Income and Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Analysis of income and expense [abstract]

Summary of Revenues from Contracts with Customers

Set out is the disaggregation of PLDT Group’s revenues from contracts with customers for the years ended December 31, 2022, 2021 and 2020:

Revenue Streams	Wireless		Fixed Line		Others		Inter- segment Transactions			Consolidated
	(in million pesos)
December 31, 2022
Type of good or service
Service revenue		95,852		128,116		—		(27,741	)		196,227
Non-service revenue		8,422		596		—		—			9,018
Total revenues from contracts with customers		104,274		128,712		—		(27,741	)		205,245
Timing of revenue recognition
Transferred over time		95,852		128,116		—		(27,741	)		196,227
Transferred at a point time		8,422		596		—		—			9,018
Total revenues from contracts with customers		104,274		128,712		—		(27,741	)		205,245
December 31, 2021
Type of good or service
Service revenue		99,639		116,529		—		(30,417	)		185,751
Non-service revenue		6,980		534		—		(8	)		7,506
Total revenues from contracts with customers		106,619		117,063		—		(30,425	)		193,257
Timing of revenue recognition
Transferred over time		99,639		116,529		—		(30,417	)		185,751
Transferred at a point time		6,980		534		—		(8	)		7,506
Total revenues from contracts with customers		106,619		117,063		—		(30,425	)		193,257
December 31, 2020
Type of good or service
Service revenue		98,170		97,410		—		(21,946	)		173,634
Non-service revenue		6,041		1,329		—		—			7,370
Total revenues from contracts with customers		104,211		98,739		—		(21,946	)		181,004
Timing of revenue recognition
Transferred over time		98,170		97,410		—		(21,946	)		173,634
Transferred at a point time		6,041		1,329		—		—			7,370
Total revenues from contracts with customers		104,211		98,739		—		(21,946	)		181,004

Summary of Contract Balances

Contract balances as at December 31, 2022 and 2021 consists of the following:

	2022			2021
			(in million pesos)
Trade and other receivables (Note 17)		39,916			35,625
Contract assets		2,278			2,306
Contract liabilities and unearned revenues (Notes 22 and 24)		17,114			13,621

Summary of Movement in Allowance for Expected Credit Losses of Contracts Assets

Set out below is the movement in the allowance for expected credit losses of contracts assets for the years ended December 31, 2022, 2021 and 2020.

	2022				2021			2020
				(in million pesos)
Balances at beginning of the year		55				92			70
Provisions		4				32			—
Reclassification		(14	)			(69	)		22
Balances at end of the year		45				55			92

Summary of Changes in Contract Liabilities and Unearned Revenues Accounts

Changes in the contract liabilities and unearned revenues accounts for the years ended December 31, 2022, 2021 and 2020 are as follows:

	2022				2021			2020
				(in million pesos)
Balances at beginning of the year		13,621				9,571			8,483
Deferred during the year		123,218				138,346			127,160
Recognized as revenue during the year		(119,725	)			(134,296	)		(126,072	)
Balances at end of the year		17,114				13,621			9,571

Summary of Contract Liabilities and Unearned Revenues Account

The contract liabilities and unearned revenues accounts as at December 31, 2022 and 2021 are as follows:

	2022			2021
			(in million pesos)
Unearned revenues from prepaid contracts		5,842			6,716
Leased facilities		4,938			2,045
Short-term advances for installation services		4,180			2,355
Advance monthly service fees		2,136			2,476
Long-term advances from equipment		18			29
Total contract liabilities and unearned revenues		17,114			13,621
Contract liabilities:
Noncurrent (Note 22)		204			223
Current (Note 24)		5			21
Unearned revenues:
Noncurrent (Note 22)		7,411			3,335
Current (Note 24)		9,494			10,042

Summary of Selling, General and Administrative Expenses

Selling, general and administrative expenses for the years ended December 31, 2022, 2021 and 2020 consist of the following:

	2022			2021		2020
			(in million pesos)
Compensation and employee benefits		29,812			25,344		26,833
Repairs and maintenance (Notes 14, 18 and 25)		28,981			24,653		21,555
Professional and other contracted services (Note 25)		8,845			8,371		7,307
Selling and promotions (Note 25)		6,560			6,716		6,542
Taxes and licenses		4,059			4,331		5,495
Rent (Notes 10 and 25)		2,031			2,231		1,384
Insurance and security services (Note 25)		1,588			1,739		1,699
Communication, training and travel (Note 25)		1,479			977		903
Amortization of intangible assets (Note 15)		228			2,822		2,496
Other expenses		1,721			1,119		1,041
Total selling, general and administrative expenses		85,304			78,303		75,255

