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
March 7, 2019
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 ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1): Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7): Yes ☐ No ☒
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ☐ No ☒
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.
PLDT |
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PLDT INC. |
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(Registrant) |
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By: |
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/s/ Marilyn A. Victorio-Aquino
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Name: |
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Marilyn A. Victorio-Aquino |
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Title: |
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Corporate Affairs and Legal Services Head |
Date: 03/07/2019
SEC Number |
PW-55 |
File Number |
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PLDT Inc.
(Company’s Full Name)
Ramon Cojuangco Building
Makati Avenue, Makati City
(Company’s Address)
(632) 816-8556
(Telephone Number)
Not Applicable
(Fiscal Year Ending)
(month & day)
SEC Form 17-C
Form Type
Not Applicable
Amendment Designation (if applicable)
December 31, 2018
Period Ended Date
Not Applicable
(Secondary License Type and File Number)
Securities & Exchange Commission
Secretariat Building, PICC Complex
Roxas Boulevard, Pasay City
Attention: |
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Mr. Vicente Graciano P. Felizmenio, Jr. |
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Director – Markets and Securities Regulations Dept. |
Gentlemen:
In accordance with Section 17.1(b) of the Securities Regulation Code and SRC Rule 17.1.1.1.2, we submit herewith two (2) copies of SEC Form 17-C with Management’s Discussion and Analysis and accompanying unaudited consolidated financial statements as at and for the year ended December 31, 2018.
Very truly yours, |
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/s/ Ma. Lourdes C. Rausa-Chan |
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MA. LOURDES C. RAUSA-CHAN |
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Corporate Secretary |
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SEC Registration Number |
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Company Name
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Principal Office (No./Street/Barangay/City/Town/Province)
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Department requiring the report |
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Secondary License Type, If Applicable |
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COMPANY INFORMATION
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Company’s Email Address |
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Company’s Telephone Number/s |
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Mobile Number |
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jacabal@pldt.com.ph |
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(02) 816-8534 |
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No. of Stockholders |
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Annual Meeting Month/Day |
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Fiscal Year Month/Day |
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11,657 as at January 31, 2019 |
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Every 2nd Tuesday in June |
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December 31 |
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CONTACT PERSON INFORMATION
The designated contact person MUST be an Officer of the Corporation
Name of Contact Person |
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Email Address |
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Telephone Number/s |
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Mobile Number |
June Cheryl A. Cabal-Revilla |
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jacabal@pldt.com.ph |
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(02) 816-8534 |
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Contact Person’s Address |
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11/F Ramon Cojuangco Bldg. Makati Ave., 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
SECURITIES AND EXCHANGE COMMISSION
CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.1
1. |
March 7, 2019 |
Date of Report (Date of earliest event reported)
2. |
SEC Identification Number PW-55 |
3. |
BIR Tax Identification No. 000-488-793 |
4. |
PLDT INC. |
Exact name of issuer as specified in its charter
Province, country or other jurisdiction
of Incorporation
6. |
____________ (SEC Use Only) |
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Industry Classification Code |
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7. |
Ramon Cojuangco Building, Makati Avenue, Makati City |
1200 |
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Address of principal office |
Postal Code |
8. |
(632) 816-8553 |
Issuer's telephone number, including area code
9. |
Not Applicable |
Former name or former address, if changed since last report
10. |
Securities registered pursuant to Sections 8 and 12 of the Securities Regulation Code and Sections 4 and 8 of the Revised Securities Act |
Title of Each Class |
Number of Shares of Common Stock Outstanding |
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Common Stock |
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216,055,775 (1) |
Amount of Debt Outstanding |
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Php176,276 million as at December 31, 2018 |
_____________
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(1) |
Represents the total outstanding common shares (net of 2,724,111 Treasury shares). |
PART I - |
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1 |
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Item 1. |
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1 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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PART II – |
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28 |
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ANNEX – |
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A-1 |
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A-2 |
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S-1 |
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PART I – FINANCIAL INFORMATION
Our consolidated financial statements as at and for the years ended December 31, 2018 and 2017 and related notes (pages F-1 to F-168) are filed as part of this report on Form 17-C.
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” mean PLDT Inc., not including its consolidated subsidiaries (please see Note 2 – Summary of Significant 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, or PFRS, which is virtually converged with International Financial Reporting Standards as issued by the International Accounting Standards Board. PFRS differs in certain significant respects from generally accepted accounting principles, or GAAP, in the U.S.
