PLDT Inc. is in talks with a foreign firm for the sale of around 50 percent stake in its data center assets which is expected to be finalized within the year.
In an interview on the sidelines of PLDT’s financial briefing, Manuel Pangilinan, PLDT and Smart Communications Inc. president and chief executive officer, said the transaction only involves the 11 data center assets, not the information and communications technology subsidiary ePLDT Inc., pointing out that these are two parts, the IT and managed services which provides solutions and enterprises.

“Well, the data center is under discussion, (there are) potential buyers,” he said.
Pangilinan said the proceeds of the transaction will be used to pay the company’s debt.
“We keep to the discipline of using most of the proceeds from that sale to reduce our debt,” he said.
“We’re keeping a substantial majority for each… there will be 50-50 or 51-49 (sharing),” he added, noting that it will be a partnership with a foreign firm.
“Because part of the condition that we want our partner to deliver to us are commitments on revenues. Because these are hyper scalers of the world. So, you bring the clients in from abroad, and we want you to tell us what sort of …incremental revenues you can deliver,” Pangilinan said.
ePLDT will 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 hyperscalers and enterprises.
This year, PLDT has allocated P75 billion to P78 billion for capital expenditure (capex) which is lower than last year’s P85.1 billion capital spending.
This is in line with reducing its capital spending in the near to medium term, attaining a positive free cash flow position as soon as practicable, PLDT said.
PLDT reported a 154 percent growth in net income to P26.6 billion in 2023 from P10.5 billion the previous year.
The company expects to register mid-single-digit growth in consolidated service revenues and earnings before interest, taxes, depreciation and amortization (EBITDA) this year, underpinned by continued topline growth and sustained focus on cost management.
The telco’s core income is anticipated to lie north of P35 billion.
“PLDT is aiming not just for higher profits but to return PLDT and Smart to their premier positions, where they rightfully belong. This requires a commitment to excellence all around – encompassing the quality of our network, the efficiency of our installations and repairs, the innovations we pursue, and the speed of our services,” said Pangilinan.
Telco core income, excluding the impact of asset sales and Maya Innovations Holdings (formerly Voyager Innovations Holdings), reached P34.3 billion, up 3 percent or P1 billion, from the previous year, ahead of guidance, PLDT said.
Consolidated EBITDA grew by 4 percent or P3.7 billion year-on-year to a record P104.3 billion.
In 2023, also an all-time high resulting from higher revenues and lower operating expenses, EBITDA margin was at 52 percent, PLDT said.
As of the end of 2023, Smart had registered 57.8 million mobile subscribers.