| 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. Set out is the disaggregation of PLDT Group’s revenues from contracts with customers for the years ended
December 31, 2025, 2024 and 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Streams |
|
Wireless |
|
|
Fixed Line |
|
|
Inter-
segment
Transactions |
|
|
Consolidated |
|
|
|
(in million pesos) |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Type of goods or services |
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue |
|
|
97,568 |
|
|
|
130,355 |
|
|
|
(15,737 |
) |
|
|
212,186 |
|
Non-service revenue |
|
|
5,748 |
|
|
|
455 |
|
|
|
(1 |
) |
|
|
6,202 |
|
Total revenues from contracts with customers |
|
|
103,316 |
|
|
|
130,810 |
|
|
|
(15,738 |
) |
|
|
218,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timing of revenue recognition |
|
|
|
|
|
|
|
|
|
|
|
|
Transferred over time |
|
|
97,568 |
|
|
|
130,355 |
|
|
|
(15,737 |
) |
|
|
212,186 |
|
Transferred at a point time |
|
|
5,748 |
|
|
|
455 |
|
|
|
(1 |
) |
|
|
6,202 |
|
Total revenues from contracts with customers |
|
|
103,316 |
|
|
|
130,810 |
|
|
|
(15,738 |
) |
|
|
218,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
Type of goods or services |
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue |
|
|
97,779 |
|
|
|
125,994 |
|
|
|
(15,391 |
) |
|
|
208,382 |
|
Non-service revenue |
|
|
7,955 |
|
|
|
496 |
|
|
|
— |
|
|
|
8,451 |
|
Total revenues from contracts with customers |
|
|
105,734 |
|
|
|
126,490 |
|
|
|
(15,391 |
) |
|
|
216,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timing of revenue recognition |
|
|
|
|
|
|
|
|
|
|
|
|
Transferred over time |
|
|
97,779 |
|
|
|
125,994 |
|
|
|
(15,391 |
) |
|
|
208,382 |
|
Transferred at a point time |
|
|
7,955 |
|
|
|
496 |
|
|
|
— |
|
|
|
8,451 |
|
Total revenues from contracts with customers |
|
|
105,734 |
|
|
|
126,490 |
|
|
|
(15,391 |
) |
|
|
216,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Type of good or service |
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue |
|
|
95,677 |
|
|
|
120,336 |
|
|
|
(14,181 |
) |
|
|
201,832 |
|
Non-service revenue |
|
|
8,724 |
|
|
|
398 |
|
|
|
(1 |
) |
|
|
9,121 |
|
Total revenues from contracts with customers |
|
|
104,401 |
|
|
|
120,734 |
|
|
|
(14,182 |
) |
|
|
210,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timing of revenue recognition |
|
|
|
|
|
|
|
|
|
|
|
|
Transferred over time |
|
|
95,677 |
|
|
|
120,336 |
|
|
|
(14,181 |
) |
|
|
201,832 |
|
Transferred at a point time |
|
|
8,724 |
|
|
|
398 |
|
|
|
(1 |
) |
|
|
9,121 |
|
Total revenues from contracts with customers |
|
|
104,401 |
|
|
|
120,734 |
|
|
|
(14,182 |
) |
|
|
210,953 |
|
Remaining performance obligations are associated with our wireless and fixed line subscription contracts. As at
December 31, 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 Php44,702 million, of which we expect to recognize approximately 52% in 2026 and 48% in 2027 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 expect to recognize approximately 51% in 2025 and 49% in 2026 and onwards. Contract Balances Contract balances as at December 31, 2025 and 2024 consists of the following:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in million pesos) |
|
Trade and other receivables (Note 16) |
|
|
50,264 |
|
|
|
48,808 |
|
Contract assets |
|
|
1,529 |
|
|
|
1,953 |
|
Contract liabilities and unearned revenues (Notes 21 and 23) |
|
|
14,329 |
|
|
|
16,067 |
|
Set out below is the movement in the allowance for expected credit losses of contracts assets as at December 31, 2025 and 2024.
