PLDT Inc. expects to finalize the sale of its ICT subsidiary ePLDT, a business with a valuation of about $1 billion, by June this year.
PLDT is considering two options to divest its stake in ePLDT – through real estate investment trust (REIT) listing or sale with strategic investors, Japan’s NTT.
“I think, next month or so or before the end of June we should decide,” Manuel Pangilinan, PLDT chairman, president and chief executive officer, told reporters.
At present, PLDT is in talks with Japan’s NTT for the sale of the data center business, but Pangilinan said PLDT is still open to other companies if NTT does not meet the target valuation.
Pangilinan said the advantage of REIT listing is that it will allow the company to keep the controlling stake in its data center business.
The proceeds of the sale will be used to pay PLDT’s debts, said Pangilinan.
As of the end of March, PLDT’s consolidated net debt amounted to P242.2 billion, while net debt-to-earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 2.29x.
Gross debt stood at P257 billion, with maturities well spread out. Of the total, 15 percent of gross debt is denominated in US dollars and 5 percent is unhedged.
At present, ePLDT operates 10 data centers. It is set to launch its 11th data center, VITRO Sta. Rosa, this year with a total power capacity of 50 megawatts. Designed to be Rated-3 Certified and Rated-4 Ready, it is fit to host the most critical and power-intensive IT infrastructure of hyper scalers and enterprises.
PLDT expects its consolidated service revenue and EBITDA to grow by mid-single digit this year, driven by the sustained growth of the broadband and enterprise businesses.
“In 2024, we expect our Consolidated Service Revenues and EBITDA to grow in the mid-single digit range, driven by robust increases in data and broadband revenue streams of the various business segments and supported by top-line growth and tight cost management. Our guidance for our Telco Core Income is north of P35.0 billion,” Pangilinan said.
PLDT reported a 9 percent growth in net income to P9.8 billion in the first quarter of 2024.
Its consolidated service revenues grew by 3 percent to P48.7 billion in the first quarter of 2024. Data and broadband, which grew by 5 percent to P40.5 billion, contributed 83 percent to consolidated service revenues.
Consolidated EBITDA grew by 5 percent year-on-year to a record P27.3 billion in the first three months of 2024, as a result of higher revenues. EBITDA margin was at 52 percent for the period.
Telco core income, excluding the impact of asset sales and Maya Innovations Holdings, reached P9.3 billion, up 8 percent from P8.6 billion in the same period last year, mainly due to higher EBITDA, partly negated by the increase in financing costs and tax provisions.
As of end-March, PLDT wireless unit Smart Communications Inc. has registered 59 million mobile subscribers.