Summary of Compensation and Employee Benefits

Compensation and employee benefits for the years ended December 31, 2022, 2021 and 2020 consist of the following:

	2022			2021		2020
			(in million pesos)
Salaries and other employee benefits		21,763			21,676		20,856
MRP		5,028			269		2,625
Pension benefit costs (Note 26)		1,749			2,213		2,218
Incentive plan (Note 26)		1,272			1,186		1,134
Total compensation and employee benefits		29,812			25,344		26,833

Summary of Cost of Sales and Services

Cost of sales and services for the years ended December 31, 2022, 2021 and 2020 consist of the following:

	2022			2021		2020
			(in million pesos)
Cost of computers, mobile handsets and broadband data modems (Note 18)		9,775			8,286		8,275
Cost of services (Note 18)		3,488			3,492		2,991
Cost of point-product-sales (Note 18)		1,254			1,563		1,029
Total cost of sales and services		14,517			13,341		12,295

Summary of Asset Impairment

Asset impairment for the years ended December 31, 2022, 2021 and 2020 consist of the following:

	2022			2021		2020
			(in million pesos)
Trade and other receivables (Note 17)		5,156			3,737		6,446
Inventories and supplies (Note 18)		414			847		934
Property and equipment (Note 9)		309			148		—
Contract assets		227			253		266
Prepayments		1			—		—
Total asset impairment		6,107			4,985		7,646

Summary of Other Income (Expenses) - Net

Other income (expenses) – net for the years ended December 31, 2022, 2021 and 2020 consist of the following:

	2022				2021			2020
				(in million pesos)
Gain on sale and leaseback of telecom towers – gross of expenses (Note 9)		25,234				—			—
Income from prescription of preferred shares redemption liability (Note 20)		7,839				—			—
Gains (losses) on derivative financial instruments – net (Note 28)		2,322				1,400			(378	)
Reversal of provisions		1,135				2,594			2,679
Gain on dilution of shares (Note 11)		660				826			394
Interest income		653				656			1,210
Gain on deconsolidation of PG1 (Note 11)		377				—			—
Gain on sale of property and equipment (Note 9)		148				884			3,369
Gain on change in fair value of Phunware, Inc., or Phunware (Note 12)		—				306			—
Gain on sale of Phunware		—				115			—
Gain (loss) on debt modification(1)		(295	)			1,372			—
Equity share in net losses of associates and joint ventures (Note 11)		(3,304	)			(1,101	)		(2,328	)
Foreign exchange gains (losses) – net (Note 28)		(4,685	)			(3,890	)		1,488
Financing costs – net		(11,766	)			(10,414	)		(10,086	)
Others – net (Notes 11, 12 and 14)		692				645			491
Total other income (expenses) – net		19,010				(6,607	)		(3,161	)

(1) PLDT and Smart re-negotiated terms of selected outstanding Philippine Peso loans in 2022 and 2021. Under IFRS 9, the difference of the current carrying value and the present value of the modified cash flows of the loan should be recognized as a gain or loss on debt modification.

Summary of Interest Income

Interest income for the years ended December 31, 2022, 2021 and 2020 consist of the following:

	2022			2021		2020
			(in million pesos)
Interest income arising from revenue contracts with customers		294			299		414
Interest income on cash and cash equivalents (Note 16)		255			269		560
Interest income on financial instruments at amortized cost (Note 13)		59			13		143
Interest income on financial instruments at FVPL		12			23		8
Interest income on financial instruments at FVOCI		—			2		70
Interest income – others		33			50		15
Total interest income		653			656		1,210

Summary of Financing Costs - Net

Financing costs – net for the years ended December 31, 2022, 2021 and 2020 consist of the following:

	2022				2021			2020
				(in million pesos)
Interest on loans and other related items (Notes 21 and 28)		10,860				10,482			10,333
Accretion on lease liabilities (Note 10)		2,064				1,170			1,125
Accretion on financial liabilities		375				239			146
Financing charges		215				105			79
Capitalized interest (Notes 9 and 29)		(1,748	)			(1,582	)		(1,597	)
Total financing costs – net		11,766				10,414			10,086