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in million pesos) |
|
Balances at beginning of the year |
|
|
67 |
|
|
|
42 |
|
Reversals and reclassification |
|
|
(25 |
) |
|
|
25 |
|
Balances at end of the year |
|
|
42 |
|
|
|
67 |
|
Changes in the contract liabilities and unearned revenues accounts for the years ended December 31, 2025 and 2024 are as follows:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in million pesos) |
|
Balances at beginning of the year |
|
|
16,067 |
|
|
|
18,895 |
|
Deferred during the year |
|
|
110,987 |
|
|
|
123,975 |
|
Recognized as revenue during the year |
|
|
(112,725 |
) |
|
|
(126,803 |
) |
Balances at end of the year |
|
|
14,329 |
|
|
|
16,067 |
|
The contract liabilities and unearned revenues accounts as at December 31, 2025 and 2024 are as follows:
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
(in million pesos) |
|
Unearned revenues from prepaid contracts |
|
|
5,556 |
|
|
|
6,543 |
|
Leased facilities |
|
|
4,444 |
|
|
|
4,630 |
|
Advance monthly service fees |
|
|
2,198 |
|
|
|
2,098 |
|
Short-term advances for installation services |
|
|
2,098 |
|
|
|
2,773 |
|
Long-term advances from equipment |
|
|
33 |
|
|
|
23 |
|
Total contract liabilities and unearned revenues |
|
|
14,329 |
|
|
|
16,067 |
|
|
|
|
|
|
|
|
Contract liabilities: |
|
|
|
|
|
|
Noncurrent (Note 21) |
|
|
194 |
|
|
|
256 |
|
Current (Note 23) |
|
|
312 |
|
|
|
17 |
|
|
|
|
|
|
|
|
Unearned revenues: |
|
|
|
|
|
|
Noncurrent (Note 21) |
|
|
4,690 |
|
|
|
5,369 |
|
Current (Note 23) |
|
|
9,133 |
|
|
|
10,425 |
|
General Operating Costs General operating costs for the years ended December 31, 2025, 2024 and 2023 consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Repairs and maintenance |
|
|
30,849 |
|
|
|
30,653 |
|
|
|
30,186 |
|
Compensation and employee benefits |
|
|
22,767 |
|
|
|
24,479 |
|
|
|
24,644 |
|
Professional and other contracted services |
|
|
7,521 |
|
|
|
7,878 |
|
|
|
9,077 |
|
Taxes and licenses |
|
|
5,328 |
|
|
|
5,156 |
|
|
|
5,215 |
|
Selling and promotions (Note 18) |
|
|
4,914 |
|
|
|
5,427 |
|
|
|
8,037 |
|
Rent |
|
|
1,413 |
|
|
|
1,398 |
|
|
|
1,372 |
|
Insurance and security services |
|
|
1,402 |
|
|
|
1,408 |
|
|
|
1,344 |
|
Communication, training and travel |
|
|
1,134 |
|
|
|
1,165 |
|
|
|
1,229 |
|
Other expenses |
|
|
461 |
|
|
|
504 |
|
|
|
551 |
|
Total general operating costs |
|
|
75,789 |
|
|
|
78,068 |
|
|
|
81,655 |
|
Compensation and Employee Benefits Compensation and employee benefits for the years ended December 31, 2025, 2024 and 2023 consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Salaries and other employee benefits |
|
|
19,945 |
|
|
|
20,214 |
|
|
|
20,358 |
|
Pension benefit costs (Note 25) |
|
|
1,434 |
|
|
|
1,441 |
|
|
|
1,426 |
|
Manpower Rightsizing Program (MRP) |
|
|
1,388 |
|
|
|
1,688 |
|
|
|
2,021 |
|
Incentive plan (Note 25) |
|
|
— |
|
|
|
1,136 |
|
|
|
839 |
|
Total compensation and employee benefits |
|
|
22,767 |
|
|
|
24,479 |
|
|
|
24,644 |
|
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 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 years ended December 31, 2025, 2024 and 2023 consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Cost of devices and accessories |
|
|
7,447 |
|
|
|
10,046 |
|
|
|
10,948 |
|
Cost of contract-specific services |