The financial information appearing in this report and in the accompanying unaudited consolidated financial statements is stated in Philippine pesos. Unless otherwise indicated, translations of Philippine peso amounts into U.S. dollars in this report and in the accompanying unaudited consolidated financial statements were made based on the exchange rate of Php52.56 to US$1.00, the exchange rate as at December 31, 2018 quoted through the Bankers Association of the Philippines.
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
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Financial Highlights and Key Performance Indicators
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Years ended December 31, |
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Increase (Decrease) |
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2018 |
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2017 |
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Amount |
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% |
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(amounts in million Php, except for EBITDA margin, earnings per common share) |
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(Unaudited) |
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(Audited) |
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Consolidated Income Statement |
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Revenues |
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164,752 |
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159,926 |
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4,826 |
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3 |
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Expenses |
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150,979 |
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150,415 |
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564 |
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— |
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Other income (expenses) |
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9,042 |
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5,058 |
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3,984 |
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79 |
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Income before income tax |
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22,815 |
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14,569 |
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8,246 |
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57 |
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Net income |
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18,973 |
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13,466 |
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5,507 |
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41 |
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Core income |
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25,855 |
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27,668 |
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(1,813 |
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(7 |
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EBITDA |
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64,027 |
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66,174 |
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(2,147 |
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(3 |
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EBITDA margin(1) |
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42 |
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44 |
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— |
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— |
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Reported earnings per common share: |
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Basic |
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87.28 |
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61.61 |
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25.67 |
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42 |
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Diluted |
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87.28 |
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61.61 |
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25.67 |
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42 |
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Core earnings per common share(2): |
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Basic |
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119.39 |
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127.79 |
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(8.40 |
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(7 |
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Diluted |
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119.39 |
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127.79 |
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(8.40 |
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(7 |
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December 31, |
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Increase (Decrease) |
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2018 |
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2017 |
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Amount |
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% |
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(amounts in million Php, except for net debt to equity ratio) |
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(Unaudited) |
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(Audited) |
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Consolidated Statements of Financial Position |
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Total assets |
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482,750 |
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459,444 |
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23,306 |
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5 |
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Property and equipment |
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195,964 |
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186,907 |
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9,057 |
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5 |
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Cash and cash equivalents and short-term investments |
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52,819 |
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33,979 |
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18,840 |
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55 |
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Total equity attributable to equity holders of PLDT |
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112,358 |
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106,842 |
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5,516 |
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5 |
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Long-term debt, including current portion |
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176,276 |
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172,611 |
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3,665 |
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2 |
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Net debt(3) to equity ratio |
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1.10x |
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1.30x |
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— |
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— |
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Years ended December 31, |
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Change |
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2018 |
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2017 |
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Amount |
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% |
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(amounts in million Php, except for operational data) |
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(Unaudited) |
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(Audited) |
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Consolidated Statements of Cash Flows |
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Net cash provided by operating activities |
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61,116 |
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56,114 |
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5,002 |
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9 |
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Net cash used in investing activities |
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(25,054 |
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(21,060 |
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(3,994 |
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(19 |
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Payment for purchase of property and equipment, including capitalized interest |
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48,771 |
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37,432 |
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11,339 |
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30 |
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Net cash used in financing activities |
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(18,144 |
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(40,319 |
) |
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22,175 |
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55 |
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Operational Data |
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Number of mobile subscribers |
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60,499,017 |
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58,293,908 |
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2,205,109 |
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4 |
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Prepaid(4) |
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58,178,978 |
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55,776,646 |
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2,402,332 |
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4 |
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Postpaid |
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2,320,039 |
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2,517,262 |
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(197,223 |
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(8 |
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Number of broadband subscribers |
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2,025,563 |
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1,950,881 |
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74,682 |
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4 |
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Fixed Line broadband |
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1,812,037 |
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1,713,527 |
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98,510 |
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6 |
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Fixed Wireless broadband |
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213,526 |
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237,354 |
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(23,828 |
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(10 |
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Number of fixed line subscribers |
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2,710,972 |
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2,663,210 |
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47,762 |
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2 |
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Number of employees: |
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17,222 |
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17,779 |
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(557 |
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(3 |
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Fixed Line |
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10,890 |
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10,737 |
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153 |
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1 |
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LEC |
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8,772 |
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6,832 |
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1,940 |
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28 |
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Others |
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2,118 |
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3,905 |
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(1,787 |
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(46 |
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Wireless |
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6,332 |
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7,042 |
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(710 |
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(10 |
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(1) |
EBITDA margin for the period is measured as EBITDA divided by service revenues. |
(2) |
Core earnings per common share, or 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 and short-term investments from total debt (long-term debt, including current portion). |
2
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(4) |
Beginning 2Q2017, the prepaid subscriber base excludes subscribers who did not reload within 90 days vis-à-vis 120 days previous cut-off. |
Exchange Rates – per US$ |
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Month end rates |
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Weighted average rates during the year |
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December 31, 2018 |
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52.56 |
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52.68 |
|
December 31, 2017 |
|
|
49.96 |
|
|
|
50.41 |
|
December 31, 2016 |
|
|
49.77 |
|
|
|
47.48 |
|
We use a number of non-GAAP performance indicators to monitor financial performance. These are summarized below and discussed later in this report.
