the Outsider - PSE Points to Ponder

  We’ve been blogging for free. If you enjoy our content, consider supporting us! Disclaimer:  This is for informational purposes and is  not  investment advice. Figures are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs. There’s a familiar scene in every telecom boardroom: a CFO pointing to a clean dividend slide while the network team flips to a map full of red zones—coverage gaps, congestion pockets, fiber buildouts, and the next wave of equipment refresh. The dividend slide always looks tidy. The map never does. PLDT’s FY2025 results delivered a dividend story that sounds comforting: the company generated ₱98.738B in operating cash flow and spent ₱60.336B on capex, leaving a healthy cushion before shareholder payouts. On paper, that’s the kind of year that lets management talk about “sustainability” with a straight face—especially with EBITDA at ₱111.231B and an ~52% margin that stil...

  We’ve been blogging for free. If you enjoy our content, consider supporting us! Disclaimer:  This is for informational purposes and is  not  investment advice. Figures are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs. PLDT’s board has approved a final cash dividend of ₱46 per share , bringing total dividends for 2025 to ₱94 per share and framing the payout as 60% of Telco Core EPS —a clear signal that management is prioritizing policy discipline over headline yield. The adjustment comes as the telco’s operating story remains broadly stable, but the earnings quality underneath shows strain. For full-year 2025, PLDT reported net service revenues of ₱196.2 billion (+1%) and EBITDA of ₱111.2 billion (+3%) with a 52% EBITDA margin , reflecting resilience in data and broadband that now account for 85% of service revenues .  Yet reported net income fell 7% to ₱30.0 billion , reflecting ...

PLDT Inc. ( TEL ) is under heavy pressure to (1.) invest in fiber broadband and 5G wireless networks and (2.) still reduce leverage and (3.) distributes dividend to shareholders, the “ triple threat position. “ No less that the President of the Philippines on its State of the Nation Address had called on TEL and Globe Telecom, Inc. ( GLO ) to improve their services. The President was telling the telcos that it is just a matter of capital infusion and that the telcos have to look for it to fund service improvements. As of June 30, 2020 TEL’s debt had increased 22% to 235.3 Billion Pesos from the end of December 31, 2019 of 192.6 Billion Pesos. The already elevated debt level gives TEL less flexibility to raise capital through debts. Judging by the results of the 1H 2020, cash generations from operations will just be enough to fund capital expenditures of 70 Billion Pesos if TEL will stick to its plan of spending around 70 Billion Pesos for capital expenditures on n...