|
|
5,337 |
|
|
|
3,965 |
|
|
|
4,144 |
|
Total cost of devices, accessories and contract-specific services |
|
|
12,784 |
|
|
|
14,011 |
|
|
|
15,092 |
|
Asset Impairment Asset impairment for the years ended December 31, 2025, 2024 and 2023 consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Trade and other receivables (Note 16) |
|
|
3,838 |
|
|
|
3,875 |
|
|
|
4,119 |
|
Contract assets |
|
|
101 |
|
|
|
181 |
|
|
|
224 |
|
Inventories and supplies (Note 17) |
|
|
23 |
|
|
|
196 |
|
|
|
89 |
|
Prepayments |
|
|
8 |
|
|
|
2 |
|
|
|
— |
|
Property and equipment |
|
|
— |
|
|
|
67 |
|
|
|
— |
|
Total asset impairment |
|
|
3,970 |
|
|
|
4,321 |
|
|
|
4,432 |
|
Interconnection Costs Interconnection costs include wholesale international voice cost amounting to Php14,887 million, Php12,535 million and Php9,258 million for the years ended December 31, 2025, 2024 and 2023, respectively. Other Expenses – Net Other expenses – net for the years ended December 31, 2025, 2024 and 2023 consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Gains on sale and leaseback of telecom towers – gross of expenses (Note 9) |
|
|
887 |
|
|
|
1,442 |
|
|
|
7,777 |
|
Interest income |
|
|
719 |
|
|
|
916 |
|
|
|
1,016 |
|
Gains on fair value of investment properties |
|
|
352 |
|
|
|
23 |
|
|
|
259 |
|
Gains on disposal of property and equipment |
|
|
79 |
|
|
|
85 |
|
|
|
468 |
|
Gains (losses) on derivative financial instruments – net (Note 27) |
|
|
(41 |
) |
|
|
1,641 |
|
|
|
(743 |
) |
Equity share in net losses of associates and joint ventures (Note 11) |
|
|
(428 |
) |
|
|
(990 |
) |
|
|
(2,806 |
) |
Foreign exchange gains (losses) – net (Note 27) |
|
|
(550 |
) |
|
|
(36 |
) |
|
|
1,149 |
|
Financing costs – net |
|
|
(18,168 |
) |
|
|
(15,500 |
) |
|
|
(13,755 |
) |
Others – net |
|
|
4,492 |
|
(1) |
|
2,476 |
|
|
|
651 |
|
Total other expenses – net |
|
|
(12,658 |
) |
|
|
(9,943 |
) |
|
|
(5,984 |
) |
(1) Includes reversal of excess LTIP accrual and income from prescription of liability arising from Subscriber Investment Plan (SIP). Interest Income Interest income for the years ended December 31, 2025, 2024 and 2023 consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Interest income arising from revenue contracts with customers |
|
|
480 |
|
|
|
574 |
|
|
467 |
|
Interest income on cash and cash equivalents (Note 15) |
|
|
176 |
|
|
|
267 |
|
|
469 |
|
Interest income on financial instruments at amortized cost |
|
|
46 |
|
|
|
47 |
|
|
54 |
|
Interest income on financial instruments at FVPL |
|
|
— |
|
|
|
8 |
|
|
12 |
|
Interest income – others |
|
|
17 |
|
|
|
20 |
|
|
14 |
|
Total interest income |
|
|
719 |
|
|
|
916 |
|
|
|
1,016 |
|
Financing Costs – Net Financing costs – net for the years ended December 31, 2025, 2024 and 2023 consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|
(in million pesos) |
|
Interest on loans and other related items |
|
|
15,921 |
|
|
|
13,620 |
|
|
|
12,159 |
|
Accretion on lease liabilities (Note 10) |
|
|
4,579 |
|
|
|
3,935 |
|
|
|
3,266 |
|
Accretion on financial liabilities |
|
|
372 |
|
|
|
455 |
|
|
|
409 |
|
Financing charges |
|
|
20 |
|
|
|
79 |
|
|
|
90 |
|
Capitalized interest (Note 9) |
|
|
(2,724 |
) |
|
|
(2,589 |
) |
|
|
(2,169 |
) |
Total financing costs – net |
|
|
18,168 |
|
|
|
15,500 |
|
|
|
13,755 |
|
|