EBITDA
EBITDA for the year 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 – net. EBITDA is monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment. EBITDA is presented also as a supplemental disclosure because our management believes that it is widely used by investors in their analysis of the performance of PLDT and to assist them in their comparison of PLDT’s performance with that of other companies in the technology, media and telecommunications sector. We also present EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Companies in the technology, media and telecommunications sector have historically reported EBITDA as a supplement to financial measures in accordance with PFRS. EBITDA should not be considered as an alternative to net income as an indicator of our performance, as an alternative to cash flows from operating activities, as a measure of liquidity or as an alternative to any other measure determined in accordance with PFRS. Unlike net income, EBITDA does not include depreciation and amortization, and 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 as only one of several comparative tools, together with PFRS-based measurements, to assist in the evaluation of operating performance. Such PFRS-based measurements include income before income tax, net income, cash flows from operations and cash flow data. 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 may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
Core Income
Core income for the year 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), asset 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. The core income results are monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment. Also, core income is used by management as a basis of determining the level of dividend payouts to shareholders and basis of granting incentives to employees. Core income should not be considered as an alternative to income before income tax or net income determined in accordance with PFRS as an indicator of our performance. Unlike net income, core income does not include foreign exchange gains and losses, gains and losses on derivative financial instruments, asset impairments and other non-recurring gains and losses. We compensate for these limitations by using core income as only one of several comparative tools, together with PFRS-based measurements, to assist in the evaluation of operating performance. Such PFRS-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.
3
|
|
|
|
We are the largest and most diversified telecommunications company in the Philippines which delivers data and multimedia services nationwide. We have organized our business into business units based on our products and services and have three reportable operating segments which serve as the bases for management’s decision to allocate resources and evaluate operating performance:
|
• |
Wireless — mobile telecommunications services provided by Smart Communications, Inc., or Smart, and Digitel Mobile Philippines, Inc., or DMPI, our mobile service providers; Smart Broadband, Inc., or SBI, and Primeworld Digital Systems, Inc., or PDSI, our wireless broadband service providers; and certain subsidiaries of PLDT Global Corporation, or PLDT Global, our mobile virtual network operations, or MVNO, provider; |
|
• |
Fixed Line — fixed line telecommunications services primarily provided by PLDT. We also provide fixed line services through PLDT’s subsidiaries, namely, PLDT Clark Telecom, Inc., PLDT Subic Telecom, Inc., PLDT-Philcom, Inc. or Philcom, and its subsidiaries, or Philcom Group, PLDT-Maratel, Inc., Bonifacio Communications Corporation, PLDT Global and certain subsidiaries, and Digital Telecommunications Phils., Inc., or Digitel, all of which together account for approximately 4% of our consolidated fixed line subscribers; data center, cloud, big data, managed security services, managed IT services and resellership provided by ePLDT, Inc., or ePLDT, IP Converge Data Services, Inc., or IPCDSI, and subsidiary, or IPCDSI Group, ABM Global Solutions, Inc., or AGS, and its subsidiaries, or AGS Group, Curo Teknika, Inc. and ePDS, Inc., or ePDS; business infrastructure and solutions, intelligent data processing and implementation services and data analytics insight generation provided by Talas Data Intelligence, Inc., or Talas; distribution of Filipino channels and content by Pilipinas Global Network Limited and its subsidiaries; and |
|
• |
Others — Voyager Innovations Holdings, Pte. Ltd., or VIH, and certain subsidiaries, our mobile applications and digital platforms developers and mobile financial services provider; PLDT Communications and Energy Ventures, Inc., or PCEV, PLDT Global Investment Holdings, Inc., PLDT Global Investments Corporation, or PGIC, PLDT Digital Investments Pte. Ltd., or PLDT Digital, and its subsidiaries, our investment companies. |
As at December 31, 2018, our chief operating decision maker, or our Management Committee, views our business activities in three business units: Wireless, Fixed Line and Others.
In addition to consolidated net income, we use EBITDA and core income to assess our operating performance. The reconciliation of our consolidated net income to our consolidated EBITDA and our consolidated core income for the years ended December 31, 2018 and 2017 are set forth below.
