[6-K] PLDT Inc. Current Report (Foreign Issuer)

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

Telecom equity analyst

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.

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

P L D T I N C .

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

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Department requiring the report

Secondary License Type, If Applicable

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COMPANY INFORMATION

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

	No. of Stockholders		Annual Meeting Month/Day		Fiscal Year Month/Day
	11,324 as at September 30, 2025		Every 2nd Tuesday in June		December 31

CONTACT PERSON INFORMATION

The designated contact person MUST be an Officer of the Corporation

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

Contact Person’s Address

5/F MGO Building, Dela Rosa corner Legaspi Sts., Makati City

Note: In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.

SECURITIES AND EXCHANGE COMMISSION

SEC FORM 17-Q

QUARTERLY REPORT PURSUANT TO SECTION 17
OF THE SECURITIES REGULATION CODE (SRC) AND

SRC 17 (2) (b) THEREUNDER

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 [ ]

.

TABLE OF CONTENTS

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

PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financi al 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 o f 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.

1

Financial Highlights and K ey 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	)

2

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.

3

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.

Overv iew

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.

4

Management’s Fina ncial 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.

5

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

6

Results of O perations

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.

7

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.

8

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:

9

																		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

Wire less

Revenu es

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.

10

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.

11

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.

12

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.

Expen ses

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.

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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.

EBIT DA

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 In come

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.

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Fixed L ine

Reven ues

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

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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.

Expe nses

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

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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 Inc ome 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 In come

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.

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EBIT DA

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 Inc ome

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.

Oth ers

Revenues

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

Expen ses

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.

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Liquidity and Ca pital 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 A ctivities

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.

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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 Activit ies

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

20

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

21

(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 Finan cial 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

22

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 She et 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 Fina ncing

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 an d 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

23

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 D isclosures 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

24

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	)

25

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

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.

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.

26

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

1.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

2.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.

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%. As of September 30, 2025, the subscription remains unpaid.

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.

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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.

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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.

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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.

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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.

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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.

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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:

a)No properties of the counterparty could be attached

b)The whereabouts of the client cannot be located

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

d)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.

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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.

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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

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(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).

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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.

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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.

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.

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.

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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:

•Service cost;

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

•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.

•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.

•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

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

•Annual Improvements to IFRS Accounting Standards—Volume 11

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

oAmendments to IFRS 7, Gain or Loss on Derecognition

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

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

oAmendments to IAS 7, Cost Method

Effective beginning on or after January 1, 2027

•IFRS 17, Insurance Contracts

•IFRS 18, Presentation and Disclosure in Financial Statements

•IFRS 19, Subsidiaries without Public Accountability

Deferred effectivity

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

3.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:

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

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

c)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:

a.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;

b.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

c.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:

•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.

•Qualitative criteria

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

a.The counterparty is experiencing financial difficulty or is insolvent;

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

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

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

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

f.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.

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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

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.

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.

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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

a.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.

b.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

a.Retail subscribers;

b.Corporate subscribers;

c.Foreign administrations and domestic carriers; and

d.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.

F-43

4.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.

F-45

		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

5.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)
Type of goods or services
Service revenue			72,441				99,894				(13,432	)			158,903
Non-service revenue			4,027				354				(1	)			4,380
Total revenues from contracts with customers			76,468				100,248				(13,433	)			163,283
Timing of revenue recognition
Transferred over time			72,441				99,894				(13,432	)			158,903
Transferred at a point time			4,027				354				(1	)			4,380
Total revenues from contracts with customers			76,468				100,248				(13,433	)			163,283
September 30, 2024 (Unaudited)
Type of goods or services
Service revenue			72,905				95,118				(13,028	)			154,995
Non-service revenue			5,630				317				—				5,947
Total revenues from contracts with customers			78,535				95,435				(13,028	)			160,942
Timing of revenue recognition
Transferred over time			72,905				95,118				(13,028	)			154,995
Transferred at a point time			5,630				317				—				5,947
Total revenues from contracts with customers			78,535				95,435				(13,028	)			160,942

Remaining performance obligations are associated with our wireless and fixed line subscription contracts. As at
September 30, 2025, excluding the performance obligations for contracts with original expected duration of less than one year, the aggregate amount of the transaction price allocated to remaining performance obligations was Php48,381 million, of which we expect to recognize approximately 10% in 2025 and 90% in 2026 and onwards. As at December 31, 2024, excluding the performance obligations for contracts with original expected duration of less than one year, the aggregate amount of the transaction price allocated to remaining performance obligations was Php45,868 million, of which we expected to recognize approximately 51% in 2025 and 49% in 2026 and onwards.

Contract Balances

Contract balances as at September 30, 2025 and December 31, 2024 consist of the following:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Trade and other receivables (Note 16)			47,871				48,808
Contract assets			1,725				1,953
Contract liabilities and unearned revenues (Notes 21 and 23)			14,333				16,067

Set out below is the movement in the allowance for expected credit losses of contracts assets as at September 30, 2025 and
December 31, 2024.

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Balances at beginning of the period			67				42
Reversals and reclassification			(27	)			25
Balances at end of the period			40				67

F-48

Changes in the contract liabilities and unearned revenues accounts for the nine months ended September 30, 2025 and for the year ended December 31, 2024 follow:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Balances at beginning of the period			16,067				18,895
Deferred during the period			83,294				123,975
Recognized as revenue during the period			(85,028	)			(126,803	)
Balances at end of the period			14,333				16,067

The contract liabilities and unearned revenues accounts as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Unearned revenues from prepaid contracts			5,214				6,543
Leased facilities			4,670				4,630
Short-term advances for installation services			2,279				2,773
Advance monthly service fees			2,137				2,098
Long-term advances from equipment			33				23
Total contract liabilities and unearned revenues			14,333				16,067
Contract liabilities:
Noncurrent (Note 21)			211				256
Current (Note 23)			416				17
Unearned revenues:
Noncurrent (Note 21)			4,685				5,369
Current (Note 23)			9,021				10,425

General Operating Costs

General operating costs for the nine months ended September 30, 2025 and 2024 consist of the following:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Repairs and maintenance			23,601				22,749
Compensation and employee benefits			17,256				18,869
Professional and other contracted services			5,262				5,609
Taxes and licenses			4,068				3,980
Selling and promotions			3,451				4,211
Insurance and security services			1,054				1,014
Rent			1,000				905
Communication, training and travel			783				878
Other expenses			394				349
Total general operating costs			56,869				58,564

Compensation and Employee Benefits

Compensation and employee benefits for the nine months ended September 30, 2025 and 2024 consist of the following:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Salaries and other employee benefits			15,002				15,460
Pension benefit costs (Note 25)			1,128				1,110
Manpower Rightsizing Program (MRP)			1,126				1,442
Incentive plan (Note 25)			—				857
Total compensation and employee benefits			17,256				18,869

Over the past several years, we have been implementing the MRP in line with our continuing efforts to realize manpower and cost efficiencies as a result of technological and organizational changes, process improvements, and shifting market conditions

F-49

that reshape the future of our businesses. The MRP is being implemented in compliance with the Labor Code of the Philippines and all other relevant labor laws and regulations in the Philippines.

Cost of Devices, Accessories and Contract-Specific Services

Cost of devices, accessories and contract-specific services for the nine months ended September 30, 2025 and 2024 consist of the following:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Cost of devices and accessories			5,323				7,211
Cost of contract-specific services			3,518				2,808
Total cost of devices, accessories and contract-specific services			8,841				10,019

Asset Impairment

Asset impairment for the nine months ended September 30, 2025 and 2024 consists of the following:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Trade and other receivables (Note 16)			2,744				2,712
Contract assets			96				134
Inventories and supplies (Note 17)			11				155
Prepayments			1				1
Property and equipment			—				67
Total asset impairment			2,852				3,069

Interconnection Costs

Interconnection costs include wholesale international voice cost amounting to Php12,242 million and Php9,126 million for the nine months ended September 30, 2025 and 2024, respectively.

Other Expenses – Net

Other expenses – net for the nine months ended September 30, 2025 and 2024 consist of the following:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Gains on derivative financial instruments – net (Note 27)			1,411				2,066
Gain on sale and leaseback of telecom towers – gross of expenses (Note 9)			887				1,165
Interest income			551				718
Equity share in net income (losses) of associates and joint ventures (Note 11)			313				(1,119	)
Gain on disposal of property and equipment			99				79
Foreign exchange gains (losses) – net			(105	)			1,389
Financing costs – net			(13,461	)			(10,972	)
Others – net			3,125				1,882
Total other expenses – net			(7,180	)			(4,792	)

F-50

Interest Income

Interest income for the nine months ended September 30, 2025 and 2024 consists of the following:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Interest income arising from revenue contracts with customers			374				428
Interest income on cash and cash equivalents (Note 15)			134				231
Interest income on financial instruments at amortized cost			31				36
Interest income on financial instruments at FVPL			—				8
Interest income – others			12				15
Total interest income			551				718

Financing Costs – Net

Financing costs – net for the nine months ended September 30, 2025 and 2024 consist of the following:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Interest on loans and other related items			11,909				9,870
Accretion on lease liabilities (Note 10)			3,325				2,900
Accretion on financial liabilities			278				275
Financing charges			14				53
Capitalized interest (Note 9)			(2,065	)			(2,126	)
Total financing costs – net			13,461				10,972

F-51

6. Components of Other Comprehensive Loss

Changes in other comprehensive loss under equity of our consolidated statements of financial position for the nine months ended September 30, 2025 and 2024 are as follows:

		Foreign currency translation differences of subsidiaries				Net transactions on cash flow hedges – net of tax				Revaluation increment on investment properties – net of tax				Actuarial gains (losses) on defined benefit plans – net of tax				Share in the other comprehensive loss of associates and joint ventures accounted for using the equity method				Total other comprehensive income (loss) attributable to equity holders of PLDT				Share of noncontrolling interests				Total other comprehensive income (loss)  – net of tax
		(in million pesos)
Balances as at January 1, 2025			274				(6,155	)			1,740				(39,722	)			(29	)			(43,892	)			(50	)			(43,942	)
Other comprehensive income (loss)			(96	)			(1,051	)			1,381				173				(1	)			406				(7	)			399
Balances as at September 30, 2025 (Unaudited)			178				(7,206	)			3,121				(39,549	)			(30	)			(43,486	)			(57	)			(43,543	)
Balances as at January 1, 2024			133				(4,608	)			544				(38,260	)			(21	)			(42,212	)			10				(42,202	)
Other comprehensive income (loss)			101				(910	)			—				(10	)			—				(819	)			(35	)			(854	)
Balances as at September 30, 2024 (Unaudited)			234				(5,518	)			544				(38,270	)			(21	)			(43,031	)			(25	)			(43,056	)

Revaluation increment on investment properties pertains to the difference between the carrying value and fair value of property and equipment transferred to investment property at the time of change in classification.

F-52

7.Income Taxes

Corporate Income Tax

The major components of consolidated net deferred income tax assets (liabilities) recognized in our consolidated statements of financial position as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Net deferred income tax assets			10,089				14,643
Net deferred income tax liabilities			(77	)			(60	)
Net balances at the end of the period			10,012				14,583

The components of our consolidated net deferred income tax assets (liabilities) as at September 30, 2025 and
December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Net deferred income tax assets:
Accumulated provision for expected credit losses			3,729				3,618
Lease liability over ROU assets under IFRS 16(1)			3,177				3,240
Unearned revenues			2,773				3,914
Depreciation due to shortened estimated useful life of assets			2,000				2,480
Pension and other employee benefits			1,528				2,607
Unrealized foreign exchange losses			1,500				1,404
Unamortized past service pension costs			1,343				1,908
Accumulated write-down of inventories to net realizable values			353				371
NOLCO			124				266
Excess MCIT over RCIT			42				13
Taxes and duties capitalized			(169	)			(167	)
Derivative financial instruments			(320	)			(203	)
Customer list and trademark			(427	)			(361	)
Capitalized charges and others			(5,564	)			(4,447	)
Total deferred income tax assets – net			10,089				14,643
Net deferred income tax liabilities:
Investment property			388				389
Unrealized foreign exchange gains			6				22
Accumulated provision for expected credit losses			(173	)			(173	)
Others			(144	)			(178	)
Total deferred income tax liabilities - net			77				60

(1) As at September 30, 2025 and December 31, 2024, the deferred tax asset on lease liability amounted to Php14,921 million and Php13,234 million,
respectively while the deferred tax liability on right of use asset amounted to Php11,744 million and Php9,994 million, respectively.

Changes in our consolidated net deferred income tax assets (liabilities) for the nine months ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Net balances at beginning of the period			14,583				18,007
Movement charged directly to other comprehensive income (loss)			(165	)			597
Provision for deferred income tax			(4,378	)			(3,938	)
Others			(28	)			(83	)
Net balances at end of the period			10,012				14,583

F-53

The analysis of our consolidated net deferred income tax assets as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Deferred income tax assets:
Deferred income tax assets to be recovered after 12 months			5,422				11,449
Deferred income tax assets to be recovered within 12 months			4,667				3,194
Net deferred income tax assets			10,089				14,643

The analysis of our consolidated net deferred income tax liabilities as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Deferred income tax liabilities:
Deferred income tax liabilities to be settled after 12 months			116				106
Deferred income tax liabilities to be settled within 12 months			(39	)			(46	)
Net deferred income tax liabilities			77				60

Provision for income tax for the nine months ended September 30, 2025 and 2024 consists of:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Current			3,205				4,335
Deferred (Note 3)			4,378				4,504
			7,583				8,839

The impact of the application of MCIT amounting to Php9 million for the nine months ended September 30, 2025 and 2024, respectively, were considered in the provisions for current and deferred income taxes.

The reconciliation between the provision for income tax at the applicable statutory tax rate and the actual provision for corporate income tax for the nine months ended September 30, 2025 and 2024 are as follows:

		September 30,
		2025				2024
		(Unaudited)				(Audited)
		(in million pesos)
Provision for income tax at the applicable statutory tax rate			8,179				9,266
Tax effects of:
Nondeductible expenses			172				17
Loss (income) not subject to income tax			(38	)			54
Equity share in net (income) losses of associates and joint ventures			(78	)			240
Net movement in unrecognized deferred income tax assets and other adjustments			(83	)			(218	)
Income subject to final tax			(101	)			(143	)
Difference between Optional Standard Deduction (OSD) and itemized deductions			(269	)			(247	)
Special deductible items and income subject to lower tax rate			(199	)			(130	)
Actual provision for income tax			7,583				8,839

F-54

The breakdown of our consolidated deductible temporary differences, carryforward benefits of unused tax credits from excess of MCIT over RCIT, and NOLCO (excluding those not recognized due to the adoption of the OSD method) for which no deferred income tax assets were recognized and the equivalent amount of unrecognized deferred income tax assets as at
September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Accumulated provision for expected credit losses			1,957				1,266
NOLCO			935				1,208
Provisions			580				25
Customer list and trademark			428				428
Derivative financial instruments			54				35
Depreciation due to shortened estimated useful life of assets			28				169
Accumulated write-down of inventories to net realizable values			14				15
Unearned revenues			9				9
Excess MCIT over RCIT			7				2
Lease liability over ROU assets under IFRS 16			5				3
Pension and other employee benefits			(17	)			(5	)
Unrealized foreign exchange (gains) losses			(72	)			50
			3,928				3,205
Unrecognized deferred income tax assets			987				803

In 2024, DMPI, IP Converge and Vitro availed the OSD method in computing their taxable income. This assessment is based on projected taxable profits at a level where it is favorable to use OSD method. These companies are also expected to avail of the OSD method in the foreseeable future. Thus, certain deferred income tax assets of DMPI, IP Converge and Vitro amounting to Php90 million and Php237 million as at September 30, 2025 and December 31, 2024, respectively, were not recognized.

Our consolidated deferred income tax assets have been recorded to the extent that such consolidated deferred income tax assets are expected to be utilized against sufficient future taxable profit. Deferred income tax assets shown in the preceding table were not recognized as we believe that future taxable profit will not be sufficient to realize these deductible temporary differences and carryforward benefits of unused tax credits from excess of MCIT over RCIT, and NOLCO in the future.

The breakdown of our consolidated excess MCIT and NOLCO as at September 30, 2025 are as follows:

Date Incurred		Expiry Date		MCIT				NOLCO
				(in million pesos)
December 31, 2021(1)		December 31, 2026			—				18
December 31, 2022		December 31, 2025			—				406
December 30, 2023		December 31, 2026			1				957
December 31, 2024		December 31, 2027			13				63
September 30, 2025		December 31, 2028			42				124
					56				1,568
Consolidated tax benefits					56				392
Consolidated unrecognized deferred income tax assets					(6	)			(246	)
Consolidated recognized deferred income tax assets					50				146

(1) Under R.A. 11494.

The excess MCIT totaling Php56 million as at September 30, 2025 can be deducted against future RCIT liability. The excess MCIT that was deducted against RCIT amounted to Php9 million each for the nine months ended September 30, 2025 and 2024.

NOLCO totaling Php1,568 million as at September 30, 2025 can be claimed as deduction against future taxable income. The NOLCO claimed as deduction against taxable income amounted to Php875 million and Php379 million for the nine months ended September 30, 2025 and 2024, respectively.

Republic Act No. 11494 Bayanihan to Recover as One Act, or Bayanihan II

Republic Act No. 11494, otherwise known as the Bayanihan to Recover as One Act, or Bayanihan II, was signed by
former President Rodrigo Duterte on September 11, 2020. It contains the government’s second wave of relief measures to address the health and economic crises that stemmed from the COVID-19 outbreak.

As part of mitigating the costs and losses stemming from the disruption of economic activities, Bayanihan II extended the carry-over of the NOLCO incurred in 2021 as deductions from gross income for the next five consecutive taxable years

F-55

immediately following the year of the loss. Hence, NOLCO incurred in 2021 amounting to Php18 million, which ordinarily can be carried over until December 31, 2024, has been extended until December 31, 2026.

Registration with Clark Special Economic Zone

ClarkTel’s franchise expired on July 1, 2024. Prior to the expiration, ClarkTel’s Board of Directors applied for a national franchise. The franchise application has been filed and for evaluation of Congress as of report date. Considering the timeline for the national franchise grant, the Company also applied for VAS license with the NTC to ensure continued services to subscribers. The license was approved on November 20, 2024 with a validity period of up to November 19, 2029.

ClarkTel is registered with Clark Special Economic Zone, or Economic Zones, under Republic Act No. 7227 otherwise known as the Bases Conversion and Development Act of 1992. As a registrant, ClarkTel is entitled to all the rights, privileges and benefits established thereunder including tax and duty-free importation of capital equipment and a special income tax rate of 5% of gross income, as defined in Republic Act No. 7227. These incentives are in effect until
May 11, 2027 by virtue of a License to Operate issued by Clark Development Corporation.

Our consolidated income derived from non-registered activities within the Economic Zones is subject to the RCIT rate at the end of the reporting period.

8. Earnings Per Common Share

The following table presents information necessary to calculate the EPS for the nine months ended September 30, 2025 and 2024:

		September 30,
		2025								2024
		(Unaudited)
		Basic				Diluted				Basic				Diluted
		(in million pesos)
Consolidated net income attributable to common shares			25,071				25,071				28,070				28,070
Dividends on preferred shares (Note 19)			(44	)			(44	)			(44	)			(44	)
Consolidated net income attributable to common equity holders of PLDT			25,027				25,027				28,026				28,026
		(in thousands, except per share amounts which are in pesos)
Outstanding common shares at beginning of period			216,056				216,056				216,056				216,056
Weighted average number of common shares			216,056				216,056				216,056				216,056
EPS attributable to common equity holders of PLDT			115.83				115.83				129.71				129.71

Basic EPS amounts are calculated by dividing our consolidated net income for the period attributable to common equity holders of PLDT (consolidated net income adjusted for dividends on all series of preferred shares, except for dividends on preferred stock subject to mandatory redemption) by the weighted average number of common shares issued and outstanding during the period.

Diluted EPS amounts are calculated in the same manner assuming that, at the beginning of the period or at the time of issuance during the period, all outstanding options are exercised, convertible preferred shares are converted to common shares, and appropriate adjustments to our consolidated net income are effected for the related income and expenses on preferred shares. Outstanding stock options will have a dilutive effect only when the average market price of the underlying common share during the period exceeds the exercise price of the stock option.

Convertible preferred shares are deemed dilutive when required dividends declared on each series of convertible preferred shares divided by the number of equivalent common shares, assuming such convertible preferred shares are converted to common shares, decreases the basic EPS. As such, the diluted EPS is calculated by dividing our consolidated net income attributable to common shareholders (consolidated net income, adding back any dividends and/or other charges recognized for the period related to the dilutive convertible preferred shares classified as liability, less dividends on non-dilutive preferred shares except for dividends on preferred stock subject to mandatory redemption) by the weighted average number of common shares excluding the weighted average number of common shares held as treasury shares, and including the common shares equivalent arising from the conversion of the dilutive convertible preferred shares.

Where the effect of the assumed conversion of the preferred shares and the exercise of all outstanding options has an
anti-dilutive effect, basic and diluted EPS are stated at the same amount.

F-56

9.Property and Equipment

Changes in property and equipment account for the nine months ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

		Cable and wire facilities				Central equipment				Network facilities				Building and lease improvement				Vehicles, furniture and other network equipment				Land and land improvements				IT systems and platforms				Security platforms				Property under construction				Total
		(in million pesos)
September 30, 2025 (Unaudited)
Net book value at beginning of the period			101,265				257				116,506				7,304				1,971				4,474				17,210				864				68,218				318,069
Additions (Note 4)			12				—				69				36				295				2,951				194				—				34,879				38,436
Disposals/retirements			—				—				5				—				(48	)			(5	)			—				—				—				(48	)
Reclassification			4,004				—				11,898				7,129				434				(458	)			4,691				199				(30,120	)			(2,223	)
Depreciation and amortization (Note 3)			(7,600	)			(77	)			(16,277	)			(550	)			(529	)			(41	)			(3,638	)			(212	)			—				(28,924	)
Net book value at end of the period			97,681				180				112,201				13,919				2,123				6,921				18,457				851				72,977				325,310
As at September 30, 2025 (Unaudited)
Cost			320,258				512				373,124				35,163				36,242				7,413				63,750				2,129				72,977				911,568
Accumulated depreciation, impairment and amortization			(222,577	)			(332	)			(260,923	)			(21,244	)			(34,119	)			(492	)			(45,293	)			(1,278	)			—				(586,258	)
Net book value			97,681				180				112,201				13,919				2,123				6,921				18,457				851				72,977				325,310
December 31, 2024 (Audited)
Net book value at beginning of the period			81,227				384				101,941				7,979				3,654				4,122				18,794				1,162				67,840				287,103
Additions (Note 4)			86				—				70				31				397				—				598				—				69,730				70,912
Disposals/retirements			—				—				(19	)			(1	)			(234	)			—				(1	)			(129	)			—				(384	)
Reclassification			31,435				—				33,692				542				(809	)			456				5,561				202				(69,167	)			1,912
Translation differences charged directly to cumulative translation      adjustments			1				—				—				—				1				—				—				—				—				2
Adjustments			—				(25	)			—				—				25				—				—				—				(185	)			(185	)
Impairment losses recognized during the period			—				—				—				—				—				—				—				(67	)			—				(67	)
Depreciation and amortization (Note 3)			(11,484	)			(102	)			(19,178	)			(1,247	)			(1,063	)			(104	)			(7,742	)			(304	)			—				(41,224	)
Net book value at end of the period			101,265				257				116,506				7,304				1,971				4,474				17,210				864				68,218				318,069
As at December 31, 2024 (Audited)
Cost			316,803				532				362,387				27,884				36,467				4,960				56,418				1,930				68,218				875,599
Accumulated depreciation, impairment and amortization			(215,538	)			(275	)			(245,881	)			(20,580	)			(34,496	)			(486	)			(39,208	)			(1,066	)			—				(557,530	)
Net book value			101,265				257				116,506				7,304				1,971				4,474				17,210				864				68,218				318,069

F-57

Interest capitalized to property and equipment that qualified as borrowing costs amounted to Php2,065 million and
Php2,126 million for the nine months ended September 30, 2025 and 2024, respectively. See Note 5 – Income and Expenses – Financing Costs – Net. The average interest capitalization rate used was approximately 5% for the nine months ended September 30, 2025 and 2024.

Our net foreign exchange differences, which qualified as borrowing costs, amounted to Php124 million and Php635 million for the nine months ended September 30, 2025 and 2024, respectively.

