PLDT sets lower capex for 2025, eyes positive free cash flow by 2026

PLDT Inc. on Thursday announced a lower capital spending program for this year, with plans to reduce it moving forward to hit a positive free cash flow by 2026.

According to PLDT chief financial officer Danny Yu, the company is set to spend some P68 billion to P73 billion this year, lower than the P85 billion allocated in 2023, as it seeks to reach a capital intensity ratio of 32 to 34, and to achieve a positive free cash flow (FCF) by 2026.

This year’s capex will include continued momentum of its network rollout—new cell sites and the LTE and 5G upgrade, home fiber ports, increased focus on artificial intelligence (AI), AI-ready data centers, the submarine cable investment, and upgrades and modernization of its network and information technology (IT).

“We aim to steadily reduce capex and capex intensity to drive positive FCF,” Yu said in a presentation to reporters in Makati City.

For 2024, PLDT said its net income increased to P32.555 billion from P26.824 billion, as revenues increased to P216.833 billion from P210.953 billion, while expenses increased to P50.487 billion from P40.694 billion.

Its financial technology unit, Maya Innovations, achieved its first profitable month in December 2024, while Maya Bank—one of the six digital banks licensed by the Bangko Sentral ng Pilipinas—has been profitable since September 2024.

“These demonstrate the positive trajectory of our fintech investments and their growing potential in contributing to our bottom line,” Yu said.

Maya ended 2024 with 5.4 million bank customers, 1.6 million borrowers, P39 billion in deposits, and P92 billion in loans disbursed.

Moving forward, PLDT president and chief executive officer Manuel Pangilinan said the company is “careful” about giving out profit guidance at this point, given the slower than usual business in January.

"There are countless challenges and opportunities in the horizon—among them are AI, big data, and the transition to a completely digital native workforce. PLDT intends not just to survive the future, but to shape it,” he said.

“As the world evolves, the formula for success remains the same: to be bold, hardworking, and open to new ideas. We will continue harnessing technology to do our part in the grand task of nation building, and to improve the lives of Filipinos," he added.

Shares in were last traded on Thursday at P1,376.00 apiece, down by P12.00 or 0.86% from Wednesday’s close of P1,388.00. — BM, GMA Integrated News