terms of contractual agreements. Notwithstanding the foregoing, the subsidiaries of PLDT may, at any time, declare and pay such dividends depending upon the results of operations and future projects and plans, the respective subsidiary’s earnings, cash flow, financial condition, capital investment requirements and other factors.

Consolidated cash dividend payments amounted to Php20,576 million for the nine months ended September 30, 2025 as compared with Php20,744 million paid to shareholders in the same period in 2024.

Contractual Obligations and Commercial Commitments

Contractual Obligations

Various Trade and Other Obligations

PLDT Group has various obligations to suppliers for the acquisition of network equipment, contractors for services rendered on various projects, foreign administrations and domestic carriers for the access charges, shareholders for unpaid dividends

distributions, employees for benefits and other related obligations, and various business and operational related agreements. Total obligations under these various agreements amounted to approximately Php116,274 million and Php133,811 million as at September 30, 2025 and December 31, 2024, respectively. See Note 22 – Accounts Payable and Note 23 – Accrued Expenses and Other Current Liabilities to the accompanying unaudited consolidated financial statements.

Commercial Commitments

Major Network Vendors

Since the last quarter of 2022, we have engaged in discussions with the major network vendors regarding the status of the PLDT Group’s capital expenditure commitments and related outstanding balances. These discussions resulted in a number of Settlement and Mutual Release Agreements, or SMRAs, signed between us and the vendors, taking into consideration our program priorities and current business requirements. The significant commitment in respect of major network vendors amounted to about Php33,000 million, net of advances, as a result of the signing of the SMRAs in March 2023. Such commitment, net of advances and deliveries, was reduced to Php3,400 million and Php4,200 million, as at September 30, 2025 and December 31, 2024, respectively.

Moreover, new purchase commitments relating to the major network vendors, net of advances and deliveries, issued starting in 2023 amounted to Php18,800 million and Php11,700 million as at September 30, 2025 and December 31, 2024, respectively.

Other Capital Expenditure Vendors

Commitments related to non-major capital expenditure vendors, net of advances and deliveries, amounted to Php15,300 million and Php11,200 million as of September 30, 2025 and December 31, 2024, respectively.

We have no outstanding commercial commitments, in the form of letters of credit, as at September 30, 2025 and December 31, 2024.

Quantitative and Qualitative Disclosures about Market Risks

The main risks arising from our financial instruments are liquidity risk, foreign currency exchange risk, interest rate risk and credit risk. The importance of managing those risks has significantly increased in light of the considerable change and volatility in both the Philippine and international financial markets. Our Board of Directors reviews and approves policies for managing each of these risks. We also monitor the market price risk arising from all financial instruments.

For further discussions of these risks, see Note 27 – Financial Assets and Liabilities to the accompanying unaudited consolidated financial statements.

The following table sets forth the estimated consolidated fair values of our financial assets and liabilities recognized as at September 30, 2025 and December 31, 2024 other than those whose carrying amounts are reasonable approximations of fair values:


	Fair Values
	September 30,		December 31,
	2025		2024
	(amounts in million Php)
Noncurrent Financial Assets
Debt instruments at amortized cost		348		363
Other financial assets – net of current portion		2,329		2,716
Total noncurrent financial assets		2,677		3,079
Noncurrent Financial Liabilities
Interest-bearing financial liabilities		273,538		246,572
Customers’ deposits		821		1,311
Deferred credits and other noncurrent liabilities		1,554		79
Total noncurrent financial liabilities		275,913		247,962

The following table sets forth the amount of gains (losses) recognized for the financial assets and liabilities for the nine months ended September 30, 2025 and the six months ended June 30, 2025:


	September 30,			June 30,
	2025			2025
	(amounts in million Php)
Profit and Loss
Interest income		551			380
Gains (losses) on derivative financial instruments – net		1,411			(718	)
Accretion on financial liabilities		(278	)		(186	)
Interest on loans and other related items		(11,909	)		(7,820	)
Other Comprehensive Income
Net fair value losses on cash flow hedges – net of tax		(1,051	)		(329	)

PART II – OTHER INFORMATION

Sale of AppCard Inc. (“AppCard”) Shares

On October 13, 2025, PLDT Digital sold all of its AppCard Series B preferred shares for an aggregate amount of
US$3 million, or Php175 million, resulting to the full divestment of the investment in AppCard.

Investment in Kayana Solutions Inc. (“Kayana”) (formerly Limitless Growth Ventures, Inc.)

On September 1, 2025, Kayana entered into another share subscription agreement with its shareholders, wherein PLDT subscribed to additional common shares equivalent to Php594 million. PLDT’s equity ownership in Kayana remained at 45%.

Acquisition of Additional Interest in Multisys

Others

For updates on matters relating to the (1) Sale and Leaseback of Telecom Towers, see Note 9 – Property and Equipment and
Note 10 – Leases; (2) DITO, PCC and NTC Complaints, see Note 26 – Provisions and Contingencies;
(3) Department of Labor and Employment (DOLE) Compliance Order to PLDT, and other pending cases, see Note 26 – Provisions and Contingencies; and (4) Petition against the Philippine Competition Commission, see Note 11 – Investment in Associates and Joint Ventures, to the accompanying unaudited consolidated financial statements.

Related Party Transactions

For a detailed discussion of the related party transactions, see Note 24 – Related Party Transactions to the accompanying unaudited consolidated financial statements.

ANNEX I – AGING OF ACCOUNTS RECEIVABLE

The following table shows the aging of our consolidated receivables as at September 30, 2025:


Type of Accounts Receivable	Total		Current		31-60 Days		61-90 Days		Over 91 Days
	(amounts in million Php)
Corporate subscribers		20,940		6,815		2,107		852		11,166
Retail subscribers		18,451		8,620		1,369		242		8,220
Foreign administrations		1,383		670		218		35		460
Domestic carriers		211		162		41		3		5
Dealers, agents and others		6,886		3,492		59		63		3,272
Total		47,871		19,759		3,794		1,195		23,123
Less: Allowance for expected credit losses		17,856
Total Receivables – net		30,015

A-1

ANNEX II – Financial Soundness Indicators

The following table shows our financial soundness indicators as at September 30, 2025 and December 31, 2024:


	2025			2024
Current Ratio(1)	0.38:1.0			0.34:1.0
Acid Test Ratio(2)	0.25:1.0			0.22:1.0
Solvency Ratio(3)	0.32:1.0			0.33:1.0
Net Debt to Equity Ratio(4)	2.40:1.0			2.37:1.0
Net Debt to EBITDA Ratio(5)	2.61:1.0			2.52:1.0
Total Debt to EBITDA Ratio(6)	2.71:1.0			2.61:1.0
Asset to Equity Ratio(7)	5.23:1.0			5.40:1.0
Total Debt to Equity Ratio(8)	81:19			81:19
Interest Coverage Ratio(9)	3.37:1.0			3.96:1.0
Net Profit Margin(10)		13	%		15	%
Return on Assets(11)		5	%		5	%
Return on Equity(12)		25	%		29	%
EBITDA Margin(13)		52	%		52	%

(1)

Current ratio is measured as current assets divided by current liabilities.

(2)

Acid test ratio is measured as total of cash and cash equivalents, short-term investments and trade and other receivables divided by total current liabilities.

(3)

Solvency ratio is measured by adding back non-cash expenses to the net income after tax divided by total debt (long-term debt, including current portion.)

(4)

Net Debt to equity ratio is measured as total debt (principal amount of long-term debt, including current portion, i.e., excluding debt issuance cost) less cash and cash equivalents, short-term investments and debt instruments at amortized cost divided by total equity attributable to equity holders of PLDT.

(5)

Net Debt to EBITDA ratio is measured as total debt (principal amount of long-term debt, including current portion, i.e., excluding debt issuance cost) less cash and cash equivalents, short-term investments and debt instruments at amortized cost divided by EBITDA for the last 12 months.

(6)

Total Debt to EBITDA ratio is measured as total debt (principal amount of long-term debt, including current portion, i.e., excluding debt issuance cost) divided by EBITDA for the last 12 months.

(7)

Asset to equity ratio is measured as total assets divided by total equity attributable to equity holders of PLDT.

(8)

Total debt to equity ratio is the ratio between total liabilities to total equity, including non-controlling interest.

(9)

Interest coverage ratio is measured by EBIT, or earnings before interest and taxes for the last 12 months, divided by total financing cost less interest income for the last 12 months.

(10)

Net profit margin is derived by dividing net income for the last 12 months with total revenues for the last 12 months.

(11)

Return on assets is measured as net income attributable to equity holders of PLDT for the last 12 months divided by average total assets.

(12)

Return on Equity is measured as net income attributable to equity holders of PLDT for the last 12 months divided by average total equity attributable to equity holders of PLDT.

(13)

EBITDA margin is measured as EBITDA for the last 12 months divided by service revenues for the last 12 months.

EBITDA for the period is measured as net income for the period excluding depreciation and amortization, amortization of intangible assets, asset impairment on noncurrent assets, financing cost, interest income, equity share in net earnings (losses) of associates and joint ventures, foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net, provision for (benefit from) income tax and other income (expenses) – net, MRP and non-recurring income (expenses) for the period.

A-2

SIGNATURES

Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this report for the third quarter of 2025 to be signed on its behalf by the undersigned thereunto duly authorized.


Registrant: PLDT Inc.


Signature and Title:	/s/ Manuel V. Pangilinan
	Manuel V. Pangilinan
	Chairman, President and Chief Executive Officer


Signature and Title:	/s/ Danny Y. Yu
	Danny Y. Yu
	Senior Vice President and PLDT Group Chief Financial Officer
	(Principal Financial Officer)


Signature and Title:	/s/ Gil Samson D. Garcia
	Gil Samson D. Garcia
	First Vice President
	(Principal Accounting Officer)
Date: November 11, 2025

S-1

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS AT SEPTEMBER 30, 2025 (UNAUDITED) AND DECEMBER 31, 2024 (AUDITED)

AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)

F-1

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at September 30, 2025 and December 31, 2024

(in million pesos)


	September 30, 2025			December 31, 2024
	(Unaudited)			(Audited)
ASSETS
Noncurrent Assets
Property and equipment (Notes 9 and 21)		325,310			318,069
Right-of-use assets (Note 10)		45,667			39,111
Investments in associates and joint ventures (Note 11)		53,251			52,764
Financial assets at fair value through profit or loss (Note 27)		1,086			1,101
Debt instruments at amortized cost – net of current portion (Note 12)		350			370
Investment properties (Note 13)		5,536			3,000
Goodwill and intangible assets (Note 14)		64,342			64,464
Deferred income tax assets – net (Note 7)		10,089			14,643
Derivative financial assets – net of current portion (Note 27)		570			385
Prepayments and other nonfinancial assets – net of current portion (Note 18)		58,265			61,929
Contract assets – net of current portion (Note 5)		335			485
Other financial assets – net of current portion (Note 27)		2,810			3,126
Total Noncurrent Assets		567,611			559,447
Current Assets
Cash and cash equivalents (Notes 15 and 27)		10,092			10,011
Short-term investments (Note 27)		10			136
Trade and other receivables (Note 16)		30,015			31,612
Inventories and supplies (Note 17)		2,172			3,306
Current portion of contract assets (Note 5)		1,350			1,401
Current portion of derivative financial assets (Note 27)		737			30
Current portion of debt instruments at amortized cost (Notes 12 and 27)		20			25
Current portion of prepayments and other nonfinancial assets (Note 18)		10,973			9,975
Current portion of other financial assets (Note 27)		260			831
		55,629			57,327
Assets classified as held-for-sale (Notes 9 and 10)		6,316			6,501
Total Current Assets		61,945			63,828
TOTAL ASSETS		629,556			623,275

EQUITY AND LIABILITIES
Equity
Non-voting serial preferred stock (Note 19)		360			360
Voting preferred stock (Note 19)		150			150
Common stock (Note 19)		1,093			1,093
Treasury stock (Note 19)		(6,505	)		(6,505	)
Capital in excess of par value (Note 19)		130,312			130,312
Retained earnings (Note 19)		38,402			33,901
Other comprehensive loss (Note 6)		(43,486	)		(43,892	)
Total Equity Attributable to Equity Holders of PLDT		120,326			115,419
Noncontrolling interests (Note 19)		1,166			1,316
TOTAL EQUITY		121,492			116,735

See accompanying Notes to Consolidated Financial Statements.

F-2

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued)

As at September 30, 2025 and December 31, 2024

(in million pesos)


	September 30, 2025		December 31, 2024
	(Unaudited)		(Audited)
Noncurrent Liabilities
Interest-bearing financial liabilities – net of current portion (Note 20)		280,130		258,246
Lease liabilities – net of current portion (Note 10)		52,088		46,703
Deferred income tax liabilities – net (Note 7)		77		60
Customers’ deposits (Note 27)		1,258		2,046
Pension and other employee benefits (Note 25)		2,555		3,548
Deferred credits and other noncurrent liabilities (Notes 5 and 21)		8,574		7,475
Total Noncurrent Liabilities		344,682		318,078
Current Liabilities
Accounts payable (Note 22)		55,029		66,722
Accrued expenses and other current liabilities (Notes 23 and 26)		77,558		85,488
Current portion of interest-bearing financial liabilities (Note 20)		17,406		23,340
Current portion of lease liabilities (Note 10)		8,667		7,335
Dividends payable (Note 19)		2,074		2,005
Current portion of derivative financial liabilities (Note 27)		35		97
Income tax payable		1,042		1,860
		161,811		186,847
Liabilities associated with assets classified as held-for-sale (Note 10)		1,571		1,615
Total Current Liabilities		163,382		188,462
TOTAL LIABILITIES		508,064		506,540
TOTAL EQUITY AND LIABILITIES		629,556		623,275

See accompanying Notes to Consolidated Financial Statements.

F-3

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

For the nine months ended September 30, 2025 and 2024

(in million pesos, except earnings per common share amounts which are in pesos)


	For the Nine Months Ended				Three Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
	(Unaudited)				(Unaudited)
REVENUES FROM CONTRACTS WITH CUSTOMERS
Service revenues (Notes 4 and 5)		158,903		154,995		52,595		51,552
Non-service revenues (Notes 4 and 5)		4,380		5,947		1,114		1,807
		163,283		160,942		53,709		53,359
EXPENSES
General operating costs (Notes 5 and 18)		56,869		58,564		19,041		18,931
Depreciation and amortization (Notes 9, 10, 14 and 18)		41,820		37,333		15,633		12,940
Cost of devices, accessories and contract-specific services (Note 5)		8,841		10,019		2,883		3,174
Asset impairment (Note 5)		2,852		3,069		984		1,020
Interconnection costs		13,003		10,102		3,816		3,556
		123,385		119,087		42,357		39,621
		39,898		41,855		11,352		13,738

OTHER EXPENSES — NET (Note 5)		7,180		4,792		2,312		978

INCOME BEFORE INCOME TAX		32,718		37,063		9,040		12,760

PROVISION FOR INCOME TAX (Note 7)		7,583		8,839		2,083		3,053
NET INCOME (Note 4)		25,135		28,224		6,957		9,707
ATTRIBUTABLE TO:
Equity holders of PLDT (Note 8)		25,071		28,070		6,934		9,657
Noncontrolling interests		64		154		23		50
		25,135		28,224		6,957		9,707
Earnings Per Share Attributable to Common Equity Holders of PLDT (Note 8)
Basic		115.83		129.71		32.02		44.62
Diluted		115.83		129.71		32.02		44.62

See accompanying Notes to Consolidated Financial Statements.