The following table shows the reconciliation of our consolidated net income to our consolidated EBITDA for the years ended December 31, 2018 and 2017:
|
|
2018 |
|
|
2017 |
|
||
|
|
(Unaudited) |
|
|
(Audited) |
|
||
|
|
(amounts in million Php) |
|
|||||
Consolidated net income |
|
|
18,973 |
|
|
|
13,466 |
|
Add (deduct) adjustments: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
47,240 |
|
|
|
51,915 |
|
Financing costs – net |
|
|
7,067 |
|
|
|
7,370 |
|
Provision for income tax |
|
|
3,842 |
|
|
|
1,103 |
|
Noncurrent asset impairment |
|
|
2,122 |
|
|
|
3,913 |
|
Amortization of intangible assets |
|
|
892 |
|
|
|
835 |
|
Foreign exchange losses – net |
|
|
771 |
|
|
|
411 |
|
Impairment of investments |
|
|
172 |
|
|
|
2,562 |
|
Equity share in net earnings (losses) of associates and joint ventures |
|
|
87 |
|
|
|
(2,906 |
) |
Gains on derivative financial instruments – net |
|
|
(1,086 |
) |
|
|
(533 |
) |
Interest income |
|
|
(1,943 |
) |
|
|
(1,412 |
) |
Other income – net |
|
|
(14,110 |
) |
|
|
(10,550 |
) |
Total adjustments |
|
|
45,054 |
|
|
|
52,708 |
|
Consolidated EBITDA |
|
|
64,027 |
|
|
|
66,174 |
|
4
|
|
|
|
The following table shows the reconciliation of our consolidated net income to our consolidated core income for the years ended December 31, 2018 and 2017:
|
|
2018 |
|
|
2017 |
|
||
|
|
(Unaudited) |
|
|
(Audited) |
|
||
|
|
(amounts in million Php) |
|
|||||
Consolidated net income |
|
|
18,973 |
|
|
|
13,466 |
|
Add (deduct) adjustments: |
|
|
|
|
|
|
|
|
Depreciation due to shortened life of property and equipment |
|
|
4,564 |
|
|
|
12,816 |
|
Noncurrent asset impairment |
|
|
2,122 |
|
|
|
3,913 |
|
Manpower rightsizing program |
|
|
1,703 |
|
|
|
— |
|
Unrealized loss in fair value of investments |
|
|
1,154 |
|
|
|
— |
|
Foreign exchange losses – net |
|
|
771 |
|
|
|
411 |
|
Investment written-off |
|
|
362 |
|
|
|
— |
|
Impairment of investments |
|
|
172 |
|
|
|
2,562 |
|
Core income adjustment on equity share in net losses of associates and joint ventures |
|
|
23 |
|
|
|
60 |
|
Net income attributable to noncontrolling interests |
|
|
(57 |
) |
|
|
(95 |
) |
Other nonrecurring income |
|
|
(1,018 |
) |
|
|
— |
|
Gains on derivative financial instruments – net, excluding hedge costs |
|
|
(1,135 |
) |
|
|
(724 |
) |
Net tax effect of aforementioned adjustments |
|
|
(1,779 |
) |
|
|
(4,741 |
) |
Total adjustments |
|
|
6,882 |
|
|
|
14,202 |
|
Consolidated core income |
|
|
25,855 |
|
|
|
27,668 |
|
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 income tax, net income (loss)/segment profit (loss), EBITDA, EBITDA margin and core income for the years ended December 31, 2018 and 2017. In each of the years ended December 31, 2018 and 2017, 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(1) |
|
|
Inter-segment Transactions |
|
|
Consolidated |
|
|||||
|
|
(amounts in million Php, except for EBITDA margin) |
|
|||||||||||||||||
For the year ended December 31, 2018 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
89,929 |
|
|
|
85,222 |
|
|
|
1,138 |
|
|
|
(11,537 |
) |
|
|
164,752 |
|
Expenses |
|
|
82,246 |
|
|
|
77,782 |
|
|
|
4,093 |
|
|
|
(13,142 |
) |
|
|
150,979 |
|
Other income (expenses) |
|
|
(625 |
) |
|
|
(45 |
) |
|
|
12,099 |
|
|
|
(2,387 |
) |
|
|
9,042 |
|
Income (loss) before income tax |
|
|
7,058 |
|
|
|
7,395 |
|
|
|
9,144 |
|
|
|
(782 |