As at September 30, 2025, the estimated useful lives of our property and equipment are as follows:

Cable and wire facilities(1)		5 – 25 years
Central equipment(2)		3 – 5 years
Network facilities		3 – 20 years
Buildings		25 – 50 years
Vehicles, furniture and other network equipment		3 – 15 years
Land improvements		10 years
IT systems and platforms(3)		3 – 20 years
Security platforms		3 – 5 years
Leasehold improvements		3 – 10 years or the term of the lease, whichever is shorter

(1) As at December 31, 2024, the estimated useful life ranges from 5-15 years.

(2) As at December 31, 2024, the estimated useful life ranges from 3-15 years.

(3) As at December 31, 2024, the estimated useful life ranges from 3-5 years.

See Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Estimating useful lives of property and equipment.

Sale and Leaseback of Telecom Towers

On various dates in 2022 and 2023, Smart and DMPI signed Sale and Purchase Agreements with Edotco Towers, Inc., Edgepoint Towers, Inc., Unity Digital Infrastructure and Frontier Tower Associates Philippines, Inc., or collectively the TowerCos, in connection with the sale of 7,569 telecom towers and related passive telecommunication infrastructure for Php98,309 million.

Concurrent with the execution of the Sale and Purchase Agreements, Smart also entered into Master Service Agreements, or MSAs, with the TowerCos wherein Smart agreed to lease back the towers sold in the transaction for a period of 10 years. In addition to space, the TowerCos are responsible for providing operations and maintenance services, as well as power to the sites. The sale and leaseback with the TowerCos is complemented by a commitment to place service orders for a total of 2,270 Build-To-Suit, or BTS, sites within the next two to four years. Thus, total committed BTS sites with the TowerCos is 2,270 sites. The closing of the agreements is on a staggered basis depending on the satisfaction of closing conditions based on the number of towers transferred.

The following summarizes the completed sale of Smart and DMPI telecom towers as at September 30, 2025:

Closing Date		Number of Tower Assets Sold				Cash Consideration				Gain on Sale and Leaseback
						(in million pesos)				(in million pesos)
2022			4,665				60,492				25,234
2023			1,705				22,465				7,467
2024			356				4,362				1,471
2025			89				1,068				859
			6,815				88,387				35,031		(1)

(1) Gross of related transaction costs.

The remaining telecom towers with net book value of Php4,162 million and Php4,547 million as at September 30, 2025 and December 31, 2024, respectively, subject to sale and purchase agreement within one year, were reclassified from “Property and equipment” to “Assets classified as held-for-sale” under current assets in our consolidated statement of financial position.

F-58

10.Leases

Group as a Lessee

We have lease contracts for various items of sites, buildings, leased circuits and poles used in our operations. We considered in the lease term the non-cancellable period of the lease together with the periods covered by an option to extend and option to terminate the lease.

Our consolidated estimated useful lives of ROU assets as at September 30, 2025 are as follows:

Sites		1 – 30 years
International leased circuits(1)		2 – 19 years
Poles(2)		2 – 12 years
Domestic leased circuits		2 – 10 years
Office buildings		1 – 25 years
Co-located sites(3)		4 – 7 years

(1) As at December 31, 2024, the estimated useful life ranges from 1-19 years.

(2) As at December 31, 2024, the estimated useful life ranges from 1-12 years.

(3) As at December 31, 2024, the estimated useful life ranges from 2-11 years.

F-59

Our consolidated roll forward analysis of ROU assets as at September 30, 2025 and December 31, 2024 are as follows:

		Sites				International Leased Circuits				Poles				Domestic Leased Circuits				Office Buildings				Co-located Sites				Total
		(in million pesos)
September 30, 2025 (Unaudited)
Costs:
Balances at beginning of the period			44,047				5,055				5,336				2,637				1,301				61				58,437
Additions (Note 28)			11,574				2,086				1,072				574				207				—				15,513
Asset retirement obligation			57				—				—				—				14				—				71
Modifications			(217	)			(2	)			114				4				(8	)			—				(109	)
Terminations			(2,433	)			(1,380	)			(191	)			(284	)			(157	)			(2	)			(4,447	)
Reclassification to ROU assets classified as held-for-sale			(156	)			—				—				—				—				—				(156	)
Balances at end of the period			52,872				5,759				6,331				2,931				1,357				59				69,309
Accumulated depreciation and amortization:
Balances at beginning of the period			(11,608	)			(3,110	)			(1,739	)			(1,810	)			(1,010	)			(49	)			(19,326	)
Asset Retirement Obligation - Derecognition			8				—				—				—				—				—				8
Modifications			29				—				—				—				5				—				34
Terminations			936				886				184				197				144				17				2,364
Depreciation (Note 3)			(4,599	)			(635	)			(887	)			(305	)			(244	)			(8	)			(6,678	)
Reclassification to ROU assets classified as held-for-sale			(44	)			—				—				—				—				—				(44	)
Balances at end of the period			(15,278	)			(2,859	)			(2,442	)			(1,918	)			(1,105	)			(40	)			(23,642	)
Net book value at the end of the period			37,594				2,900				3,889				1,013				252				19				45,667
December 31, 2024 (Audited)
Costs:
Balances at beginning of the period			38,461				4,305				3,364				2,001				1,144				53				49,328
Additions (Note 28)			8,683				1,546				4,273				763				334				8				15,607
Asset retirement obligation			571				—				—				—				5				—				576
Modifications			(1,180	)			266				173				135				27				—				(579	)
Terminations			(2,350	)			(1,062	)			(2,474	)			(262	)			(209	)			—				(6,357	)
Reclassification to ROU assets classified as held-for-sale			(138	)			—				—				—				—				—				(138	)
Balances at end of the period			44,047				5,055				5,336				2,637				1,301				61				58,437
Accumulated depreciation and amortization:
Balances at beginning of the period			(7,599	)			(3,298	)			(3,156	)			(1,632	)			(887	)			(39	)			(16,611	)
Modifications			108				(12	)			(3	)			(75	)			(20	)			—				(2	)
Terminations			361				1,028				2,474				262				192				—				4,317
Depreciation (Note 3)			(4,763	)			(828	)			(1,054	)			(365	)			(295	)			(10	)			(7,315	)
Reclassification to ROU assets classified as held-for-sale			285				—				—				—				—				—				285
Balances at end of the period			(11,608	)			(3,110	)			(1,739	)			(1,810	)			(1,010	)			(49	)			(19,326	)
Net book value at the end of the period			32,439				1,945				3,597				827				291				12				39,111

F-60

The following amounts are recognized in our consolidated income statements for the nine months ended
September 30, 2025 and 2024:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Depreciation expense of ROU assets			6,676				5,255
Interest expense on lease liabilities			3,325				2,900
Variable lease payments (included in general operating costs)			538				511
Expenses relating to short-term leases (included in general operating costs)			462				394
Total amount recognized in consolidated income statements			11,001				9,060

Our consolidated roll forward analysis of lease liabilities as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Balances at beginning of the period			54,038				47,546
Additions (Note 28)			15,513				15,607
Accretion on lease liabilities (Note 5)			3,325				3,935
Reclassification to lease liabilities classified as held-for-sale			44				(87	)
Foreign exchange gains (losses) – net			(9	)			100
Lease modifications			(132	)			(121	)
Termination			(1,331	)			(863	)
Settlement of obligations			(10,693	)			(12,079	)
Balances at end of the period (Notes 3 and 28)			60,755				54,038
Less: Current portion of lease liabilities (Note 27)			8,667				7,335
Noncurrent portion of lease liabilities (Note 27)			52,088				46,703

We had total cash outflows for leases of Php10,693 million and Php8,994 million for the nine months ended
September 30, 2025 and 2024, respectively. We had non-cash additions to ROU assets of Php15,513 million and
Php15,607 million and lease liabilities of Php15,513 million and Php15,607 million as at September 30, 2025 and
December 31, 2024, respectively. The future cash outflows relating to leases that have not yet commenced are disclosed in Note 28 – Notes to the Statements of Cash Flows.

We have entered into several lease contracts that include automatic extension and termination options. These options are negotiated by us to provide flexibility in managing the leased-asset portfolio and aligning with our business needs. However, in some of these lease contracts, we did not impute the renewal period in our assessment of the lease terms of these contracts since said renewal period is not yet reasonably estimable at the time of transition or commencement date of the lease. See Note 3 – Managements Use of Accounting Judgments, Estimates and Assumptions – Determining the lease term of contracts with renewal and termination options – Company as a Lessee.

As disclosed in Note 9 – Property and Equipment, on the sale and leaseback of telecom towers, Smart and DMPI signed Sale and Purchase Agreements with the TowerCos in connection with the sale of 7,569 telecom towers and related passive telecom infrastructure, with the concurrent execution of MSAs with the TowerCos where Smart has agreed to lease back the towers sold in the transaction for a period of 10 years.

In 2022, 2023, 2024 and 2025, the MSAs covering the leaseback arrangements of 4,665, 1,705, 356 and 89 telecom towers, respectively, became effective. As a result, we recognized cumulative lease liability of Php40,824 million and cumulative ROU assets of Php24,759 million as at September 30, 2025.

Including the related accounts on Unity and Frontier, the ROU assets relating to leasehold land with net book value of
Php2,154 million and Php1,954 million, and the related lease liabilities amounting to Php1,571 million and
Php1,615 million were respectively reclassified as “Assets classified as held-for-sale” under current assets and “Liabilities associated with assets classified as held-for-sale” under current liabilities in our consolidated statement of financial position as at September 30, 2025 and December 31, 2024, respectively.

F-61

Common Tower Pilot, or CTP, Program

The CTP Program, established by Smart in January 2020, in partnership with several TowerCos duly accredited by the Department of Information and Communications Technology, aims to accelerate new site rollouts and reduce upfront the capital expenditures spending.

Under the MSAs, TowerCos will handle site acquisition and permitting, site development works, construction and permanent electrification of the towers. Effective 30 days after the sites are Ready For Telecommunication Installation, or RFTI, Smart will be liable to settle a monthly fixed fee covering rental and maintenance costs for a contract term of 15 years. The monthly fee will be subject to agreed escalation rates with TowerCos. As anchor tenant, Smart will also be entitled to colocation discounts when additional tenants come on board.

Upon launching of the program, the original CTP commitment covered 200 sites. As at September 30, 2025, Smart has issued service orders, or SOs, corresponding to 448 sites. As at September 30, 2025 and December 31, 2024, 446 and
422 sites are ready for service, respectively. All are classified as RFTI.

Group as a Lessor

We have entered into operating leases on our investment property portfolio consisting of certain office buildings and business offices. See Note 13 – Investment Properties. These leases have a term of five years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The lessee is also required to provide a residual guarantee on the properties. Rental income recognized amounted to
Php47 million and Php45 million for the nine months ended September 30, 2025 and 2024, respectively.

Future minimum rentals receivable under non-cancellable operating leases expected within one year amounted to
Php62 million, and after one year but not more than five years, amounted to Php16 million and Php62 million as at
September 30, 2025 and December 31, 2024, respectively.

F-62

11.Investments in Associates and Joint Ventures

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Carrying value of investments in associates:
MediaQuest PDRs			9,069				9,186
MIH			7,312				6,731
Individually immaterial associates			3,580				3,064
			19,961				18,981
Carrying value of investments in joint ventures:
VTI, Bow Arken and Brightshare			32,999				33,675
Individually immaterial joint ventures			291				108
			33,290				33,783
Total carrying value of investments in associates and joint ventures			53,251				52,764

Changes in the cost of investments for the nine months ended September 30, 2025 and for the year ended
December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Balances at beginning of the period			68,010				64,658
Additions during the period			778				3,485
Return of capital			(600	)			—
Translation and other adjustments			(4	)			(133	)
Balances at end of the period			68,184				68,010

Changes in the accumulated impairment losses for the nine months ended September 30, 2025 and for the year ended
December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Balances at beginning of the period			2,763				2,875
Adjustments			—				(112	)
Balances at end of the period			2,763				2,763

Changes in the accumulated equity share in net earnings (losses) of associates and joint ventures for the nine months ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Balances at beginning of the period			(12,483	)			(11,475	)
Equity share in net earnings (losses) of associates and joint ventures:			313				(990	)
MIH			581				(935	)
VTI, Bow Arken and Brightshare			(76	)			26
MediaQuest PDRs			(117	)			(74	)
Individually immaterial associates and joint ventures			(75	)			(7	)
Translation and other adjustments			—				(18	)
Balances at end of the period			(12,170	)			(12,483	)

F-63

Investments in Associates

Investment of ePLDT in MediaQuest PDRs

ePLDT made various investments in PDRs issued by Mediaquest in relation to its direct interest in Satventures and indirect interest in Cignal TV through Satventures. These investments in PDRs provided ePLDT with a 64% economic interest in Cignal TV.

Cignal TV is a wholly-owned subsidiary of Satventures, which is a wholly-owned subsidiary of MediaQuest, an entity incorporated in the Philippines. It operates a direct-to-home, or DTH, Pay-TV business under the brand name “Cignal TV”, which is the largest DTH Pay-TV operator in the Philippines.

The PLDT Group’s financial investment in PDRs of MediaQuest is part of the PLDT Group’s overall strategy of broadening its distribution platforms and increasing the PLDT Group’s ability to deliver multimedia content to its customers across the PLDT Group’s broadband and mobile networks.

ePLDT’s aggregate value of investment in MediaQuest PDRs amounted to Php9,069 million and Php9,186 million as at September 30, 2025 and December 31, 2024, respectively. See Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Accounting for investment in MediaQuest through PDRs.

The table below presents the summarized financial information of Satventures/Cignal TV as at September 30, 2025 and December 31, 2024, and for the nine months ended September 30, 2025 and 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Statements of Financial Position:
Noncurrent assets			22,647				22,710
Current assets			7,421				8,578
Noncurrent liabilities			1,471				2,146
Current liabilities			13,426				13,787
Equity			15,171				15,355
Carrying amount of interest in Satventures/Cignal TV			9,069				9,186
Additional Information:
Cash and cash equivalents			462				588
Current financial liabilities(1)			3,471				2,736
Noncurrent financial liabilities(1)			1,068				1,210

(1)Excluding trade, other payables and provisions.

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Income Statements:
Revenues			5,780				6,192
Depreciation and amortization			1,092				1,047
Interest income			39				36
Interest expense			281				260
Benefit from income tax			(109	)			(67	)
Net loss / Total comprehensive loss			(183	)			(233	)
Equity share in net losses of Satventures/Cignal TV			(117	)			(149	)

The carrying amount of Satventures’ investment as at September 30, 2025 and December 31, 2024 are as follows.

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Satventures'/Cignal TV's equity			15,171				15,355
Deposit for future stock subscription			(1,000	)			(1,000	)
Net equity			14,171				14,354
Satventures'/Cignal TV's noncontrolling interest			64	%			64	%
Carrying amount of interest in Satventures/Cignal TV			9,069				9,186

F-64

Investment of PCEV in MIH

The following summarizes the subscription agreements entered into by PCEV with MIH:

Date		Agreement		Number of Shares				Total Consideration				PCEV's Equity Interest
				(in millions)
March 14, 2018		Acquisition of Ordinary Shares			53.4				465				100.00	%
March 14, 2018		Subscription of Ordinary Shares			95.9				3,806				100.00	%
December 31, 2020		Conversion of notes to Class A2 preference shares			7.9				544				43.97	%
March 12, 2021		Exercise of warrants to subscribe Class A2 preference shares			6.7				447				41.87	%
June 11, 2021		Subscription to Class B convertible preferred shares			15.6				1,218				38.45	%
April 7, 2022		Subscription to Class C convertible preferred shares			27.2				3,252				36.82	%
December 13, 2023		Subscription to Class C2 convertible preferred shares			12.3				1,563				36.97	%
April 5, 2024		Subscription to Class C2 convertible preferred shares			6.7				857				37.66	%

Additional Investment in 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%.

PCEV’s percentage equity interest in MIH stood at 37.66% as at September 30, 2025 and December 31, 2024.

The summarized financial information of MIH as at September 30, 2025 and December 31, 2024, and for the nine months ended September 30, 2025 and 2024 is shown below:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Statements of Financial Position:
Noncurrent assets			8,572				7,241
Current assets			18,516				29,815
Noncurrent liabilities			746				798
Current liabilities			17,728				29,461
Equity			8,614				6,797
Carrying amount of interest in MIH			7,312				6,731
Additional Information:
Cash and cash equivalents			3,720				8,565
Current financial liabilities(1)			17,470				29,274

(1) Excluding statutory payables and accrued taxes.

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Income Statements:
Revenues			14,142				9,889
Depreciation and amortization			390				293
Interest income			113				128
Provision for income tax			119				46
Net gain (loss)/Total comprehensive gain (loss)			1,543				(2,458	)
Equity share in net income (loss) of MIH (1)			581				(918	)

(1) 2025 and 2024 amounts include impact of 2024 and 2023 audit adjusting entries, respectively.

The carrying value of PCEV’s investment in MIH as at September 30, 2025 and December 31, 2024 are as follows.

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
MIH Equity(1)			6,328				4,711
PCEV's noncontrolling interests			37.66	%			37.66	%
Share in net assets of MIH			2,383				1,774
Goodwill arising from acquisition			4,929				4,957
Carrying amount of interest in MIH			7,312				6,731

(1) MIH Equity is net of Php2,286 million and Php2,086 million Stock Option in 2025 and 2024, respectively.

F-65

Investments in Joint Ventures

Investments of PLDT in VTI, Bow Arken and Brightshare

The Company’s acquisition of a 50% equity interest in the telecommunications business of San Miguel Corporation, or SMC, through the VTI, Bow Arken, and Brightshare Transactions (collectively, the SMC Transactions), was approved by the Board on May 30, 2016. Globe acquired the remaining 50%. PLDT and Globe executed separate Share Purchase Agreements to acquire the equity, outstanding advances, and assumed liabilities of these entities.

The total consideration of Php52.8 billion was paid in three tranches: 50% on May 30, 2016, 25% on December 1, 2016, and 25% on May 30, 2017. Under the agreements, PLDT and Globe, through VTI, Bow Arken, and Brightshare, also assumed liabilities amounting to Php17.2 billion from May 30, 2016, subject to a price adjustment mechanism. Following confirmatory due diligence, both parties paid the previous owners a net adjustment of Php2.6 billion on
May 29, 2017.

As part of the SMC Transactions, PLDT and Globe also acquired certain outstanding advances from the previous owners, the largest of which amounted to Php11,359 million, comprising Php11,038 million from VTI and its subsidiaries,
Php238 million from Bow Arken, and Php83 million from Brightshare.

PLDT and Globe each subscribed to preferred shares of VTI as follows: (a) February 28, 2017: 2.8 million preferred shares at Php4,000 per share (Php11,040 million per party), paid by applying assigned advances; (b) February 28, 2017: 800 thousand additional preferred shares at Php4,000 per share (Php3,200 million per party), with Php148 million paid in cash and the balance settled by year-end 2017; and (c) December 15, 2017: 600 thousand preferred shares at Php5,000 per share (Php3,000 million per party), partly paid in cash and the balance settled through conversion of advances.

All subscription payments were fully paid as of December 31, 2017. The amount of the advances outstanding of PLDT, to cover for the assumed liabilities and working capital requirements of the acquired companies, amounted to nil and Php69 million as at September 30, 2025 and December 31, 2024.

The table below presents the summarized financial information of VTI, Bow Arken and Brightshare as at
September 30, 2025 and December 31, 2024, and for the nine months ended September 30, 2025 and 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Statements of Financial Position:
Noncurrent assets			77,368				77,849
Current assets			4,514				5,231
Noncurrent liabilities			9,461				9,475
Current liabilities			2,723				2,395
Equity			69,698				71,209
Carrying amount of assets in VTI, Bow Arken and Brightshare			32,999				33,675
Additional Information:
Cash and cash equivalents			2,265				3,010
Current financial liabilities (1)			117				81

(1) Excluding trade, other payables and provisions.

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Income Statements:
Revenues			3,556				3,260
Depreciation and amortization			1,461				1,423
Interest income			104				92
Provision for income tax			9				39
Net loss / Total comprehensive loss			(151	)			(117	)
Equity share in net income of VTI, Bow Arken and Brightshare			(76	)			(58	)

F-66

The carrying value of PLDT’s investment in VTI, Bow Arken and Brightshare as at September 30, 2025 and
December 31, 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
VTI, Bow Arken and Brightshare equity			69,698				71,209
PLDT's share			50	%			50	%
Share in net assets of VTI, Bow Arken and Brightshare			34,849				35,605
Share in adjustment based on liability and ETPI net cash balance			442				442
Reimbursements			(392	)			(248	)
Share in SMC's advances in VTI, Bow Arken and Brightshare			(840	)			(840	)
Non-controlling interests			(1,091	)			(1,127	)
Others			31				(157	)
Carrying amount of interest in VTI, Bow Arken and Brightshare			32,999				33,675

Notice of Transaction filed with the PCC

Prior to the closing of the transaction on May 30, 2016, PLDT, Globe, and SMC each submitted separate notices to the Philippine Competition Commission (PCC) covering the VTI, Bow Arken, and Brightshare transactions, respectively, pursuant to the Philippine Competition Act (PCA) and PCC Circular Nos. 16-001 and 16-002 (the “Circulars”). Under the Circulars, such transactions are deemed approved upon the PCC’s receipt of complete and compliant notices.

On June 6 and 7, 2016, the PCC informed the parties that: (a) with respect to the VTI transaction, the notice was deficient in form and substance and therefore not deemed approved, as key terms were allegedly missing and certain agreements potentially prohibited; and (b) with respect to the Bow Arken and Brightshare transactions, compulsory notification under the Circulars was inapplicable, and in any case, the notices were also deemed deficient.

In its response dated June 10, 2016, PLDT maintained that its notice was complete, sufficient, and compliant, and that the VTI transaction was therefore deemed approved under Section 23 of the PCA and not subject to retroactive review. PLDT further stated that the parties had taken measures to prevent any substantial lessening of competition, including the relinquishment and co-use of certain frequencies among Smart, BellTel, and Globe. For transparency, PLDT and the other parties voluntarily furnished the PCC with copies of the Sale and Purchase Agreements.

Despite this response, the PCC, in a letter dated June 17, 2016, required the parties to submit additional documents relating to the co-use arrangements and other definitive agreements, and disregarded the transaction’s deemed-approved status under the Circulars, indicating its intent to conduct a full review or investigation of the transaction.

In the Matter of the Petition against the PCC

PLDT’s Petition for Certiorari and Prohibition before the Court of Appeals (CA) against the Philippine Competition Commission (PCC), which challenged the PCC’s review of PLDT’s and Globe’s acquisition of SMC’s telecommunications business (the “SMC Transactions”), was decided by the CA in October 2017 in favor of PLDT and Globe. The CA permanently enjoined the PCC from conducting any pre-acquisition review or investigation, set aside the PCC’s letters directing such review, and declared the SMC Transactions “deemed approved” under the Philippine Competition Act and the PCC’s transitory rules. The CA, however, clarified that the PCC retained authority to conduct post-acquisition reviews to address any anti-competitive conduct.

The PCC elevated the case to the Supreme Court via a Petition for Review on Certiorari, which was consolidated with an earlier PCC petition to annul the CA’s writ of preliminary injunction. The Supreme Court proceedings have since involved multiple submissions and motions by the parties, and the consolidated petitions remain pending resolution.

The Supreme Court has not yet issued a final decision on the consolidated cases. The most recent action was the Court’s February 8, 2021 Resolution, noting the Consolidated Reply filed by petitioners in a related docket (G.R. No. 242352). No further order or resolution has been promulgated since. As of the date of this report, the matter remains pending before the Supreme Court.

Return of Capital from VTI

On September 2, 2025, the Board of Directors of VTI authorized to partially redeem a portion of its issued and outstanding redeemable preferred shares issued to PLDT and Globe consisting of an aggregate of 265,420 preferred shares (132,710 shares per party) at a redemption price of Php4 thousand per share or an aggregate redemption price of

F-67

Php1,062 million (Php531 million per party). Additionally, the Board of Directors of VTI agreed to return the deposits for future stock subscription in the amount of Php138 million (Php69 million per party) as it no longer desires to convert the said deposits into equity.

Individually immaterial associates and joint ventures

As at September 30, 2025 and December 31, 2024, following are the carrying values of individually immaterial associates and joint ventures:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Individually immaterial associates:
Radius			2,090				2,123
Kayana			1,402				853
Appcard, Inc.			88				88
PG1			—				—
AF Payments, Inc.			—				—
			3,580				3,064
Individually immaterial joint ventures:
DFTI			249				66
Telecommunications Connectivity, Inc.			42				42
PFC/VFC			—				—
			291				108
Total individually immaterial associates and joint ventures			3,871				3,172

The summarized financial information of individually immaterial associates and joint ventures as at September 30, 2025 and December 31, 2024, and for the nine months ended September 30, 2025 and 2024 is shown below:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Statements of Financial Position:
Noncurrent assets			13,977				12,994
Current assets			4,053				2,511
Noncurrent liabilities			3,410				3,625
Current liabilities			5,883				4,829
Equity			8,737				7,051
Carrying amount of interest in individually immaterial associates and joint ventures			3,871				3,172
Additional Information:
Cash and cash equivalents			1,860				1,065
Current financial liabilities			1,771				2,824
Noncurrent financial liabilities			3,221				3,020

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Income Statements:
Revenues			2,351				2,615
Depreciation and amortization			773				836
Interest income			26				18
Interest expense			59				49
Provision for income tax			32				56
Net loss / Total comprehensive loss			(208	)			(755	)
Equity share in net income (losses) of individually immaterial associates and joint ventures			(75	)			6

12.Debt Instruments at Amortized Cost

F-68

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Retail Treasury Bonds			340				340
Fixed Rate Treasury Notes, or FXTN			30				55
			370				395
Less: Current portion of debt instrument at amortized cost (Note 27)			20				25
Noncurrent portion of debt instrument at amortized cost (Note 27)			350				370

Retail Treasury Bonds

On March 9, 2021, Smart purchased at par a three-year Retail Treasury Bond Tranche 25 with face value of
Php100 million which matured on March 9, 2024. The bond had a gross coupon rate of 2.375% payable on a quarterly basis. Interest income recognized on this investment amounted to nil and Php359 thousand for the nine months ended September 30, 2025 and 2024, respectively.

On December 2, 2021, PLDT and Smart purchased at par a 5.5-year Retail Treasury Bond Tranche 26 with face value of Php300 million maturing on June 2, 2027. The bond has a gross coupon rate of 4.6250% payable on a quarterly basis. Interest income recognized on this investment amounted to Php8.3 million and Php8.2 million for the nine months ended September 30, 2025 and 2024, respectively. The carrying value of this investment amounted to Php300 million each as at
September 30, 2025 and December 31, 2024.

On March 4, 2022, PLDT and Smart purchased at par a five-year Retail Treasury Bond Tranche 27 with face value of
Php40 million maturing on March 4, 2027. The bond has a gross coupon rate of 4.8750% payable on a quarterly basis. Interest income recognized on this investment amounted to Php1.2 million each for the nine months ended
September 30, 2025 and 2024. The carrying value of this investment amounted to Php40 million each as at
September 30, 2025 and December 31, 2024.

FXTN

On June 3, 2022, Smart purchased at a discount a three-year FXTN 03-27 with face value of Php25 million which matured on April 7, 2025. The bond has a gross coupon rate of 4.25% payable on a semi-annual basis. Interest income recognized on this investment amounted to Php222 thousand and Php640 thousand for the nine months ended
September 30, 2025 and 2024, respectively. The carrying value of this investment amounted to nil and Php25 million as at September 30, 2025 and December 31, 2024, respectively.

On June 16, 2022, Smart purchased at a premium a seven-year FXTN 07-67 with face value of Php10 million maturing on May 19, 2029. The bond has a gross coupon rate of 6.5% payable on a semi-annual basis. Interest income recognized on this investment amounted to Php393 thousand each for the nine months ended September 30, 2025 and 2024. The carrying value of this investment amounted to Php10 million as at September 30, 2025 and December 31, 2024.

On July 7, 2022, PLDT and Smart purchased at a premium a four-year FXTN 07-62 with face value of Php20 million maturing on February 14, 2026. The bond has a gross coupon rate of 6.25% payable on a semi-annual basis. Interest income recognized on this investment amounted to Php744 thousand and Php939 thousand for the nine months ended September 30, 2025 and 2024, respectively. The carrying value of this investment amounted to Php20 million each as at
September 30, 2025 and December 31, 2024, respectively.

F-69

13.Investment Properties

Changes in investment properties account for the nine months ended September 30, 2025 and for the year ended
December 31, 2024 are as follows:

		Land				Land Improvements				Building				Total
		(in million pesos)
September 30, 2025 (Unaudited)
Balances at beginning of the period			2,882				12				106				3,000
Transfers from property and equipment			2,187				81				81				2,349
Net gains from fair value adjustments charged to other comprehensive income			90				3				94				187
Balances at end of the period			5,159				96				281				5,536
December 31, 2024 (Audited)
Balances at beginning of the period			1,184				12				119				1,315
Transfers from property and equipment - net			1,695				—				(19	)			1,676
Net gains from fair value adjustments charged to profit or loss			17				—				6				23
Disposals during the period			(14	)			—				—				(14	)
Balances at end of the period			2,882				12				106				3,000

Investment properties, which consist of land, land improvements and building, are stated at fair values, which 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 was based on a market approach valuation technique using price per square meter. The valuation for building and land improvements was based on a cost approach valuation technique using current material and labor costs for improvements based on external and independent reviewers.

We have determined that the highest and best use of some of the idle or vacant land properties at the measurement date would be to convert the properties for residential or commercial development. The properties are not being used for strategic reasons.

We have no restrictions on the realizability of our investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Repairs and maintenance expenses related to investment properties that do not generate rental income amounted to
Php85 million and Php87 million for the nine months ended September 30, 2025 and 2024.

Rental income relating to investment properties that are being leased and included as part of other miscellaneous income amounted to Php47 million and Php45 million for the nine months ended September 30, 2025 and 2024, respectively. See Note 10 – Leases.

The above investment properties were categorized under Level 2 and Level 3 of the fair value hierarchy. There were no transfers in and out of Level 2 and Level 3 of the fair value hierarchy.

Significant increases or decreases in price per square meter for land, current material and labor costs of improvements would result in a significantly higher or lower fair value measurement.

F-70

14.Goodwill and Intangible Assets

Changes in goodwill and intangible assets account for the nine months ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

	Intangible Assets with			Intangible Assets with Finite Life																		Total Intangible Assets with			Total						Total Goodwill and
	Indefinite Life			Trademark			Franchise			Licenses			Customer List			Spectrum			Others			Finite Life			Intangible Assets			Goodwill			Intangible Assets
				(in million pesos)
September 30, 2025 (Unaudited)
Costs:
Balances at beginning of the period		220			4,565			3,017			135			4,703			1,205			1,689			15,314			15,534			63,595			79,129
Additions during the period		—			—			—			—			12			—			66			78			78			—			78
Translation and other adjustments		—			—			—			—			—			—			(2	)		(2	)		(2	)		—			(2	)
Balances at end of the period		220			4,565			3,017			135			4,715			1,205			1,753			15,390			15,610			63,595			79,205
Accumulated amortization and impairment:
Balances at beginning of the period		—			4,565			2,451			135			4,703			1,205			952			14,011			14,011			654			14,665
Amortization during the period		—			—			140			—			2			—			59			201			201			—			201
Translation and other adjustments		—			—			—			—			—			—			(3	)		(3	)		(3	)		—			(3	)
Balances at end of the period		—			4,565			2,591			135			4,705			1,205			1,008			14,209			14,209			654			14,863
Net balances at end of the period		220			—			426			—			10			—			745			1,181			1,401			62,941			64,342
Estimated useful lives (in years)		—			—			16			—			6			—		5-10				—			—			—			—
Remaining useful lives (in years)		—			—			3			—			5			—		3-10				—			—			—			—
December 31, 2024 (Audited)
Costs:
Balances at beginning of the period		220			4,561			3,017			135			4,703			1,205			1,321			14,942			15,162			63,595			78,757
Additions during the period		—			—			—			—			—			—			366			366			366			—			366
Translation and other adjustments		—			4			—			—			—			—			2			6			6			—			6
Balances at end of the period		220			4,565			3,017			135			4,703			1,205			1,689			15,314			15,534			63,595			79,129
Accumulated amortization and impairment:
Balances at beginning of the period		—			4,561			2,265			135			4,703			1,205			899			13,768			13,768			654			14,422
Amortization during the period		—			—			186			—			—			—			54			240			240			—			240
Translation and other adjustments		—			4			—			—			—			—			(1	)		3			3			—			3
Balances at end of the period		—			4,565			2,451			135			4,703			1,205			952			14,011			14,011			654			14,665
Net balances at end of the period		220			—			566			—			—			—			737			1,303			1,523			62,941			64,464
Estimated useful lives (in years)		—			—			16			—			—			—		5-10				—			—			—			—
Remaining useful lives (in years)		—			—			3			—			—			—		3-10				—			—			—			—

F-71

The consolidated goodwill and intangible assets of our reportable segments as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025												December 31, 2024
		(Unaudited)												(Audited)
		Wireless				Fixed Line				Total				Wireless				Fixed Line				Total
		(in million pesos)
Franchise			426				—				426				566				—				566
Customer list			—				230				230				—				220				220
Others			—				745				745				—				737				737
Total intangible assets			426				975				1,401				566				957				1,523
Goodwill			56,571				6,370				62,941				56,571				6,370				62,941
Total goodwill and intangible assets			56,997				7,345				64,342				57,137				7,327				64,464

The consolidated future amortization of intangible assets as at September 30, 2025 are as follows:

Year		(in million pesos)
2025(1)			67
2026			266
2027			265
2028			86
2029			80
2030 and onwards			417
			1,181

(1) From October 1, 2025 to December 31, 2025

Impairment Testing of Goodwill

The organizational structure of PLDT and its subsidiaries is designed to monitor financial operations based on fixed line and wireless segmentation. Management provides guidelines and decisions on resource allocation, such as continuing or disposing of assets and operations by evaluating the performance of each segment through review and analysis of available financial information on the fixed line and wireless segments. As at September 30, 2025, the PLDT Group’s goodwill comprised of goodwill resulting from PGIH’s acquisition of Multisys in 2022, ePLDT’s acquisition of IPCDSI in 2012, PLDT’s acquisition of Digitel in 2011, ePLDT’s acquisition of ePDS in 2011, Smart’s acquisition of PDSI and Chikka in 2009, SBI’s acquisition of Airborne Access Corporation in 2008, and Smart’s acquisition of SBI in 2004.

Although revenue streams may be segregated among the companies within the PLDT Group, cash inflows are not considered coming from independent groups of assets on a per Company basis due largely to the significant portion of shared and commonly used network/platform that generates related revenue. On the other hand, PLDT has the largest fixed line network in the Philippines. PLDT’s transport facilities are installed nationwide to cover both domestic and international IP backbone to route and transmit IP traffic generated by the customers. In the same manner, PLDT has the most Internet Gateway facilities which are composed of high-capacity IP routers and switches that serve as the main gateway of the Philippines to the Internet connecting to the World Wide Web. With PLDT’s network coverage, other fixed line subsidiaries share the same facilities to leverage from a Group perspective.

Because of the significant common use of network facilities among fixed line and wireless companies within the Group, management deems that the Wireless and Fixed Line units are the lowest CGUs to which goodwill is to be allocated and tested for impairment given that the Fixed Line and Wireless operations generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

The recoverable amount of the Wireless and Fixed Line CGUs have been determined using the value-in-use approach calculated using cash flow projections based on the financial budgets approved by the Board of Directors. The post-tax discount rates applied to cash flow projections are 9.01% for the Wireless and Fixed Line CGUs. Cash flows beyond the projection period of three years are determined using a 2.4% growth rate for the Wireless and Fixed Line CGUs, which is the same as the long-term average growth rate for the telecommunications industry. Other key assumptions used in the cash flow projections include revenue growth rate and capital expenditures.

Based on the assessment of the VIU of the Wireless and Fixed Line CGUs, the recoverable amount of the Wireless and Fixed Line CGUs exceeded their carrying amounts. Hence, no impairment was recognized in relation to goodwill as at
September 30, 2025 and December 31, 2024.

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15.Cash and Cash Equivalents

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Cash on hand and in banks (Note 27)			6,877				8,547
Temporary cash investments (Note 27)			3,215				1,464
Total			10,092				10,011

Cash in banks earn interest at prevailing bank deposit rates. Temporary cash investments are made for varying periods of up to three months depending on our immediate cash requirements and earn interest at the prevailing temporary cash investment rates. Due to the short-term nature of such transactions, the carrying value approximates the fair value of our temporary cash investments. See Note 27 – Financial Assets and Liabilities.

Interest income earned from cash in banks and temporary cash investments amounted to Php134 million and Php231 million for the nine months ended September 30, 2025 and 2024, respectively. See Note 5 – Income and Expenses.

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16. Trade and Other Receivables

As at September 30, 2025 and December 31, 2024, this account consists of receivables from:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Corporate subscribers (Note 27)			20,940				20,936
Retail subscribers (Note 27)			18,451				17,516
Foreign administrations (Note 27)			1,383				1,254
Domestic carriers (Note 27)			211				256
Dealers, agents and others (Note 27)			6,886				8,846
			47,871				48,808
Less: Allowance for expected credit losses			17,856				17,196
			30,015				31,612

Trade and other receivables are noninterest-bearing and generally have settlement terms of 30 to 180 days.

Receivables from foreign administrations and domestic carriers represent receivables based on interconnection agreements with other telecommunications carriers. The aforementioned amounts of receivable are shown net of related payables to the same telecommunications carriers where a legal right of offset exists and settlement is facilitated on a net basis.

Receivables from dealers, agents and others consist mainly of receivables from credit card companies, dealers and distributors having collection arrangements with the PLDT Group, dividend receivables and advances to affiliates.

For terms and conditions relating to related party receivables, see Note 24 – Related Party Transactions.

See Note 27 – Financial Assets and Liabilities on credit risk of trade receivables to understand how we manage and measure credit quality of trade receivables that are neither past due nor impaired.

F-74

The following table explains the changes in the allowance for expected credit losses as at September 30, 2025 and December 31, 2024:

	Retail Subscribers							Corporate Subscribers							Foreign Administrations							Domestic Carriers							Dealers, Agents and Others							Total
	Stage 2			Stage 3				Stage 2			Stage 3				Stage 2			Stage 3				Stage 2			Stage 3				Stage 2			Stage 3				Stage 2			Stage 3
	Lifetime ECL							Lifetime ECL							Lifetime ECL							Lifetime ECL							Lifetime ECL							Lifetime ECL						Total
	(in million pesos)
September 30, 2025 (Unaudited)
Balances at beginning of the period		576			9,290				2,400			3,513				14			63				—			—				606			734				3,596			13,600			17,196
Provisions		(51	)		2,357				(97	)		528				5			—				—			—				—			2				(143	)		2,887			2,744
Translation adjustments		—			—				3			2				—			—				—			—				12			—				15			2			17
Write-offs		—			(1,760	)			—			(445	)			—			—				—			—				—			—				—			(2,205	)		(2,205	)
Reclassifications and reversals		(60	)		73				497			30				11			3				—			—				(431	)		(19	)			17			87			104
Balances at end of the period		465			9,960				2,803			3,628				30			66				—			—				187			717				3,485			14,371			17,856
December 31, 2024 (Audited)
Balances at beginning of the period		1,448			8,250				2,126			3,820				8			116				—			1				608			838				4,190			13,025			17,215
Provisions		(484	)		3,537				322			472				6			—				—			—				13			9				(143	)		4,018			3,875
Translation adjustments		—			—				21			2				—			—				—			—				—			—				21			2			23
Write-offs		—			(2,975	)			—			(916	)			—			(1	)			—			—				—			—				—			(3,892	)		(3,892	)
Reclassifications and reversals		(388	)		436				(69	)		135				—			(52	)			—			(1	)			(15	)		(113	)			(472	)		405			(67	)
Others		—			42				—			—				—			—				—			—				—			—				—			42			42
Balances at end of the period		576			9,290				2,400			3,513				14			63				—			—				606			734				3,596			13,600			17,196

The significant changes in the balances of trade and other receivables and contract assets are disclosed in Note 5 – Income and Expenses, while the information about the credit exposures are disclosed in Note 27 – Financial Assets and Liabilities.

F-75

17.Inventories and Supplies

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Cost
Commercial			1,393				2,100
Network			1,939				2,436
Others			277				279
			3,609				4,815
Allowance for inventory obsolescence and write-down
Commercial			231				228
Network			1,109				1,180
Others			97				101
			1,437				1,509
Net realizable value
Commercial			1,162				1,872
Network			830				1,256
Others			180				178
Net balances at the end of the period			2,172				3,306

The cost of inventories and supplies recognized as expense for the nine months ended September 30, 2025 and 2024 are as follows:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Cost of devices and accessories			5,199				7,698
Repairs and maintenance			218				314
Provision for inventory obsolescence			11				155
			5,428				8,167

Changes in the allowance for inventory obsolescence and write-down for the nine months ended September 30, 2025 and for the year ended December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Balances at beginning of the period			1,509				1,612
Provisions (Note 5)			11				196
Reversals			(5	)			(38	)
Cost of devices and accessories consumed, previously provided			(11	)			(176	)
Disposals and other adjustments			(67	)			(85	)
Balances at end of the period			1,437				1,509

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18.Prepayments and Other Non-Financial Assets

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Subscriber contract costs			27,546				28,817
Advances to suppliers and contractors			27,304				29,486
Prepaid taxes			5,751				6,968
Prepaid fees and licenses			2,570				2,084
Prepaid repairs and maintenance			1,463				862
Prepaid benefit costs (Note 25)			753				975
Prepaid rent			333				371
Prepaid insurance			257				144
Other prepayments			1,924				1,168
Other non-financial assets			1,337				1,029
			69,238				71,904
Less current portion of prepayments and other nonfinancial assets			10,973				9,975
Noncurrent portion of prepayments and other nonfinancial assets			58,265				61,929

Advances to suppliers and contractors are non-interest bearing and are to be applied to contractors’ subsequent progress billings for projects.

Subscriber contract costs consist of the cost to obtain and cost to fulfill a contract with subscribers. Cost to obtain amounted to Php4,613 million and Php4,448 million as at September 30, 2025 and December 31, 2024, respectively. Amortization of cost to obtain, which is presented under selling and promotions, amounted to Php1,058 million and Php882 million for the nine months ended September 30, 2025 and 2024, respectively. Costs to fulfill amounted to Php22,933 million and Php24,369 million as at September 30, 2025 and December 31, 2024, respectively. Amortization of cost to fulfill, which is presented under depreciation and amortization in the Income Statement, amounted to Php6,017 million and Php5,520 million for the nine months ended September 30, 2025 and 2024, respectively.

Prepaid taxes include creditable withholding taxes and input VAT.

Prepaid fees and licenses include advance payments for NTC license fees and unexpired portion of fees paid to the NTC.

F-77

19.Equity

PLDT’s number of shares of subscribed and outstanding capital stock as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in millions)
Authorized
Non-Voting Serial Preferred Stock			388				388
Voting Preferred Stock			150				150
Common Stock			234				234
Subscribed
Non-Voting Serial Preferred Stock(1)			300				300
Voting Preferred Stock			150				150
Common Stock			219				219
Outstanding
Non-Voting Serial Preferred Stock(1)			300				300
Voting Preferred Stock			150				150
Common Stock			216				216
Treasury Stock
Common Stock			3				3

(1) 300 million shares of Series IV Cumulative Non-Convertible Redeemable Preferred Stock subscribed for Php3 billion, of which Php360 million has
been paid.

There were no changes in PLDT’s capital account for the nine months ended September 30, 2025 and for the year ended
December 31, 2024.

Preferred Stock

Non-Voting Serial Preferred Stock

Pursuant to the PLDT Subscriber Investment Plan, the Board of Directors designated 50,000 shares of Non-Voting Serial Preferred Stock as Series JJ 10% Cumulative Convertible Preferred Stock on November 5, 2013, to be issued from
January 1, 2013 to December 31, 2015, and 20,000 shares as Series KK on January 26, 2016, to be issued from
January 1, 2016 to December 31, 2020 on (collectively, “SIP Shares”). On June 8, 2015, PLDT issued 870 shares of Series JJ. SIP shares earn cumulative dividends at an annual rate of 10% and may be converted into Common Stock of PLDT at a price 10% below the average market price over 30 trading days, subject to a minimum of par value. The Board of Directors may, at its sole discretion, adjust the conversion price in the event of a reclassification, change in outstanding Common Stock, consolidation, or merger. PLDT, at its discretion, may redeem Series JJ and KK SIP Shares five years after issuance, at par value plus any accrued dividends.

The Series IV Cumulative Non-Convertible Redeemable Preferred Stock earns cumulative dividends at an annual rate of 13.5% based on the paid-up subscription price. It is redeemable at the option of PLDT at any time one year after subscription and at the actual amount paid for such stock, plus accrued dividends. This stock is non-voting, except as specifically provided by law, and is preferred in liquidation.

All preferred stocks limit the ability of PLDT to pay cash dividends unless all dividends on such preferred stock for all past dividend payment periods have been paid, or declared, set apart and provision has been made for the currently payable dividends.

Voting Preferred Stock

On June 5, 2012, the Philippine SEC approved the amendments to the Seventh Article of PLDT’s Articles of Incorporation consisting of the sub-classification of its authorized Preferred Capital Stock into: 150 million shares of Voting Preferred Stock with a par value of Php1.00 each, and 807.5 million shares of Non-Voting Serial Preferred Stock with a par value of Php10.00 each, and other conforming amendments, or the Amendments. The shares of Voting Preferred Stock may be issued, owned, or transferred only to or by: (a) a citizen of the Philippines or a domestic partnership or association wholly-owned by citizens of the Philippines; (b) a corporation organized under the laws of the Philippines of which at least 60% of the capital stock entitled to vote is owned and held by citizens of the Philippines and at least 60% of the board of directors of such corporation are citizens of the Philippines; and (c) a trustee of funds for pension or other employee retirement or separation benefits, where the trustee qualifies under paragraphs (a) and (b) above and at least 60% of the funds accrue to the benefit of citizens of the Philippines, or Qualified Owners. The holders of Voting Preferred Stock will have voting rights at

F-78

any meeting of the stockholders of PLDT for the election of directors and for all other purposes, with one vote in respect of each share of Voting Preferred Stock. The Amendments were approved by the Board of Directors and stockholders of PLDT on July 5, 2011 and March 22, 2012, respectively.

On October 12, 2012, the Board of Directors, pursuant to the authority granted to it in the Seventh Article of PLDT’s Articles of Incorporation, determined the following specific rights, terms and features of the Voting Preferred Stock: (a) entitled to receive cash dividends at the rate of 6.5% per annum, payable before any dividends are paid to the holders of Common Stock; (b) in the event of dissolution or liquidation or winding up of PLDT, holders will be entitled to be paid in full, or pro-rata insofar as the assets of PLDT will permit, the par value of such shares of Voting Preferred Stock and any accrued or unpaid dividends thereon before any distribution shall be made to the holders of shares of Common Stock; (c) redeemable at the option of PLDT; (d) not convertible to Common Stock or to any shares of stock of PLDT of any class; (e) voting rights at any meeting of the stockholders of PLDT for the election of directors and all other matters to be voted upon by the stockholders in any such meetings, with one vote in respect of each Voting Preferred Share; and (f) holders will have no pre-emptive right to subscribe for or purchase any shares of stock of any class, securities or warrants issued, sold or disposed by PLDT.

On October 16, 2012, BTFHI subscribed to 150 million newly issued shares of Voting Preferred Stock of PLDT, at a subscription price of Php1.00 per share for a total subscription price of Php150 million pursuant to a subscription agreement between BTFHI and PLDT dated October 15, 2012. As a result of the issuance of Voting Preferred Shares, the voting power of the NTT Group (NTT DOCOMO and NTT Communications), First Pacific Group and its Philippine affiliates, and JG Summit Group was reduced to 12.01%, 15.09% and 6.65%, respectively, which still holds as at September 30, 2025. See Note 1 – Corporate Information.

Redemption of Preferred Stock

The Board of Directors approved the redemption, or the Redemption, of all outstanding shares of the following 10% Cumulative Convertible Preferred Stock as follows:

Date of Board Approval		Series		Amount set aside for Redemption Price		Amount set aside for Unclaimed Dividends		Date of Redemption		Redemption Period
September 23, 2011		A-FF		Php4,029 million		Php4,143 million		January 19, 2012		January 19, 2012 to January 19, 2022
May 8, 2012		GG		Php236 thousand		Php74 thousand		August 30, 2012		August 30, 2012 to August 30, 2022
January 29, 2013		HH (issued in 2007)		Php24 thousand		Php6 thousand		May 16, 2013		May 16, 2013 to May 16, 2023
January 28, 2014		HH (issued in 2008)		Php2 thousand		Php1 thousand		May 16, 2014		May 16, 2014 to May 16, 2024
January 26, 2016		II		Php4 thousand		__		May 11, 2016		May 11, 2016 to May 11, 2026
January 28, 2020		JJ		__		__		May 12, 2020		May 12, 2020 to May 12, 2030

PLDT set aside amounts required to fund the redemption price and unclaimed dividends for the Series A to JJ Shares, or the Redemption Trust Fund, in a trust account, or the Trust Account, in the name of RCBC, as Trustee. Pursuant to the terms of the Trust Account, the Trustee will continue to hold the Redemption Trust Fund or any balance thereof, in trust, for the benefit of holders of Series A to JJ Shares, for a period of ten years from the date of redemption. After the said date, any and all remaining balance in the Trust Account shall be returned to PLDT and revert to its general funds. Any interest on the Redemption Trust Fund shall accrue for the benefit of, and be paid from time to time, to PLDT.

On January 20, 2022, RCBC returned to PLDT the remaining unclaimed balance of the Trust Account for the Series A to FF, amounting to Php7,839 million. Due to the prescription of PLDT’s obligations to pay the trust amounts for Series A to FF, income from prescription of preferred shares redemption liability of Php7,839 million was recognized in 2022.

PLDT has withdrawn nil and Php13 thousand from the Trust Account, representing total payments on redemption for the nine months ended September 30, 2025 and 2024, respectively. The were no outstanding balance of the Trust Account as at September 30, 2025 and December 31, 2024. See related disclosures below under Non-controlling interests - Perpetual Notes and Note 27 – Financial Assets and Liabilities.

Common Stock/Treasury Stock

The Board of Directors approved a share buyback program of up to five million shares of PLDT’s common stock, representing approximately 3% of PLDT’s then total outstanding shares of common stock in 2008. Under the share buyback program, PLDT reacquired shares on an opportunistic basis, directly from the open market through the trading facilities of the PSE and NYSE.

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As at November 2010, we had acquired a total of approximately 2.72 million shares of PLDT’s common stock at a weighted average price of Php2,388 per share for a total consideration of Php6,505 million in accordance with the share buyback program. There were no further buyback transactions subsequent to November 2010.

Dividends Declared

Our dividends declared for the nine months ended September 30, 2025 and 2024 are detailed as follows:

September 30, 2025 (Unaudited)

Date

Amount

Class

Approved

Record

Payable

Per Share

Total

(in million pesos, except per share amounts)

Cumulative Non-Convertible    Redeemable Preferred Stock

Series IV (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

36

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

8

Common Stock

Regular Dividend

February 27, 2025

March 13, 2025

April 3, 2025

47.00

10,155

August 12, 2025

August 28, 2025

September 10, 2025

48.00

10,371

20,526

Charged to retained earnings

20,570

(1) Dividends were declared based on the total amount paid up.

September 30, 2024 (Unaudited)

Date

Amount

Class

Approved

Record

Payable

Per Share

Total

(in million pesos, except per share amounts)

Cumulative Non-Convertible    Redeemable Preferred Stock

Series IV (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

37

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

7

Common Stock

Regular Dividend

March 7, 2024

March 21, 2024

April 5, 2024

46.00

9,938

August 13, 2024

August 27, 2024

September 11, 2024

50.00

10,804

20,742

Charged to retained earnings

20,786

(1) Dividends were declared based on the total amount paid up.

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

Date

Amount

Class

Approved

Record

Payable

Per Share

Total

(in million pesos, except per share amounts)

Cumulative Non-Convertible     Redeemable Preferred Stock

Series IV (1)

November 11, 2025

November 25, 2025

December 15, 2025

—

12

12

Charged to retained earnings

12

(1) Dividends were declared based on the total amount paid up.

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Noncontrolling Interests – Perpetual Notes

Smart issued Php2,610 million and Php1,590 million perpetual notes on March 3, 2017 and March 6, 2017, respectively, under two Notes Facility Agreements dated March 1, 2017 and March 2, 2017, respectively. Proceeds from the issuance of these notes were used to finance capital expenditures. The notes have no fixed redemption dates. The transaction costs amounting to Php35 million were accounted for as a deduction from the perpetual notes. The notes are subordinated to and rank junior to all senior loans of Smart. In accordance with IAS 32, Financial Instruments: Presentation, the notes are classified as part of Smart’s equity and recorded as noncontrolling interests in PLDT’s consolidated financial statements.

On March 3, 2024 and March 6, 2024, Smart paid distributions amounting to Php37 million and Php22 million, respectively. On the same dates, Smart fully redeemed its Perpetual Notes amounting to Php2,610 million and Php1,590 million, respectively.

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20.Interest-bearing Financial Liabilities

As at September 30, 2025 and December 31, 2024, this account consists of the following:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Long-term portion of interest-bearing financial liabilities ─
Long-term debt (Notes 27 and 28)			280,130				258,246
Current portion of interest-bearing financial liabilities ─
Long-term debt maturing within one year (Notes 27 and 28)			17,306				23,340
Short-term debt			100				—
			297,536				281,586

Unamortized debt discount, representing debt premium, debt issuance costs and any difference between the fair value of consideration given or received at initial recognition, included in our financial liabilities amounted to Php1,959 million and Php1,989 million as at September 30, 2025 and December 31, 2024, respectively.

The following table describes all changes to unamortized debt discount for the nine months ended September 30, 2025 and for the year ended December 31, 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Unamortized debt discount at beginning of the period			1,989				2,129
Additions			249				219
Revaluations			—				9
Accretion included as part of financing costs – net			(279	)			(368	)
Unamortized debt discount at end of the period			1,959				1,989

The scheduled maturities of our consolidated outstanding long-term debt at nominal values as at September 30, 2025 are as follows:

		U.S. Dollar Debt								Php Debt				Total
Year		U.S. Dollar				Php				Php				Php
		(in millions)
2025(1)			4				204				5,982				6,186
2026			14				814				15,406				16,220
2027			14				814				27,026				27,840
2028			28				1,628				19,997				21,625
2029			—				—				26,632				26,632
2030 and onwards			614				35,703				165,189				200,892
Total long-term debt (Note 27)			674				39,163				260,232				299,395

(1) From October 1, 2025 to December 31, 2025.

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Long-term Debt

As at September 30, 2025 and December 31, 2024, long-term debt consists of:

				September 30, 2025								December 31, 2024
				(Unaudited)								(Audited)
Description		Interest Rates		U.S. Dollar				Php				U.S. Dollar				Php
				(in millions)
U.S. Dollar Debts:
Fixed Rate Notes		2.5000% to 3.4500% in 2025 and 2024			591				34,386				591				34,177
Term Loans:
Others		SOFR + 1.31161 % in 2025 and SOFR + 1.31161 % to 1.47826% in 2024			73				4,258				84				4,838
					664				38,644				675				39,015
Philippine Peso Debts:
Fixed Rate Retail Bonds		5.2813% in 2024							—								—
Term Loans:
Unsecured Term Loans		4.0000% to 5.3500%; PHP BVAL + 0.4000% to 1.1250% (floor rate 4.5000% to 4.6250%) in 2025 and 4.000% to 5.3500%; PHP BVAL + 0.5000% to 1.0000% (floor rate 4.5000% to 4.6250%) in 2024							258,792								242,571
									258,792								242,571
Total long-term debt (Notes 27 and 28)									297,436								281,586
Less portion maturing within one year (Note 27)									17,306								23,340
Noncurrent portion of long-term debt (Note 27)									280,130								258,246

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Outstanding Amounts

September 30, 2025

December 31, 2024

Repurchase Amount

(Unaudited)

(Audited)

Loan Amount

Issuance Date

Trustee

Terms

Php

Dates

Paid in full on

U.S. Dollar

Php

U.S. Dollar

Php

(in millions)

(in millions)

Fixed Rate Notes(1)

US$600M

June 23, 2020

The Bank of New York Mellon, London Branch

Non-amortizing, payable in full upon maturity   on January 23, 2031 and June 23, 2050

—

—

—

591

(2)

34,386

(2)

591

(2)

34,177

(2)

591

34,386

591

34,177

(1) The purpose of this loan is to refinance the existing loan obligations, prepay outstanding loans and partially finance capital expenditures.

(2) Amounts are net of unamortized debt discount/premium and/or debt issuance cost.

					Drawn			Cancelled Undrawn						Outstanding Amounts
														September 30, 2025								December 31, 2024
					Amount			Amount						(Unaudited)								(Audited)
Loan Amount	Date of Loan Agreement	Lender(s)	Terms	Dates Drawn	U.S. Dollar						Paid in full on			U.S. Dollar				Php				U.S. Dollar				Php
					(in millions)									(in millions)
U.S. Dollar Debts
Other Term Loans(1)
US$25M	2017	NTT TC Leasing	Non-amortizing, payable upon maturity on March 27, 2024	2017		25			—		March 27, 2024				—				—				—				—
US$140M	March 4, 2020	PNB	Quarterly amortization rates equivalent to: (a) 2.5% of the total amount drawn payable on the first interest payment date up to the 28th interest payment date; (b) 5% of the total amount drawn payable on the 29th interest payment date up to the 32nd interest payment date; and (3) 2.5% of the total amount drawn payable on the 37th interest payment date up to maturity on December 13, 2030	December 14, 2020		140			—			—			73		(2)		4,258		(2)		84		(2)		4,838		(2)
															73				4,258				84				4,838

(1) The purpose of this loan is to finance capital expenditures and/or to refinance existing loan obligations which were utilized for network expansion and improvement programs.

(2) Amounts are net of unamortized debt discount/premium and/or debt issuance cost.

Outstanding Amounts

Date of

Payments

September 30, 2025

December 31, 2024

Issuance/

Amount

(Unaudited)

(Audited)

Loan Amount

Agreement

Paying Agent

Terms

Drawdown

Php

Date

Php

Php

(in millions)

(in millions)

Fixed Rate Retail Bonds(1)

PLDT

Php15,000M

January 22, 2014

Philippine Depositary Trust Corp.

Php12.4B – non-amortizing, payable in full upon maturity on February 6, 2021; Php2.6B – non-amortizing payable in full on February 6, 2024

February 6, 2014

12,400 2,600

February 8, 2021 February 6, 2024

—

—

(1) The purpose of this loan is to finance capital expenditures and/or to refinance existing loan obligations which were utilized for network expansion and improvement programs.

(2) Amounts are net of unamortized debt discount/premium and/or debt issuance cost.

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										Outstanding Amounts
							Drawn			September 30, 2025				December 31, 2024
			Date of Loan				Amount			(Unaudited)				(Audited)
Loan Amount			Agreement	Lender(s)	Terms	Dates Drawn	Php			Php				Php
							(in millions)			(in millions)
Term Loans
Unsecured Term Loans(1)
	Php9,500M		Various dates in 2014 and 2019	Union Bank of the Philippines	With annual amortization up to 10 years	Various dates in 2014 and 2019		9,500			7,699		(2)		7,811		(2)
	Php70,500M		Various dates in 2015 to 2024	Bank of the Philippine Islands	With annual amortization up to 6, 10 and 11 years	Various dates in 2015 to 2025		70,500			61,102		(2)		54,738		(2)
	Php55,500M		Various dates in 2015 to 2024	Metropolitan Bank and Trust Company(3)	With annual amortization up to 10 and 11 years	Various date in 2015 to 2025		54,000			42,678		(2)		38,618		(2)
	Php18,500M		Various dates in 2019 and 2023	China Banking Corporation	With annual amortization up to 10 years	Various dates in 2019 and 2023		18,500			15,707		(2)		15,770		(2)
	Php14,000M		Various dates in 2016 and 2017	Security Bank	With semi-annual amortization up to 10 years	Various dates in 2017		14,000			10,391		(2)		10,566		(2)
	Php36,970M		Various dates in 2016 to 2025	Banco de Oro	With annual amortization up to 7 and 10 years	Various dates in 2016, 2020, 2021, 2024 and 2025		36,820			35,736		(2)		29,564		(2)
	Php8,500M		Various dates in 2016, 2017 and 2019	Philippine National Bank	With annual amortization up to 7, 8 and 10 years	Various dates in 2017, 2018 and 2019		8,500			6,488		(2)		7,920		(2)
	Php41,500M		Various dates in 2016 to 2023	Landbank of the Philippines	With annual amortization up to 10 years	Various dates in 2017 to 2023		41,500			39,208		(2)		39,475		(2)
	Php14,000M		Various dates in 2019 to 2021	Development Bank of the Philippines	With annual amortization up to 8, 9 and 10 years	Various dates in 2019 to 2022		14,000			13,431		(2)		13,513		(2)
	Php2,000M		April 11, 2019	Bank of China (Hong Kong) Limited, Manila Branch	With annual amortization up to 7 years	September 6, 2019		2,000			1,878		(2)		1,896		(2)
	Php15,000M		Various dates in 2020, 2021 and 2023	Rizal Commercial Banking Corporation	With annual amortization up to 8, 10 and 11 years	Various dates in 2020, 2021 and 2023		15,000			14,317		(2)		14,443		(2)
	Php2,500M		March 30, 2020	MUFG Bank, Ltd.	With semi-annual amortization up to 6 years	April 2, 2020		2,500			961		(2)		972		(2)
	Php3,800M		Various dates in 2023 and 2024	Bank of Commerce	With annual amortization up to 9 and 10 years	Various dates in 2023 and 2024		3,800			3,743		(2)		3,769		(2)
	Php3,000M		Various dates in 2024	Hongkong and Shanghai Banking Corporation(3)	With annual amortization up to 5 years	Various dates in 2024		3,000			2,938		(2)		2,986		(2)
	Php2,530M		Various dates in 2024 and 2025	Philippine Veterans Bank	With annual amortization up to 7 years	Various dates in 2024 and 2025		2,530			2,515		(2)		530		(2)
											258,792				242,571

(1) The purpose of this loan is to finance capital expenditure and/or to refinance existing loan obligations which were utilized for network expansion and improvement programs.

(2) Amounts are net of unamortized debt discount/premium and/or debt issuance cost.

(3) Includes Green Loan and Social Loan.

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Green Loan and Social Loan Facilities

On March 6 and May 6, 2024, PLDT secured Php1,000 million and Php4,000 million Green Loan Facilities from HSBC Philippines and Metropolitan Bank & Trust Company, respectively, to partially fund the Company’s ongoing nationwide modernization and expansion of its fiber network. The upgrade of the network to fiber and the resultant energy-efficient operations support the PLDT Group decarbonization roadmap, which aims to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 40% by 2030, from a 2019 baseline.

On October 21, 2024, PLDT secured a Php2,000 million Social Loan Facility from HSBC Philippines to partially fund the Company’s network fiber expansion to reach the country's fourth to sixth class municipalities. This initiative aligns with the government’s focus on enhancing connectivity in Geographically Isolated and Disadvantaged Areas (GIDAs).

On November 4, 2025, Smart secured a Php2,000 million Green Loan Facility from Metropolitan Bank & Trust Company, to partially fund the expansion of its 5G network. Compared to previous technologies, 5G networks are more energy efficient per gigabyte of data and more reliable in delivering better speeds to end-users. 5G also enables shifting to low-energy mode and optimizes energy consumption based on actual network activity, facilitating reduction of greenhouse gas (GHG) emissions.

Short-term Debt

On January 3, 2025, PLDT and Smart availed of unsecured short-term debt amounting to Php787 million and Php235 million, respectively, with an interest rate of 6.43%, which were subsequently paid on March 21, 2025.

In July and August 2025, Multisys availed of unsecured short-term debt amounting to Php50 million each, with an interest rate of 6.40%.

As at September 30, 2025, outstanding short-term debt amounted to Php100 million.

Subsequent Drawdown

Below are the interest-bearing financial liabilities drawn after September 30, 2025:

	Date of Loan				Drawn Amount
Loan Amount	Agreement	Lender(s)	Terms	Dates Drawn	Php
					(in millions)
Long-term Loans
Unsecured Term Loans(1)
Smart
Php3,000M	September 30, 2025	BDO	With annual amortization of up to 10 years	October 3, 2025		3,000
Short-term Loans
Unsecured Term Loans(1)
Multisys
Php100M	October 1, 2025	RCBC	6.0533%	October 1, 2025		100
Php100M	October 22, 2025	RCBC	6.0249%	October 22, 2025		100

(1) The purpose of this loan is to finance capital expenditure and/or to refinance existing loan obligations which were utilized for network expansion and improvement programs.

Compliance with Debt Covenants

PLDT’s debt instruments contain restrictive covenants, including covenants that require us to comply with specified financial ratios tests, such as total debt to EBITDA and interest cover ratio, at relevant measurement dates, principally at the end of each quarterly period.

PLDT’s debt instruments also contain a number of other negative covenants that, subject to certain exceptions and qualifications, restrict PLDT’s ability to take certain actions without lenders’ approval, including: (a) making or permitting any material change in the character of its business; (b) selling, leasing, transferring or disposing of all or substantially all of its assets or any significant portion thereof other than in the ordinary course of business; (c) creating any lien or security interest; (d) permitting set-off against amounts owed to PLDT; (e) merging or consolidating with any other company; and
(f) making or permitting any preference or priority in respect of any other relevant indebtedness of PLDT.

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PLDT’s debt instruments also contain customary and other default provisions that permit the lender to accelerate amounts due or terminate their commitments to extend additional funds under the debt instruments.

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. Smart’s loan agreements include compliance with financial tests such as Smart’s consolidated debt to consolidated EBITDA and interest coverage ratio. The agreements also contain customary and other default provisions that permit the lender to accelerate amounts due under the loans or terminate their commitments to extend additional funds under the loans.

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. Vitro’s loan agreement includes compliance with financial tests such as total debt to equity and interest coverage ratio. The agreement also contains customary and other default provisions that permit the lender to accelerate amounts due under the loans or terminate their commitment to extend additional funds under the loans. Vitro’s debt instruments also contain a number of other negative covenants that, subject to certain exceptions and qualifications, restrict Vitro’s ability to take certain actions without lenders’ approval.

The principal factors that could negatively affect our ability to comply with these financial ratio covenants and other financial tests are poor operating performance of PLDT and its subsidiaries, depreciation of the Philippine Peso relative to the U.S. Dollar, impairment or similar charges in respect of investments or other long-lived assets that may be recognized by PLDT and its subsidiaries, and increases in our interest expense. Interest expense may increase as a result of various factors including issuance of new debt, the refinancing of lower cost indebtedness by higher cost indebtedness, depreciation of the Philippine Peso relative to the U.S. Dollar, the lowering of PLDT’s credit ratings or the credit ratings of the Philippines, increase in reference interest rates, and general market conditions. Of our total consolidated debts (net of consolidated debt discount), approximately 13% and 14% were denominated in U.S. Dollars as at September 30, 2025 and December 31, 2024, respectively. Considering our consolidated outstanding derivatives, the unhedged portion of the PLDT’s net debt amounts was approximately 6% (or 5%, net of our consolidated U.S. Dollar cash balances allocated for debt) as at September 30, 2025 and December 31, 2024. Therefore, the financial ratio and other tests are expected to be negatively affected by any weakening of the Philippine Peso relative to the U.S. Dollar. See Note 27 – Financial Assets and Liabilities – Foreign Currency Exchange Risk.

The loan agreements with banks (foreign and local alike) and other financial institutions provide for certain restrictions and requirements with respect to, among others, maintenance of percentage of ownership of specific shareholders, incurrence of additional long-term indebtedness or guarantees and creation of property encumbrances.

As at September 30, 2025 and December 31, 2024, we were in compliance with all of our debt covenants. See
Note 27 – Financial Assets and Liabilities – Derivative Financial Instruments.

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21.Deferred Credits and Other Noncurrent Liabilities

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Contract liabilities and unearned revenues - non-current			4,896				5,625
Provision for asset retirement obligations			1,861				1,752
Accrual of capital expenditures (1)			1,749				44
Others			68				54
			8,574				7,475

(1) Represents expenditure related to the acquisition of Property and Equipment which are not due to be settled within one year.

The following table summarizes the changes to provision for asset retirement obligations for the nine months ended
September 30, 2025 and for the year ended December 31, 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Provision for asset retirement obligations at beginning of the period			1,752				1,164
Capitalized to ROU assets during the period			84				73
Accretion expenses			71				54
Revaluation due to change in IBR			—				515
Settlement of obligations and others			(2	)			(3	)
Reclassification to liabilities associated with assets classified as held-for-sale			(9	)			—
Change in assumptions			(35	)			(51	)
Provision for asset retirement obligations at end of the period			1,861				1,752

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22.Accounts Payable

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Suppliers and contractors (Note 27)			46,856				58,524
Taxes (Note 26)			5,124				5,473
Carriers and others			2,922				2,579
Related parties			127				146
			55,029				66,722

Certain suppliers entered into Trade Financing Arrangements (TFAs) to sell their receivables. The Purchaser will have exclusive ownership of the purchased receivables and all of its rights, title and interest. There were no changes in the payment terms.

Carrying amount of liabilities under TFA

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Presented within trade and other payables			27,684				24,556
– of which suppliers have received payment			8,799				14,106

Range of payment due dates

		September 30, 2025		December 31, 2024
		(Unaudited)		(Audited)
Liabilities that are part of the arrangement		210-359 days after invoice due date		210-300 days after invoice due date
Comparable trade payables that are not part of an arrangement		30-300 days after invoice due date		30-300 days after invoice due date

Non-cash changes

There were no material business combinations or foreign exchange differences in either period. There were no non-cash transfers from trade payables to finance payables as at September 30, 2025 and December 31, 2024.

For terms and conditions pertaining to the payables to related parties, see Note 24 – Related Party Transactions.

For detailed discussion on the PLDT Group’s liquidity risk management processes, see Note 27 – Financial Assets and Liabilities – Liquidity Risk.

F-89

23.Accrued Expenses and Other Current Liabilities

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Accrued utilities and related expenses (Notes 24 and 27)			52,889				57,276
Contract liabilities and unearned revenues - current portion			9,437				10,442
Accrued employee benefits and other provisions (Note 27)			5,807				9,246
Accrued taxes and related expenses (Note 26)			3,863				3,907
Accrued interests and other related costs (Note 28)			2,939				2,426
Others			2,623				2,191
			77,558				85,488

Accrued utilities and related expenses pertain to costs incurred for electricity and water consumption, repairs and maintenance, selling and promotions, professional and other contracted services, rent, insurance and security services and other operational related expenses pending receipt of billings and statements of account from suppliers. These liabilities are noninterest-bearing and are normally settled within a year.

Contract liabilities and unearned revenues represent advance payments for leased lines, installation fees, monthly service fees and unused and/or unexpired portions of prepaid loads.

Accrued employee benefits and other provisions pertain to accrued salaries, wages and bonuses, and other employee benefits that are normally settled within a year.

Accrued taxes and related expenses pertain to licenses, permits and other related business taxes, which are normally settled within a year.

Accrued interests and other related costs include interest expense on loans, which are normally settled within a year.

Other accrued expenses and other current liabilities are normally settled within a year. They pertain to other costs incurred for operation-related expenses pending receipt of invoice and statement of accounts from suppliers and are
noninterest-bearing. They also include accruals related to acquisition of Property and Equipment which are due to be settled within a year.

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24. Related Party Transactions

Parties are considered to be related if one party has the ability, directly and indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control. Related parties may be individuals or corporate entities. Transactions with
related parties are on an arm’s length basis, similar to transactions with third parties.

Settlement of outstanding balances of related party transactions at year-end are expected to be settled with cash.

The following table provides a summary of outstanding balances as at September 30, 2025 and December 31, 2024, and transactions for the nine months ended September 30, 2025 and 2024 that have been entered into with related parties:

Statement of Financial

September 30,

December 31,

Income Statement

September 30,

Company Name

Particulars

Terms

Conditions

2025

2024

2025

2024

Position Classification

(Unaudited)

(Audited)

Classification

(Unaudited)

(in million pesos)

(in million pesos)

Manila Electric Company, or Meralco

Electricity services to PLDT and certain subsidiaries’ offices within Meralco's franchise area

Immediately upon receipt of invoice

Unsecured

Accounts payable and accrued expenses and other current liabilities

602

552

Repairs and maintenance

2,349

2,322

Pole attachment contracts, wherein Meralco leases its pole spaces to accommodate PLDT and Smart’s cable network facilities

Upon depreciation or expiration of lease

Unsecured

ROU assets

2,125

2,600

Depreciation and amortization

1,143

327

2025 – due after September 30, 2026; 2024 – due after December 31, 2025

Unsecured

Lease liabilities - net of current portion

1,524

2,191

2025 – due after September 30, 2026; 2024 – due after December 31, 2025

Unsecured

Current portion of lease liabilities

630

565

Meralco Industrial Engineering Services Corporation, or MIESCOR

Customer line installation, repair, rehabilitation and maintenance activities

30 days upon receipt of invoice

Unsecured

Accrued expenses and other current liabilities

8

5

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Statement of Financial

September 30,

December 31,

Income Statement

September 30,

Company Name

Particulars

Terms

Conditions

2025

2024

2025

2024

Position Classification

(Unaudited)

(Audited)

Classification

(Unaudited)

(in million pesos)

(in million pesos)

Transactions with major stockholders, directors and officers:

NTT TC Leasing

PLDT signed a US$25 million term loan facility agreement on January 31, 2017

Non-amortizing, payable upon maturity on March 27, 2024

Unsecured

Interest-bearing financial liabilities

—

—

Financing costs – net

—

26

NTT World Engineering Marine Corporation

On February 1, 2008, PLDT entered into a service agreement, wherein NTT World Engineering Marine Corporation provides offshore submarine cable repair and other allied services for the maintenance of PLDT’s domestic fiber optic network submerged plant.

1st month of each quarter; noninterest-bearing

Unsecured

Accounts payable and accrued expenses and other current liabilities

259

256

Repairs and maintenance

101

98

NTT Communications

On March 24, 2000, PLDT entered into an advisory service agreement (as amended on March 31, 2003, March 31, 2005 and June 16, 2006), under which NTT Communications provides PLDT with technical, marketing and other consulting services for various business areas of PLDT starting April 1, 2000.

30 days upon receipt of invoice; noninterest-bearing

Unsecured

Accrued expenses and other current liabilities

11

115

Professional and other contracted services

94

91

NTT DOCOMO

On June 5, 2006, in accordance with the Cooperation Agreement dated January 31, 2006, an Advisory Services Agreement was entered into by NTT DOCOMO and PLDT. Pursuant to the Advisory Services Agreement, NTT DOCOMO will provide the services of certain key personnel in connection with certain aspects of the business of PLDT and Smart. Also, this agreement governs the terms and conditions of the appointments of such key personnel and the corresponding fees related thereto.

30 days upon receipt of invoice; noninterest-bearing

Unsecured

Accrued expenses and other current liabilities

8

121

Professional and other contracted services

93

82

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Statement of Financial

September 30,

December 31,

Income Statement

September 30,

Company Name

Particulars

Terms

Conditions

2025

2024

2025

2024

Position Classification

(Unaudited)

(Audited)

Classification

(Unaudited)

(in million pesos)

(in million pesos)

Transactions with major stockholders, directors and officers:

JGSHI and Subsidiaries

PLDT and certain of its subsidiaries have existing agreements with Universal Robina Corporation and Robinsons Land Corporation for office and business office rental.

1st month of each quarter; 30 days upon receipt of invoice; noninterest-bearing

Unsecured

Accounts payable and accrued expenses and other current liabilities

17

59

Rent

180

199

Upon depreciation or expiration of lease

Unsecured

ROU assets

4

4

Depreciation and amortization

—

—

PLDT Group's other transactions with JGSHI and subsidiaries mainly consist of electricity charges for collocated offices and business offices.

30 days upon receipt of invoice; noninterest-bearing

Unsecured

Accrued expenses and other current liabilities

38

44

Repairs and maintenance

11

121

Communication and travel

—

—

Malayan Insurance Co., Inc., or Malayan

PLDT and certain of its subsidiaries have insurance policies with Malayan covering directors, officers, liability to employees and material damage for buildings, building improvements, equipment and motor vehicles. The premiums are directly paid to Malayan.

Immediately upon receipt of invoice

Unsecured

Accounts payable and accrued expenses and other current liabilities

9

8

Insurance and security services

128

163

Gotuaco del Rosario and Associates, or Gotuaco

Gotuaco acts as the broker for certain insurance companies to cover certain insurable properties of the PLDT Group. Insurance premiums are remitted to Gotuaco and the broker’s fees are settled between Gotuaco and the insurance companies.

Immediately upon receipt of invoice

Unsecured

Accounts payable and accrued expenses and other current liabilities

—

2

Insurance and security services

87

100

First Pacific Investment Management Limited, or FPIML

On March 1, 2018, Smart entered into an Advisory Services Agreement with FPIML effective for a period of one-year subject to a 12-month automatic renewal unless either party notifies the other party of its intent not to renew the agreement. FPIML provides advisory and related services in connection with the operation of Smart’s business of providing mobile communications services, high-speed internet connectivity, and access to digital services and content. Since April 2021, Smart pays a monthly service fee amounted to $220 thousand per month.

Unsecured

Accounts payable and accrued expenses and other current liabilities

—

—

Professional and other contracted services

88

111

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Statement of Financial

September 30,

December 31,

Income Statement

September 30,

Company Name

Particulars

Terms

Conditions

2025

2024

2025

2024

Position Classification

(Unaudited)

(Audited)

Classification

(Unaudited)

(in million pesos)

(in million pesos)

Other related parties:

Various

PLDT and certain of its subsidiaries provide telephone, data communication and other services to various related parties.

30 days upon receipt of invoice

Unsecured

Trade and other receivables (Note 16)

8,174

7,948

Revenues

1,899

1,950

PLDT and certain of its subsidiaries avail of lease and other services from various related parties.

2025 – due after September 30, 2026; 2024 – due after December 31, 2025

Unsecured

Lease liabilities - net of current portion (Note 10)

788

181

Expenses

3,782

2,783

2025 – due after September 30, 2026; 2024 – due after December 31, 2025

Unsecured

Current portion of lease liabilities (Note 10)

234

97

Upon depreciation or expiration of lease

Unsecured

ROU assets (Note 10)

919

308

30 days upon receipt of billing; noninterest-bearing

Unsecured

Accounts payable (Note 22)

557

1,485

Immediately upon receipt of billing

Unsecured

Accrued expenses and other current liabilities (Note 23)

567

516

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Compensation of Key Officers

The compensation of key officers of the PLDT by benefit type for the nine months ended September 30, 2025 and 2024 are as follows:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Short-term employee benefits			243				309
Post-employment benefits			12				16
Other long-term employee benefits (Note 25)			—				58
Total compensation of PLDT key officers			255				383

The amounts disclosed in the table above are the amounts recognized as expenses during the period related to key management personnel.

Effective January 2014, each of the directors, including the members of the advisory board of PLDT, is entitled to a director’s fee in the amount of Php250 thousand for each board meeting attended. Each of the members or advisors of the audit, governance, nomination and sustainability, executive compensation, technology strategy, and risk and data privacy and information security committees is entitled to a fee in the amount of Php125 thousand for each committee meeting attended.

Total fees paid for board meetings and board committee meetings amounted to Php43 million and Php63 million for the nine months ended September 30, 2025 and 2024, respectively.

Except for the fees mentioned above, the directors are not compensated, directly or indirectly, for their services as directors.

There are no agreements between PLDT and any of its key management personnel providing benefits upon termination of employment, except for such benefits to which they may be entitled under PLDT’s retirement and incentive plans.

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25.Pension and Other Employee Benefits

Pension

Defined Benefit Pension Plans

PLDT has defined benefit pension plans, operating under the legal name “The Board of Trustees for the account of the Beneficial Trust Fund created pursuant to the Benefit Plan of PLDT Company.” and covering all of our permanent and regular employees. For the purpose of complying with Revised IAS 19, Employee Benefits, pension benefit expense has been actuarially computed based on defined benefit plan.

PLDT and certain of its subsidiaries' actuarial valuation is performed every year-end. There is no significant change in the fair value of plan assets for the nine months ended September 30, 2025. Based on the latest actuarial valuation, the actual present value of accrued (prepaid) benefit costs as at September 30, 2025 and December 31, 2024, and net periodic benefit costs and average assumptions used in developing the valuation for the nine months ended September 30, 2025 and 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Changes in the present value of defined benefit obligations:
Present value of defined benefit obligations at beginning of the period			17,376				17,964
Service costs			889				1,042
Interest costs on benefit obligation			54				1,043
Actuarial losses on obligations – experience			4				437
Actuarial gains on obligations – economic assumptions			(7	)			(496	)
Actual benefits paid/settlements			(1,497	)			(2,744	)
Curtailment and others			(14	)			130
Present value of defined benefit obligations at end of the period			16,805				17,376
Changes in fair value of plan assets:
Fair value of plan assets at beginning of the period			13,985				14,522
Actual contributions			1,336				3,201
Interest income on plan assets			654				1,019
Actual benefits paid/settlements			(1,381	)			(2,820	)
Return on plan assets (excluding amount included in net interest)			(234	)			(1,937	)
Fair value of plan assets at end of the period			14,360				13,985
Unfunded status – net			(2,445	)			(3,391	)
Accrued benefit costs			2,555				3,548
Prepaid benefit costs			110				157
		September 30,
		2025				2024
		(Unaudited)
Components of net periodic benefit costs:
Service costs			889				824
Interest costs - net			54				53
Curtailment and others			(14	)			20
Net periodic benefit costs			929				897

Actual net gain on plan assets amounted to Php420 million and Php654 million for the nine months ended
September 30, 2025 and 2024, respectively.

Based on the latest actuarial valuation, our expected contribution to the defined benefit plan in 2025 will amount to
Php4,448 million.

The following table sets forth the expected future settlements by the Plan of maturing defined benefit obligation as at
September 30, 2025:

		(in million pesos)
2025(1)			229
2026			350
2027			373
2028			912
2029			834
2030 to 2034			11,951

(1) From October 1, 2025 to December 31, 2025.

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The average duration of the defined benefit obligation at the end of the reporting period is 12.68 years.

The weighted average assumptions used to determine pension benefits for the nine months ended September 30, 2025 and 2024 are as follows:

		September 30,
		2025				2024
		(Unaudited)
		(in percentage)
Rate of increase in compensation			5.7				5.7
Discount rate			6.2				6.0

The sensitivity analysis below has been determined based on reasonably possible changes of each significant assumption on the defined benefit obligation as at September 30, 2025 and December 31, 2024, assuming if all other assumptions were held constant:

		Increase (Decrease)
		(in percentage)				(in million pesos)
Discount rate		1					15,265
			(1	)			(19,365	)
Future salary increases			1				19,351
			(1	)			(15,243	)

PLDT’s Retirement Plan

The Board of Trustees, which manages the beneficial trust fund, is composed of: (i) a member of the Board of Directors of PLDT, who is not a beneficiary of the Plan; (ii) a member of the Board of Directors or a senior officer of PLDT, who is a beneficiary of the Plan; (iii) a senior member of the executive staff of PLDT; and (iv) two persons who are not executives nor employees of PLDT.

Benefits are payable in the event of termination of employment due to: (i) compulsory, optional, or deferred retirement;
(ii) death while in active service; (iii) physical disability; (iv) voluntary resignation; or (v) involuntary separation from service. For a plan member with less than 15 years of credited services, retirement benefit is equal to 100% of final compensation for every year of service. For those with at least 15 years of service, retirement benefit is equal to 125% of final compensation for every year of service, with such percentage to be increased by an additional 5% for each completed year of service in excess of 15 years, but not to exceed a maximum of 200%. In the case of voluntary resignation after attainment of age 40 and completion of at least 15 years of credited service, benefit is equal to a percentage of his vested retirement benefit, in accordance with percentages prescribed in the retirement plan.

The Board of Trustees of the beneficial trust fund uses an investment approach with the objective of maximizing the
long-term expected return of plan assets.

The majority of the Plan’s investment portfolio consists of listed and unlisted equity securities while the remaining portion consists of passive investments like temporary cash investments and fixed income investments.

The plan assets are primarily exposed to financial risks such as liquidity risk and price risk.

Liquidity risk pertains to the plan’s ability to meet its obligation to the employees upon retirement. To effectively manage liquidity risk, the Board of Trustees invests at least the equivalent amount of actuarially computed expected compulsory retirement benefit payments for the year to liquid/semi-liquid assets such as government securities, savings and time deposits with commercial banks.

Price risk pertains mainly to fluctuations in market prices of equity securities listed in the PSE. In order to effectively manage price risk, the Board of Trustees continuously assesses these risks by closely monitoring the market value of the securities and implementing prudent investment strategies.

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The following table sets forth the fair values, which are equal to the carrying values, of PLDT’s plan assets recognized as at September 30, 2025 and December 31, 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Noncurrent Financial Assets
Investments in:
Unquoted equity investments			10,804				10,774
Shares of stock			2,214				1,983
Corporate bonds			308				303
Mutual funds			283				252
Government securities			4				4
Total noncurrent financial assets			13,613				13,316
Current Financial Assets
Cash and cash equivalents			481				409
Receivables			99				103
Total current financial assets			580				512
Total PLDT’s Plan Assets			14,193				13,828
Subsidiaries Plan Assets			167				157
Total Plan Assets of Defined Benefit Pension Plans			14,360				13,985

Investment in shares of stocks is valued using the latest bid price at the reporting date. Investments in corporate bonds, mutual funds and government securities are valued using the quoted market prices at reporting date.

Unquoted Equity Investments

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024				September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)				(Unaudited)				(Audited)
		(Percentage of Ownership)								(in million pesos)
MediaQuest			100				100				7,304				7,304
Tahanan Mutual Building and Loan Association, Inc.,    or TMBLA, (net of subscriptions payable of Php32 million)			100				100				744				722
BTFHI			100				100				2,756				2,748
											10,804				10,774

Investments in MediaQuest

MediaQuest was registered with the Philippine SEC on June 29, 1999 primarily to purchase, subscribe for or otherwise acquire and own, hold, use, manage, sell, assign, transfer, mortgage, pledge, exchange, or otherwise dispose of real and personal property or every kind and description, and to pay thereof in whole or in part, in cash or by exchanging, stocks, bonds and other evidences of indebtedness or securities of this any other corporation. Its investments include common shares of stocks of various communication, broadcasting and media entities.

Investments in MediaQuest are carried at fair value. The VIU calculations were derived from cash flow projections over a period of five years based on the 2024 financial budgets approved by MediaQuest’s Board of Directors and calculated terminal value. Other key assumptions used in the cash flow projections include revenue growth rate, direct costs and capital expenditures. The post-tax discount rates applied to cash flow projections range from 11.5% to 12.2%. Cash flows beyond the five-year period are determined using 0.0% to 4.9% growth rates.

The Board of Trustees of PLDT Beneficial Trust Fund and the MediaQuest Board of Directors, on various dates in 2012 and 2013, approved the issuances of MediaQuest of PDRs comprising of underlying shares of stocks of 40% of Cignal TV (Cignal TV PDRs), 40% of Satventures (Satventures PDRs) and 70% of Hastings (Hastings PDRs). Satventures is a wholly owned subsidiary of MediaQuest and the parent company of Cignal TV. Hastings, on the other hand, is also a wholly owned subsidiary of MediaQuest, which holds all the print related investments of MediaQuest including equity interests in The Philippine Star and BusinessWorld.

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ePLDT’s Board of Directors approved on various dates in 2012 to 2015, the investment in the PDRs of MediaQuest as follows:

		ePLDT's economic interest		Amount
				(in million pesos)
Satventures PDRs		40% of Satventures			3,600
Cignal TV PDRs		40% of Cignal TV			6,000
Hastings PDRs		70% of Hastings			3,250

In February 2018, ePLDT entered into a Deed of Assignment with the Board of Trustees of the PLDT Beneficial Trust Fund transferring the Hastings PDRs for P1,664 million. This provided PLDT Beneficial Trust with 100% economic interest in Hastings.

As at September 30, 2025 and December 31, 2024, the PLDT Beneficial Trust Fund’s economic interests in Cignal TV (through Satventures) and Hastings were at 36% and 100%, respectively.

Investment in TMBLA

TMBLA was incorporated for the primary purpose of accumulating the savings of its stockholders and lending funds to them for housing programs. The beneficial trust fund’s total investment into TMBLA amounted to Php119 million consisting of initial direct subscription in shares of stocks of TMBLA in the amount of Php20 million (net of unpaid subscription amounting to Php32 million) and subsequently via a Deed of Pledge amounting to Php99 million. The cumulative change in the fair market values of this investment each amounted to Php626 million and Php603 million as at September 30, 2025 and December 31, 2024, respectively.

Investment in BTFHI

BTFHI was incorporated for the primary purpose of acquiring voting preferred shares in PLDT and while the owner, holder of possessor thereof, to exercise all the rights, powers, and privileges of ownership or any other interest therein.

BTFHI subscribed to a total of 150 million shares of Voting Preferred Stock of PLDT at a subscription price of Php1.00 per share for a total subscription price of Php150 million on October 26, 2012.

On April 30, 2024, the Board of Trustees of PLDT Beneficial Trust Fund subscribed and paid an additional subscription into BTFHI amounting to Php2,480 million.

Total cash dividend income each amounted to Php7 million for the nine months ended September 30, 2025 and 2024. Dividend receivables each amounted to Php2 million as at September 30, 2025 and December 31, 2024.

Shares of Stocks

As at September 30, 2025 and December 31, 2024, this account consists of:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Common shares
PSE			1,335				1,093
PLDT			29				34
Others			490				496
Preferred shares			360				360
			2,214				1,983

Dividends earned on PLDT common shares amounted to Php3 million each for the nine months ended September 30, 2025 and 2024.

Preferred shares represent 300 million unlisted preferred shares of PLDT at Php10 par value, net of subscription payable of Php2,640 million each as at September 30, 2025 and December 31, 2024. These shares, which bear a dividend of 13.5% per annum based on the paid-up subscription price, are cumulative, non-convertible and redeemable at par value at the option of PLDT. Dividends earned on this investment amounted to Php37 million each for the nine months ended September 30, 2025 and 2024.

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Corporate Bonds

Investment in corporate bonds includes debt securities of First Pacific and International Container Terminal Services, Inc. amounting to Php138 million and Php73 million, respectively. Other various long-term peso and dollar denominated bonds with maturities ranging from July 2026 to July 2035 and fixed interest rates from 3.36% to 7.53% per annum, amounted to Php97 million.

Mutual Funds

Investment in mutual funds amounting to Php283 million includes UITF, bond and equity funds, which aims to out-perform benchmarks in various indices as part of its investment strategy.

Government Securities

Investments in government securities include Retail Treasury Bonds and FXTN bearing interest rates ranging from 3.9% to 4.8% per annum. These securities are fully guaranteed by the government of the Republic of the Philippines.

The allocation of the fair value of the assets for the PLDT pension plan as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in percentage)
Investments in listed and unlisted equity securities			92				92
Temporary cash investments			3				3
Debt and fixed income securities			2				2
Mutual funds			2				2
Receivables and other assets			1				1
			100				100

Defined Contribution Plans

Smart’s and certain subsidiaries’ contributions to the plan are made based on the employees’ years of tenure and range from 5% to 10% of the employee’s monthly salary. Additionally, an employee has the option to make a personal contribution to the fund, at an amount not exceeding 10% of his monthly salary. The employer then provides an additional contribution to the fund ranging from 10% to 50% of the employee’s contribution based on the employee’s years of tenure. Although the plan has a defined contribution format, Smart and certain of its subsidiaries regularly monitor their compliance with Republic Act No. 7641. As at September 30, 2025 and December 31, 2024, Smart and certain subsidiaries were in compliance with the requirements of Republic Act No. 7641.

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Smart’s and certain subsidiaries’ actuarial valuation is performed every year-end. There is no significant change in the fair value of plan assets for the nine months ended September 30, 2025. Based on the latest actuarial valuation, the actual present value of prepaid benefit costs as at September 30, 2025 and December 31, 2024, and net periodic benefit costs and average assumptions used in developing the valuation as at and for the nine months ended September 30, 2025 and 2024 and for year ended December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Changes in the present value of defined contribution obligations:
Present value of defined contribution obligations at beginning of the period			3,235				2,800
Service costs			199				245
Curtailment and others			251				190
Present value of defined contribution obligations at end of the period			3,685				3,235
Changes in fair value of plan assets:
Fair value of plan assets at beginning of the period			4,053				3,618
Actual contributions			173				243
Actual contribution paid/settlements			102				192
Fair value of plan assets at end of the period			4,328				4,053
Funded status – net			643				818
Prepaid contribution costs			643				818
		September 30,
		2025				2024
		(Unaudited)
Components of net periodic contribution costs:
Service costs			199				213
Interest costs - net			—				—
Net periodic contribution costs			199				213

Actual net income on plan assets amounted to nil for the nine months ended September 30, 2025 and 2024.

Based on the latest actuarial valuation, Smart and certain subsidiaries expect to contribute the amount of approximately Php317 million to the plan.

The following table sets forth the expected future settlements by the Plan of maturing defined contribution obligation as at
September 30, 2025:

		(in million pesos)
2025 (1)			119
2026			187
2027			201
2028			275
2029			284
2030 to 2034			2,531

(1) From October 1, 2025 to December 31, 2025.

The average duration of the defined contribution obligation at the end of the reporting period is 10 years.

The weighted average assumptions used to determine pension benefits for the nine months ended September 30, 2025 and 2024 are as follows:

		September 30,
		2025				2024
		(Unaudited)
		(in percentage)
Rate of increase in compensation			5.0				5.0
Discount rate			6.3				7.3

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The sensitivity analysis below has been determined based on reasonably possible changes of each significant assumption on the defined contribution obligation as at September 30, 2025 and December 31, 2024, assuming if all other assumptions were held constant:

		Increase (Decrease)
		(in percentage)				(in million pesos)
Discount rate			1				37
			(1	)			(37	)
Future salary increases			(1	)			(37	)
			1				37

Smart’s Retirement Plan

The fund is being managed and invested by BPI Asset Management and Trust Corporation, as Trustee, pursuant to an amended trust agreement dated February 21, 2012.

The plan’s investment portfolio seeks to achieve regular income, long-term capital growth and consistent performance over its own portfolio benchmark. In order to attain this objective, the Trustee’s mandate is to invest in a diversified portfolio of bonds and equities, both domestic and international. The portfolio mix is kept at 70% and 30% for fixed income securities and equity securities, respectively.

The following table sets forth the fair values, which are equal to the carrying values, of Smart’s plan assets recognized as at September 30, 2025 and December 31, 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Noncurrent Financial Assets
Investments in:
Domestic fixed income			3,115				2,655
International equities			991				854
Philippine foreign currency bonds			877				753
Domestic equities			775				738
International fixed income			200				295
Total noncurrent financial assets			5,958				5,295
Current Financial Assets
Cash and cash equivalents			26				284
Total current financial assets			26				284
Total plan assets			5,984				5,579
Less: Employee’s share, forfeitures and mandatory reserve account			1,656				1,526
Total Plan Assets of Defined Contribution Plans			4,328				4,053

Domestic Fixed Income

Investments in domestic fixed income include Philippine Peso denominated bonds, such as government securities and corporate debt securities, with fixed interest rates from 3.36% to 12.13% per annum.

International Equities

Investments in international equities include exchange-traded funds in iSHARES Core MSCI World UCITS ETF USD, Invesco QQQ ETF USD, Wellington Strategic European Equity Fund, and Odyssey Asia Pacific High Dividend Equity Feeder Fund.

Philippine Foreign Currency Bonds

Investments in Philippine foreign currency bonds include U.S. Dollar denominated fixed income instruments issued by the Philippine government and local corporations with fixed interest rates from 2.38% to 9.50% per annum.

Domestic Equities

Investments in domestic equities include direct equity investments in common shares listed in the PSE. These investments earn on stock price appreciation and dividend payments. This includes investment in PLDT shares with fair value of
Php63 million and Php38 million as at September 30, 2025 and December 31, 2024, respectively.

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International Fixed Income

Investments in international fixed income include iShares International Treasury Bond ETF, iShares J.P. Morgan EM Local Currency Bond ETF, PIMCO GIS Global Bond Fund, and Principal Global Ultra Short-Term Income Fund.