F-4

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the nine months ended September 30, 2025 and 2024

(in million pesos)


	For the Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
	(Unaudited)						(Unaudited)
NET INCOME		25,135			28,224			6,957			9,707
OTHER COMPREHENSIVE INCOME (LOSS) – NET OF TAX (Note 6)
Foreign currency translation differences of subsidiaries		(103	)		66			(75	)		62
Net transactions on cash flow hedges:		(1,051	)		(910	)		(722	)		(148	)
Net fair value losses on cash flow (Note 27)		(1,401	)		(1,214	)		(963	)		(198	)
Income tax related to fair value adjustments charged directly to equity (Note 7)		350			304			241			50
Net other comprehensive loss to be reclassified to profit or loss in subsequent years		(1,154	)		(844	)		(797	)		(86	)
Revaluation increment on investment properties		1,381			—			—			—
Revaluation increment in investment properties transferred from property and equipment		1,841			—			—			—
Income tax related to revaluation adjustments charged directly to equity		(460	)		—			—			—
Share in the other comprehensive loss of associates and joint ventures accounted for using the equity method (Note 11)		(1	)		—			—			—
Actuarial gains (losses) on defined benefit obligations:		173			(10	)		314			1
Remeasurement in actuarial gains (losses) on defined benefit obligations		228			(42	)		419			—
Income tax related to remeasurement adjustments (Note 7)		(55	)		32			(105	)		1
Net other comprehensive income (loss) not to be reclassified to profit or loss in subsequent years		1,553			(10	)		314			1
Total other comprehensive income (loss) – net of tax		399			(854	)		(483	)		(85	)
TOTAL COMPREHENSIVE INCOME		25,534			27,370			6,474			9,622
ATTRIBUTABLE TO:
Equity holders of PLDT		25,477			27,251			6,444			9,573
Noncontrolling interests		57			119			30			49
		25,534			27,370			6,474			9,622

See accompanying Notes to Consolidated Financial Statements.

F-5

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the nine months ended September 30, 2025 and 2024

(in million pesos)


	Preferred Stock		Common Stock		Treasury Stock			Capital in Excess of Par Value		Retained Earnings			Other Comprehensive Income (Loss)			Total Equity Attributable to Equity Holders of PLDT			Noncontrolling Interests			Total Equity
Balances as at January 1, 2025		510		1,093		(6,505	)		130,312		33,901			(43,892	)		115,419			1,316			116,735
Cash dividends (Note 19)		—		—		—			—		(20,570	)		—			(20,570	)		(50	)		(20,620	)
Total comprehensive income (loss):		—		—		—			—		25,071			406			25,477			57			25,534
Net income		—		—		—			—		25,071			—			25,071			64			25,135
Other comprehensive income (loss) (Note 6)		—		—		—			—		—			406			406			(7	)		399
Acquisition and dilution of noncontrolling interests		—		—		—			—		—			—			—			(157	)		(157	)
Balances as at September 30, 2025 (Unaudited)		510		1,093		(6,505	)		130,312		38,402			(43,486	)		120,326			1,166			121,492

Balances as at January 1, 2024		510		1,093		(6,505	)		130,312		22,020			(42,212	)		105,218			5,168			110,386
Cash dividends (Note 19)		—		—		—			—		(20,786	)		—			(20,786	)		(50	)		(20,836	)
Total comprehensive income (loss):		—		—		—			—		28,070			(819	)		27,251			119			27,370
Net income (Note 8)		—		—		—			—		28,070			—			28,070			154			28,224
Other comprehensive loss (Note 6)		—		—		—			—		—			(819	)		(819	)		(35	)		(854	)
Acquisition and dilution of noncontrolling interests		—		—		—			—		—			—			—			235			235
Perpetual notes settlement (Note 19)		—		—		—			—		—			—			—			(4,200	)		(4,200	)
Distribution charges on perpetual notes (Note 19)		—		—		—			—		—			—			—			(59	)		(59	)
Transaction costs from settlement of perpetual notes (Note 19)		—		—		—			—		—			—			—			35			35
Balances as at September 30, 2024 (Unaudited)		510		1,093		(6,505	)		130,312		29,304			(43,031	)		111,683			1,248			112,931

See accompanying Notes to Consolidated Financial Statements.

F-6

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine months ended September 30, 2025 and 2024

(in million pesos)


	For the Nine Months Ended
	September 30,
	2025			2024
	(Unaudited)
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Income before income tax (Note 4)		32,718			37,063
Adjustments for:
Depreciation and amortization (Notes 2, 5, 9, 10, 14 and 18)		41,820			37,333
Interest on loans and other related items – net (Note 5)		9,844			7,744
Accretion on lease liabilities (Notes 2, 5 and 10)		3,325			2,900
Asset impairment (Note 5)		2,852			3,069
Pension benefit costs (Notes 5 and 25)		1,128			1,110
Accretion on financial liabilities (Notes 5 and 20)		278			275
Foreign exchange (gains) losses – net (Notes 2, 5 and 27)		105			(1,389	)
Incentive plan (Notes 5 and 25)		—			857
Gains on disposal of property and equipment (Note 5)		(99	)		(79	)
Equity share in net losses (income) of associates and joint ventures (Notes 5 and 11)		(313	)		1,119
Interest income (Note 5)		(551	)		(718	)
Gain on sale and leaseback of telecom towers (Notes 5 and 9)		(887	)		(1,165	)
Gains on derivative financial instruments – net (Notes 5 and 27)		(1,411	)		(2,066	)
Others		(121	)		(334	)
Operating income before changes in assets and liabilities		88,688			85,719
Decrease (increase) in:
Prepayments		1,846			8,813
Inventories and supplies		1,137			1,354
Trade and other receivables		822			(9,659	)
Contract assets		102			(264	)
Other financial and non-financial assets		266			(1,138	)
Increase (decrease) in:
Customers deposits		(788	)		17
Accounts payable		(879	)		(8,812	)
Pension and other employee benefits		(5,285	)		(3,096	)
Accrued expenses and other current liabilities		(6,530	)		(2,346	)
Other noncurrent liabilities		43			96
Net cash flows generated from operations		79,422			70,684
Income taxes paid		(3,657	)		(2,566	)
Net cash flows from operating activities		75,765			68,118

See accompanying Notes to Consolidated Financial Statements.

F-7

PLDT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

For the nine months ended September 30, 2025 and 2024

(in million pesos)


	For the Nine Months Ended
	September 30,
	2025			2024
	(Unaudited)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Proceeds from:
Disposal of property and equipment (Note 9)		1,083			3,480
Return of capital on an investment in joint venture (Note 11)		600			—
Maturity of short-term investments		126			21
Redemption of investment in debt securities (Note 12)		25			200
Interest received		534			700
Payments for:
Purchase of short-term investments		—			(3	)
Purchase of financial assets at fair value through profit or loss		—			(152	)
Acquisition of investments in associates and joint ventures (Note 11)		(184	)		(3,692	)
Interest capitalized to property and equipment (Notes 5 and 9)		(2,065	)		(2,126	)
Purchase of property and equipment (Note 9)		(50,028	)		(46,550	)
Decrease in other financial and non-financial assets		325			915
Net cash flows used in investing activities		(49,584	)		(47,207	)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from:
Availments of long-term debt (Notes 20 and 28)		33,150			25,300
Availments of short-term debt (Notes 20 and 28)		1,122			—
Collections of derivative financial instruments – net (Notes 27 and 28)		—			84
Payments for:
Distribution charges on perpetual notes (Note 19)		—			(59	)
Redemption of perpetual notes (Note 19)		—			(4,200	)
Debt issuance costs (Notes 20 and 28)		(249	)		(150	)
Settlements of derivative financial instruments – net (Notes 27 and 28)		(944	)		—
Short-term debt (Notes 20 and 28)		(1,022	)		—
Interest – net of capitalized portion (Notes 5, 20 and 28)		(9,430	)		(7,285	)
Obligations under lease liabilities (Notes 10 and 28)		(10,693	)		(8,994	)
Long-term debt (Notes 20 and 28)		(17,522	)		(10,084	)
Cash dividends (Notes 19 and 28)		(20,576	)		(20,744	)
Net cash flows used in financing activities		(26,164	)		(26,132	)
NET EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		64			1,350
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		81			(3,871	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD (Note 15)		10,011			16,177
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD (Note 15)		10,092			12,306

See accompanying Notes to Consolidated Financial Statements.

F-8

PLDT INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Corporate Information

PLDT Inc., which we refer to as PLDT or the Parent Company, was incorporated under the old Corporation Law of the Philippines (Act 1459, as amended) on November 28, 1928, following the merger of four telephone companies under common U.S. ownership. PLDT holds a perpetual corporate term under Section 11 of the Revised Corporation Code of the Philippines (Republic Act No. 11232), which grants existing corporations to have a perpetual existence unless a majority vote of its stockholders elects to retain a specified corporate term.

In 1967, effective control of PLDT was transferred from General Telephone and Electronics Corporation, a major shareholder then since PLDT’s incorporation, to a group of Filipino investors. In 1981, as part of the Philippine government’s policy to integrate the country’s telecommunications industry, PLDT acquired substantially all of the assets and liabilities of the Republic Telephone Company, then the second largest telephone provider in the Philippines.

In 1998, certain subsidiaries of First Pacific Company Limited, or First Pacific, and its Philippine affiliates (collectively the First Pacific Group and its Philippine affiliates), acquired a significant interest in PLDT. On March 24, 2000, NTT Communications Corporation, or NTT Communications, through its wholly-owned subsidiary NTT Communications Capital (UK) Ltd., became PLDT's strategic partner with approximately a 15% economic and voting interest in PLDT’s common stock. Concurrent with NTT Communications’ investment, PLDT acquired 100% of Smart Communications, Inc., or Smart.

On March 14, 2006, NTT DOCOMO, Inc., or NTT DOCOMO, acquired approximately 7% of PLDT’s then outstanding common shares from NTT Communications, which retained ownership of about 7% of PLDT’s common shares. Since then, NTT DOCOMO has made additional purchases of PLDT shares, bringing the combined beneficial ownership of NTT DOCOMO and NTT Communications (both part of Nippon Telegraph and Telephone Corporation) to approximately 20.35% of PLDT’s outstanding common stock as at September 30, 2025.

On February 28, 2007, Metro Pacific Asset Holdings, Inc., a Philippine affiliate of First Pacific, completed an acquisition of an approximately 46% interest in Philippine Telecommunications Investment Corporation, or PTIC, a shareholder of PLDT. This investment in PTIC represented an attributable interest of approximately 6% of PLDT’s outstanding common shares at the time and raised the First Pacific Group’s and its Philippine affiliates’ beneficial ownership to approximately 28% of PLDT’s outstanding common stock as of that date. Since then, the First Pacific Group’s beneficial ownership interest in PLDT has decreased by approximately 2%, mainly due to the holders of Exchangeable Notes issued in 2005 by a subsidiary of First Pacific, which were fully exchanged into PLDT shares. The First Pacific Group and its Philippine affiliates held beneficial ownership of approximately 25.57% of PLDT’s outstanding common stock as at September 30, 2025.

On October 26, 2011, PLDT completed the acquisition of a controlling interest in Digital Telecommunications Phils., Inc., or Digitel, from JG Summit Holdings, Inc., or JGSHI, and its affiliates, or collectively, the JG Summit Group. As consideration for the assets acquired, PLDT issued approximately 27.7 million common shares. In November 2011, JGSHI sold
5.81 million and 4.56 million PLDT shares to a Philippine affiliate of First Pacific and NTT DOCOMO, respectively, under separate option agreements. As at September 30, 2025, the JG Summit Group beneficially owned approximately 11.27% of PLDT’s outstanding common stock.

On October 16, 2012, BTF Holdings, Inc., or BTFHI, a wholly-owned company of the Board of Trustees for the Account of the Beneficial Trust Fund, or PLDT Beneficial Trust Fund, created pursuant to PLDT’s Benefit Plan, subscribed to
150 million newly issued shares of Voting Preferred Stock of PLDT, or Voting Preferred Shares, at a subscription price of Php1.00 per share for a total subscription price of Php150 million. This subscription was made pursuant to a subscription agreement between BTFHI and PLDT dated October 15, 2012. Consequently, the issuance of these Voting Preferred Shares reduced the voting power of the NTT Group (comprising of NTT DOCOMO and NTT Communications), the First Pacific Group and its Philippine affiliates, and JG Summit Group to 12.01%, 15.09% and 6.65%, respectively, which still holds as at
September 30, 2025. See Note 19 – Equity – Preferred Stock – Voting Preferred Stock.

The common shares of PLDT are listed and traded on the Philippine Stock Exchange, Inc., or PSE. On October 19, 1994, an American Depositary Receipt, or ADR, facility was established, under which Citibank N.A., as the depositary, issued American Depositary Shares, or ADSs, with each ADS representing one PLDT common share with a par value of
Php5.00 per share. Effective February 10, 2003, PLDT appointed JP Morgan Chase Bank as the successor depositary for its ADR facility. The ADSs are listed on the New York Stock Exchange, or NYSE, in the United States and are traded on the NYSE under the symbol “PHI”. As of September 30, 2025, there were approximately 16.9 million ADSs outstanding.

F-9

PLDT and our Philippine-based fixed line and wireless subsidiaries operate under the jurisdiction of the Philippine National Telecommunications Commission, or NTC. The NTC’s jurisdiction includes, among other responsibilities, the approval of major services offered and certain rates charged to customers.

We are one of the leading telecommunications and digital services providers in the Philippines, serving the fixed line, wireless and broadband markets. Through our three principal business segments, Wireless, Fixed Line and Others, we offer a wide range of telecommunications and digital services across our extensive fiber optic backbone and wireless and fixed line networks. Our principal activities are discussed in Note 4 – Operating Segment Information.

Our registered office address is Ramon Cojuangco Building, Makati Avenue, Makati City, Philippines. Information on our structure is provided in Note 2 – Summary of Material Accounting Policies – Basis of Consolidation. Information on other related party relationships of the PLDT Group is provided in Note 24 – Related Party Transactions.

Our consolidated financial statements as at September 30, 2025 and December 31, 2024, and for the nine months ended
September 30, 2025 and 2024 were approved and authorized for issuance by the Board of Directors on November 11, 2025, as reviewed by the Audit Committee on November 10, 2025.

F-10

Summary of Material Accounting Policies

Basis of Preparation

Our consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards, or IFRSs, as issued by the International Accounting Standards Board, or IASB.

Our consolidated financial statements have been prepared under the historical cost basis, except for financial instruments at fair value through profit or loss, or FVPL, investment properties and pension that are measured at fair values.

Our consolidated financial statements are presented in Philippine Peso, PLDT’s functional currency, and all values are rounded to the nearest million, except when otherwise indicated.

Our consolidated financial statements provide comparative information in respect of the previous period.

F-11

Basis of Consolidation

Our consolidated financial statements include the financial statements of PLDT and the following subsidiaries (collectively, the “PLDT Group”) as at September 30, 2025 and
December 31, 2024:


			September 30, 2025				December 31, 2024
			(Unaudited)				(Audited)
	Place of		Percentage of Ownership
Name of Subsidiary	Incorporation	Principal Business Activity	Direct		Indirect		Direct		Indirect
Wireless
Smart:	Philippines	Cellular mobile services		100.0		—		100.0		—
Smart Broadband, Inc., or SBI, and Subsidiary	Philippines	Internet broadband distribution services		—		100.0		—		100.0
Primeworld Digital Systems, Inc., or PDSI	Philippines	Internet broadband distribution services		—		100.0		—		100.0
I-Contacts Corporation(a)	Philippines	Operations support servicing business		—		100.0		—		100.0
Far East Capital Limited, or FECL(a)	Cayman Islands	Cost effective offshore financing and risk management activities for Smart		—		100.0		—		100.0
PH Communications Holdings Corporation(a)	Philippines	Investment company		—		100.0		—		100.0
Connectivity Unlimited Resource Enterprise, Inc.(a)	Philippines	Cellular mobile services		—		100.0		—		100.0
Francom Holdings, Inc.(a)	Philippines	Investment company		—		100.0		—		100.0
Chikka Holdings Limited, or Chikka, and Subsidiaries, or Chikka Group(a)	British Virgin Islands	Content provider, mobile applications development and services		—		100.0		—		100.0
Wifun, Inc.(a)	Philippines	Software developer and selling of WiFi access equipment		—		100.0		—		100.0
PLDT Global, Inc.	Philippines	Cross-border digital platforms and other allied services		100.0		—		100.0		—
ACeS Philippines Cellular Satellite Corporation, or ACeS Philippines(a)	Philippines	Satellite information and messaging services		88.5		11.5		88.5		11.5
Digitel Mobile Philippines, Inc., or DMPI, (a wholly-owned subsidiary of Digitel)	Philippines	Cellular mobile services		—		99.6		—		99.6
Fixed Line
PLDT Clark Telecom, Inc., or ClarkTel	Philippines	Telecommunications services		100.0		—		100.0		—
PLDT Subic Telecom, Inc., or SubicTel(a)	Philippines	Telecommunications services		100.0		—		100.0		—
PLDT Global Corporation, or PLDT Global, and Subsidiaries	British Virgin Islands	Telecommunications services		100.0		—		100.0		—
PLDT-Philcom, Inc., or Philcom, and Subsidiaries, or Philcom Group(a)	Philippines	Telecommunications services		100.0		—		100.0		—
Talas Data Intelligence, Inc.(a)	Philippines	Business infrastructure and solutions; intelligent data processing and implementation services and data analytics insight generation		100.0		—		100.0		—
Multisys Technologies Corporation, or Multisys(b)	Philippines	Software development and IT solutions services		—		50.7		—		45.7

(a)

Ceased commercial operations.

(b)

On January 5, 2024, PLDT Global Investments Holdings, Inc., or PGIH, sold 227 common shares of Multisys, thereby decreasing its ownership from 50.72% to 45.73%. On April 2, 2025, PGIH entered into a share purchase agreement to buy 228 common shares thereby increasing its ownership from 45.73% to 50.74%.

F-12


			September 30, 2025				December 31, 2024
			(Unaudited)				(Audited)
	Place of		Percentage of Ownership
Name of Subsidiary	Incorporation	Principal Business Activity	Direct		Indirect		Direct		Indirect

ePLDT, Inc., or ePLDT:	Philippines	Information and communications infrastructure for internet-based services, e-commerce, customer relationship management and IT related services		100.0		—		100.0		—
IP Converge Data Services, Inc., or IPCDSI, and Subsidiary, or IPCDSI Group	Philippines	Information and communications infrastructure for internet-based services, e-commerce, customer relationship management and IT related services		—		100.0		—		100.0
Curo Teknika, Inc., or Curo(a)	Philippines	Managed IT outsourcing		—		100.0		—		100.0
ABM Global Solutions, Inc., or AGS, and Subsidiaries, or AGS Group(a)	Philippines	Internet-based purchasing, IT consulting and professional services		—		100.0		—		100.0
ePDS, Inc., or ePDS(a)	Philippines	Bills printing and other related value-added services, or VAS		—		100.0		—		100.0
netGames, Inc.(a)	Philippines	Gaming support services		—		57.5		—		57.5
MVP Rewards Loyalty Solutions, Inc., or MRSI(a)	Philippines	Full-services customer rewards and loyalty programs		—		100.0		—		100.0
VITRO, Inc., or Vitro	Philippines	Information and communications infrastructure for internet-based services, e-commerce, customer relationship management and IT related services		—		100.0		—		100.0
ePLDT Capital Investment Pte. Ltd. or ePLDT Capital	Singapore	Investment holding and acquisition of companies		—		100.0		—		100.0
Digitel	Philippines	Telecommunications services		99.6		—		99.6		—
Digitel Information Technology Services, Inc.(a)	Philippines	Internet services		—		99.6		—		99.6
PLDT-Maratel, Inc., or Maratel(a)	Philippines	Telecommunications services		98.0		—		98.0		—
Bonifacio Communications Corporation, or BCC	Philippines	Telecommunications, infrastructure and related VAS		75.0		—		75.0		—
Pilipinas Global Network Limited, or PGNL, and Subsidiaries	British Virgin Islands	International distributor of Filipino channels and content		64.6		—		64.6		—
Others
PLDT Global Investments Holdings, Inc., or PGIH	Philippines	Investment company		100.0		—		100.0		—
PLDT Digital Investments Pte. Ltd., or PLDT Digital, and Subsidiaries	Singapore	Investment company		100.0		—		100.0		—
PLDT Communications and Energy Ventures, Inc., or PCEV	Philippines	Investment company		—		99.9		—		99.9

(a) Ceased commercial operations.

F-13

The financial statements of our subsidiaries are prepared for the same reporting period as PLDT. We prepare our consolidated financial statements using uniform accounting policies for like transactions and other events with similar circumstances.

Investment in Multisys

On January 5, 2024, PGIH entered into a Share Purchase Agreement for the sale of 227 common shares of Multisys, representing a 4.99% interest, for a total consideration of Php270 million. The transaction was completed and fully paid on January 12, 2024. Following this sale, PGIH retained ownership of 2,080 common shares representing 45.73% equity interest in Multisys. Pursuant to the Restated Shareholders’ and related Amendment Agreement signed on January 30, 2024 and March 1, 2024, respectively, PGIH remains entitled to nominate three out of the five directors in Multisys, who manage and control the operations of Multisys. Consequently, the results of operation and financial position of Multisys continue to be consolidated with the PLDT Group.

On April 2, 2025, PGIH entered into a Share Purchase Agreement for the purchase of 228 common shares of Multisys, representing a 5.01% interest, for a total consideration of Php257.5 million. The transaction was completed on April 5, 2025. Following this acquisition, PGIH owns 2,308 common shares representing 50.74% equity interest in Multisys. On
April 16, 2025, PGIH partially paid Php150 million out of the total consideration. The outstanding balance of
Php107.5 million remains unpaid as of September 30, 2025.

Investment in Kayana Solutions Inc., or Kayana (formerly Limitless Growth Ventures, Inc.)

In March 2024, PLDT invested in Kayana to serve as a digital entity designed to harness the data assets of the MVP Group of Companies and provide a platform for a Group-wide digitalization initiatives. This collaboration marks the first step in a collective effort aimed at creating new growth opportunities and value within the MVP Group of Companies.

Kayana will leverage a technology platform capable of enabling the MVP Group of Companies to scale operations and achieve seamless integration of services and capabilities. Additionally, payments and rewards systems are expected to play a pivotal role in enhancing the overall user experience.

As of September 27, 2024, PLDT has invested a total of Php840 million in Kayana representing 60% equity interest, including subscription payable of Php288 million.

On September 30, 2024, Kayana entered into share subscription agreements with its shareholders, wherein PLDT subscribed to additional common shares equivalent to Php46.5 million and the remaining shareholders subscribed to additional shares equivalent to Php523.5 million. As a result, PLDT’s equity ownership in Kayana is reduced to 45%, leading PLDT to account for its remaining interest as an investment in associate.

The following summarizes the subscription agreements entered into by PLDT with Kayana:


Date	Number of Shares Acquired
	(in millions)
March 24, 2024		754.5
September 27, 2024		85.5
September 30, 2024		46.5
September 1, 2025		594.0
		1,480.5

As at September 30, 2025 and December 31, 2024, the carrying value of PLDT’s investment in Kayana amounted to
Php1,403 million and Php853 million, respectively. See Note 11 – Investment in Associates and Joint Venture – Investment in Associates.

Additional Investment in Maya Innovations Holdings Pte. Ltd. (MIH)

On April 5, 2024, PCEV paid a consideration of US$15.3 million or Php857 million for 6.7 million MIH Class C2 convertible preferred shares and received warrants for 2.7 million shares valued at Php152 million, resulting in an increase of PCEV’s ownership in MIH from 36.97% to 37.66%.

See Note 11 – Investment in Associates and Joint Venture – Investment in Associates.

F-14

Investment in Radius Telecom, Inc., or Radius

On April 30, 2024, PLDT invested Php2 billion for 2,491,516 common shares, or 34.9% equity interest in Radius. This strategic investment aims to enhance PLDT’s market share through an integrated alignment of solution capabilities and expanded market coverage.

See Note 11 – Investment in Associates and Joint Venture – Investment in Associates.

Reduction of Capital in PLDT Capital Pte Ltd., or PLDT Capital

On May 6, 2024, the Directors of PLDT Capital approved the reduction of its issued and paid-up share capital from
Php891 million, comprising 26,773,606 ordinary shares, to Php1 million, comprising 30,058 fully paid ordinary shares. The Accounting and Corporate Regulatory Authority of Singapore approved the capital reduction of PLDT Capital on
July 12, 2024.

Investment of PLDT Digital Investments Pte. Ltd. in AppCard

A Convertible Preferred Stock Purchase Agreement was entered into by PLDT Capital with AppCard for US$5 million on October 9, 2015. AppCard, a Delaware Corporation, is engaged in the business of developing, marketing, selling and servicing digital loyalty program platforms.

On December 29, 2023, PLDT Capital entered into an Instrument of Transfer with its penultimate holding company, PLDT Digital, relating to the acquisition of PLDT Capital’s 2.9 million shares of Series B Preferred Stock in AppCard for a purchase consideration of Php97 million. The transfer of shares to PLDT Digital was completed on the same day.

On October 13, 2025, PLDT Digital sold all of its AppCard Series B preferred shares for an aggregate amount of
US$3 million or Php175 million, resulting to a gain on sale amounting to Php87 million and full divestment of the investment in AppCard.

New Standards, Interpretations and Amendments

The accounting policies adopted are consistent with those of the previous financial year, except for the adoption of new amendment effective in 2025. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

Unless otherwise indicated, adoption of this new amendment did not have a material impact on the consolidated financial statements of the PLDT Group.

•

Amendments to IAS 21, Lack of Exchangeability

Summary of Material Accounting Policies

The following is the summary of material accounting policies we applied in preparing our consolidated financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

Business Combinations and Goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any noncontrolling interest in the acquiree. For each business combination, we elect whether to measure the components of the noncontrolling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets.
Acquisition-related costs are expensed as incurred and included in general operating costs.

When we acquire a business, we assess the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, the previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss. The fair value of previously held equity interest is then included in the amount of total consideration transferred.

F-15

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration that is classified as equity is not remeasured and subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument within the scope of IFRS 9 is measured at fair value with the changes in fair value recognized in profit or loss. In accordance with IFRS 9, the contingent consideration that is not within the scope of IFRS 9 is measured at fair value at each reporting date with changes in fair value recognized in profit or loss.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for noncontrolling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, we reassess whether we correctly identified all of the assets acquired and all of the liabilities assumed and review the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain on a bargain purchase is recognized in profit or loss.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we report in our consolidated financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, which is no longer than one year from the acquisition date, the provisional amounts recognized at acquisition date are retrospectively adjusted to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognized as of that date. During the measurement period, we also recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of our
cash-generating units, or CGUs, that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Where goodwill acquired in a business combination has yet to be allocated to identifiable CGUs because the initial accounting is incomplete, such provisional goodwill is not tested for impairment unless indicators of impairment exist and we can reliably allocate the carrying amount of goodwill to a CGU or group of CGUs that are expected to benefit from the synergies of the business combination.

Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the disposed operation and the portion of the CGU retained.

Investments in Associates

Investments in associates are accounted for using the equity method of accounting and are initially recognized at cost. The cost of the investments includes directly attributable transaction costs. The details of our investments in associates are disclosed in Note 11 – Investments in Associates and Joint Ventures – Investments in Associates.

Where there has been a change recognized directly in the equity of the associate, we recognize our share in such change and disclose this, when applicable, in our consolidated statements of comprehensive income and consolidated statements of changes in equity. Unrealized gains and losses resulting from our transactions with and among our associates are eliminated to the extent of our interests in those associates.

Our share in the profits or losses of our associates is included under “Other Expenses - Net” in our consolidated income statements. This is the profit or loss attributable to equity holders of the associate and net of the noncontrolling interest in the subsidiaries of the associate.

Joint Arrangements

When necessary, adjustments are made to bring the accounting policies of the joint venture in line with our policies. The details of our investments in joint ventures are disclosed in Note 11 – Investments in Associates and Joint Ventures – Investments in Joint Ventures.

F-16

Foreign Currency Transactions and Translations

Our consolidated financial statements are presented in Philippine Peso, which is also the Parent Company’s functional currency. The Philippine Peso is the currency of the primary economic environment in which we operate. This is also the currency that mainly influences the revenue from and cost of rendering products and services. Each entity in our Group determines its own functional currency and items included in the separate financial statements of each entity are measured using that functional currency.

The functional and presentation currency of the entities under the PLDT Group (except for the subsidiaries discussed below) is the Philippine Peso.

Transactions in foreign currencies are initially recorded by entities under our Group at the respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rate of exchange prevailing at the end of the reporting period. All differences arising on settlement or translation of monetary items are recognized in our consolidated income statements except for foreign exchange differences that qualify as capitalizable borrowing costs for qualifying assets. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The gain or loss arising from transactions of non-monetary items measured at fair value is treated in line with the recognition of this gain or loss on the change in fair value of the items (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit, or loss are also recognized in other comprehensive income or profit or loss, respectively).

The functional currency of PLDT Global and certain of its subsidiaries, and PGNL and certain of its subsidiaries is the U.S. Dollar. As at the reporting date, the assets and liabilities of these subsidiaries are translated into Philippine Peso at the rate of exchange prevailing at the end of the reporting period, and income and expenses of these subsidiaries are translated monthly using the weighted average exchange rate for the month. The exchange differences arising on translation are recognized as a separate component of other comprehensive income as cumulative translation adjustments. Upon disposal of these subsidiaries, the amount of deferred cumulative translation adjustments recognized in other comprehensive income relating to subsidiaries is recognized in our consolidated income statements.

Foreign exchange gains or losses of the Parent Company and our Philippine-based subsidiaries are treated as taxable income or deductible expenses in the period such exchange gains or losses are realized.

Assets Classified as Held-for-Sale

We classify assets as held-for-sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Assets classified as held-for-sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.

The criteria for held-for-sale classification are regarded as met only when the sale is highly probable, and the asset is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale is expected to be completed within one year from the date of the classification.

Property and equipment, and intangible assets are not depreciated or amortized once classified as held-for-sale.

Assets and liabilities classified as held-for-sale are presented separately as current items in the consolidated statements of financial position.

Additional disclosures are provided in Note 9 – Property and Equipment – Sale and Leaseback of Telecom Towers and
Note 10 – Leases. All other notes to the financial statements include amounts for continuing operations, unless indicated otherwise.

F-17

Financial Instruments

Financial Instruments – Initial recognition and subsequent measurement

Classification of financial assets

Financial assets are classified in their entirety based on the contractual cash flows characteristics of the financial assets and our business model for managing the financial assets. We classify our financial assets into the following measurement categories:

•

Financial assets measured at amortized cost;

•

Financial assets measured at FVPL;

•

Financial assets measured at fair value through other comprehensive income, or FVOCI, where cumulative gains or losses previously recognized are reclassified to profit or loss; and

•

Financial assets measured at FVOCI, where cumulative gains or losses previously recognized are not reclassified to profit or loss.

Contractual cash flows characteristics

In order for us to identify the measurement of our debt financial assets, a solely payments of principal and interest, or SPPI, test needs to be initially performed in order to determine whether the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Once a debt financial asset passed the SPPI test, business model assessment, which identifies our objective of holding the financial assets – hold to collect or hold to collect and sell, will be performed. If both of the conditions are met, the financial asset will be measured at FVOCI, otherwise, such will be measured at FVPL.

In making the assessment, we determine whether the contractual cash flows are consistent with a basic lending arrangement, i.e., interest includes consideration only for the time value of money, credit risk and other basic lending risks and costs associated with holding the financial asset for a particular period of time. In addition, interest can include a profit margin that is consistent with a basic lending arrangement. The assessment as to whether the cash flows meet the SPPI test is made in the currency in which the financial asset is denominated. Any other contractual terms that introduce exposure to risks or volatility in the contractual cash flows that is unrelated to a basic lending arrangement, such as exposure to changes in equity prices or commodity prices, do not give rise to contractual cash flows that are solely payments of principal and interest on the principal amount outstanding.