) |
|
|
22,815 |
|
Provision for income tax |
|
|
1,333 |
|
|
|
1,336 |
|
|
|
1,173 |
|
|
|
— |
|
|
|
3,842 |
|
Net income (loss)/Segment profit (loss) |
|
|
5,725 |
|
|
|
6,059 |
|
|
|
7,971 |
|
|
|
(782 |
) |
|
|
18,973 |
|
EBITDA |
|
|
34,235 |
|
|
|
30,875 |
|
|
|
(2,688 |
) |
|
|
1,605 |
|
|
|
64,027 |
|
EBITDA margin(2) |
|
|
41 |
% |
|
|
38 |
% |
|
|
-246 |
% |
|
|
— |
|
|
|
42 |
% |
Core income |
|
|
9,760 |
|
|
|
6,925 |
|
|
|
9,952 |
|
|
|
(782 |
) |
|
|
25,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2017 (Audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
92,572 |
|
|
|
78,341 |
|
|
|
1,279 |
|
|
|
(12,266 |
) |
|
|
159,926 |
|
Expenses |
|
|
97,651 |
|
|
|
63,864 |
|
|
|
2,774 |
|
|
|
(13,874 |
) |
|
|
150,415 |
|
Other income (expenses) |
|
|
77 |
|
|
|
(3,323 |
) |
|
|
10,530 |
|
|
|
(2,226 |
) |
|
|
5,058 |
|
Income (loss) before income tax |
|
|
(5,002 |
) |
|
|
11,154 |
|
|
|
9,035 |
|
|
|
(618 |
) |
|
|
14,569 |
|
Provision for (benefit from) income tax |
|
|
(2,787 |
) |
|
|
3,680 |
|
|
|
210 |
|
|
|
— |
|
|
|
1,103 |
|
Net income (loss)/Segment profit (loss) |
|
|
(2,215 |
) |
|
|
7,474 |
|
|
|
8,825 |
|
|
|
(618 |
) |
|
|
13,466 |
|
EBITDA |
|
|
36,395 |
|
|
|
29,478 |
|
|
|
(1,307 |
) |
|
|
1,608 |
|
|
|
66,174 |
|
EBITDA margin(2) |
|
|
42 |
% |
|
|
39 |
% |
|
|
-104 |
% |
|
|
— |
|
|
|
44 |
% |
Core income |
|
|
9,812 |
|
|
|
8,846 |
|
|
|
9,628 |
|
|
|
(618 |
) |
|
|
27,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
(2,643 |
) |
|
|
6,881 |
|
|
|
(141 |
) |
|
|
729 |
|
|
|
4,826 |
|
Expenses |
|
|
(15,405 |
) |
|
|
13,918 |
|
|
|
1,319 |
|
|
|
732 |
|
|
|
564 |
|
Other income (expenses) |
|
|
(702 |
) |
|
|
3,278 |
|
|
|
1,569 |
|
|
|
(161 |
) |
|
|
3,984 |
|
Income (loss) before income tax |
|
|
12,060 |
|
|
|
(3,759 |
) |
|
|
109 |
|
|
|
(164 |
) |
|
|
8,246 |
|
Provision for (benefit from) income tax |
|
|
4,120 |
|
|
|
(2,344 |
) |
|
|
963 |
|
|
|
— |
|
|
|
2,739 |
|
Net income (loss)/Segment profit (loss) |
|
|
7,940 |
|
|
|
(1,415 |
) |
|
|
(854 |
) |
|
|
(164 |
) |
|
|
5,507 |
|
EBITDA |
|
|
(2,160 |
) |
|
|
1,397 |
|
|
|
(1,381 |
) |
|
|
(3 |
) |
|
|
(2,147 |
) |
Core income |
|
|
(52 |
) |
|
|
(1,921 |
) |
|
|
324 |
|
|
|
(164 |
) |
|
|
(1,813 |
) |
5
|
|
|
|
(1) |
Other business segment includes results of operations of VIH, resulting from the transfer from Smart to PCEV in April 2018. Consequently, we reclassified the presentation of VIH from Wireless to Other business segment, including prior period herein reported. VIH was deconsolidated from PCEV effective November 30, 2018. |
(2) |
EBITDA margin for the period is measured as EBITDA divided by service revenues. |
In the first quarter of 2018, we adopted PFRS 15 using the modified retrospective method of adoption with the date of initial application of January 1, 2018. Under this method, the standard can be applied either to all contracts at the date of intitial application or only to contracts that are not completed at this date. We elected to apply the standard to all contracts that are not completed as at the date of initial application, that is, January 1, 2018. The cumulative effect arising from the transition was recognized as an adjustment to the opening balance of retained earnings.
The following is the impact of PFRS 15 adoption in our results of operations for the year ended December 31, 2018: