PLDT expects 2026 telco core income to fall amid economic headwinds
PANGILINAN-led PLDT Inc. expects its telecommunications core income to decline in 2026, following a 6.2% drop in the first nine months. Third-quarter attributable net income fell 15.4% year on year to P5.23 billion, while the company deferred the planned IPO of its data centre REIT, VITRO REIT, Inc.
PANGILINAN-LED PLDT Inc. expects its telecommunications core income to decline this year amid economic uncertainties, after its third-quarter (Q3) attributable net income fell 15.4% to P5.23 billion from P6.18 billion a year earlier.
PLDT Chief Financial Adviser Stanley H. Yang said the company’s full-year earnings would likely remain below last year’s level, following a 6.2% decline in telco core income during the first nine months of 2026. “We have not had our guidance yet but as you have seen from the nine-month results, our telco core is down by about 6%. So, it will be down from last year for sure,” Mr. Yang said during the company’s financial briefing on Thursday. He said December, traditionally one of PLDT’s strongest months, could provide some relief, although the company still expects weaker full-year earnings.
For the July-to-September period, PLDT’s consolidated revenues increased 0.9% to P54.20 billion from P53.69 billion a year earlier. Expenses rose 0.6% to P42.62 billion, while net other expenses increased to P4.75 billion from P3.27 billion. For the first nine months of 2026, attributable net income declined 8.4% to P21.67 billion from P23.65 billion in the same period last year, as higher depreciation and other expenses weighed on earnings. Telco core income, which excludes certain nonrecurring items and the impact of Maya Innovations Holdings, fell 6.2% to P23.48 billion from P25.02 billion a year earlier.
Consolidated core income, which includes the contribution from Maya, declined 4.5% to P24.43 billion from P25.58 billion. “We managed to grow revenues in a tough market, a tougher environment. We obviously have a lot of work ahead of us. We’ve invested in our network, our technology, and our people. Now we need to turn those investments into better service for our customers and stronger growth for the business,” PLDT and Smart Communications, Inc. Chairman and Chief Executive Officer Manuel V. Pangilinan said.
PLDT’s consolidated revenues for the January-to-September period rose 1.8% to P166.21 billion from P163.19 billion a year earlier. Service revenues accounted for P161.25 billion, while nonservice revenues reached P4.96 billion. Wireless consumer revenues grew 1% to P63.5 billion, while the home and enterprise businesses generated P44.8 billion and P37.2 billion, respectively. The wireless consumer business returned to growth in the third quarter, posting P21.5 billion in revenues, up 3% year on year, following a largely flat first half. Enterprise net service revenues increased 4% to P37.2 billion in the first nine months, supported by higher usage of wireless services, international connectivity, and data centre services. Excluding legacy services, enterprise revenues grew 8% to P31.2 billion.
Meanwhile, Mr. Pangilinan said PLDT is still considering a potential strategic partnership for its data centre business, even as the company reassesses the timing of its planned real estate investment trust (REIT) listing. In October, PLDT deferred the planned initial public offering (IPO) of VITRO REIT, Inc. to 2027, citing market conditions and rising interest rates. Mr. Pangilinan said he continues to favour the REIT structure but acknowledged the need to assess its financing implications. “It’s a yield game. It is a debt game when you look down at it. The yield to the investors will be higher than the borrowing cost of PLDT,” he said.
VITRO, the data centre business of PLDT subsidiary ePLDT, Inc., operates 11 data centres nationwide with a combined capacity of nearly 100 megawatts. The proposed REIT offering seeks to raise up to P24.2 billion through the sale of 1.91 billion secondary common shares, with an overallotment option of 286.96 million shares, at an offer price of up to P11 apiece. Proceeds from the offering are intended to support debt reduction and the company’s reinvestment commitments under REIT regulations. PLDT said its VITRO data centre portfolio recorded 11% revenue growth in the first nine months, supported by higher colocation and connectivity revenues. The company expects to have 44 MW of available information technology power capacity by yearend to serve demand from enterprises, hyperscale operators, and artificial intelligence applications.