Business model

Our business model is determined at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. Our business model does not depend on management’s intentions for an individual instrument.

Our business model refers to how we manage our financial assets in order to generate cash flows. Our business model determines whether cash flows will result from collecting contractual cash flows, collecting contractual cash flows and selling financial assets or neither.

Financial assets at amortized cost

These financial assets are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost using the effective interest rate, or EIR, method, less any impairment in value. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the EIR. The amortization is included in ‘Other expenses – net’ in our consolidated income statements and is calculated by applying the EIR to the gross carrying amount of the financial asset, except for (i) purchased or originated credit-impaired financial assets and (ii) financial assets that have subsequently become credit-impaired, where, in both cases, the EIR is applied to the amortized cost of the financial asset. Losses arising from impairment are recognized in ‘Asset impairment’ in our consolidated income statements.

Our financial assets at amortized cost include debt instruments at amortized cost, cash and cash equivalents, short-term investments, trade and other receivables, and other financial assets as at September 30, 2025 and December 31, 2024. See
Note 12 – Debt Instruments at Amortized Cost, Note 15 – Cash and Cash Equivalents, Note 16 – Trade and Other Receivables and Note 27 – Financial Assets and Liabilities.

F-18

Financial assets at FVPL

Financial assets at FVPL are measured at fair value. Included in this classification are derivative financial assets, equity investments held for trading and debt instruments with contractual terms that do not represent solely payments of principal and interest. Financial assets held at FVPL are initially recognized at fair value, with transaction costs recognized in our consolidated income statements as incurred. Subsequently, they are measured at fair value and any gains or losses are recognized in our consolidated income statements.

Additionally, even if the asset meets the amortized cost or the FVOCI criteria, we may choose at initial recognition to designate the financial asset at FVPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency (an accounting mismatch) that would otherwise arise from measuring financial assets on a different basis.

Trading gains or losses are calculated based on the results arising from trading activities of the PLDT Group, including all gains and losses from changes in fair value for financial assets and financial liabilities at FVPL, and the gains or losses from disposal of financial investments.

Our financial assets at FVPL include derivative financial assets and equity investments as at September 30, 2025 and
December 31, 2024. See Note 27 – Financial Assets and Liabilities.

Classification of financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Financial liabilities are subsequently measured at amortized cost, except for the following:

•

Financial liabilities measured at FVPL;

•

Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when we retain continuing involvement;

•

Financial guarantee contracts;

•

Commitments to provide a loan at a below-market interest rate; and

•

Contingent consideration recognized by an acquirer in accordance with IFRS 3.

A financial liability may be designated at FVPL if it eliminates or significantly reduces a measurement or recognition inconsistency (an accounting mismatch) or:

•

If a host contract contains one or more embedded derivatives; or

•

If a group of financial liabilities or financial assets and liabilities is managed and its performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Where a financial liability is designated at FVPL, the movement in fair value attributable to changes in our own credit quality is calculated by determining the changes in credit spreads above observable market interest rates and is presented separately in other comprehensive income.

Our financial liabilities at FVPL include derivative financial liabilities and liability from redemption of preferred stock as at September 30, 2025 and December 31, 2024. See Note 19 – Equity – Redemption of Preferred Stock, Note 23 – Accrued Expenses and Other Current Liabilities and Note 27 – Financial Assets and Liabilities.

Our other financial liabilities include interest-bearing financial liabilities, lease liabilities, customers’ deposits, dividends payable, certain accounts payable, certain accrued expenses and other current liabilities and certain deferred credits and other noncurrent liabilities, (except for statutory payables) as at September 30, 2025 and December 31, 2024. See
Note 10 – Leases, Note 20 – Interest-bearing Financial Liabilities, Note 21 – Deferred Credits and Other Noncurrent Liabilities, Note 22 – Accounts Payable, Note 23 – Accrued Expenses and Other Current Liabilities and Note 27 – Financial Assets and Liabilities.

F-19

Reclassifications of financial instruments

We reclassify our financial assets when, and only when, there is a change in the business model for managing the financial assets. Reclassifications shall be applied prospectively and any previously recognized gains, losses or interest shall not be restated.

We do not reclassify our financial assets when:

•

A financial asset that was previously a designated and effective hedging instrument in a cash flow hedge or net investment hedge no longer qualifies as such;

•

A financial asset becomes a designated and effective hedging instrument in a cash flow hedge or net investment hedge; and

•

There is a change in measurement on credit exposures measured at FVPL.

We do not reclassify our financial liabilities.

Offsetting of Financial Instruments

Financial assets and liabilities are offset, and the net amount is reported in the consolidated statements of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts; and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. We assess that it has a currently enforceable right of offset if the right is not contingent on a future event and is legally enforceable in the normal course of business, event of default, and event of insolvency or bankruptcy of the Group and all of the counterparties.

Impairment of Financial Assets

We recognize expected credit losses, or ECL for debt instruments that are measured at amortized cost and FVOCI.

No ECL is recognized on financial assets at FVPL.

ECLs are measured in a way that reflects the following:

•

An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

•

The time value of money; and

•

Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

Financial assets migrate through the following three stages based on the change in credit quality since initial recognition:

Stage 1: 12-month ECL – not credit-impaired

For credit exposures where there have not been significant increases in credit risk since initial recognition and that are not credit-impaired upon origination, the portion of lifetime ECLs representing the ECLs that result from all possible default events within the 12-months after the reporting date are recognized.

Stage 2: Lifetime ECL – not credit-impaired

For credit exposures where there have been significant increases in credit risk since initial recognition on an individual or collective basis but are not credit-impaired, lifetime ECLs representing the ECLs that result from all possible default events over the expected life of the financial asset are recognized.

Stage 3: Lifetime ECL – credit-impaired

Financial assets are credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of those financial assets have occurred. For these credit exposures, lifetime ECLs are recognized and interest revenue is calculated by applying the credit-adjusted EIR to the amortized cost of the financial asset.

F-20

Loss Allowances

Loss allowances are recognized based on 12-month ECL for debt instruments that are assessed to have low credit risk at the reporting date. A financial asset is considered to have low credit risk if:

•

The financial instrument has a low risk of default;

•

The counterparty has a strong capacity to meet its contractual cash flow obligations in the near term; and

•

Adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the counterparty to fulfill its contractual cash flow obligations.

We consider a debt instrument to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment grade’, or when the exposure is less than 30 days past due.

The loss allowances recognized in the period is impacted by a variety of factors, as described below:

•

Transfers between Stage 1 and Stage 2 and 3 due to the financial instruments experiencing significant increases (or decreases) of credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and lifetime ECL;

•

Additional allowances for new financial instruments recognized during the period, as well as releases for financial instruments derecognized in the period;

•

Impact on the measurement of ECL due to changes in probability of defaults, or PDs, loss given defaults, or LGDs, and exposure at defaults, or EADs, in the period, arising from regular refreshing of inputs to models;

•

Impacts on the measurement of ECL due to changes made to models and assumptions;

•

Unwinding of discount within ECL due to passage of time, as ECL is measured on a present value basis; and

•

Financial assets derecognized during the period and write-offs of allowances related to assets that were written off during the period.

Write-off Policy

We write off a financial asset measured at amortized cost, in whole or in part, when the asset is considered uncollectible, and we have exhausted all practical recovery efforts and concluded that we have no reasonable expectations of recovering the financial asset in its entirety or a portion thereof. We write off an account when all of the following conditions are met:

•

The asset is past due for over 90 days, or is already an item-in-litigation with any of the following:

No properties of the counterparty could be attached

The whereabouts of the client cannot be located

It would be more expensive for the Group to follow-up and collect the amount, hence we have ceased enforcement activity, and

Collections can no longer be made due to insolvency or bankruptcy of the counterparty;

•

Expanded credit arrangement is no longer possible;

•

Filing of legal case is not possible; and

•

The account has been classified as ‘Loss’.

Simplified Approach

The simplified approach, where changes in credit risk are not tracked and loss allowances are measured at amounts equal to lifetime ECL, is applied to ‘Trade and other receivables’ and ‘Contract assets’. We have established a provision matrix for billed trade receivables and a vintage analysis for contract assets and unbilled trade receivables that is based on historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

F-21

Derecognition of Financial Assets and Liabilities

Financial assets

A financial asset (or where applicable as part of a financial asset or part of a group of similar financial assets) is primarily derecognized when: (1) the right to receive cash flows from the asset has expired; or (2) we have transferred the right to receive cash flows from the asset or have assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either: (a) we have transferred substantially all the risks and rewards of the asset; or (b) we have neither transferred nor retained substantially all the risks and rewards of the asset, but have transferred control of the asset.

When we have transferred the right to receive cash flows from an asset or have entered into a “pass-through” arrangement and have neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, a new asset is recognized to the extent of our continuing involvement in the asset.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that we could be required to repay.

When continuing involvement takes the form of a written and/or purchased option (including a cash-settled option or similar provision) on the transferred asset, the extent of our continuing involvement is the amount of the transferred asset that we may repurchase, except that in the case of a written put option (including a cash-settled option or similar provision) on an asset measured at fair value, the extent of our continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.

Financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or has expired.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in consolidated income statements.

The financial liability is also derecognized when equity instruments are issued to extinguish all or part of the financial liability. The equity instruments issued are recognized at fair value if it can be reliably measured, otherwise, it is recognized at the fair value of the financial liability extinguished. Any difference between the fair value of the equity instruments issued and the carrying value of the financial liability extinguished is recognized in consolidated income statements.

Derivative Financial Instruments and Hedge Accounting

Initial recognition and subsequent measurement

We use derivative financial instruments, such as long-term currency swaps, foreign currency options, forward currency contracts and interest rate swaps to hedge our risks associated with foreign currency fluctuations and interest rates. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. The fair value of long-term currency swaps, foreign currency options, forward currency contracts and interest rate swap contracts is determined using applicable valuation techniques. See Note 27 – Financial Assets and Liabilities.

Any gains or losses arising from changes in fair value on derivatives during the period that do not qualify for hedge accounting are taken directly to the “Other income (expense) – Gains (losses) on derivative financial instruments – net” in our consolidated income statements.

F-22

Hedges which meet the criteria for hedge accounting are accounted for as follows:

Fair value hedges

The change in the fair value of a hedging instrument is recognized in our consolidated income statements as financing cost. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognized in our consolidated income statements.

For fair value hedges relating to items carried at amortized cost, any adjustment to carrying value is amortized through profit or loss over the remaining term of the hedge using the EIR method. EIR amortization may begin as soon as adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is derecognized, the unamortized fair value is recognized immediately in our consolidated income statements.

When an unrecognized firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognized as an asset or liability with a corresponding gain or loss recognized in our consolidated income statements.

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income, while any ineffective portion is recognized immediately in our consolidated income statements. See Note 27 – Financial Assets and Liabilities for more details.

Amounts taken to other comprehensive income are transferred to our consolidated income statements when the hedged transaction affects our consolidated income statements, such as when the hedged financial income or financial expense is recognized or when a forecast transaction occurs. Where the hedged item is the cost of a non-financial asset or non-financial liability, the amounts taken to other comprehensive income are transferred to the initial carrying amount of the non-financial asset or liability.

If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in other comprehensive income are transferred to our consolidated income statements. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in other comprehensive income remain in other comprehensive income until the forecast transaction or firm commitment occurs.

We use an interest rate swap agreement to hedge our interest rate exposure and a long-term principal only-currency swap, and long-term foreign currency options agreement to hedge our foreign exchange exposure on certain outstanding loan balances. See Note 27 – Financial Assets and Liabilities.

Property and Equipment

Property and equipment, except for land, is stated at cost less accumulated depreciation and any accumulated impairment losses. Land is stated at cost less any impairment in value. The initial cost of property and equipment comprises its purchase price, including import duties and non-refundable purchase taxes and any directly attributable costs of bringing the property and equipment to its working condition and location for its intended use. Such cost includes the cost of replacing component parts of the property and equipment when the cost is incurred, if the recognition criteria are met. When significant parts of property and equipment are required to be replaced at intervals, we recognize such parts as individual assets with specific useful lives and depreciate them accordingly. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the property and equipment as a replacement if the recognition criteria are satisfied. All other repairs and maintenance costs are recognized as expenses as incurred. The present value of the expected cost for the decommissioning of the asset after use is included in the cost of the asset if the recognition criteria for a provision are met.

Depreciation commences once the property and equipment are available for their intended use and are calculated on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives used in depreciating our property and equipment are disclosed in Note 9 – Property and Equipment.

The residual values, the estimated useful lives, and methods of depreciation are reviewed at least at each financial year-end and adjusted prospectively, if appropriate.

An item of property and equipment and any significant part initially recognized are derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset

F-23

(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in our consolidated income statements when the asset is derecognized.

Property under construction is stated at cost less any impairment in value. This includes the cost of construction, plant and equipment, capitalizable borrowing costs and other direct costs associated with construction. Property under construction is not depreciated until such time that the relevant assets are completed and available for its intended use.

Property under construction is transferred to the related property and equipment when the construction or installation and related activities necessary to prepare the property and equipment for their intended use have been completed, and the property and equipment are ready for operational use.

Asset Retirement Obligations

We are legally required under various lease agreements to dismantle the installation in leased sites and restore such sites to their original condition at the end of the contract lease term. We recognize the liability measured at the present value of the estimated costs of these obligations and capitalize such costs as part of the balance of the related item of property and equipment and right-of-use asset. The amount of asset retirement obligations is accreted, and such accretion is recognized as interest expense. See Note 10 – Leases and Note 21 – Deferred Credits and Other Noncurrent Liabilities.

Intangible Assets

Intangible assets acquired separately are measured at cost on initial recognition. The cost of intangible assets acquired from business combinations is initially recognized at fair value on the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. The useful lives of intangible assets are assessed at the individual asset level as either finite or indefinite.

Intangible assets with finite lives are amortized over the economic useful life using the straight-line method and assessed for impairment whenever there is an indication that the intangible assets may be impaired. At the minimum, the amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in our consolidated income statements.

Intangible assets with indefinite useful lives are not amortized but are tested for impairment annually either individually or at the CGU level. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether the indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.

The estimated useful lives used in amortizing our intangible assets are disclosed in Note 14 – Goodwill and Intangible Assets.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in our consolidated income statements when the asset is derecognized.

Internally generated intangibles are not capitalized, and the related expenditures are charged against operations in the period in which the expenditures are incurred.

Investment Properties

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment properties are included in profit or loss in the period in which they arise, including the corresponding tax effect. Fair values are determined based on an annual valuation performed by an accredited external independent valuer applying a valuation model.

Investment properties are derecognized either when they have been disposed of (i.e., at the date the recipient obtains control) or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition. In determining the amount of consideration from the derecognition of investment property, we consider the effects of variable consideration, existence of a significant financing component, non-cash consideration, and consideration payable to the buyer (if any).

F-24

Transfers are made to, or from, investment property when, and only when, there is a change in use.

For a transfer from investment property to owner-occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use.

If owner-occupied property becomes an investment property, we account for such property in accordance with IAS 16, Property and Equipment. The difference between the carrying amount of the property in accordance with IAS 16 and its fair value is treated the same way as revaluation in accordance with IAS 16. Any resulting decrease in the carrying amount of the property is recognized in profit or loss. However, to the extent that an amount is included in revaluation surplus for that property, the decrease in recognized in other comprehensive income and reduces the revaluation surplus within equity. Any resulting increase in the carrying amount is recognized in profit or loss to the extent that the increase reverses a previous impairment loss for that property. The amount recognized in profit or loss does not exceed the amount needed to restore the carrying amount to the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized. Any remaining part of the increase in carrying amount is recognized in other comprehensive income and increases the revaluation surplus within equity. On subsequent disposal of the investment property, the revaluation surplus included in equity may be transferred to retained earnings. The transfer from revaluation surplus to retained earnings is not made through profit or loss.

Inventories and Supplies

Inventories and supplies, which include cellular and landline phone units, materials, spare parts, terminal units and accessories, are valued at the lower of cost and net realizable value.

Costs incurred in bringing inventories and supplies to its present location and condition are accounted for using the weighted average cost method. Net realizable value is determined by either estimating the selling price in the ordinary course of business, less the estimated cost to sell, or determining the prevailing replacement costs.

Impairment of Non-Financial Assets

We assess at each reporting period whether there is an indication that an asset may be impaired. If any indication exists, or when the annual impairment testing for an asset is required, we make an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use, or VIU. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent from those of other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing the VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining the fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognized in our consolidated income statements.

For assets, excluding goodwill and intangible assets with indefinite useful life, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, we make an estimate of the recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. If this is the case, the carrying amount of the asset is increased to its recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation and amortization, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in our consolidated income statements. After such reversal, the depreciation and amortization charges are adjusted in future years to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining economic useful life.

The following assets have specific characteristics for impairment testing:

Property and equipment, right-of-use, or ROU, assets, and intangible assets with finite useful lives

For property and equipment and ROU assets, we assess for impairment on the basis of impairment indicators such as evidence of internal obsolescence or physical damage. For intangible assets with finite useful lives, we assess for impairment whenever there is an indication that the intangible assets may be impaired. See Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Impairment of non-financial assets, Note 9 – Property and Equipment,
Note 10 – Leases and Note 14 – Goodwill and Intangible Assets for further disclosures relating to impairment of non-financial assets.

F-25

Investments in associates and joint ventures

We determine at the end of each reporting period whether there is any objective evidence that our investments in associates and joint ventures are impaired. If this is the case, the amount of impairment is calculated as the difference between the recoverable amount of the investments in associates and joint ventures, and its carrying amount. The amount of impairment loss is recognized in our consolidated income statements. See Note 11 – Investments in Associates and Joint Ventures for further disclosures relating to impairment of non-financial assets.

Goodwill

Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU, or group of CGUs, to which the goodwill relates. When the recoverable amount of the CGU, or group of CGUs, is less than the carrying amount of the CGU, or group of CGUs, to which goodwill has been allocated, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

See Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Impairment of non-financial assets and Note 14 – Goodwill and Intangible Assets for further disclosures relating to impairment of non-financial assets.

Intangible asset with indefinite useful life

Intangible asset with indefinite useful life is not amortized but is tested for impairment annually either individually or at the CGU level, as appropriate. We calculate the amount of impairment as being the difference between the recoverable amount of the intangible asset or the CGU, and its carrying amount and recognize the amount of impairment in our consolidated income statements. Impairment losses relating to intangible assets can be reversed in future periods.

Fair Value Measurement

We measure financial instruments such as derivatives, financial assets at FVPL, assets classified as held-for-sale and
non-financial assets such as investment properties and pension plan assets, at fair value at each reporting date. The fair values of investment properties are disclosed in Note 13 – Investment Properties. The fair values of the pension plan assets are disclosed in Note 25 – Pension and Other Employee Benefits. The fair values of financial instruments measured at amortized cost are disclosed in Note 27 – Financial Assets and Liabilities.

Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (i) in the principal market for the asset or liability; or
(ii) in the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to us.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

We use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in our consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: (i) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities; (ii) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and (iii) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

F-26

For assets and liabilities that are recognized in our consolidated financial statements on a recurring basis, we determine whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

We determine the policies and procedures for both recurring fair value measurement, such as investment properties and unquoted FVPL financial assets, and for non-recurring measurement, such as assets held for distribution in discontinued operation.

External valuers are involved for valuation of significant assets, such as investment properties. Involvement of external valuers is decided upon annually. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. At each reporting date, we analyze the movements in the values of assets and liabilities which are required to be remeasured or reassessed as per our accounting policies. For this analysis, we verify the major inputs applied in the latest valuation by agreeing the information in the valuation computation with the contracts and other relevant documents.

We, in conjunction with our external valuers, also compare the changes in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. This includes a discussion of the major assumptions used in the valuations. For the purpose of fair value disclosures, we have determined the classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Revenues from contracts with customers

Our revenues are principally derived from providing the following telecommunications services: cellular voice, SMS and data services in the wireless business; and local exchange, international and national long distance, data and other network, and information and communications services in the fixed line business.

Services may be rendered separately or bundled with goods or other services. The specific recognition criteria are as follows:

i. Single Performance Obligation (POB) Contracts

Postpaid service arrangements include fixed monthly charges (including excess of consumable fixed monthly service fees) generated from cellular voice, short messaging services, or SMS, and data services through the postpaid plans of Smart Signature and Infinity brands, from local exchange services primarily through landline and related services, and from fixed line and other network services primarily through broadband and leased line services, which we recognize on a
straight-line basis over the customer’s subscription period. Services provided to postpaid subscribers are billed throughout the month according to the billing cycles of subscribers. Services availed by subscribers in addition to these fixed fee arrangements are charged separately at their stand-alone selling prices and recognized as the additional service is provided or as availed by the subscribers.

Our prepaid service revenues arise from the usage of airtime load from channels and prepaid cards provided from Prepaid Home WiFi, Landline Plus products, Smart, TNT and SmartBro. Proceeds from over-the-air reloading channels and prepaid cards are initially recognized as contract liability and realized upon actual usage of the airtime value for voice, SMS, mobile data and other VAS, prepaid unlimited and bucket-priced SMS and call subscriptions, net of bonus credits from load packages purchased, such as free additional call minutes, SMS, data allocation or airtime load, or upon expiration, whichever comes earlier.

We also consider recognizing revenue from the expected expiry of airtime load in proportion to the pattern of rights exercised by the customer if we expect to be entitled to that expired amount. If we do not expect to be entitled to an expired amount based on historical experience with the customers, then we recognize the expected expired amount as revenue when the likelihood of the prepaid customer exercising its remaining rights becomes remote.

Interconnection fees and charges arising from the actual usage of airtime value or subscriptions are recorded as incurred.

Revenue from international and national long-distance calls carried via our network is generally based on rates which vary with distance. Revenue from both wireless and fixed line long distance calls are recognized as the service is provided. In general, non-refundable upfront fees, such as activation fees, that do not relate to the transfer of a promised good or service, are deferred and recognized as revenue throughout the estimated average customer relationship period, and the related incremental costs incurred are similarly deferred and recognized as expense over the same period, if such costs generate or enhance resources of the entity and are expected to be recovered.

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Activation fees for both voice and data services are also considered as a single performance obligation together with monthly service fees, recognized over the estimated average customer relationship period.

ii. Bundled Contracts

In revenue arrangements, which involve bundled sales of mobile devices and accessories (non-service component) and telecommunication services (service component), the total transaction price is allocated based on the relative stand-alone selling prices of each distinct performance obligation. Stand-alone selling price is the price at which we sell the good or service separately to a customer. However, if goods or services are not currently offered separately, we use the adjusted market or cost-plus margin method to determine the stand-alone selling price to be used in the transaction price allocation. We adjust the transaction price for the effects of the time value of money if the timing of the payment and delivery of goods or services do not coincide, effects of which are considered as containing a significant financing component.

Activation services and installation services for voice and data services that are not a distinct performance obligation are considered together with monthly voice and data services as a single performance obligation, recognized over the estimated average customer relationship period since the subscriber cannot benefit from the installation services on its own or together with other resources that are readily available to the subscriber. The related incremental costs are recognized in the same manner in our consolidated income statements, if such costs are expected to be recovered. On the other hand, custom-built installation services provided to data services subscribers are considered a distinct separate performance obligation and is recognized when services are rendered.

Revenues from the sale of non-service component are recognized at the point in time when the goods are delivered while revenues from telecommunication services component are recognized on a straight-line basis over the contract period when the services are provided to subscribers.

Significant Financing Component

The non-service component included in contracts with customers have significant financing component considering the period between the time of the transfer of control over the mobile device and the customer’s payment of the price of the mobile device, which is more than one year.

The transaction price for such contracts is determined by discounting the amount of promised consideration using the appropriate discount rate. We concluded that there is a significant financing component for those contracts where the customer elects to pay in arrears considering the length of time between the transfer of mobile device to the customer and the customer’s payment, as well as the prevailing interest rates in the market adjusted with customer credit spread.

Customer Loyalty Program

Through our customer loyalty program called Giga Points, points are earned through subscription of promo, purchase of load, and payment of bill for postpaid subscribers. Points are also earned through other activities such as daily login in the Smart App. These points can be used to redeem items such as giga promos, bill rebates, content subscription, discounts, exclusive tickets, and more.

Our contract with customers for revenue-related activity includes a promise to provide future telco services or rights to third-party services in the form of earning points. We consider these revenue-related earnings as performance obligation and the transaction price is allocated to each performance obligation. For earnings on non-revenue activity, we recognize a financial liability upon redemption of the points from third party partners.

We also offer PLDT Home Rewards. This customer loyalty program is available exclusively to active PLDT Home customers except for Home Biz and Corporate accounts which are not currently eligible for enrollment. Under this program, PLDT Home customers are granted points to incentivize customer-related activities. Points earned thru enrollment, payment on time, upgrade, availment of VAS add-on etc.

iii. International and Domestic Long Distance Contracts

Interconnection revenues for call termination, call transit and network usages are recognized in the period in which the traffic occurs. Revenues related to local, long distance, network-to-network, roaming and international call connection services are recognized when the call is placed, or connection is provided, and the equivalent amounts charged to us by other carriers are recorded under interconnection costs in our consolidated income statements. Inbound revenue and outbound charges are based on agreed transit and termination rates with other foreign and local carriers.

Variable consideration

We assessed that a variable consideration exists in certain interconnection agreements where there is a monthly aggregation period and the rates applied for the total monthly traffic will depend on the total traffic for the month. We also

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consider whether contracts with carriers contain volume commitment or tiering arrangement whereby the rate being charged will change upon meeting certain volume of traffic. We estimate the amount of variable consideration to which we are entitled and included in the transaction price some or all of the amount of variable consideration estimated arising from these agreements, unless the impact is not material.

iv. Others

Revenues from VAS include streaming and downloading of games, music, video contents, loan services, messaging services, applications and other digital services which are only arranged for by us on behalf of third-party content providers. The amount of revenue recognized is net of content provider’s share in revenue. Revenue is recognized at a point in time upon service availment. We act as an agent for certain VAS arrangements.

Revenue from server hosting, co-location services and customer support services are recognized over the period that the services are performed.

Subscriber Contract Costs

Costs to obtain a contract with customers, such as commission, and costs to fulfill the contract, such as installation and Customer Premises Equipment (CPE) costs, are capitalized if we expect to recover those costs. These subscriber contract costs are stated at cost net of accumulated amortization and impairment losses. Subscriber contract costs are amortized on a systematic basis consistent with the pattern of transfer of goods and services to which the assets relates.

The amortization of costs to obtain and costs to fulfill are presented as part of general operating costs, and depreciation and amortization, respectively, in the consolidated income statements.

Impairment losses are recognized to the extent that the carrying amount of the subscriber contract costs exceed the net of (i) remaining amount of consideration that we expect to receive in exchange for the goods or services to which the asset relates, less (ii) any costs that relate directly to providing those goods or services that have not yet been recognized as expenses.

The disclosures of significant accounting judgments, estimates and assumptions relating to revenues from contracts with customers are provided in Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Identifying performance obligations.

Cost of Devices, Accessories and Contract-Specific Services

Cost of devices and accessories

This refers to the cost of devices such as mobile handsets, phone units, and broadband and data modems sold to subscribers.

Cost of contract-specific services

This refers to the costs from third-party vendors that are directly identifiable and distinct to specific customer contracts where we are the principal, such as content, license, and maintenance/warranty costs. Costs not identifiable and distinct to specific customer contracts such as compensation and benefits, and equipment depreciation are excluded.

Retirement Benefits

PLDT and certain of its subsidiaries are covered under Republic Act No. 7641 otherwise known as “The Philippine Retirement Law”.

Defined benefit pension plans

PLDT has separate and distinct retirement plans for itself and some of its Philippine-based operating subsidiaries, administered by the respective Funds’ Trustees, covering permanent employees. Retirement costs are separately determined using the projected unit credit method. This method reflects services rendered by employees to the date of valuation and incorporates assumptions concerning employees’ projected salaries.

Retirement costs consist of the following:

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Service cost;

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Net interest on the net defined benefit asset or obligation; and

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Remeasurements of net defined benefit asset or obligation.

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Service cost (which includes current service costs, past service costs and gains or losses on curtailments and non-routine settlements) is recognized as part of “General operating costs – Compensation and employee benefits” account in our consolidated income statements. These amounts are calculated periodically by an independent qualified actuary.

Net interest on the net defined benefit asset or obligation is the change during the period in the net defined benefit asset or obligation that arises from the passage of time which is determined by applying the discount rate based on the government bonds to the net defined benefit asset or obligation. Net defined benefit asset is recognized as part of “Prepayments, and other nonfinancial assets - net of current portion” and net defined benefit obligation is recognized as part of “Pension and other employee benefits” in our consolidated statements of financial position.

Remeasurements, comprising actuarial gains and losses, return on plan assets and any change in the effect of the asset ceiling (excluding net interest on defined benefit obligation) are recognized immediately in other comprehensive income in the period in which they occur. Remeasurements are not classified to profit or loss in subsequent periods.

The net defined benefit asset or obligation comprises the present value of the defined benefit obligation (using a discount rate based on government bonds, as explained in Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Estimating pension benefit costs and other employee benefits), net of the fair value of plan assets out of which the obligations are to be settled directly. Plan assets are assets held by a long-term employee benefit fund or qualifying insurance policies and are not available to our creditors nor can they be paid directly to us. Fair value is based on market price information and in the case of quoted securities, the published bid price and in the case of unquoted securities, the discounted cash flow using the income approach. The value of any defined benefit asset recognized is restricted to the asset ceiling which is the present value of any economic benefits available in the form of refunds from the plan or reductions in the future contributions to the plan. See Note 25 – Pension and Other Employee Benefits – Defined Benefit Pension Plans for more details.

Defined contribution plans

Smart and certain subsidiaries maintain a defined contribution plan that covers all regular full-time employees under which it pays fixed contributions based on the employees’ monthly salaries and provide for qualified employees to receive a defined benefit minimum guarantee. The defined benefit minimum guarantee is equivalent to a certain percentage of the monthly salary payable to an employee at normal retirement age with the required credited years of service based on the provisions of Republic Act No. 7641.

Accordingly, Smart and certain subsidiaries account for its obligation under the higher of the defined benefit obligation related to the minimum guarantee and the obligation arising from the defined contribution plan.

For the defined benefit minimum guarantee plan, the liability is determined based on the present value of the excess of the projected defined benefit obligation over the projected defined contribution obligation at the end of the reporting period. The defined benefit obligation is calculated annually by a qualified independent actuary using the projected unit credit method. Smart and certain subsidiaries determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense (income) and other expenses (income) related to the defined benefit plan are recognized in our consolidated income statements.

The defined contribution liability, on the other hand, is measured at the fair value of the defined contribution assets upon which the defined contribution benefits depend, with an adjustment for margin on asset returns, if any, where this is reflected in the defined contribution benefits.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in our other comprehensive income.

When the benefits of the plan are changed or when the plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in our profit or loss. Gains or losses on the settlement of the defined benefit plan are recognized when the settlement occurs. See Note 25 – Pension and Other Employee Benefits – Defined Contribution Plans for more details.

Employee benefit costs include current service cost, net interest on the net defined benefit obligation, and remeasurements of the net defined benefit obligation. Past service costs and actuarial gains and losses are recognized immediately in our consolidated income statements.

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The long-term employee benefit liability comprises the present value of the defined benefit obligation (using a discount rate based on government bonds) at the end of the reporting period and is determined using the projected unit credit method. See Note 25 – Pension and Other Employee Benefits – Other Long-term Employee Benefits for more details.

Leases

We assess at contract inception whether the contract is, or contains, a lease that is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration.

As a Lessee. We apply a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. We recognize lease liabilities to make lease payments and ROU assets representing the right to use the underlying assets.

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ROU assets

We recognize ROU assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). ROU assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless it is reasonably certain that we obtain ownership of the leased asset at the end of the lease term, the recognized ROU assets are depreciated on a straight-line basis over the shorter of its estimated useful life, or EUL, and the lease term. ROU assets are subject to impairment. Refer to the accounting policies in impairment of non-financial assets section.

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Lease liabilities

At the commencement date of the lease, we recognize lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option if reasonably certain to be exercised and payments of penalties for terminating a lease, if the lease term reflects exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, we use the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

As a Lessor. Leases in which we do not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income is accounted for on a straight-line basis over the lease term and is included in revenue in our consolidated income statements due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term as rental income.

Sale and Leaseback. If we transfer an asset to another entity (the buyer-lessor) and lease that asset back from the buyer-lessor, we account for the transfer contract and the lease by applying the requirements of IFRS 16. We first apply the requirements for determining when a performance obligation is satisfied in IFRS 15 to determine whether the transfer of an asset is accounted for as a sale of that asset.

For transfer of an asset that satisfies the requirements of IFRS 15 to be accounted for as a sale of the asset, we measure the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right of use retained by us. Accordingly, we recognize only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor.

If the transfer of an asset does not satisfy the requirements of IFRS 15 to be accounted for as a sale of the asset, we continue to recognize the transferred asset and recognize a financial liability equal to the transfer proceeds. We account for the financial liability applying IFRS 9.

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Income Taxes

Current income tax

Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted as at the end of the reporting period where we operate and generate taxable income.

Current income tax relating to items recognized directly in equity is recognized in equity and not in our consolidated income statements. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred income tax

Deferred income tax is provided on all temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the end of the reporting period.

Contingencies

Contingent liabilities are not recognized in our consolidated financial statements. Unless the possibility of an outflow of resources embodying economic benefits is probable and measurable, they are disclosed in the notes to our consolidated financial statements. On the other hand, contingent assets are not recognized in our consolidated financial statements but are disclosed in the notes to our consolidated financial statements when an inflow of economic benefits is probable.

Segment Information

PLDT and its subsidiaries are organized into three business segments. Such business segments are the bases upon which we report our primary segment information. Financial information on business segments is presented in Note 4 – Operating Segment Information.

Events After the End of the Reporting Period

Post reporting period events up to the date of approval of the Board of Directors that provide additional information about our financial position at the end of the reporting period (adjusting events) are reflected in our consolidated financial statements. Post reporting period events that are classified as non-adjusting events are disclosed in the notes to our consolidated financial statements when material.

Equity

Preferred and common stocks are measured at par value for all shares issued. Incremental costs incurred directly attributable to the issuance of new shares are shown in equity as a deduction from proceeds, net of tax. Proceeds and/or fair value of considerations received in excess of par value are recognized as capital in excess of par value in our consolidated statements of changes in equity and consolidated statements of financial position.

Treasury stocks are our own equity instruments which are reacquired and recognized at cost and presented as reduction in equity. No gain or loss is recognized in our consolidated income statements on the purchase, sale, reissuance or cancellation of our own equity instruments. Any difference between the carrying amount and the consideration upon reissuance or cancellation of shares is recognized as capital in excess of par value in our consolidated statements of changes in equity and consolidated statements of financial position.

Change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction and any impact is presented as part of capital in excess of par value in our consolidated statements of changes in equity.

Retained earnings represent our net accumulated earnings less cumulative dividends declared.

Other comprehensive income comprises of income and expense, including reclassification adjustments, that are not recognized in our consolidated income statements as required or permitted by IFRS Accounting Standards.

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Standards Issued But Not Yet Effective

Pronouncements issued but not yet effective are listed below. The PLDT Group intends to adopt the following pronouncements when they become effective. Adoption of these pronouncements is not expected to have a material impact on the PLDT Group’s consolidated financial statements.

Effective beginning on or after January 1, 2026

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Amendments to IFRS 9 and IFRS 7, Classification and Measurement of Financial Instruments

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Annual Improvements to IFRS Accounting Standards—Volume 11

Amendments to IFRS 1, Hedge Accounting by a First-time Adopter

Amendments to IFRS 7, Gain or Loss on Derecognition

Amendments to IFRS 9, Lessee Derecognition of Lease Liabilities and Transaction Price

Amendments to IFRS 10, Determination of a ‘De Facto Agent’

Amendments to IAS 7, Cost Method

Effective beginning on or after January 1, 2027

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IFRS 17, Insurance Contracts

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IFRS 18, Presentation and Disclosure in Financial Statements

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IFRS 19, Subsidiaries without Public Accountability

Deferred effectivity

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Amendments to IFRS 10 and IAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

Management’s Use of Accounting Judgments, Estimates and Assumptions

The preparation of our consolidated financial statements in conformity with IFRS Accounting Standards requires us to make judgments, estimates and assumptions that affect the reported amounts of our revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of each reporting period. The uncertainties inherent in these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liabilities affected in the future years.

Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Judgments, key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period are consistent with those applied in the most recent annual financial statements. Selected critical judgments and estimates applied in the preparation of the consolidated financial statements are discussed below:

Judgments

In the process of applying our accounting policies, management has made judgments, apart from those involving estimations, which have the most significant effect on the amounts recognized in our consolidated financial statements.

Revenue Recognition

Identifying performance obligations

We identify performance obligations by considering whether the promised goods or services in the contract are distinct goods or services. A good or service is distinct when the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer and our promise to transfer the good or service to the customer is separately identifiable from the other promises in the contract.

Revenues earned from multiple-deliverable arrangements offered by our fixed line and wireless businesses are split into separately identifiable performance obligations based on their relative stand-alone selling price in order to reflect the substance of the transaction. The transaction price represents the best evidence of stand-alone selling price for the services

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we offer since this is the observable price we charge if our services are sold separately. We account for customer contracts in accordance with IFRS 15 and have concluded that the service (telecommunication service) and non-service components (handset or equipment) may be accounted for as separate performance obligations. The handset or equipment is delivered first, followed by the telecommunication service (which is provided over the contract/lock-in period of generally three years for fixed line and two years for wireless). Revenues attributable to the separate performance obligations are based on the allocation of the transaction price relative to the stand-alone selling price.

Installation fees for voice and data services that are not custom-built for the subscribers are considered as a single performance obligation together with monthly service fees, recognized over the estimated average customer relationship period since the subscriber cannot benefit from the installation services on its own or together with other resources that are readily available to the subscriber. On the other hand, installation fees of data services that are custom-built for the subscribers are considered as a separate performance obligation and is recognized upon completion of the installation services. Activation fees for both voice and data services are also considered as a single performance obligation together with monthly service fees, recognized over the estimated average customer relationship period.

Principal versus agent consideration

We enter into contracts with our customers involving multiple deliverable arrangements. We determined that we control the goods before they are transferred to customers, and we have the ability to direct the use of the inventory. The following factors indicate that we control the goods before they are being transferred to customers:

We are primarily responsible for fulfilling the promise to provide the specified equipment;

We bear inventory risk on our inventory before it has been transferred to the customer; and

We have discretion in establishing the prices for the other party’s goods or services and, therefore, the benefit that we can receive from those goods or services is not limited. It is incumbent upon us to establish the price of our services to be offered to our subscribers.

Based on the foregoing, we are considered the principal in our contracts with other service providers except for certain VAS arrangements. We have the primary obligation to provide the services to the subscriber.

Timing of revenue recognition

We recognize revenues from contracts with customers over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or services and based on the extent of progress towards completion of the performance obligation. For the telecommunication service which is provided over the contract period of two or more years, revenue is recognized monthly as we provide the service because control is transferred over time. For the device, which is sold at the inception of the contract, revenue is recognized at the time of delivery because control is transferred at a point in time.

Identifying methods for measuring progress of revenue recognized over time

We determine the appropriate method of measuring progress which is either through the use of input or output methods. Input method recognizes revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation while output method recognizes revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date.

Revenue from telecommunication services is recognized through the use of input method wherein recognition is over time based on the customer subscription period since the customer simultaneously receives and consumes the benefits as the seller renders the services.

Significant financing component

We concluded that the handset component included in contracts with customers has a significant financing component considering the period between the time of the transfer of control over the handset and the customer’s payment of the price of the handset, which is more than one year.

In determining the interest to be applied to the amount of consideration, we concluded that the interest rate is the market interest rate adjusted with credit spread to reflect the customer credit risk that is commensurate with the rate that would be reflected in a separate financing transaction between us and our customer at contract inception.

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Estimation of stand-alone selling price

We assessed that the service and non-service components represent separate performance obligations, thus, the amount of revenues should be recognized based on the allocation of the transaction price to the different performance obligations based on their stand-alone selling prices. The stand-alone selling price is the price at which we sell the goods or services separately to a customer. However, if goods or services are not currently offered separately, we use the adjusted market or cost-plus margin method to determine the stand-alone selling price to be used in the revenue allocation.

Financial Instruments

Evaluation of business models in managing financial instruments

We determine our business model at the level that best reflects how we manage groups of financial assets to achieve our business objectives. Our business model is not assessed on an instrument-by-instrument basis, but on a higher level of aggregated portfolios and is based on observable factors such as:

How the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity’s key management personnel;

The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed; and

The expected frequency, value and timing of sales are also important aspects of our assessment.

The business model assessment is based on reasonably expected scenarios without taking ‘worst case’ or ‘stress case’ scenarios into account. If cash flows after initial recognition are realized in a way that is different from our original expectations, we do not change the classification of the remaining financial assets held in that business model but incorporates such information when assessing newly originated or newly purchased financial assets going forward.

We have determined that for cash and cash equivalents, short-term investments, investment in debt securities and other long-term investments, and trade and other receivables, the business model is to collect the contractual cash flows until maturity.

IFRS 9, however, emphasizes that if more than an infrequent number of sales are made out of a portfolio and those sales are more than insignificant in value, of financial assets carried at amortized cost, we should assess whether and how such sales are consistent with the objective of collecting contractual cash flows.

Definition of default and credit-impaired financial assets

We define a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when it meets one or more of the following criteria:

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Quantitative criteria

For trade receivables and all other financial assets subject to impairment, default occurs when the receivable becomes 90 days past due, except for trade receivables from corporate subscribers, which are determined to be in default when the receivables become 120 days past due.

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Qualitative criteria

The counterparty meets unlikeliness to pay criteria, which indicates the counterparty is in significant financial difficulty. These are instances where:

The counterparty is experiencing financial difficulty or is insolvent;

The counterparty is in breach of financial covenant(s);

An active market for that financial asset has disappeared because of financial difficulties;

Concessions have been granted by us, for economic or contractual reasons relating to the counterparty’s financial difficulty;

It is becoming probable that the counterparty will enter bankruptcy or other financial reorganization; and

Financial assets are purchased or originated at a deep discount that reflects the incurred credit losses.

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The criteria above have been applied to all financial instruments, except FVPL, held by us and are consistent with the definition of default used for internal credit risk management purposes. The default definition has been applied consistently to the ECL models throughout our expected loss calculation.

Significant increase in credit risk

At each reporting date, we assess whether there has been a significant increase in credit risk for financial assets since initial recognition by comparing the risk of default occurring over the expected life between the reporting date and the date of initial recognition. We consider reasonable and supportable information that is relevant and available without undue cost or effort for this purpose. This includes quantitative and qualitative information and forward-looking analysis.

An exposure will migrate through the ECL stages as asset quality deteriorates. If, in a subsequent period, asset quality improves and also reverses any previously assessed significant increase in credit risk since origination, then the loss allowance measurement reverts from lifetime ECL to 12-month ECL.

Using our judgment and, where possible, relevant historical experience, we may determine that an exposure has undergone a significant increase in credit risk based on particular qualitative indicators that we consider are indicative of such and whose effect may not otherwise be fully reflected in its quantitative analysis on a timely basis.

As a backstop, we consider that a significant increase in credit risk occurs no later than when an asset is more than 30 days past due. Days past due are determined by counting the number of days since the earliest elapsed due date in respect of which full payment has not been received. Due dates are determined without considering any grace period that might be available to the counterparty.

Exposures that have not deteriorated significantly since their origination, or where the deterioration remains within our investment grade criteria, or which are less than 30 days past due, are considered to have a low credit risk. The provision for credit losses for these financial assets is based on a 12-month ECL. The low credit risk exemption has been applied on debt investments that meet the investment grade criteria of the PLDT Group.

Determination of functional currency

The functional currencies of the entities under the PLDT Group are the currency of the primary economic environment in which each entity operates. It is the currency that mainly influences the revenue from and cost of rendering products and services.

The presentation currency of the PLDT Group is the Philippine Peso. Based on the economic substance of the underlying circumstances relevant to the PLDT Group, the functional currency of all entities under the PLDT Group is the Philippine Peso, except for PLDT Global and certain of its subsidiaries, and PGNL and certain of its subsidiaries which use the U.S. Dollar.

Determining the lease term of contracts with renewal and termination options – Company as a Lessee

We apply a single recognition and measurement approach for all leases, except for short-term leases and leases of ‘low-value’ assets. See Section Leases for the accounting policy.

We determine the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

We, as the lessee, have the option, under some of our lease agreements to lease the assets for additional terms. We apply judgment in evaluating whether it is reasonably certain to exercise the option to renew. That is, we consider all relevant factors that create an economic incentive for us to exercise the renewal. After the commencement date, we reassess the lease term if there is a significant event or change in circumstances that is within our control and affects our ability to exercise or not to exercise the option to renew or to terminate (e.g., a change in business strategy).

We included the renewal period as part of the lease term for leases such as poles and leased circuits due to the significance of these assets to our operations. These leases have a non-cancellable period (i.e., one to 30 years) and there will be a significant negative effect on our provision of services if a replacement is not readily available. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised.

See Note 10 – Leases for information on potential future payments relating to periods following the exercise date of extension and termination options that are not included in the lease term.

F-36

Total depreciation of ROU assets in our consolidated income statements amounted to Php6,676 million and Php5,255 million for the nine months ended September 30, 2025 and 2024, respectively. Total lease liabilities amounted to Php60,755 million and Php54,038 million as at September 30, 2025 and December 31, 2024, respectively. See Note 10 – Leases and
Note 27 – Financial Assets and Liabilities.

Sale and Leaseback of Telecom Towers

The accounting for sale and leaseback transaction depends on whether the transfer of the asset qualifies as a sale. We applied judgment to determine whether the transfer of asset is accounted for as a sale based on the requirements for determining when a performance obligation is satisfied in IFRS 15. We also applied estimates and judgment in determining many aspects, among others, the passive telecom assets and land lease as unit of accounts, the fair value of the towers sold, the measurement of the ROU assets retained by us and determining an appropriate discount rate to calculate the present value of the minimum lease payments.

Assets classified as held-for-sale

Smart and DMPI entered into sale and purchase agreements with certain tower companies in connection with the sale of telecom towers and related passive telecom infrastructure. The closing of the agreements is on a staggered basis depending on the satisfaction of closing conditions based on the number of towers transferred. Following the completion of the initial transaction with tower companies, Smart and DMPI plan to proceed with the sale of additional telecom towers and related passive infrastructure within a year. With these agreements, we believe that certain conditions were met that qualified the related assets to be reclassified as held-for-sale.

See related discussion in Note 9 – Property and Equipment and Note 10 – Leases.

Accounting for investments in MediaQuest Holdings, Inc., or MediaQuest, through Philippine Depositary Receipts, or PDRs

ePLDT made various investments in PDRs issued by MediaQuest in relation to its direct interest in Satventures, Inc., or Satventures, and indirect interest in Cignal TV, Inc., or Cignal TV.

Based on our judgment, at the PLDT Group level, ePLDT’s investments in PDRs gives ePLDT a significant influence over Satventures and Cignal TV as evidenced by provision of essential technical information and material transactions among PLDT, Smart, Satventures and Cignal TV, and thus are accounted for as investments in associates using the equity method.

See related discussion in Note 11 – Investments in Associates and Joint Ventures – Investments in Associates – Investment of ePLDT in MediaQuest PDRs.

Accounting for investment of PCEV in Maya Bank, Inc., or Maya Bank

The shareholders’ agreement of Voyager Finserve Corporation, or VFC, and Paymaya Finserve Corporation, or PFC, (collectively known as the Bank HoldCos) requires affirmative vote of at least one director nominated by both PCEV and MIH to direct the relevant activities of the Bank HoldCos. The Bank HoldCos were incorporated for the sole purpose of holding shares or equity investments in Maya Bank. Because of the contractual arrangement between the parties, the investments in the Bank HoldCos are accounted for as joint venture.

Assessment of loss of control over Kayana

PLDT assesses the consequences of changes in the ownership interest in a subsidiary that may result in a loss of control as well as the consequence of losing control of a subsidiary during the reporting period. Whether or not PLDT retains control over the subsidiary depends on an evaluation of a number of factors that indicate if there are changes to one or more of the three elements of control. When PLDT has less than majority of the voting rights or similar rights to an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including, among others, representation on its board of directors, voting rights, and other rights of other investors, including their participation in significant decisions made in the ordinary course of business.

The subscription agreement on September 30, 2024 resulted in PLDT’s owning 45% interest and MPIC and Meralco ownership at 27.5% each. Consequently, PLDT lost its control over Kayana and accounted for its remaining interest as an investment in associate.

F-37

Accounting for investments in Vega Telecom Inc., or VTI, Bow Arken Holdings Company, or Bow Arken, and Brightshare Holdings, Inc., or Brightshare

PLDT acquired a 50% equity interest in each of VTI, Bow Arken and Brightshare on May 30, 2016. See related discussion on Note 11 – Investments in Associates and Joint Ventures – Investments in Joint Ventures – Investments of PLDT in VTI, Bow Arken and Brightshare. Based on the Memorandum of Agreement, PLDT and Globe Telecom, Inc., or Globe, each has the right to appoint half the members of the Board of Directors of each of VTI, Bow Arken and Brightshare, as well as the
(i) co-Chairman of the Board; (ii) co-Chief Executive Officer and President; and (iii) co-Controller where any matter requiring their approval shall be deemed passed or approved if the consents of both co-officers holding the same position are obtained. All decisions of each Board of Directors may only be approved if at least one director nominated by each of PLDT and Globe votes in favor of it.

Based on these rights, PLDT and Globe have joint control over VTI, Bow Arken and Brightshare, which is defined in
IFRS 11, Joint Arrangements, as a contractually agreed sharing of control of an arrangement and exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Consequently, PLDT and Globe classified the joint arrangement as a joint venture in accordance with IFRS 11 given that PLDT and Globe each has the right to 50% of the net assets of VTI, Bow Arken and Brightshare and their respective subsidiaries.

Accordingly, PLDT accounted for the investment in VTI, Bow Arken and Brightshare using the equity method of accounting in accordance with IAS 28. Under the equity method of accounting, the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets. See Note 11 – Investments in Associates and Joint Ventures – Investment in Joint Ventures – Investments of PLDT in VTI, Bow Arken and Brightshare.

Material partly-owned subsidiaries

Our consolidated financial statements include additional information about subsidiaries that have non-controlling interest, or NCI, that are material to us, see Note 6 – Components of Other Comprehensive Loss. We determined material partly-owned subsidiaries as those with balance of NCI greater than 5% of the total equity as at September 30, 2025 and
December 31, 2024.

Material associates and joint ventures

Our consolidated financial statements include additional information about associates and joint ventures that are material to us. See Note 11 – Investments in Associates and Joint Ventures. We determined material associates and joint ventures are those investees where our carrying amount of investments is greater than 5% of the total investments in associates and joint ventures as at September 30, 2025 and December 31, 2024.

Determining Taxable Profit, Tax Bases, Unused Tax Losses, Unused Tax Credits and Tax Rates

We assess whether we have any uncertain tax position and applies significant judgment in identifying uncertainties over our income tax treatments. We determined based on our assessment that it is probable that our income tax treatments (including those for the subsidiaries) will be accepted by the taxation authorities.

Estimates and Assumptions

The key estimates and assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities recognized in our consolidated financial statements within the next financial year are discussed below. We based our estimates and assumptions on parameters available when our consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond our control. Such changes are reflected in the assumptions when they occur.

Subscriber contract costs

Subscriber contract costs are costs to obtain (i.e., commissions) and costs to fulfill (i.e., installation and CPE costs) in relation to the services we provide to our subscribers. We assessed that these subscriber contract costs are incremental in obtaining and fulfilling our performance obligations. Accordingly, we capitalized subscriber contract costs and amortized as expense over the average customer relationship period.

We apply judgment to estimate the amortization period of subscriber contract costs. As at September 30, 2025 and
December 31, 2024, the estimated useful lives of the subscriber contract costs would range from six to seven years. Further details on subscriber contract costs are disclosed in Note 18 – Prepayments and Other Non-Financial Assets.

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Leases – Estimating the incremental borrowing rate, or IBR

In calculating the present value of lease payments, we use the IBR at the lease commencement date if the interest rate implicit in the lease is not readily determinable. IBR is the rate of interest that a lessee would have to pay to borrow over a similar term, similar security, the funds necessary to obtain an asset of a similar value to the ROU asset in a similar economic environment.

We use benchmark rates from partner banks based on the tenor of our loan borrowings plus a spread adjustment based on our credit worthiness.

Our lease liabilities amounted to Php60,755 million and Php54,038 million as at September 30, 2025 and December 31, 2024, respectively. See Note 10 – Leases.

Impairment of non-financial assets

IAS 36 requires that an impairment review be performed when certain impairment indicators are present. In the case of goodwill and intangible assets with indefinite useful life, at a minimum, such assets are subject to an impairment test annually and whenever there is an indication that such assets may be impaired. This requires an estimation of the VIU of the CGUs to which these assets are allocated. The VIU calculation requires us to make an estimate of the expected future cash flows from the CGU and to choose a suitable discount rate in order to calculate the present value of those cash flows. See
Note 14 – Goodwill and Intangible Assets – Impairment Testing of Goodwill for the key assumptions used to determine the VIU of the relevant CGUs.

Determining the recoverable amount of property and equipment, ROU assets, investments in associates and joint ventures, goodwill and intangible assets, prepayments and other noncurrent assets, requires us to make estimates and assumptions in the determination of future cash flows expected to be generated from the continued use and ultimate disposition of such assets. Future events could cause us to conclude that property and equipment, ROU assets, investments in associates and joint ventures, intangible assets and other noncurrent assets associated with an acquired business are impaired. Any resulting impairment loss could have a material adverse impact on our financial position and financial performance.

The preparation of estimated future cash flows involves significant estimations and assumptions of future market conditions. While we believe that our assumptions are appropriate and reasonable, significant changes in our assumptions may materially affect our assessment of recoverable values and may lead to future impairment charges.

See Note 4 – Operating Segment Information, Note 5 – Income and Expenses – Asset Impairment, and Note 9 – Property and Equipment.

The carrying values of our property and equipment, ROU assets, investments in associates and joint ventures, investment properties, goodwill and intangible assets, and prepayments and other non-financial assets are separately disclosed in
Note 9 – Property and Equipment, Note 10 – Leases, Note 11 – Investments in Associates and Joint Ventures,
Note 13 – Investment Properties, Note 14 – Goodwill and Intangible Assets and Note 18 – Prepayments and Other Non-Financial Assets, respectively.

Estimating useful lives of property and equipment

We estimate the useful lives of each item of our property and equipment based on the periods over which our assets are expected to be available for use. Our estimation of the useful lives of our property and equipment is also based on our collective assessment of industry practice, internal technical evaluation and experience with similar assets. The estimated useful lives of each asset are reviewed at least every year-end and updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limitations on the use of our assets. It is possible, however, that future results of operations could be materially affected by changes in our estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of our property and equipment would increase our recorded depreciation and decrease the carrying amount of our property and equipment.

In 2024, the PLDT Group launched further initiatives to continuously modernize its property and equipment to enhance operational efficiencies. On this basis, the Group reassessed the EUL of certain assets, including among others, certain legacy network systems replaced by Transport Network Transformation (TNT) and Core Transformation, Operations Support Systems and Optical Line and Terminal Access equipment. As a result of changes in accounting estimates, the PLDT Group recognized additional depreciation expense of Php5,686 million in the income statement for the year ended
December 31, 2024.

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In 2025, based on the internal technical evaluation and assessment of industry practice, PLDT reassessed the EUL of International and Domestic submarine cable systems from 15 years to 25 years, resulting in a reduction in depreciation amounting to Php559 million for the nine months ended September 30, 2025. Conversely, the EUL of certain submarine network cables was decreased due to aging and performance issues, resulting in additional depreciation expense of
Php237 million.

PLDT and Smart also recognized additional depreciation expense amounting to Php686 million and Php1,698 million respectively, in 2025, due to modernization of core network equipment and IT assets.

Overall, the total depreciation and amortization of property and equipment amounted to Php28,924 million and
Php26,387 million for the nine months ended September 30, 2025 and 2024, respectively. Total carrying values of property and equipment, net of accumulated depreciation and amortization, amounted to Php325,310 million and Php318,069 million as at September 30, 2025 and December 31, 2024, respectively. See Note 4 – Operating Segment Information and
Note 9 – Property and Equipment.

Estimating useful lives of intangible assets with finite lives

Intangible assets with finite lives are amortized over their expected useful lives using the straight-line method of amortization. At a minimum, the amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in our consolidated income statements.

The total amortization of intangible assets with finite lives amounted to Php201 million and Php171 million for the nine months ended September 30, 2025 and 2024, respectively. Total carrying values of intangible assets with finite lives amounted to Php1,181 million and Php1,303 million as at September 30, 2025 and December 31, 2024, respectively. See
Note 5 – Income and Expenses – General Operating Costs and Note 14 – Goodwill and Intangible Assets.

Investment Properties

We carry our investment properties at fair value, with changes in fair value being recognized in the consolidated income statements. Investment properties have been determined based on appraisal performed by an independent firm of appraisers, an industry specialist in valuing these types of investment properties.

The valuation for land is based on a market approach valuation technique while the valuation for building and land improvements is based on a cost approach valuation technique using current material and labor costs for improvements based on external and independent reviewers. See Note 13 – Investment Properties.

Recognition of deferred income tax assets

We review the carrying amounts of deferred income tax assets at the end of each reporting period and reduce these to the extent that these are no longer probable that sufficient taxable income will be available to allow all or part of the deferred income tax assets to be utilized. Our assessment on the recognition of deferred income tax assets on deductible temporary differences is based on the level and timing of forecasted taxable income of the subsequent reporting years. This forecast is based on our past results and future expectations on revenues and expenses as well as future tax planning strategies. Based on this, management expects that we will generate sufficient taxable income to allow all or part of our deferred income tax assets to be utilized.

Based on the above assessment, our consolidated unrecognized deferred income tax assets amounted to Php987 million and Php803 million as at September 30, 2025 and December 31, 2024, respectively. Total consolidated provision for deferred income tax amounted to Php4,378 million and Php4,504 million for the nine months ended September 30, 2025 and 2024, respectively. Total consolidated recognized net deferred income tax assets amounted to Php10,089 million and
Php14,643 million as at September 30, 2025 and December 31, 2024, respectively. See Note 4 – Operating Segment Information and Note 7 – Income Taxes.

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Estimating allowance for ECLs

Measurement of ECLs

ECLs are derived from unbiased and probability-weighted estimates of expected loss, and are measured as follows:

•

Financial assets that are not credit-impaired at the reporting date: as the present value of all cash shortfalls over the expected life of the financial asset discounted by the EIR. The cash shortfall is the difference between the cash flows due to us in accordance with the contract and the cash flows that we expect to receive; and

•

Financial assets that are credit-impaired at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows discounted by the EIR.

We leverage existing risk management indicators (e.g., internal credit risk classification and restructuring triggers), credit risk rating changes and reasonable and supportable information which allow us to identify whether the credit risk of financial assets has significantly increased.

Inputs, assumptions and estimation techniques

•

General approach for cash and cash equivalents, short-term investments, debt securities, financial assets at FVOCI and advances and other noncurrent assets

The ECL is measured on either a 12-month or lifetime basis depending on whether a significant increase in credit risk has occurred since initial recognition. We consider the probability of our counterparty to default on its obligation and the expected loss at default after considering the effects of collateral, any potential value when realized and time value of money. Based on our assessment, there is no significant increase in credit risk and the ECL for these financial assets under a general approach is measured on a 12-month basis.

The assumptions underlying the ECL calculation are monitored and reviewed on a quarterly basis.

•

Simplified approach for trade and other receivables and contract assets

The simplified approach does not require the tracking of changes in credit risk, but instead requires the recognition of lifetime ECL. For trade receivables and contract assets, we use the simplified approach for calculating ECL. We have considered similarities in underlying credit risk characteristics and behavior in determining the groupings of various customer segments.

We used historically observed default rates and adjusted these historical credit loss experiences with forward-looking information. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analyzed.

There have been no significant changes in the estimation techniques used for calculating ECL on trade and other receivables and contract assets.

•

Incorporation of forward-looking information

We incorporated forward-looking information into both our assessment of whether the credit risk of an instrument has increased significantly since its initial recognition and our measurement of ECL.

To do this, management considered a range of relevant forward-looking macroeconomic assumptions and probability weights for the determination of unbiased general industry adjustments and any related specific industry adjustments that support the calculation of ECLs.

The macroeconomic factors are aligned with information used by us for other purposes such as strategic planning and budgeting.

The probability weights used in the calculation of ECLs cover a range of possible outcomes based on the current and projected economic conditions.

We have identified and documented key drivers of credit risk and credit losses of each portfolio of financial instruments and, using an analysis of historical data, has estimated relationships between macroeconomic variables and credit risk and credit losses.

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Predicted relationship between the key indicators and default and loss rates on various portfolios of financial assets have been developed based on analyzing historical data over the past three to eight years. The methodologies and assumptions including any forecasts of future economic conditions are reviewed regularly.

Due to the lack of reasonable and supportable information, we have not identified any uncertain event that was assessed to be relevant to the risk of default occurring, thus we are not able to estimate the impact on ECL.

Total provision for expected credit losses for trade and other receivables amounted to Php2,744 million and Php2,712 million for the nine months ended September 30, 2025 and 2024. Trade and other receivables, net of allowance for expected credit losses, amounted to Php30,015 million and Php31,612 million as at September 30, 2025 and December 31, 2024, respectively. See Note 5 – Income and Expenses and Note 16 – Trade and Other Receivables.

Total impairment losses on contract assets amounted to Php96 million and Php134 million for the nine months ended
September 30, 2025 and 2024, respectively. Contract assets, net of allowance for expected credit losses, amounted to
Php1,685 million and Php1,886 million as at September 30, 2025 and December 31, 2024, respectively. See
Note 5 – Income and Expenses – Contract Balances.

