Operating Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

The segment revenues, net income, and other segment information of our reportable operating segments as at December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 are as follows:

	Wireless			Fixed Line			Others			Inter-segment Transactions			Consolidated
	(in million pesos)
December 31, 2017
Revenues
External customers		92,534			67,389			3			—			159,926
Service revenues		87,351			63,811			3			—			151,165
Non-service revenues		5,183			3,578			—			—			8,761
Inter-segment transactions		1,301			10,952			13			(12,266	)		—
Service revenues		1,301			10,946			13			(12,260	)		—
Non-service revenues		—			6			—			(6	)		—
Total revenues		93,835			78,341			16			(12,266	)		159,926
Results
Depreciation and amortization		36,914			15,001			—			—			51,915
Asset impairment		6,155			2,098			5			—			8,258
Impairment of investments		439			1,583			540			—			2,562
Equity share in net earnings (losses) of associates and joint ventures		(129	)		44			2,991			—			2,906
Interest income		307			695			653			(243	)		1,412
Financing costs – net		2,260			5,106			201			(197	)		7,370
Provision for (benefit from) income tax		(2,784	)		3,680			207			—			1,103
Net income (loss) / Segment profit (loss)		(3,510	)		7,474			10,120			(618	)		13,466
Adjusted EBITDA		35,151			29,478			(63	)		1,608			66,174
Adjusted EBITDA margin		40	%		39	%		—			—			44	%
Core income		8,514			8,846			10,926			(618	)		27,668
Assets and liabilities
Operating assets		211,983			174,217			34,504			(37,856	)		382,848
Investments in associates and joint ventures		—			44,867			1,263			—			46,130
Deferred income tax assets – net		18,826			11,994			—			(354	)		30,466
Total assets		230,809			231,078			35,767			(38,210	)		459,444
Operating liabilities		153,622			196,451			13,624			(18,802	)		344,895
Deferred income tax liabilities – net		2,656			286			424			—			3,366
Total liabilities		156,278			196,737			14,048			(18,802	)		348,261
Other segment information
Capital expenditures, including capitalized interest		27,305			12,994			—			—			40,299
December 31, 2016
Revenues
External customers		103,447			61,806			9			—			165,262
Service revenues		99,115			58,086			9			—			157,210
Non-service revenues		4,332			3,720			—			—			8,052
Inter-segment transactions		1,467			10,922			11			(12,400	)		—
Service revenues		1,467			10,920			11			(12,398	)		—
Non-service revenues		—			2			—			(2	)		—
Total revenues		104,914			72,728			20			(12,400	)		165,262
Results
Depreciation and amortization		18,984			15,471			—			—			34,455
Asset impairment		9,284			1,758			—			—			11,042
Impairment of investments		134			—			5,381			—			5,515
Equity share in net earnings (losses) of associates and joint ventures		(237	)		(40	)		1,458			—			1,181
Interest income		270			707			306			(237	)		1,046
Financing costs – net		2,487			4,917			187			(237	)		7,354
Provision for income tax		(1,270	)		3,018			161			—			1,909
Net income / Segment profit		9,463			8,134			2,565			—			20,162
Adjusted EBITDA		32,661			26,950			(22	)		1,572			61,161
Adjusted EBITDA margin		32	%		39	%		—			—			39	%
Core income		11,402			7,746			8,709			—			27,857
Assets and liabilities
Operating assets		217,964			183,533			22,804			(33,388	)		390,913
Investments in associates and joint ventures		1,945			40,874			14,039			—			56,858
Deferred income tax assets – net		13,985			13,363			—			—			27,348
Total assets		233,894			237,770			36,843			(33,388	)		475,119
Operating liabilities		161,480			203,777			12,637			(14,879	)		363,015
Deferred income tax liabilities – net		2,923			384			260			—			3,567
Total liabilities		164,403			204,161			12,897			(14,879	)		366,582
Other segment information
Capital expenditures, including capitalized interest		32,097			10,728			—			—			42,825
December 31, 2015
Revenues
External customers		113,985			57,118			—			—			171,103
Service revenues		109,188			53,742			—			—			162,930
Non-service revenues		4,797			3,376			—			—			8,173
Inter-segment transactions		1,528			11,747			—			(13,275	)		—
Service revenues		1,528			11,733			—			(13,261	)		—
Non-service revenues		—			14			—			(14	)		—
Total revenues		115,513			68,865			—			(13,275	)		171,103
Results
Depreciation and amortization		17,218			14,301			—			—			31,519
Asset impairment		8,446			1,244			—			—			9,690
Impairment of investments		—			42			5,124			—			5,166
Equity share in net earnings (losses) of associates and joint ventures		(81	)		38			3,284			—			3,241
Interest income		308			620			99			(228	)		799
Financing costs – net		1,799			4,509			179			(228	)		6,259
Provision for income tax		2,763			1,656			144			—			4,563
Net income / Segment profit		15,434			6,193			448			—			22,075
Adjusted EBITDA		44,237			24,749			(59	)		1,291			70,218
Adjusted EBITDA margin		40	%		38	%		—			—			43	%
Core income		22,512			6,539			6,161			—			35,212
Assets and liabilities
Operating assets		217,317			190,856			18,504			(42,226	)		384,451
Investments in associates and joint ventures		2,208			12,922			33,573			—			48,703
Deferred income tax assets – net		8,249			13,692			—			—			21,941
Total assets		227,774			217,470			52,077			(42,226	)		455,095
Operating liabilities		171,131			182,085			12,149			(27,872	)		337,493
Deferred income tax liabilities – net		3,146			412			146			—			3,704
Total liabilities		174,277			182,497			12,295			(27,872	)		341,197
Other segment information
Capital expenditures, including capitalized interest		30,311			12,864			—			—			43,175

Summary of Reconciliation of Consolidated Adjusted EBITDA

The following table shows the reconciliation of our consolidated Adjusted EBITDA to our consolidated net income for the years ended December 31, 2017, 2016 and 2015:

	2017			2016			2015
	(in million pesos)
Adjusted EBITDA		66,174			61,161			70,218
Add (deduct) adjustments:
Equity share in net earnings of associates and joint ventures		2,906			1,181			3,241
Interest income		1,412			1,046			799
Gains on derivative financial instruments – net		533			996			420
Foreign exchange losses – net		(411	)		(2,785	)		(3,036	)
Amortization of intangible assets		(835	)		(929	)		(1,076	)
Provision for income tax		(1,103	)		(1,909	)		(4,563	)
Impairment of investments		(2,562	)		(5,515	)		(5,166	)
Noncurrent asset impairment		(3,913	)		(1,074	)		(5,788	)
Financing costs – net		(7,370	)		(7,354	)		(6,259	)
Depreciation and amortization		(51,915	)		(34,455	)		(31,519	)
Other income – net		10,550			9,799			4,804
Total adjustments		(52,708	)		(40,999	)		(48,143	)
Consolidated net income		13,466			20,162			22,075

Summary of Reconciliation of Consolidated Core Income to Consolidated Net Income

The following table shows the reconciliation of our consolidated core income to our consolidated net income for the years ended December 31, 2017, 2016 and 2015:

	2017			2016			2015
	(in million pesos)
Consolidated core income		27,668			27,857			35,212
Add (deduct) adjustments:
Gains on derivative financial instruments – net, excluding hedge costs		724			1,539			762
Net income attributable to noncontrolling interests		95			156			10
Core income adjustment on equity share in net losses of associates and joint ventures		(60	)		(95	)		(179	)
Foreign exchange losses – net		(411	)		(2,785	)		(3,036	)
Impairment of investments		(2,562	)		(5,515	)		(5,166	)
Noncurrent asset impairment		(3,913	)		(1,074	)		(5,788	)
Depreciation due to shortened life of property and equipment		(12,816	)		—			—
Net tax effect of aforementioned adjustments		4,741			79			260
Total adjustments		(14,202	)		(7,695	)		(13,137	)
Consolidated net income		13,466			20,162			22,075

Summary of Reconciliation of Consolidated Basic and Diluted Core EPS to Consolidated Basic and Diluted EPS Attributable to Common Equity Holder of PLDT

The following table shows the reconciliation of our consolidated basic and diluted core EPS to our consolidated basic and diluted EPS attributable to common equity holder of PLDT for the years ended December 31, 2017, 2016 and 2015:

	2017						2016						2015
	Basic			Diluted			Basic			Diluted			Basic			Diluted
Consolidated core EPS		127.79			127.79			128.66			128.66			162.70			162.70
Add (deduct) adjustments:
Gains on derivative financial instruments – net, excluding hedge costs		2.34			2.34			4.99			4.99			2.47			2.47
Core income adjustment on equity share in net losses of associates and joint ventures		(0.28	)		(0.28	)		(0.44	)		(0.44	)		(0.83	)		(0.83	)
Foreign exchange losses – net		(1.74	)		(1.74	)		(10.40	)		(10.40	)		(11.85	)		(11.85	)
Noncurrent asset impairment		(24.98	)		(24.98	)		(30.48	)		(30.48	)		(50.64	)		(50.64	)
Depreciation due to shortened life of property and equipment		(41.52	)		(41.52	)		—			—			—			—
Total adjustments		(66.18	)		(66.18	)		(36.33	)		(36.33	)		(60.85	)		(60.85	)
Consolidated EPS attributable to common equity holders of PLDT		61.61			61.61			92.33			92.33			101.85			101.85

Summary of Revenues from External Customers by Category of Products and Services

The following table presents our revenues from external customers by category of products and services for the years ended December 31, 2017, 2016 and 2015:

	2017		2016		2015
	(in million pesos)
Wireless services
Service revenues:
Mobile		83,166		95,066		104,175
Home broadband		2,547		2,758		3,016
Digital platforms and mobile financial services		1,223		709		1,048
MVNO and others		415		582		949
		87,351		99,115		109,188
Non-service revenues:
Sale of cellular handsets, cellular SIM- packs and broadband data modems		5,183		4,332		4,797
Total wireless revenues		92,534		103,447		113,985
Fixed line services
Service revenues:
Voice		25,296		25,502		25,799
Data		37,445		31,727		27,170
Miscellaneous		1,070		857		773
		63,811		58,086		53,742
Non-service revenues:
Sale of computers, phone units and SIM cards		2,706		2,907		2,690
Point-product-sales		872		813		686
		3,578		3,720		3,376
Total fixed line revenues		67,389		61,806		57,118
Others		3		9		—
Total revenues		159,926		165,262		171,103