Cash and Cash Equivalents

This pertains to the fund’s excess liquidity in Philippine Peso and U.S. Dollars including investments in time deposits, money market funds and other deposit products of banks with duration or tenor less than a year.

The asset allocation of the Plan is set and reviewed from time to time by the Plan Trustees taking into account the membership profile, the liquidity requirements of the Plan and risk appetite of the Plan sponsor. This considers the expected benefit cash flows to be matched with asset durations.

The plan assets are primarily exposed to financial risks such as liquidity risk and price risk.

Liquidity risk pertains to the Plan’s ability to meet its obligation to the employees upon retirement. To effectively manage liquidity risk, the Plan Trustees invest a portion of the fund in readily tradeable and liquid investments which can be sold at any given time to fund liquidity requirements.

Price risk pertains mainly to fluctuations in market prices of equity securities listed in the PSE. In order to effectively manage price risk, the Plan Trustees continuously assess these risks by closely monitoring the market value of the securities and implementing prudent investment strategies.

The allocation of the fair value of Smart and certain subsidiaries' pension plan assets as at September 30, 2025 and
December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in percentage)
Investments in debt and fixed income securities and others			70				71
Investments in listed and unlisted equity securities			30				29
		100				100

Other Long-term Employee Benefits

LTIP

The ECC approved on December 23, 2021 the LTIP covering the years 2022 to 2026, covering two cycles, based on the achievement of telco core income targets, with additional performance metrics on Customer Experience and Sustainability to impact the LTIP payout. 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 and 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 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Estimating Pension Benefit Costs and Other Employee Benefits and Note 5 – Income and Expenses – Compensation and Employee Benefits.

F-103

26.Provisions and Contingencies

PLDT’s Local Business and Franchise Tax Assessments

As at September 30, 2025, PLDT has no contested LGU assessments for franchise taxes based on gross receipts received or collected for services within its respective territorial jurisdiction.

Smart’s Local Business and Franchise Tax Assessments

Province of Cagayan

The Province of Cagayan, or the Province, issued a tax assessment against Smart in 2016 for alleged local franchise tax covering the years 2011 to 2015. Smart appealed the assessment to the Regional Trial Court, or RTC, on the ground that Smart cannot be held liable for local franchise tax mainly because it has no sales office within the Province pursuant to Section 137 of the Local Government Code (Republic Act No. 7160). The RTC rendered its Decision on November 29, 2021 dismissing the appeal of Smart for lack of jurisdiction without prejudice. Subsequently, a motion for reconsideration was filed by the Province. On April 25, 2023, the RTC ruled in favor of the Province and denied Smart’s subsequent Motion for Reconsideration. On May 24, 2023, Smart filed its Petition for Review before the Court of Tax Appeals. On June 27, 2023, the Second Division of the CTA, in a resolution, ordered the Province to file their Comment to the Petition for Review filed by Smart. The same was complied with. On December 14, 2023, Smart filed its Memorandum requesting for favorable decision by stating all legal and factual bases. On March 12, 2025, Smart received a Decision from the CTA Second Division. The CTA Division ruled in favor of Smart. As of this writing, the company is waiting for finality of judgement or the filing of motion for reconsideration from the Province of Cagayan.

City of Makati

The City of Makati sent letters to Smart and SBI for alleged franchise tax liability, which Smart and SBI refuted through respective protest letters and judicial actions on the ground that Makati City is imposing tax on revenues outside its jurisdiction. After several court proceedings, on March 2, 2023, the City of Makati, Smart and SBI, mutually agreed to execute respective Compromise Agreements to abbreviate the long and protracted court cases. On March 17, 2023, the court approved the Compromise Agreement. Pursuant thereto, on March 28, 2023 and June 30, 2023, external counsels informed Smart and SBI, respectively, that the Courts approved Compromise Agreements, which eventually ended the cases. On
April 27, 2023, the City of Makati issued the Business Permits of Smart and SBI. For 2024 and 2025, all Business Permits were issued by the City of Makati to Smart and SBI.

Digitel’s Local Government Unit, or LGU, Assessments

Digitel is discussing with various LGUs as to the settlement of its local taxes.

DMPI vs. City of Trece Martires

DMPI petitioned in 2010 to declare void the City of Trece Martires' ordinance of imposing tower fee of Php150 thousand for each cell site every year. Application for the issuance of a preliminary injunction by DMPI is pending resolution as of the date of this report.

ACeS Philippines’ Withholding Tax Assessments

ACeS Philippines had a case filed with the Supreme Court (ACeS Philippines Satellite Corporation vs. Commissioner of Internal Revenue Supreme Court G.R. No. 226680) for alleged 2006 deficiency withholding tax. On July 23, 2014, the CTA Second Division affirmed the assessment of the Commissioner of Internal Revenue for deficiency basic withholding tax, surcharge plus deficiency interest, and delinquency interest amounting to Php87 million. On November 18, 2014, ACeS Philippines filed a Petition for Review with the CTA En Banc. On August 16, 2016, the CTA En Banc also affirmed the assessment with finality. On October 19, 2016, ACeS Philippines filed a petition before the Supreme Court assailing the decision of the CTA. On February 23, 2017 and March 15, 2017, respectively, the Company paid a compromise settlement amounting to Php27 million and filed a formal request for compromise of tax liabilities before the Bureau of Internal Revenue, or BIR, while the case is pending before the Supreme Court.

ACeS Philippines entered into an amicable settlement with the BIR on February 19, 2021 pursuant to the provisions of the Civil Code of the Philippines and paid an additional compromise settlement amounting to Php20 million. The Commissioner of Internal Revenue signed the judicial compromise agreement on April 18, 2021. The corresponding Certificate of Availment (Compromise Settlement) was issued by the BIR. The parties filed with the Supreme Court on July 21, 2022 a Joint Motion for Judgment based on Judicial Compromise Agreement. On January 31, 2023, ACeS Philippines received the Decision of the Supreme Court dated August 30, 2022 affirming the decision of the CTA En Banc. On February 15, 2023, ACeS Philippines filed its Motion for Reconsideration praying to consider the Joint Motion for Judgment based on Judicial

F-104

Compromise Agreement filed on July 21, 2022. In a Notice dated February 21, 2023, the Supreme Court required the BIR to comment on the Motion for Reconsideration (on the Decision dated August 30, 2022). The BIR filed its Comment dated March 13, 2023 submitting that the Judicial Compromise Agreement executed by and between the parties be considered and judgment be rendered based thereon.

In a Notice received on June 29, 2023, the Supreme Court issued a Resolution dated April 25, 2023 resolving to deny ACeS Philippines’ Motion for Reconsideration with finality. The corresponding Entry of Judgment was received on
September 20, 2023. While the Supreme Court Decision and Resolution did not mention the Judicial Compromise Agreement, the BIR – National Evaluation Board previously approved ACeS Philippines’ application and payment for compromise settlement and issued the Certificate of Availment.

Arbitration with Eastern Telecommunications Philippines, Inc., or ETPI

PLDT and Eastern Telecommunications Philippines, Inc. (ETPI) have been involved in disputes since 1990 concerning interconnection and traffic exchange arrangements. The issues include, among others, ETPI’s alleged uncompensated bypass of PLDT’s systems, unpaid access charges, and non-payment of applicable rates for Off-Net and On-Net traffic from 1998 to 2003. ETPI, in turn, claims traffic shortfalls, under-reporting of revenues, and lost revenues arising from the blocking of incoming traffic and circuit migration during the same period.

Although the parties executed Compromise Agreements in 1990 and 1999, these did not fully resolve their differences. To avoid protracted litigation and preserve their business relationship, PLDT and ETPI entered into an Arbitration Settlement Agreement on April 16, 2008, submitting their respective Statements of Claims and Answers. Each party asserted claims of approximately Php2.8 billion to Php2.9 billion, and the arbitration proceedings were subsequently suspended by mutual agreement.

In connection with PLDT’s and Globe’s acquisition of San Miguel Corporation’s telecommunications business, the parties further agreed to cause the dismissal with prejudice of Eastern Telecommunications Philippines, Inc. v. Philippine Long Distance Telephone Company (Civil Case No. 17694) and all related or incidental proceedings, including the voluntary arbitration. As of the date of this report, there have been no changes in the status of the arbitration proceedings.

Department of Labor and Employment, or DOLE, Compliance Order, or Order, to PLDT

In a series of orders, including a Compliance Order issued by the DOLE Regional Office on July 3, 2017, partly affirmed by the DOLE Secretary in resolutions dated January 10 and April 24, 2018, the DOLE directed PLDT to regularize
7,344 workers from 38 third-party service contractors. PLDT questioned these “regularization orders” before the CA, which, in a Decision dated July 31, 2018, granted PLDT’s prayer for injunction and set aside the DOLE orders insofar as they declared labor-only contracting in several functions, including janitorial, clerical, IT, back-office, call center, sales, and professional services. The CA remanded to the DOLE only the determination of workers performing installation, repair, and maintenance (IRM) functions and the computation of Php51.8 million in monetary awards.

The CA held that the DOLE Secretary’s regularization order was tainted with grave abuse of discretion for failure to meet the substantial-evidence standard and for misapplying the legal tests of “control over means and methods” versus “control over results.” PLDT thereafter filed a Motion for Partial Reconsideration on August 20, 2018, arguing that the remand exceeded the DOLE’s visitorial powers, as the fact-finding required could not be performed in the normal course of a labor inspection. PLDT also maintained that not all IRM work is necessarily regular, as some may be project-based or seasonal in nature, and proposed that the NLRC, with broader fact-finding authority, should determine such issues. The DOLE and the PLDT rank-and-file union MKP likewise sought reconsideration.

In a Resolution dated February 14, 2019, the CA denied all motions for reconsideration and affirmed its earlier decision. PLDT elevated the case to the Supreme Court through a Petition for Review filed on April 5, 2019, questioning only the CA’s remand order on IRM functions. The petitions of the DOLE and MKP were later consolidated with PLDT’s petition, and PLDT filed its Comment and Reply between February and December 2020.

On March 20, 2024, PLDT received the Supreme Court Decision dated February 14, 2024, which dismissed all petitions and affirmed the CA’s July 31, 2018 Decision. The Supreme Court upheld the modification of the DOLE Secretary’s resolutions and set aside the regularization orders for all contractor workers except those performing IRM services, who may be declared regular employees of PLDT subject to further proceedings. The Court remanded the case to the DOLE–NCR Regional Office to (a) determine the effects of regularization of IRM workers; (b) review and compute monetary awards for labor-standards violations, for which PLDT and the concerned contractors are solidarily liable; and (c) conduct further proceedings consistent with the Decision.

PLDT filed a Motion for Partial Reconsideration on April 4, 2024, and received MKP’s separate motion on April 16, 2024. As of the date of this report, both motions remain pending before the Supreme Court.

F-105

Attys. Baquiran and Tecson vs. NTC, et al.

This Petition for Mandamus filed before the Supreme Court against the NTC, PCC, Liberty, BellTel, Globe, PLDT, and Smart concerns the 700 MHz frequency band and related frequencies originally assigned to Liberty and subsequently covered by the Co-Use Agreement among Globe, PLDT, and Smart. The petition questions the constitutionality and validity of the NTC’s assignments of the Subject Frequencies, the transfer from Liberty to BellTel, and the Co-Use Agreement itself, and also seeks to compel the NTC and PCC to revoke the Co-Use Agreement and conduct a full review of the Vega Telecom acquisition.

PLDT and Smart filed their Comment on January 17, 2019, arguing that the requisites for judicial review and mandamus were not met, that congressional approval was not required for Liberty’s assignment of the Subject Frequencies to BellTel, and that the Co-Use Agreement was valid and duly approved by the NTC. BellTel and Globe likewise filed their respective comments, which the Supreme Court noted in a Resolution dated March 19, 2019.

In a Resolution dated June 18, 2019, the Supreme Court ordered the consolidation of this case with G.R. No. 230798 (PCC v. CA [Twelfth Division] and PLDT; Globe, intervenor) and G.R. No. 234969 (PCC v. PLDT and Globe), assigning the consolidated cases to the division handling the lowest-numbered docket.

On September 17, 2024, PLDT received a Notice of Resolution dated August 6, 2024, directing the parties to move in the premises within ten (10) days from notice. PLDT, Liberty, and Globe thereafter filed their respective compliances.

As of the date of this report, the consolidated cases remain pending before the Supreme Court.

DITO, PCC and NTC Complaints

The NTC proceedings between Smart and DITO over interconnection capacity and bypass traffic have been largely overtaken by subsequent events. In 2024, Smart informed the NTC and PCC that it had provided DITO with additional interconnection capacity and that both parties had executed a Memorandum of Agreement on Bypass Activities, under which DITO acknowledged its ISR liabilities for 2021 to August 2023.

During 2023–2024, Smart representatives appeared before the PCC Competition Enforcement Office (PCC-CEO) in relation to an ongoing administrative investigation concerning alleged violations of the Philippine Competition Act. Smart submitted required documents and attended clarificatory hearings in June, July, and November 2023, and filed several Manifestations in 2024 confirming its agreement with DITO and subsequent compliance actions.

On March 18, 2025, Smart received another Subpoena Duces Tecum from the PCC-CEO requiring additional documents covering March 2021 to December 2024. Smart filed its Compliance on May 13, 2025, and attended a videoconference hearing on June 11, 2025, followed by further submissions on June 25 and July 7, 2025, in response to PCC-CEO directives.

As of the date of this report, the PCC-CEO’s investigation remains pending resolution.

Other disclosures required by IAS 37, Provisions, Contingent Liabilities and Contingent Assets, were not provided as it may prejudice our position in on-going claims, litigations and assessments. See Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Provision for legal contingencies and tax assessments.

F-106

27.Financial Assets and Liabilities

We have various financial assets such as trade and non-trade receivables, cash and short-term deposits. Our principal financial liabilities, other than derivatives, comprise of bank loans, lease liabilities, trade and non-trade payables. The main purpose of these financial liabilities is to finance our operations. We also enter into derivative transactions, primarily principal-only-currency swap agreements, interest rate swaps and forward foreign exchange contracts and options to manage the currency and interest rate risks arising from our operations and sources of financing. Our accounting policies in relation to derivatives are set out in Note 2 – Summary of Material Accounting Policies – Financial Instruments.

The following table sets forth our consolidated financial assets and financial liabilities as at September 30, 2025 and
December 31, 2024:

		Financial instruments at amortized cost				Financial instruments at FVPL				Total financial instruments
		(in million pesos)
Assets as at September 30, 2025 (Unaudited)
Noncurrent:
Financial assets at fair value through profit or loss			—				1,086				1,086
Debt instruments at amortized cost – net of current portion			350				—				350
Derivative financial assets – net of current portion			—				570				570
Other financial assets – net of current portion			2,810		(1)		—				2,810
Current:
Cash and cash equivalents			10,092				—				10,092
Short-term investments			10				—				10
Trade and other receivables			30,015				—				30,015
Current portion of derivative financial assets			—				737				737
Current portion of debt instruments at amortized cost			20				—				20
Current portion of other financial assets			260		(1)		—				260
Total assets			43,557				2,393				45,950
Liabilities as at September 30, 2025 (Unaudited)
Noncurrent:
Interest-bearing financial liabilities – net of current portion			280,130				—				280,130
Lease liabilities – net of current portion			52,088				—				52,088
Customers' deposits			1,258				—				1,258
Deferred credits and other noncurrent liabilities			1,809				—				1,809
Current:
Accounts payable			49,850				—				49,850
Accrued expenses and other current liabilities			63,916				2				63,918
Current portion of interest-bearing financial liabilities			17,406				—				17,406
Current portion of lease liabilities			8,667				—				8,667
Dividends payable			2,074				—				2,074
Current portion of derivative financial liabilities			—				35				35
Liabilities associated with assets classified as held-for-sale			1,571				—				1,571
Total liabilities			478,769				37				478,806
Net assets (liabilities)			(435,212	)			2,356				(432,856	)

(1)Includes refundable deposits and notes receivable.

F-107

		Financial instruments at amortized cost				Financial instruments at FVPL				Total financial instruments
		(in million pesos)
Assets as at December 31, 2024 (Audited)
Noncurrent:
Financial assets at fair value through profit or loss			—				1,101				1,101
Debt instruments at amortized cost – net of current portion			370				—				370
Derivative financial assets – net of current portion			—				385				385
Other financial assets – net of current portion			3,126		(1)		—				3,126
Current:
Cash and cash equivalents			10,011				—				10,011
Short-term investments			136				—				136
Trade and other receivables			31,612				—				31,612
Current portion of derivative financial assets			—				30				30
Current portion of debt instruments at amortized cost			25				—				25
Current portion of other financial assets			831		(1)		—				831
Total assets			46,111				1,516				47,627
Liabilities as at December 31, 2024 (Audited)
Noncurrent:
Interest-bearing financial liabilities – net of current portion			258,246				—				258,246
Lease liabilities – net of current portion			46,703				—				46,703
Customers' deposits			2,046				—				2,046
Deferred credits and other noncurrent liabilities			90				—				90
Current:
Accounts payable			61,204				—				61,204
Accrued expenses and other current liabilities			70,795				2				70,797
Current portion of interest-bearing financial liabilities			23,340				—				23,340
Current portion of lease liabilities			7,335				—				7,335
Dividends payable			2,005				—				2,005
Current portion of derivative financial liabilities			—				97				97
Liabilities associated with assets classified as held-for-sale			1,615				—				1,615
Total liabilities			473,379				99				473,478
Net assets (liabilities)			(427,268	)			1,417				(425,851	)

(1)Includes refundable deposits and notes receivable.

The following table sets forth our consolidated offsetting of financial assets and liabilities recognized as at
September 30, 2025 and December 31, 2024:

		Gross amounts of recognized financial assets and liabilities				Gross amounts of recognized financial assets and liabilities set-off in the consolidated  statements of financial position				Net amount presented in the consolidated statements of financial position
		(in million pesos)
September 30, 2025 (Unaudited)
Current Financial Assets
Trade and other receivables
Foreign administrations			4,315				3,028				1,287
Domestic carriers			426				215				211
Total			4,741				3,243				1,498
Current Financial Liabilities
Accounts payable
Suppliers and contractors			46,978				122				46,856
Carriers and others			5,657				2,790				2,867
Total			52,635				2,912				49,723
December 31, 2024 (Audited)
Current Financial Assets
Trade and other receivables
Foreign administrations			2,536				1,359				1,177
Domestic carriers			356				100				256
Total			2,892				1,459				1,433
Current Financial Liabilities
Accounts payable
Suppliers and contractors			58,613				89				58,524
Carriers and others			8,359				5,825				2,534
Total			66,972				5,914				61,058

F-108

There are no financial instruments subject to an enforceable master netting arrangement as at September 30, 2025 and
December 31, 2024.

The following table sets forth our consolidated carrying values and estimated 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:

		Carrying Value								Fair Value
		September 30, 2025				December 31, 2024				September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)				(Unaudited)				(Audited)
		(in million pesos)
Noncurrent Financial Assets
Debt instruments at amortized cost			350				370				348				363
Other financial assets – net of current portion			2,810				3,126				2,329				2,716
Total			3,160				3,496				2,677				3,079
Noncurrent Financial Liabilities
Interest-bearing financial liabilities:
Long-term debt – net of current portion			280,130				258,246				273,538				246,572
Customers' deposits			1,258				2,046				821				1,311
Deferred credits and other noncurrent liabilities			1,809				90				1,554				79
Total			283,197				260,382				275,913				247,962

Below is the list of our consolidated financial assets and liabilities carried at fair value that are classified using a fair value hierarchy as required for our complete sets of consolidated financial statements as at September 30, 2025 and
December 31, 2024. This classification provides a reasonable basis to illustrate the nature and extent of risks associated with those financial statements.

		September 30, 2025																December 31, 2024
		(Unaudited)																(Audited)
		Level 1(1)				Level 2(2)				Level 3(3)				Total				Level 1(1)				Level 2(2)				Level 3(3)				Total
		(in million pesos)
Noncurrent Financial Assets
Financial assets at FVPL			—				1,083				3				1,086				—				1,098				3				1,101
Derivative financial assets    – net of current portion			—				570				—				570				—				385				—				385
Current Financial Assets
Current portion of derivative    financial assets			—				737				—				737				—				30				—				30
Total			—				2,390				3				2,393				—				1,513				3				1,516
Current Financial Liabilities
Accrued expenses and other current liabilities			—				2				—				2				—				2				—				2
Current portion of derivative    financial liabilities			—				35				—				35				—				97				—				97
Total			—				37				—				37				—				99				—				99

(1)Fair values determined using observable market inputs that reflect quoted prices in active markets for identical assets or liabilities.

(2)Fair values determined using inputs other than quoted market prices that are either directly or indirectly observable for the assets or liabilities.

(3)Fair values determined using discounted values of future cash flows for the assets or liabilities.

As at September 30, 2025 and December 31, 2024, there were no transfers into and out of Level 3 and between Level 1 and
Level 2 fair value measurements.

F-109

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate such value:

Long-term financial assets and liabilities:

Fair value is based on the following:

Type		Fair Value Assumptions		Fair Value Hierarchy
Noncurrent portion of advances and    other noncurrent assets		Estimated fair value is based on the discounted values of future cash flows using the applicable zero-coupon rates plus counterparties’ credit spread.		Level 3
Fixed rate loans: U.S. Dollar notes		Quoted market price.		Level 1
Investment in debt securities		Fair values were determined using quoted prices. For non-quoted securities, fair values were determined using discounted cash flow based on market observable rates.		Level 1 Level 2
Other loans in all other currencies		Estimated fair value is based on the discounted value of future cash flows using the applicable Commercial Interest Reference Rate and BVAL rates for similar types of loans plus PLDT’s credit spread.		Level 3
Variable rate loans		The carrying value approximates fair value because of recent and regular repricing based on market conditions.		Level 2

Derivative Financial Instruments

Forward foreign exchange contracts, foreign currency swaps, foreign currency options and interest rate swaps: The fair values were computed as the present value of estimated future cash flows using market U.S. Dollar and Philippine Peso interest rates as at valuation date.

The valuation techniques considered various inputs including the credit quality of counterparties.

Due to the short-term nature of the transactions, the fair value of cash and cash equivalents, short-term investments, trade and other receivables, accounts payable, accrued expenses and other current liabilities and dividends payable approximate their carrying values as at the end of the reporting period.

Our derivative financial instruments are accounted for as either cash flow hedges or transactions not designated as hedges. Cash flow hedges refer to those transactions that hedge our exposure to variability in cash flows attributable to a particular risk associated with a recognized financial asset or liability and exposures arising from forecast transactions. Changes in the fair value of these instruments representing effective hedges are recognized directly in other comprehensive income until the hedged item is recognized in our consolidated income statements. For transactions that are not designated as hedges, any gains or losses arising from the changes in fair value are recognized directly to income for the period.

As at September 30, 2025 and December 31, 2024, we have taken into account the counterparties’ credit risks (for derivative assets) and our own non-performance risk (for derivative liabilities) and have included a credit or debit valuation adjustment, as appropriate, by assessing the maximum credit exposure and taking into account market-based inputs which considers the risk of default occurring and corresponding losses once the default event occurs. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value.

F-110

The table below sets out the information about our consolidated derivative financial instruments as at September 30, 2025 and December 31, 2024:

									September 30, 2025							December 31, 2024
									(Unaudited)							(Audited)
	Original Notional Amount	Trade Date	Underlying Transaction in U.S. Dollar	Termination Date	Weighted Average Hedge Cost/ (Premium)			Weighted Average Foreign Exchange Rate	Notional Amount			Net Mark-to- market Gains (Losses) in Php				Notional Amount			Net Mark-to- market Gains (Losses) in Php
	(in millions)		(in millions)						(in millions)
Transactions not designated as hedges:
PLDT
Forward foreign exchange contracts	US$1,191	Various dates in 2023 and 2024	U.S. Dollar Liabilities	Various dates in 2024		—		Php56.93	US$—				—			US$—				—
	US$303	Various dates in October to December 2024	U.S. Dollar Liabilities	Various dates in January to July 2025		—		Php58.45		—			—				303			(10	)
	US$14	Various dates in October to December 2024	U.S. Dollar Revenues	Various dates in July to December 2025		—		Php58.65		7			4				14			(2	)
	US$521	Various dates in January to September 2025	U.S. Dollar Liabilities	Various dates in September 2025 to May 2026		—		Php57.28		313			466
	US$23	Various dates in June to September 2025	U.S. Dollar Revenues	Various dates in December 2025  to September 2026		—		Php57.82		23			(21	)			—			—
	US$104	Various dates in October to November 2025	U.S. Dollar Liabilities	Various dates in November to December 2025		—		Php58.41		—			—				—			—
	US$11	Various dates in October to November 2025	U.S. Dollar Revenues	Various dates in March to October 2026		—		Php59.04		—			—				—			—
Foreign exchange options(a)	US$16	Various dates in March to September 2024	U.S. Dollar Liabilities	Various dates in September to December 2024		—		Php56.40		—			—				—			—
						—		Php56.84		—			—				—			—
						—		Php57.76		—			—				—			—
	US$10	Various dates in September to December 2024	U.S. Dollar Liabilities	Various dates in April 2025		—		Php57.00		—			—				10			(3	)
						—		Php57.59		—			—				—			—
						—		Php58.32		—			—				—			—
	US$10	Various dates in January to September 2025	U.S. Dollar Liabilities	Various dates in April 2025 to February 2026		—		Php56.97		10			30				—			—
						—		Php57.35		—			—				—			—
						—		Php58.90		—			—				—			—
													479							(15	)
Smart
Forward foreign exchange contracts	US$1,063	Various dates in June 2023 to December 2024	U.S. Dollar Liabilities	Various dates in 2024		—		Php56.66	US$—				—			US$—				—
	US$204	Various dates in October to December 2024	U.S. Dollar Liabilities	Various dates in January to June 2025		—		Php58.18		—			—				204			31
	US$5	Various dates in October to November 2024	U.S. Dollar Revenues	Various dates in July to November 2025		—		Php58.48		3			1				5			(1	)
	US$380	Various dates in January  to September 2025	U.S. Dollar Liabilities	Various dates in January 2025 to March 2026		—		Php57.40		197			246				—			—
	US$17	Various dates in June to September 2025	U.S. Dollar Revenues	Various dates in December 2025 to September 2026		—		Php57.85		17			(14	)			—			—
	US$78	Various dates in October to November 2025	U.S. Dollar Liabilities	Various dates in November to December 2025		—		Php58.42		—			—				—			—
	US$3	Various dates in October 2025	U.S. Dollar Revenues	Various dates in March 2026		—		Php58.88		—			—				—			—
Foreign exchange options(b)	US$45	Various dates in 2023 and 2024	U.S. Dollar Liabilities	Various dates in 2024		—		Php55.60 Php56.00 Php57.00		—			—				—			—
	US$8	Various dates in September to December 2024	U.S. Dollar Liabilities	Various dates in January to April 2025		—		Php57.01 Php57.41 Php58.63		—			—				8			(4	)
	US$47	Various dates in January to September 2025	U.S. Dollar Liabilities	Various dates in April 2025 to March 2026		—		Php57.47 Php57.83 Php59.46		8			25				—			—
													258							26
													737							11

F-111

September 30, 2025

December 31, 2024

(Unaudited)

(Audited)

Original Notional Amount

Trade Date

Underlying Transaction in U.S. Dollar

Termination Date

Weighted Average Hedge Cost/ (Premium)

Weighted Average Foreign Exchange Rate

Notional Amount

Net Mark-to- market Gains (Losses) in Php

Notional Amount

Net Mark-to- market Gains (Losses) in Php

(in millions)

(in millions)

(in millions)

Transactions designated as hedges:

PLDT

Long-term foreign currency options(c)

US$225

Various dates in July 2020  and February to March 2021

300M Notes 2031

January 23, 2031

1.20%

Php49.58 Php55.27

US$222

267

US$225

86

US$109

Various dates in July 2020 and July 2025

300M Notes 2031

January 23, 2031

1.21%

Php49.67 Php55.35

US$108

105

109

78

372

164

Smart

Long-term foreign currency options(d)

US$109

February to April 2021

US$140 PNB Loan

December 13, 2030

1.63%

Php48.00 Php53.34

US$58

163

US$66

143

163

143

535

307

1,272

318

(a)If the Philippine Peso to U.S. dollar spot exchange rate on fixing date settles between Php56.84 to Php57.76, PLDT will purchase the U.S. Dollar for Php56.84. However, if on maturity, the exchange rate settles above Php57.76, PLDT will purchase the U.S. Dollar for Php56.84 plus the excess above Php57.76, and if the exchange rate is lower than Php56.84, PLDT will purchase the U.S. Dollar at the prevailing Philippine peso to U.S. Dollar spot exchange rate, subject to a floor of Php56.40.

If the Philippine Peso to U.S. dollar spot exchange rate on fixing date settles between Php57.59 to Php58.32, PLDT will purchase the U.S. Dollar for Php57.59. However, if on maturity, the exchange rate settles above Php58.32, PLDT will purchase the U.S. Dollar for Php57.59 plus the excess above Php58.32, and if the exchange rate is lower than Php57.59, PLDT will purchase the U.S. Dollar at the prevailing Philippine peso to U.S. Dollar spot exchange rate, subject to a floor of Php57.00.

If the Philippine Peso to U.S. dollar spot exchange rate on fixing date settles between Php57.35 to Php58.90, PLDT will purchase the U.S. Dollar for Php57.35. However, if on maturity, the exchange rate settles above Php58.90, PLDT will purchase the U.S. Dollar for Php57.35 plus the excess above Php58.90, and if the exchange rate is lower than Php57.35, PLDT will purchase the U.S. Dollar at the prevailing Philippine peso to U.S. Dollar spot exchange rate, subject to a floor of Php56.97.

(b)If the Philippine Peso to U.S. Dollar spot exchange rate on fixing date settles between Php56.00 to Php57.00, Smart will purchase the U.S. Dollar for Php56.00. However, if on maturity, the exchange rate settles above Php57.00, Smart will purchase the U.S. Dollar for Php56.00 plus the excess above Php57.00, and if the exchange rate is lower than Php56.00, Smart will purchase the U.S. Dollar at the prevailing Philippine peso to U.S. Dollar spot exchange rate, subject to a floor of Php55.60.

If the Philippine Peso to U.S. Dollar spot exchange rate on fixing date settles between Php57.41 to Php58.63, Smart will purchase the U.S. Dollar for Php57.41. However, if on maturity, the exchange rate settles above Php58.63, Smart will purchase the U.S. Dollar for Php57.41 plus the excess above Php58.63, and if the exchange rate is lower than Php57.41, Smart will purchase the U.S. Dollar at the prevailing Philippine Peso to U.S. Dollar spot exchange rate, subject to a floor of Php57.01.

If the Philippine Peso to U.S. Dollar spot exchange rate on fixing date settles between Php57.83 to Php59.46, Smart will purchase the U.S. Dollar for Php57.83. However, if on maturity, the exchange rate settles above Php59.46, Smart will purchase the U.S. Dollar for Php57.83 plus the excess above Php59.46, and if the exchange rate is lower than Php57.83, Smart will purchase the U.S. Dollar at the prevailing Philippine Peso to U.S. Dollar spot exchange rate, subject to a floor of Php57.47.

(c)PLDT’s long-term foreign currency option agreements outstanding as at September 30, 2025 and December 31, 2024 were designated as cash flow hedges, wherein the effective portion of the movements in fair value is recognized in our consolidated statements of other comprehensive income, while any ineffective portion is recognized immediately in our consolidated income statements. Settlement of the foreign currency option agreements will depend on the spot exchange rate on the fixing date.

If the Philippine peso to U.S. dollar spot exchange rate on fixing date is between Php49.58 and Php55.27, PLDT will purchase the U.S. dollar at Php49.58. However, if on fixing date, the exchange rate is beyond Php55.27, PLDT will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate minus a subsidy of Php5.69, and if the exchange rate is lower than Php49.58, PLDT will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate.

F-112

If the Philippine peso to U.S. dollar spot exchange rate on fixing date is between Php49.67 and Php55.35, PLDT will purchase the U.S. dollar at Php49.67. However, if on fixing date, the exchange rate is beyond Php55.35, PLDT will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate minus a subsidy of Php5.68, and if the exchange rate is lower than Php49.67, PLDT will purchase the U.S. dollar at Php49.67.

The mark-to-market gains amounting to Php405 million and Php239 million were recognized in our consolidated statement of other comprehensive income as at September 30, 2025 and December 31, 2024, respectively. Hedge cost accrual on the long-term foreign currency option agreements amounting to Php33 million and Php75 million were recognized as at September 30, 2025 and December 31, 2024, respectively. The intrinsic value of the long-term foreign currency options recognized as other comprehensive income is transferred to profit or loss when the hedged loan is revalued for changes in the foreign exchange rate. The hedge cost portion of the movements in the fair value amounting to Php78 million and Php58 million were recognized in our consolidated income statements for the nine months ended September 30, 2025 and 2024, respectively.

(d)Smart’s long-term foreign currency option agreements outstanding as at September 30, 2025 and December 31, 2024 were designated as cash flow hedges, wherein the effective portion of the movements in fair value is recognized in our consolidated statements of other comprehensive income, while any ineffective portion is recognized immediately in our consolidated income statements. Settlement of the foreign currency option agreements will depend on the spot exchange rate on the fixing date. If the Philippine Peso to U.S. Dollar spot exchange rate on fixing date is between Php48.00 and Php53.34, Smart will purchase the U.S. Dollar at Php48.00. However, if on fixing date the exchange rate is beyond Php53.34, Smart will purchase the U.S. Dollar for Php48.00 plus the excess above Php53.34, and if the exchange rate is lower than Php48.00, Smart will purchase the U.S. Dollar at the prevailing Philippine Peso to U.S. Dollar spot exchange rate. The mark-to-market gains amounting to Php165 million and Php146 million were recognized in our consolidated statement of other comprehensive income as at September 30, 2025 and December 31, 2024, respectively. Hedge cost accrual on the long-term foreign currency option agreements amounting to Php2 million each was recognized as at September 30, 2025 and December 31, 2024. The intrinsic value of the long-term foreign currency options recognized as other comprehensive income are transferred to profit or loss when the hedged loan is revalued for changes in the foreign exchange rate. The hedge cost portion of the movements in the fair value amounting to Php33 million and Php39 million were recognized in our consolidated income statements for the nine months ended September 30, 2025 and 2024, respectively.

Our derivative financial instruments as at September 30, 2025 and December 31, 2024 are presented in the statements of financial position as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Asset:
Noncurrent assets			570				385
Current assets			737				30
Liabilities:
Current liabilities (Note 28)			(35	)			(97	)
Net assets (liabilities)			1,272				318

Movements of our consolidated mark-to-market gains (losses) for the nine months ended September 30, 2025 and
for the year ended December 31, 2024 are summarized as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Net mark-to-market gains (losses) at beginning of the period			318				(937	)
Gains on derivative financial instruments			1,554				4,252
Settlements, accretion and others			801				(934	)
Net fair value losses on cash flow hedges charged to other comprehensive income			(1,401	)			(2,063	)
Net mark-to-market gains at end of the period			1,272				318

F-113

Our consolidated analysis of gains (losses) on derivative financial instruments for the nine months ended September 30, 2025 and 2024 are as follows:

		September 30,
		2025				2024
		(Unaudited)
		(in million pesos)
Gains on derivative financial instruments			1,554				2,238
Hedge costs			(143	)			(172	)
Net gains on derivative financial instruments (Note 5)			1,411				2,066

Financial Risk Management Objectives and Policies

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, which are summarized below. We also monitor the market price risk arising from all financial instruments.

Liquidity Risk

Our exposure to liquidity risk refers to the risk that our financial requirements, working capital requirements and planned capital expenditures may not be met.

We manage our liquidity profile to be able to finance our operations and capital expenditures, service our maturing debts and meet our other financial obligations. To cover our financing requirements, we use internally generated funds and proceeds from debt and equity issues and sales of certain assets.

As part of our liquidity risk management program, we regularly evaluate our projected and actual cash flows, including our loan maturity profiles, and continuously assess conditions in the financial markets for opportunities to pursue fund-raising initiatives. These may include bank loans, export credit agency-guaranteed facilities, and issuances in the debt and equity markets.

Any excess funds are primarily invested in short-term and principal-protected bank products that provide flexibility of withdrawing the funds anytime. We also allocate a portion of our cash in longer tenor investments such as fixed income securities issued or guaranteed by the Republic of the Philippines, and Philippine banks and corporates and managed funds. We regularly evaluate available financial products and monitor market conditions for opportunities to enhance yields at acceptable risk levels. Our investments are also subject to certain restrictions contained in our debt covenants. Our funding arrangements are designed to keep an appropriate balance between equity and debt and to provide financing flexibility while enhancing our businesses.

Our cash position remains sufficient to support our planned capital expenditure requirements and service our debt and financing obligations; however, we may be required to finance a portion of our future capital expenditures from external financing sources. We have cash and cash equivalents, and short-term investments amounting to Php10,092 million and
Php10 million, respectively, as at September 30, 2025, which we can use to meet our short-term liquidity needs. See
Note 15 – Cash and Cash Equivalents. As part of our liquidity management, we assess dividend declarations in light of operating cash flows, funding needs, and financial priorities.

F-114

The following table summarizes the maturity profile of our financial assets based on our consolidated undiscounted claims outstanding as at September 30, 2025 and December 31, 2024:

		Total				Less than 1 year				1-3 years				3-5 years				More than 5 years
		(in million pesos)
September 30, 2025 (Unaudited)
Financial instruments at amortized cost:			54,795				51,376				3,190				10				219
Debt instruments at amortized cost			370				20				340				10				—
Other financial assets			3,329				260				2,850				—				219
Temporary cash investments			3,215				3,215				—				—				—
Short-term investments			10				10				—				—				—
Retail subscribers			18,451				18,451				—				—				—
Corporate subscribers			20,940				20,940				—				—				—
Foreign administrations			1,383				1,383				—				—				—
Domestic carriers			211				211				—				—				—
Dealers, agents and others			6,886				6,886				—				—				—
Financial instruments at FVPL:			1,086				—				—				—				1,086
Financial assets at fair value through profit or loss			1,086				—				—				—				1,086
Total			55,881				51,376				3,190				10				1,305
December 31, 2024 (Audited)
Financial instruments at amortized cost:			55,039				51,264				3,608				10				157
Debt instruments at amortized cost			395				25				360				10				—
Other financial assets			4,236				831				3,248				—				157
Temporary cash investments			1,464				1,464				—				—				—
Short-term investments			136				136				—				—				—
Retail subscribers			17,516				17,516				—				—				—
Corporate subscribers			20,936				20,936				—				—				—
Foreign administrations			1,254				1,254				—				—				—
Domestic carriers			256				256				—				—				—
Dealers, agents and others			8,846				8,846				—				—				—
Financial instruments at FVPL:			1,101				—				—				—				1,101
Financial assets at fair value through profit or loss			1,101				—				—				—				1,101
Total			56,140				51,264				3,608				10				1,258

The following table summarizes the maturity profile of our financial liabilities based on our consolidated contractual undiscounted obligations outstanding as at September 30, 2025 and December 31, 2024:

		Payments Due by Period
		Total				Less than 1 year				1-3 years				3-5 years				More than 5 years
		(in million pesos)
September 30, 2025 (Unaudited)
Debt:(1)			406,566				13,411				99,002				73,103				221,050
Principal			299,495				12,960				54,505				49,315				182,715
Interest			107,071				451				44,497				23,788				38,335
Lease obligations			85,605				18,096				22,977				18,283				26,249
Various trade and other obligations:			116,274				112,911				2,274				20				1,069
Suppliers and contractors			46,969				46,856				113				—				—
Utilities and related expenses			52,551				52,550				1				—				—
Carriers and others			2,867				2,867				—				—				—
Employee benefits			5,807				5,807				—				—				—
Customer deposits			1,258				—				169				20				1,069
Dividends			2,074				2,074				—				—				—
Others			4,748				2,757				1,991				—				—
Total contractual obligations			608,445				144,418				124,253				91,406				248,368
December 31, 2024 (Audited)
Debt:(1)			385,962				20,335				89,028				69,915				206,684
Principal			283,575				19,610				47,479				47,561				168,925
Interest			102,387				725				41,549				22,354				37,759
Lease obligations			77,244				16,560				19,410				16,178				25,096
Various trade and other obligations:			133,811				131,580				362				24				1,845
Suppliers and contractors			58,568				58,524				44				—				—
Utilities and related expenses			57,029				56,934				95				—				—
Carriers and others			2,534				2,534				—				—				—
Employee benefits			9,246				9,246				—				—				—
Customers’ deposits			2,046				—				177				24				1,845
Dividends			2,005				2,005				—				—				—
Others			2,383				2,337				46				—				—
Total contractual obligations			597,017				168,475				108,800				86,117				233,625

(1) Consists of long-term debt including current portion, gross of unamortized debt discount/premium and debt issuance costs.

F-115

Debt

See Note 20 – Interest-bearing Financial Liabilities – Long-term Debt for a detailed discussion of our debt.

Our consolidated future minimum lease commitments payable with non-cancellable leases as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Within one year			18,096				16,560
After one year but not more than five years			41,260				35,588
More than five years			26,249				25,096
Total			85,605				77,244

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.

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 same 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 at 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.

Collateral

There are no pledges as collaterals with respect to our financial liabilities as at as at September 30, 2025 and
December 31, 2024.

Foreign Currency Exchange Risk

Foreign currency exchange risk refers to the potential impact of exchange rate fluctuations on the fair value and future cash flows of financial instruments.

F-116

The revaluation of our foreign currency-denominated financial assets and liabilities as a result of the appreciation or depreciation of the Philippine Peso is recognized as foreign exchange gains or losses as at the end of the reporting period. The extent of foreign exchange gains or losses is largely dependent on the amount of foreign currency denominated financial assets and liabilities. While a certain percentage of our revenues are either linked to or denominated in U.S. Dollars, a substantial portion of our capital expenditures, a portion of our indebtedness and related interest expense and a portion of our operating expenses are denominated in foreign currencies, mostly in U.S. Dollars. As such, a strengthening or weakening of the Philippine Peso against the U.S. Dollar will decrease or increase in Philippine Peso terms both the principal amount of our foreign currency-denominated debts and the related interest expense, our foreign currency-denominated capital expenditures and operating expenses as well as our U.S. Dollar-linked and U.S. Dollar-denominated revenues. In addition, many of our financial ratios and other financial tests are affected by the movements in the Philippine Peso to U.S. Dollar exchange rate.

To manage our foreign exchange risks and to stabilize our cash flows in order to improve investment and cash flow planning, we enter into forward foreign exchange contracts, currency swap contracts, currency option contracts and other hedging products aimed at reducing and/or managing the adverse impact of changes in foreign exchange rates on our operating results and cash flows. Further details of the risk management strategy are recognized in our hedge designation documentation. We use forward foreign exchange purchase contracts, currency swap contracts and currency option contracts to manage the foreign currency risks associated with our foreign currency-denominated financial liabilities. We accounted for these instruments as either cash flow hedges, wherein changes in the fair value are recognized in our consolidated other comprehensive income until the hedged transaction affects our consolidated income statements or transactions not designated as hedges, wherein changes in the fair value are recognized directly as income or expense for the year.

The impact of the hedging instruments on our consolidated statements of financial position as at September 30, 2025 and
December 31, 2024 are as follows:

		Notional Amount				Carrying Amount				Line item in our Consolidated Statements
		(U.S. Dollar)				(Php)				of Financial Position
		(in million pesos)
September 30, 2025 (Unaudited)
Long-term foreign currency options			388				570			Derivative financial assets – net of current portion
			388				570
December 31, 2024 (Audited)
Long-term foreign currency options			356				385			Derivative financial assets – net of current portion
			356				385

The impact of the hedged items on our consolidated statements of financial position as at September 30, 2025 and
December 31, 2024 are as follows:

		September 30, 2025 (Unaudited)								December 31, 2024 (Audited)
		Cash flow hedge reserve				Cost of hedging reserve				Cash flow hedge reserve				Cost of hedging reserve
	(in million pesos)
PLDT:
US$300M Notes 2031			(7,301	)			33				(6,169	)			75
			(7,301	)			33				(6,169	)			75
Smart:
US$140M PNB			(2,307	)			2				(2,038	)			2
			(2,307	)			2				(2,038	)			2

The effect of the cash flow hedge on our consolidated statements of financial position as at September 30, 2025 and
December 31, 2024 are as follows:

		Total hedging loss recognized in OCI				Line item in our Consolidated Statements of Financial Position
		(in million pesos)
September 30, 2025 (Unaudited)
Long-term foreign currency options			(9,608	)		Other comprehensive loss
			(9,608	)
December 31, 2024 (Audited)
Long-term foreign currency options			(8,207	)		Other comprehensive loss
			(8,207	)

F-117

The following table shows our consolidated foreign currency-denominated monetary financial assets and liabilities and their Philippine Peso equivalents as at September 30, 2025 and December 31, 2024:

		September 30, 2025								December 31, 2024
		(Unaudited)								(Audited)
		U.S. Dollar				Php(1)				U.S. Dollar				Php(2)
		(in millions)
Noncurrent Financial Assets
Derivative financial assets – net of current portion			10				570				7				385
Total noncurrent financial assets			10				570				7				385
Current Financial Assets
Cash and cash equivalents			67				3,869				52				2,980
Trade and other receivables – net			105				6,132				97				5,596
Derivative assets			13				737				1				30
Current portion of other financial assets			—				10				—				—
Total current financial assets			185				10,748				150				8,606
Total Financial Assets			195				11,318				157				8,991
Noncurrent Financial Liabilities
Interest-bearing financial liabilities – net of current portion			657				38,176				667				38,575
Other noncurrent liabilities			—				32				1				29
Total noncurrent financial liabilities			657				38,208				668				38,604
Current Financial Liabilities
Accounts payable			723				42,026				685				39,621
Accrued expenses and other current liabilities			189				10,987				232				13,448
Current portion of interest-bearing financial liabilities			14				801				14				797
Current portion of derivative financial liabilities			—				35				2				97
Total current financial liabilities			926				53,849				933				53,963
Total Financial Liabilities			1,583				92,057				1,601				92,567

(1)The exchange rate used to convert the U.S. Dollar amounts into 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, or BAP, as at September 30, 2025.

(2)The exchange rate used to convert the U.S. Dollar amounts into Philippine Peso was Php57.85 to US$1.00, the Philippine Peso-U.S. Dollar exchange rate as quoted through the BAP as at December 31, 2024.

As at November 10, 2025, the Philippine Peso-U.S. Dollar exchange rate was Php58.93 to US$1.00. Using this exchange rate, our consolidated net foreign currency-denominated financial liabilities would have increased in Philippine Peso terms by
Php1,090 million as at September 30, 2025.

Approximately 13% and 14% of our total consolidated debts (net of consolidated debt discount) was denominated in U.S. Dollars as at September 30, 2025 and December 31, 2024, respectively. Our consolidated foreign currency-denominated debt decreased to Php38,644 million as at September 30, 2025 from Php39,015 million as at December 31, 2024. See
Note 20 – Interest-bearing Financial Liabilities. The aggregate notional amount of our consolidated outstanding derivatives allocated for debt were US$358 million and US$381 million as at September 30, 2025 and December 31, 2024, respectively. Consequently, the unhedged portion of our consolidated debt amounts were 6% (or 5%, net of consolidated U.S. Dollar cash balances allocated for debt) as at September 30, 2025 and December 31, 2024.

Approximately 16% and 15% of our consolidated revenues were denominated in U.S. Dollars and/or were linked to U.S. Dollars for the nine months ended September 30, 2025 and 2024, respectively. Approximately 16% and 15% of our consolidated expenses were denominated in U.S. Dollars and/or linked to the U.S. Dollar for the nine months ended September 30, 2025 and 2024, respectively, respectively. In this respect, the higher weighted average exchange rate of the Philippine Peso against the U.S. Dollar increased our revenues and expenses, and consequently, affects our cash flow from operations in Philippine Peso terms. In view of the anticipated continued decline in dollar-denominated/dollar-linked revenues, which provide a natural hedge against our foreign currency exposure, we are progressively refinancing our dollar-denominated debts in Philippine Pesos.

The Philippine Peso appreciated by 0.52% against the U.S. Dollar to Php58.15 to US$1.00 as at September 30, 2025 from Php57.85 to US$1.00 as at December 31, 2024. As a result of our consolidated foreign exchange movements, as well as the amount of our consolidated outstanding net foreign currency financial assets and liabilities, we recognized net consolidated foreign exchange gains of Php105 million and Php1,389 million for the nine months ended September 30, 2025 and 2024, respectively.

Management conducted a survey among our banks to determine the outlook of the Philippine Peso-U.S. Dollar exchange rate until December 31, 2025. Our outlook is that the Philippine Peso-U.S. Dollar exchange rate may weaken/strengthen by 0.26% as compared to the exchange rate of Php58.15 to US$1.00 as at September 30, 2025. If the Philippine Peso-U.S. Dollar exchange rate had weakened/strengthened by 0.26% as at September 30, 2025, with all other variables held constant, consolidated profit after tax for the nine months ended September 30, 2025 and stockholders’ equity as at September 30, 2025

F-118

would have been approximately Php64 million and Php34 million, respectively, lower/higher, mainly as a result of consolidated foreign exchange gains and losses on conversion of U.S. Dollar-denominated net assets/liabilities and mark-to-market valuation of derivative financial instruments.

Interest Rate Risk

Interest rate risk arises from fluctuations in market interest rates that may impact the fair value or future cash flows of financial instruments.

Our exposure to the risk of changes in market interest rates relates primarily to our long-term debt obligations with floating interest rates.

Our policy is to manage interest costs through a mix of fixed and variable rate debts. We evaluate the fixed to floating ratio of our loans in line with movements of relevant interest rates in the financial markets. Based on our assessment, new financing will be priced either on a fixed or floating rate basis. We enter into interest rate swap agreements in order to manage our exposure to interest rate fluctuations. Further details of the risk management strategy are recognized in our hedge designation documentation. We make use of hedging instruments and structures solely for reducing or managing financial risk associated with our debt obligations and not for trading purposes.

There are no outstanding interest rate hedges as at September 30, 2025 and December 31, 2024.

F-119

The following tables set out the carrying amounts, by maturity, of our financial instruments that are expected to have exposure to interest rate risk as at September 30, 2025 and
December 31, 2024. Financial instruments that are not subject to interest rate risk were not included in the table.

As at September 30, 2025 (Unaudited)

	In U.S. Dollars																												Fair Value
	Below 1 year			1-2 years			2-3 years			3-5 years			Over 5 years			Total			In Php			Discount/ Debt Issuance Cost In Php			Carrying Value In Php				In U.S. Dollar			In Php
																						(in millions)
Assets:
Debt Instruments at Amortized Cost
Philippine Peso		—			6			—			—			—			6			370			—			370				6			368
Interest rate	6.250%			4.625% - 4.875%				—		6.500%				—			—			—			—			—				—			—
Cash in Bank
U.S. Dollar	17				—			—			—			—			17			980			—			980				17			980
Interest rate	0.0100% - 0.5000%				—			—			—			—			—			—			—			—				—			—
Philippine Peso	70				—			—			—			—			70			4,076			—			4,076				70			4,076
Interest rate	0.0500% - 4.5000%				—			—			—			—			—			—			—			—				—			—
Temporary Cash Investments
U.S. Dollar	24				—			—			—			—			24			1,416			—			1,416				24			1,416
Interest rate	3.6100-3.9000%				—			—			—			—			—			—			—			—				—			—
Philippine Peso	31				—			—			—			—			31			1,799			—			1,799				31			1,799
Interest rate	0.2500% - 6.0000%				—			—			—			—			—			—			—			—				—			—
Short-term Investments
Philippine Peso		—			—			—			—			—			—			10			—			10				—			10
Interest rate	2.0000% - 6.0000%				—			—			—			—			—			—			—			—				—			—
		142			6			—			—			—			148			8,651			—			8,651				148			8,649
Liabilities:
Long-term Debt
Fixed Rate
U.S. Dollar Notes		—			—			—			—			600			600			34,889			503			34,386				486			28,272
Interest rate		—			—			—			—		2.5000% - 3.4500%				—			—			—			—				—			—
Philippine Peso		221			412			200			241			78			1,152			67,048			461			66,587				1,120			65,114
Interest rate	4.6500% - 4.8783%			4.0000% to 5.3500%			4.0000% to 5.2000%			4.0000% to 5.1560%			4.0000%				—			—			—			—				—			—
Variable Rate
U.S. Dollar Loans		—			28			25			18			3			74			4,274			16			4,258				74			4,274
Interest rate		—		SOFR+ 1.31161%			SOFR+ 1.31161%			SOFR+ 1.31161%			SOFR+ 1.31161%				—			—			—			—				—			—
Philippine Peso		—			161			111			590			2,460			3,322			193,184			979			192,205				3,322			193,184
Interest rate				0.4000% to 0.9000% over PHP BVAL (floor rate 4.50%)			0.4000% to 0.9000% over PHP BVAL (floor rate 4.50%)			0.4000% to 0.9000% over PHP BVAL (floor rate 4.50%)			0.4000% to 0.7500% over PHP BVAL (floor rate 4.50%)				—			—			—			—				—			—
Short-term Debt
Notes Payable
Philippine Peso		2			—			—			—			—			2			100			—			100				2			100
Interest rate		6.4000	%
		223			601			336			849			3,141			5,150			299,495			1,959			297,536				5,004			290,944

F-120

As at December 31, 2024 (Audited)

	In U.S. Dollars																											Fair Value
	Below 1 year			1-2 years			2-3 years			3-5 years			Over 5 years			Total			In Php			Discount/ Debt Issuance Cost In Php			Carrying Value In Php			In U.S. Dollar			In Php
																						(in millions)
Assets:
Debt Instruments at Amortized Cost
Philippine Peso		1			—			6			—			—			7			395			—			395			7			388
Interest rate	4.250%			6.250%			4.625% - 4.875%			6.500%				—			—			—			—			—			—			—
Cash in Bank
U.S. Dollar	14				—			—			—			—			14			785			—			785			14			785
Interest rate	0.0500% - 0.5000%				—			—			—			—			—			—			—			—			—			—
Philippine Peso	91				—			—			—			—			91			5,296			—			5,296			91			5,296
Interest rate	0.0500% - 5.1000%				—			—			—			—			—			—			—			—			—			—
Temporary Cash Investments
U.S. Dollar	7				—			—			—			—			7			395			—			395			7			395
Interest rate	4.5000% - 5.2500%				—			—			—			—			—			—			—			—			—			—
Philippine Peso	18				—			—			—			—			18			1,069			—			1,069			18			1,069
Interest rate	0.2500% - 6.0000%				—			—			—			—			—			—			—			—			—			—
Short-term Investments
Philippine Peso	2				—			—			—			—			2			136			—			136			2			136
Interest rate	6.0000% - 6.1000%				—			—			—			—			—			—			—			—			—			—
		133			—			6			—			—			139			8,076			—			8,076			139			8,069
Liabilities:
Long-term Debt
Fixed Rate
U.S. Dollar Notes		—			—			—			—			600			600			34,708			531			34,177			463			26,811
Interest rate		—			—			—			—		2.5000% - 3.4500%				—			—			—			—			—			—
Philippine Peso		315			231			339			316			205			1,406			81,315			581			80,734			1,306			75,550
Interest rate	4.0000% to 4.6500%			4.0000% to 5.3500%			4.0000% to 5.2000%			4.0000% to 5.2000%			4.0000% to 5.0880%				—			—			—			—			—			—
Variable Rate
U.S. Dollar Loans		—			28			14			28			14			84			4,860			22			4,838			84			4,859
Interest rate		—		SOFR+ 1.31161%			SOFR+ 1.31161%			SOFR+ 1.31161%			SOFR+ 1.31161%				—			—			—			—			—			—
Philippine Peso		24			87			122			478			2,101			2,812			162,692			855			161,837			2,812			162,692
Interest rate	BVAL + 1.0000%			0.5000% to 1.0000% over PHP BVAL (floor rate 4.5000% to 4.6250%)			0.5000% to 1.0000% over PHP BVAL (floor rate 4.5000% to 4.6250%)			0.5000% to 0.9000% over PHP BVAL (floor rate 4.5000% to 4.6250%)			0.5000% to 0.7500% over PHP BVAL (floor rate 4.5000%)				—			—			—			—			—			—
		339			346			475			822			2,920			4,902			283,575			1,989			281,586			4,665			269,912

F-121

Fixed rate financial instruments are subject to fair value interest rate risk while floating rate financial instruments are subject to cash flow interest rate risk.

Repricing of our regular floating rate financial instruments is done on intervals of three months and six months while repricing of our structured floating rate instruments is done every one year or up to five years. Interest on fixed rate financial instruments is fixed until maturity of the particular instrument.

Approximately 66% and 59% of our consolidated debts (net of consolidated debt discount) were variable rate debts as at
September 30, 2025 and December 31, 2024, respectively. Our consolidated variable rate debt amounted to
Php196,463 million and Php166,675 million as at September 30, 2025 and December 31, 2024, respectively.

Management conducted a survey among our banks to determine the outlook of the U.S. Dollar and Philippine Peso interest rates until December 31, 2025. Our outlook is that the U.S. Dollar and Philippine Peso interest rates may move 30 basis points, or bps, and 50 bps higher/lower, respectively, as compared to levels as at September 30, 2025. If the U.S. Dollar interest rates had been 30 bps higher/lower as compared to market levels as at September 30, 2025, with all other variables held constant, consolidated profit after tax for the nine months ended September 30, 2025 and stockholders’ equity as at September 30, 2025 would have been approximately Php10 million and Php33 million, respectively, lower/higher, mainly as a result of higher/lower interest expense on floating rate borrowings and loss/gain on derivative transactions. If the Philippine Peso interest rates had been 50 bps higher/lower as compared to market levels as at September 30, 2025, with all other variables held constant, consolidated profit after tax for the nine months ended September 30, 2025 and stockholders’ equity as at September 30, 2025 would have been approximately Php5 million and Php33 million, respectively, lower/higher, mainly as a result of higher/lower interest expense on floating rate borrowings and loss/gain on derivative transactions.

Credit Risk

Credit risk arises from the possibility that customers, clients and counterparties may default on their contractual obligations, resulting in financial loss.

We manage and control credit risk by setting limits on the amount of risk we are willing to accept for individual counterparties and by monitoring exposures in relation to such limits.

We trade only with recognized and creditworthy third parties. It is our policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis to reduce our exposure to bad debts.

We established a credit quality review process to provide regular identification of changes in the creditworthiness of counterparties. Our credit quality review process allows us to assess the potential loss as a result of the risks to which we are exposed and allow us to take corrective actions.

Maximum exposure to credit risk of financial assets not subject to impairment

The gross carrying amount of financial assets not subject to impairment also represents our maximum exposure to credit risk as at September 30, 2025 and December 31, 2024 are as follows:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Financial assets at fair value through profit or loss			1,086				1,101
Derivative financial assets – net of current portion			570				385
Current portion of derivative financial assets			737				30
Total			2,393				1,516

Maximum exposure to credit risk of financial assets subject to impairment

The table below shows the maximum exposure to credit risk for the components of our consolidated statements of financial position, including derivative financial instruments as at September 30, 2025 and December 31, 2024. The maximum exposure is shown gross before both the effect of mitigation through use of master netting and collateral arrangements. The extent to which collateral and other credit enhancements mitigate the maximum exposure to credit risk is described in the footnotes to the table.

For financial assets recognized on our consolidated statements of financial position as at September 30, 2025 and
December 31, 2024, the gross exposure to credit risk equal their carrying amount.

F-122

For financial guarantees granted, the maximum exposure to credit risk is the maximum amount that we would have to pay if the guarantees are called upon. For loan commitments and other credit related commitments that are irrevocable over the life of the respective facilities, the maximum exposure to credit risk is the full amount of the committed facilities.

		September 30, 2025 (Unaudited)
		Stage 1 12-Month ECL				Stage 2 Lifetime ECL				Stage 3 Lifetime ECL				Total
		(in million pesos)
High grade			13,527				10,070				—				23,597
Standard grade			15				7,297				—				7,312
Substandard grade			—				12,648				—				12,648
Default			259				3,485				14,371				18,115
Gross carrying amount			13,801				33,500				14,371				61,672
Less allowance			259				3,485				14,371				18,115
Carrying amount			13,542				30,015				—				43,557
		December 31, 2024 (Audited)
		Stage 1 12-Month ECL				Stage 2 Lifetime ECL				Stage 3 Lifetime ECL				Total
		(in million pesos)
High grade			14,059				11,670				—				25,729
Standard grade			440				5,486				—				5,926
Substandard grade			—				14,456				—				14,456
Default			279				3,596				13,600				17,475
Gross carrying amount			14,778				35,208				13,600				63,586
Less allowance			279				3,596				13,600				17,475
Carrying amount			14,499				31,612				—				46,111

Maximum exposure to credit risk after collateral held or other credit enhancements

Collateral held as security for financial assets depends on the nature of the instrument. Debt investment securities are generally unsecured. Estimates of fair value are based on the value of collateral assessed at the time of borrowing and are regularly updated according to internal lending policies and regulatory guidelines. Generally, collateral is not held over loans and advances to us except for reverse repurchase agreements. Collateral usually is not held against investment securities, and no such collateral was held as at September 30, 2025 and December 31, 2024.

Our policies regarding obtaining collateral have not significantly changed during the reporting period and there has been no significant change in the overall quality of the collateral held by us during the year.

We have not identified significant risk concentrations arising from the nature, type or location of collateral and other credit enhancements held against our credit exposures.

An analysis of the maximum exposure to credit risk for the components of our consolidated statements of financial position, including derivative financial instruments as at September 30, 2025 and December 31, 2024:

		September 30, 2025 (Unaudited)
		Gross Maximum Exposure				Collateral and Other Credit Enhancements(1)				Net Maximum Exposure
		(in million pesos)
Financial instruments at amortized cost:			43,557				428				43,129
Debt instruments at amortized cost			370				—				370
Other financial assets			3,070				—				3,070
Cash and cash equivalents			10,092				123				9,969
Short-term investments			10				3				7
Corporate subscribers			14,509				263				14,246
Retail subscribers			8,026				39				7,987
Foreign administrations			1,287				—				1,287
Domestic carriers			211				—				211
Dealers, agents and others			5,982				—				5,982
Financial instruments at FVPL:			2,393				—				2,393
Financial assets at FVPL			1,086				—				1,086
Forward foreign exchange contracts			737				—				737
Long-term foreign currency options			570				—				570
Total			45,950				428				45,522

(1) Includes bank insurance, security deposits and customer deposits. We have no collateral held as at September 30, 2025.

F-123

		December 31, 2024 (Audited)
		Gross Maximum Exposure				Collateral and Other Credit Enhancements(1)				Net Maximum Exposure
		(in million pesos)
Financial instruments at amortized cost:			46,111				427				45,684
Debt instruments at amortized cost			395				—				395
Other financial assets			3,957				—				3,957
Cash and cash equivalents			10,011				44				9,967
Short-term investments			136				—				136
Corporate subscribers			15,023				346				14,677
Retail subscribers			7,650				37				7,613
Foreign administrations			1,177				—				1,177
Domestic carriers			256				—				256
Dealers, agents and others			7,506				—				7,506
Financial instruments at FVPL:			1,516				—				1,516
Financial assets at FVPL			1,101				—				1,101
Forward foregin exchange contracts			30				—				30
Long-term foreign currency options			385				—				385
Total			47,627				427				47,200

(1) Includes bank insurance, security deposits and customer deposits. We have no collateral held as at December 31, 2024.

The table below provides information regarding the credit quality by class of our financial assets according to our credit ratings of counterparties as at September 30, 2025 and December 31, 2024:

						Neither past due nor credit impaired								Past due but not
		Total				Class A(1)				Class B(2)				credit impaired				Impaired
		(in million pesos)
September 30, 2025 (Unaudited)
Financial instruments at amortized cost:			61,672				23,597				7,312				12,648				18,115
Debt instruments at amortized cost			370				370				—				—				—
Other financial assets			3,329				3,471				(401	)			—				259
Cash and cash equivalents			10,092				9,676				416				—				—
Short-term investments			10				10				—				—				—
Retail subscribers			18,451				5,761				243				2,022				10,425
Corporate subscribers			20,940				3,133				3,749				7,627				6,431
Foreign administrations			1,383				115				544				628				96
Domestic carriers			211				—				162				49				—
Dealers, agents and others			6,886				1,061				2,599				2,322				904
Financial instruments at FVPL:			2,393				2,387				6				—				—
Financial assets at FVPL			1,086				1,080				6				—				—
Forward foreign exchange contracts			737				737				—				—				—
Long-term foreign currency options			570				570				—				—				—
Total			64,065				25,984				7,318				12,648				18,115
December 31, 2024 (Audited)
Financial instruments at amortized cost:			63,586				25,729				5,926				14,456				17,475
Debt instruments at amortized cost			395				395				—				—				—
Other financial assets			4,236				3,956				1				—				279
Cash and cash equivalents			10,011				9,572				439				—				—
Short-term investments			136				136				—				—				—
Retail subscribers			17,516				5,381				171				2,098				9,866
Corporate subscribers			20,936				5,124				886				9,013				5,913
Foreign administrations			1,254				139				381				657				77
Domestic carriers			256				—				135				121				—
Dealers, agents and others			8,846				1,026				3,913				2,567				1,340
Financial instruments at FVPL:			1,516				1,511				5				—				—
Financial assets at FVPL			1,101				1,096				5				—				—
Forward foreign exchange contracts			30				30				—				—				—
Long-term foreign currency options			385				385				—				—				—
Total			65,102				27,240				5,931				14,456				17,475

(1)This includes low risk and good paying customer accounts with no history of account treatment for a defined period and no overdue accounts as at report date; and deposits or placements to counterparties with good credit rating or bank standing financial review.

(2)This includes medium risk and average paying customer accounts with no overdue accounts as at report date, and new customer accounts for which sufficient credit history has not been established; and deposits or placements to counterparties not classified as Class A.

F-124

The aging analysis of past due but not impaired class of financial assets as at September 30, 2025 and December 31, 2024 are as follows:

										Past due but not credit impaired
		Total				Neither past due nor credit impaired				1-60 days				61-90 days				Over 91 days				Impaired
		(in million pesos)
September 30, 2025 (Unaudited)
Financial instruments at amortized cost:			61,672				30,909				3,278				934				8,436				18,115
Debt instruments at amortized cost			370				370				—				—				—				—
Other financial assets			3,329				3,070				—				—				—				259
Cash and cash equivalents			10,092				10,092				—				—				—				—
Short-term investments			10				10				—				—				—				—
Retail subscribers			18,451				6,004				1,796				226				—				10,425
Corporate subscribers			20,940				6,882				1,108				599				5,920				6,431
Foreign administrations			1,383				659				218				35				375				96
Domestic carriers			211				162				41				4				4				—
Dealers, agents and others			6,886				3,660				115				70				2,137				904
Financial instruments at FVPL:			2,393				2,393				—				—				—				—
Financial assets at FVPL			1,086				1,086				—				—				—				—
Forward foreign exchange contracts			737				737				—				—				—				—
Long-term foreign currency options			570				570				—				—				—				—
Total			64,065				33,302				3,278				934				8,436				18,115
December 31, 2024 (Audited)
Financial instruments at amortized cost:			63,586				31,655				5,927				586				7,943				17,475
Debt instruments at amortized cost			395				395				—				—				—				—
Other financial assets			4,236				3,957				—				—				—				279
Cash and cash equivalents			10,011				10,011				—				—				—				—
Short-term investments			136				136				—				—				—				—
Retail subscribers			17,516				5,552				1,710				248				140				9,866
Corporate subscribers			20,936				6,010				3,182				548				5,283				5,913
Foreign administrations			1,254				520				232				158				267				77
Domestic carriers			256				135				73				17				31				—
Dealers, agents and others			8,846				4,939				730				(385	)			2,222				1,340
Financial instruments at FVPL:			1,516				1,516				—				—				—				—
Financial assets at FVPL			1,101				1,101				—				—				—				—
Forward foreign exchange contracts			30				30				—				—				—				—
Long-term foreign currency options			385				385				—				—				—				—
Total			65,102				33,171				5,927				586				7,943				17,475

Capital Management Risk

We aim to achieve an optimal capital structure in pursuit of our business objectives which include maintaining healthy capital ratios and strong credit ratings and maximizing shareholder value.

Our approach to capital management focuses on balancing the allocation of cash and the incurrence of debt as we seek new investment opportunities for new businesses and growth areas. On August 5, 2014, the PLDT Board of Directors approved an amendment to our dividend policy, increasing the dividend payout rate to 75% from 70% of our core EPS as regular dividends. However, 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, the PLDT Board of Directors approved on August 2, 2016, the amendment of our dividend policy, reducing the regular dividend payout to 60% of core EPS. Starting 2019, we base our dividend payout on telco core income. 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.

As part of the dividend policy, in the event no investment opportunities arise, we may consider the option of returning additional cash to our shareholders in the form of special dividends or share buybacks. Philippine corporate regulations prescribe, however, that we can only pay out dividends or make capital distribution up to the amount of our unrestricted retained earnings.

Some of our debt instruments contain covenants that impose maximum leverage ratios. In addition, our credit ratings from the international credit ratings agencies are based on our ability to remain within certain leverage ratios.

No changes were made in our objectives, policies or processes for managing capital during the nine months ended
September 30, 2025 and 2024.

F-125

28.Notes to the Statements of Cash Flows

The following table shows the changes in liabilities arising from financing activities as at September 30, 2025 and
December 31, 2024:

		January 1, 2025				Cash flows				Foreign exchange movement				Others				September 30, 2025
		(Audited)																(Unaudited)
		(in million pesos)
Interest-bearing financial liabilities			281,586				15,479				192				279				297,536
Lease liabilities			54,038				(10,693	)			—				17,410				60,755
Derivative financial liabilities			97				(944	)			—				882				35
Accrued interests and other related costs			2,426				(9,430	)			—				9,943				2,939
Dividends			2,005				(20,576	)			—				20,645				2,074
			340,152				(26,164	)			192				49,159				363,339
		January 1, 2024				Cash flows				Foreign exchange movement				Others				December 31, 2024
		(Audited)																(Audited)
		(in million pesos)
Interest-bearing financial liabilities			254,798				24,722				1,698				368				281,586
Lease liabilities			47,546				(12,079	)			—				18,571				54,038
Derivative financial liabilities			1,033				704				—				(1,640	)			97
Accrued interests and other related costs			2,157				(10,740	)			—				11,009				2,426
Dividends			1,912				(20,750	)			—				20,843				2,005
			307,446				(18,143	)			1,698				49,151				340,152

Others include the effect of accretion of long-term borrowings, effect of recognition and accretion of lease liabilities, unrealized mark-to-market losses of derivative financial instruments, effect of accrued but not yet paid interest on interest-bearing loans and borrowings and accrual of dividends that were not yet paid at the end of the period.

Non-cash Investing Activities

The following table shows our significant non-cash investing activities and corresponding transaction amounts as at
September 30, 2025 and December 31, 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Acquisition of property and equipment on account			14,716				19,219
Additions to ROU assets			15,513				15,607
Capitalization to property and equipment of:
Inventories			1,987				4,128
Foreign exchange differences – net			124				686
			32,340				39,640

Non-cash Financing Activities

The following table shows our significant non-cash financing activities and corresponding transaction amounts as at
September 30, 2025 and December 31, 2024:

		September 30, 2025				December 31, 2024
		(Unaudited)				(Audited)
		(in million pesos)
Additions to lease liabilities			15,513				15,607

F-126

FAQ

What were PLDT (PHI) consolidated revenues for 9M 2025?

Consolidated revenues were Php163,283 million, up 1% year over year.

How did PLDT’s net income and EBITDA trend in 9M 2025?

Net income was Php25,135 million (down 11%), while EBITDA rose to Php82,845 million with a 52% margin.

What drove Wireless vs. Fixed Line performance for PLDT?

Wireless revenues fell to Php76,468 million on weaker voice/SMS and devices; Fixed Line rose to Php100,248 million on Home broadband and ICT.

What was PLDT’s telco core income in 9M 2025?

Telco core income was Php25,264 million, a 5% decrease year over year.

How strong was PLDT’s cash flow and capex in 9M 2025?

Net cash from operating activities was Php75,765 million; payments for property and equipment were Php52,093 million.

What is PLDT’s debt and equity position as of September 30, 2025?

Interest-bearing financial liabilities totaled Php297,536 million; equity attributable to equity holders was Php120,326 million.

What dividends did PLDT declare in 2025 and how many shares are outstanding?

Regular dividends of Php47 and Php48 per common share were declared; shares outstanding were 216,055,775 as of September 30, 2025.