•

Grouping of instruments for losses measured on collective basis

A broad range of forward-looking information was considered as economic inputs such as the gross domestic product, or GDP, inflation rate, unemployment rates, export rates, The Group of Twenty, or G20 GDP and G20 inflation rates. For expected credit loss provisions modelled on a collective basis, grouping of exposures is performed on the basis of shared risk characteristics, such that risk exposures within a group are homogeneous. In performing this grouping, there must be sufficient information for the PLDT Group to be statistically acceptable. Where sufficient information is not available internally, then we have considered benchmarking internal/external supplementary data to use for modelling purposes. The characteristics and any supplementary data used to determine groupings are outlined below.

Trade receivables – Groupings for collective measurement

Retail subscribers;

Corporate subscribers;

Foreign administrations and domestic carriers; and

Dealers, agents and others

The following credit exposures are assessed individually:

•

All stage 3 assets, regardless of the class of financial assets; and

•

The cash and cash equivalents, investment in debt securities and financial assets at FVOCI, and other financial assets.

Estimating pension benefit costs and other employee benefits

The cost of defined benefit and present value of the pension obligation are determined using the projected unit credit method. An actuarial valuation includes making various assumptions which consist, among other things, discount rates, rates of compensation increases and mortality rates. Further, our accrued benefit cost is affected by the fair value of the plan assets. Key assumptions used to estimate fair value of the unlisted equity investments included in the plan assets consist of revenue growth rate, direct costs, capital expenditures, discount rates and terminal growth rates. See Note 25 – Pension and Other Employee Benefits. Due to complexity of valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in assumptions. While we believe that our assumptions are reasonable and appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our cost for pension and other retirement obligations. All assumptions are reviewed every year-end.

The net consolidated pension benefit costs amounted to Php1,128 million and Php1,110 million for the nine months ended
September 30, 2025 and 2024, respectively. The prepaid benefit costs amounted to Php753 million and Php975 million as at
September 30, 2025 and December 31, 2024, respectively. The accrued benefit costs amounted to Php2,555 million and Php3,548 million as at September 30, 2025 and December 31, 2024, respectively. See Note 5 – Income and Expenses – Compensation and Employee Benefits, Note 18 – Prepayments and Note 25 – Pension and Other Employee Benefits.

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Long-term Incentive Plan, LTIP

The Executive Compensation Committee (ECC) of the PLDT Board of Directors approved the LTIP covering the years 2022 to 2026, on December 23, 2021. It covers two cycles, and is intended to provide incentive compensation in the form of cash to key officers, executives and other eligible participants who are consistent performers, compliant with codes of conduct and contributors to our strategic and financial goals, with defined metrics based on the achievement of telco core income, customer experience and sustainability. The target metrics for sustainability are expected to capture the Company’s performance in various ESG materiality areas, including but not limited to, climate action such as initiatives to reduce energy consumption and greenhouse gas (GHG) emissions, employee and customer welfare, diversity and inclusion, cybersecurity and data privacy, and business ethics. Cycle 1 covered the performance period from 2022 to 2024 and was settled in 2025 based on the achievement of performance targets. Cycle 2 covers the performance period from 2025 to 2026 and is subject to the ECC’s further evaluation and approval of the final terms.

This long-term employee benefit liability was recognized and measured using the projected unit credit method and was amortized on a straight-line basis over the vesting period.

The expense accrued for the LTIP amounted to nil and Php857 million for the nine months ended September 30, 2025 and 2024, respectively.

The accrued incentive payable amounted to nil and Php3,406 million as at September 30, 2025 and December 31, 2024, respectively. See Note 5 – Income and Expenses – Compensation and Employee Benefits and Note 25 – Pension and Other Employee Benefits – Other Long-term Employee Benefits.

Provision for asset retirement obligations

Provision for asset retirement obligations is recognized in the period in which this is incurred if a reasonable estimate can be made. This requires an estimation of the cost to restore or dismantle on a per square meter basis, depending on the location, and is based on the best estimate of the expenditure required to settle the obligation at the future restoration or dismantlement date, discounted using a pre-tax rate that reflects the current market assessment of the time value of money and, where appropriate, the risk specific to the liability. Total provision for asset retirement obligations amounted to Php1,861 million and Php1,752 million as at September 30, 2025 and December 31, 2024, respectively. See Note 21 – Deferred Credits and Other Noncurrent Liabilities.

Provision for legal contingencies and tax assessments

We are currently involved in various legal proceedings and tax assessments. Our estimates of the probable costs for the resolution of these claims have been developed in consultation with our counsel handling the defense in these matters and are based upon our analysis of potential results. Based on management’s assessment, appropriate provisions were made. We currently do not believe these proceedings could materially reduce our revenues and profitability. It is possible, however, that future financial position and performance could be materially affected by changes in our estimates or the effectiveness of our strategies relating to these proceedings and assessments. See Note 26 – Provisions and Contingencies.

Determination of fair values of financial assets and financial liabilities

When the fair value of financial assets and financial liabilities recorded in our consolidated statements of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flows model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Other than those whose carrying amounts are reasonable approximations of fair values, total fair values of noncurrent financial assets and noncurrent financial liabilities as at September 30, 2025 amounted to Php2,677 million and
Php275,913 million, respectively, while the total fair values of noncurrent financial assets and noncurrent financial liabilities as at December 31, 2024 amounted to Php3,079 million and Php247,962 million, respectively. See Note 27 – Financial Assets and Liabilities.

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Operating Segment Information

Operating segments are components of the PLDT Group that engage in business activities from which they may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of PLDT Group). The operating results of these operating segments are regularly reviewed by the Executive Committee to make decisions about how resources are to be allocated to each of the segments and to assess their performances, and for which discrete financial information is available.

For management purposes, we are organized into business units based on our products and services. We have three reportable operating segments as follows:

•

Wireless – mobile telecommunications services provided by Smart and DMPI, our mobile service providers; SBI and PDSI, our wireless broadband service providers; and certain subsidiaries of PLDT Global;

•

Fixed Line – fixed line telecommunications services primarily provided by PLDT. We also provide fixed line services through PLDT’s subsidiaries, namely, ClarkTel, BCC and PLDT Global and certain subsidiaries; secure data center, multi-cloud, cybersecurity, data and artificial intelligence solutions through ePLDT and Vitro, Inc., distribution of Filipino channels and content through PGNL and its subsidiaries; and software development and IT solutions provided by Multisys; and

•

Others – PCEV, PGIH, PLDT Digital and its subsidiaries, our investment companies.

See Note 2 – Summary of Material Accounting Policies for further discussion.

Segment revenues, segment expenses and segment results include transfers between business segments. These transfers are eliminated in full upon consolidation.

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The amounts of segment assets and liabilities and segment profit or loss are based on measurement principles that are similar to those used in measuring the assets and liabilities and profit or loss in our consolidated financial statements, which is in accordance with IFRS Accounting Standards. The segment revenues, net income, and other segment information of our reportable operating segments for the nine months ended September 30, 2025 and 2024, and as at September 30, 2025 and December 31, 2024 are as follows:


	Wireless		Fixed Line			Others			Inter- segment Transactions			Consolidated
	(in million pesos)
September 30, 2025 (Unaudited)
Revenues
External customers		75,943		87,340			—			—			163,283
Service revenues		71,916		86,987			—			—			158,903
Non-service revenues		4,027		353			—			—			4,380
Inter-segment transactions		525		12,908			—			(13,433	)		—
Service revenues		525		12,907			—			(13,432	)		—
Non-service revenues		—		1			—			(1	)		—
Total revenues		76,468		100,248			—			(13,433	)		163,283
Results
Depreciation and amortization		28,829		20,019			—			(7,028	)		41,820
Asset impairment		493		2,359			—			—			2,852
Interest income		431		124			9			(13	)		551
Equity share in net income (losses) of associates and joint ventures		—		(150	)		463			—			313
Financing costs – net		7,455		6,971			14			(979	)		13,461
Provision for (benefit from) income tax		1,474		6,163			(13	)		(41	)		7,583
Net income / Segment profit		5,288		24,163			413			(4,729	)		25,135

Assets
Operating assets		345,542		296,740			24,962			(101,028	)		566,216
Investments in associates and joint ventures		291		44,008			8,952			—			53,251
Deferred income tax assets – net		5,943		4,029			75			42			10,089
Total assets		351,776		344,777			33,989			(100,986	)		629,556
Liabilities
Operating liabilities		299,396		285,660			1,189			(78,258	)		507,987
Deferred income tax liabilities		15		60			2			—			77
Total liabilities		299,411		285,720			1,191			(78,258	)		508,064

Other segment information
Capital expenditures, including capitalized interest (Note 9)(1)(2)		18,757		24,260			—			—			43,017

(1) Net of additions subject to sale and leaseback from tower companies.

(2) Includes capitalization of subscriber contract cost to fulfill.

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	Wireless		Fixed Line			Others			Inter- segment Transactions			Consolidated
	(in million pesos)
September 30, 2024 (Unaudited)
Revenues
External customers		77,924		83,018			—			—			160,942
Service revenues		72,294		82,701			—			—			154,995
Non-service revenues		5,630		317			—			—			5,947
Inter-segment transactions		611		12,417			—			(13,028	)		—
Service revenues		611		12,417			—			(13,028	)		—
Non-service revenues		—		—			—			—			—
Total revenues		78,535		95,435			—			(13,028	)		160,942

Results
Depreciation and amortization		24,992		19,369			1			(7,029	)		37,333
Asset impairment		648		2,421			—			—			3,069
Interest income		545		182			12			(21	)		718
Equity share in net losses of associates and joint ventures		—		(145	)		(974	)		—			(1,119	)
Financing costs – net		7,112		5,188			—			(1,328	)		10,972
Provision for (benefit from) income tax		2,527		5,998			(12	)		326			8,839
Net income (loss) / Segment profit (loss)		8,318		27,116			(1,099	)		(6,111	)		28,224

December 31, 2024 (Audited)
Assets
Operating assets		326,672		291,635			19,879			(82,318	)		555,868
Investments in associates and joint ventures		108		44,758			7,898			—			52,764
Deferred income tax assets – net		6,537		8,014			62			30			14,643
Total assets		333,317		344,407			27,839			(82,288	)		623,275
Liabilities
Operating liabilities		280,160		287,993			1,182			(62,855	)		506,480
Deferred income tax liabilities		15		43			—			2			60
Total liabilities		280,175		288,036			1,182			(62,853	)		506,540

September 30, 2024 (Unaudited)
Other segment information
Capital expenditures, including capitalized interest (Note 9)(1)(2)		19,129		33,023			185			—			52,337

(1) Net of additions subject to sale and leaseback from tower companies.

(2) Includes capitalization of subscriber contract cost to fulfill.

F-46

The following table presents our revenues from external customers by category of products and services for the nine months ended September 30, 2025 and 2024:


	September 30,
	2025		2024
	(Unaudited)
	(in million pesos)
Wireless revenues
Service revenues:
Mobile		70,520		71,181
Fixed wireless broadband		1,396		1,113
		71,916		72,294
Non-service revenues ─
Sale of devices and accessories		4,027		5,630
Total wireless revenues		75,943		77,924
Fixed line revenues
Service revenues:
Data		63,405		61,892
Voice and miscellaneous		23,582		20,809
		86,987		82,701
Non-service revenues ─
Sale of phone units, devices and others		353		317
Total fixed line revenues		87,340		83,018
Total revenues		163,283		160,942

Disclosure of the geographical distribution of our revenues from external customers and the geographical location of our total assets are not provided since majority of our consolidated revenues are derived from our operations within the Philippines.

There is no revenue transaction with a single external customer that accounted for 10% or more of our consolidated revenues from external customers for the nine months ended September 30, 2025 and 2024.

The consolidated voice service revenues from fixed line include wholesale international voice with corresponding cost, as follows:


	September 30,
	2025			2024
	(Unaudited)
	(in million pesos)
Wholesale International Voice:
Revenues		12,411			9,312
Cost (Note 5)		(12,242	)		(9,126	)
Net		169			186

Income and Expenses

Revenues from Contracts with Customers

Disaggregation of Revenue

We derived our revenue from the transfer of goods and services over time and at a point in time in the following major product lines. This is consistent with the revenue information that is disclosed for each reportable segment under IFRS 8, Operating Segments. See Note 4 – Operating Segment Information.

F-47

Set out is the disaggregation of PLDT Group’s revenues from contracts with customers for the nine months ended
September 30, 2025 and 2024:

     Revenue Streams

     Wireless

     Fixed Line

     Inter-
segment
Transactions

     Consolidated

      
     (in million pesos)

     September 30, 2025 (Unaudited)


Company’s Email Address	Company’s Telephone Number/s	Mobile Number
gdgarcia@pldt.com.ph	(632) 8816-8056


Name of Contact Person	Email Address	Telephone Number/s	Mobile Number
Gil Samson D. Garcia	gdgarcia@pldt.com.ph	(632) 8816-8056


1.	For the quarterly period ended		September 30, 2025

2.	SEC Identification Number		PW-55

3.	BIR Tax Identification No.		000-488-793-000

4.	PLDT Inc.
	Exact name of registrant as specified in its charter

5.	Republic of the Philippines
	Province, country or other jurisdiction of incorporation or organization

6.	Industry Classification Code:		(SEC Use Only)

7.	Ramon Cojuangco Building, Makati Avenue, Makati City			0721
	Address of registrant’s principal office			Postal Code

8.	(632) 82500254
	Registrant’s telephone number, including area code

9.	Not Applicable
	Former name, former address, and former fiscal year, if changed since last report

10.	Securities registered pursuant to Sections 8 of the SRC

	Title of Each Class		Number of Shares of Common Stock Outstanding
	Common Capital Stock, Php5 par value		216,055,775 shares as at September 30, 2025

11.	Are any or all of these securities listed on the Philippine Stock Exchange?

	Yes [ X ]	No [ ]

12.	Check whether the registrant

(a)	has filed all reports required to be filed by Section 17 of the Code and SRC Rule 17 thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of the Corporation Code of the Philippines, during the preceding 12 months (or for such shorter period the registrant was required to file such reports):

	Yes [ X ]	No [ ]

(b)	has been subject to such filing requirements for the past 90 days.

	Yes [ X ]	No [ ]

PLDT revenue Php163.3B; EBITDA Php82.8B in year-to-date

Rhea-AI Filing Summary

Positive

Negative

Insights

PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations


PART I –	FINANCIAL INFORMATION	1
Item 1.	Consolidated Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1
	Financial Highlights and Key Performance Indicators	2
	Performance Indicators	3
	Overview	4
	Management’s Financial Review	5
	Results of Operations	7
	Consolidated	7
	Revenues	7
	Expenses	8
	Other Income (Expenses) – Net	9
	Net Income (Loss)	9
	EBITDA	9
	Core Income	9
	Telco Core Income	10
	Wireless	10
	Revenues	10
	Service Revenues	10
	Non-Service Revenues	13
	Expenses	13
	Other Income (Expenses) – Net	14
	Provision for Income Tax	14
	Net Income	14
	EBITDA	14
	Core Income	14
	Fixed Line	15
	Revenues	15
	Service Revenues	15
	Non-Service Revenues	16
	Expenses	16
	Other Income (Expenses) – Net	17
	Provision for Income Tax	17
	Net Income	17
	EBITDA	18
	Core Income	18
	Others	18
	Revenues	18
	Expenses	18
	Other Income (Expenses) – Net	18
	Net Income (Loss)	18
	Core Income (Loss)	18
	Liquidity and Capital Resources	19
	Operating Activities	19
	Investing Activities	20
	Financing Activities	20
	Changes in Financial Conditions	22
	Off-Balance Sheet Arrangements	23
	Equity Financing	23
	Contractual Obligations and Commercial Commitments	23
	Quantitative and Qualitative Disclosures about Market Risks	24
PART II –	OTHER INFORMATION	26
	Related Party Transactions	26
ANNEX –	Aging of Accounts Receivable	A-1
	Financial Soundness Indicators	A-2
	SIGNATURES	S-1

Trending News

PLDT revenue Php163.3B; EBITDA Php82.8B in year-to-date

Rhea-AI Filing Summary

Positive

Negative

Insights

Telecom equity analyst neutral

PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations