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Income and Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Set out is the disaggregation of PLDT Group’s revenue for the year ended December 31, 2018

Revenue Streams	Wireless		Fixed Line		Others		Inter- segment Transactions			Consolidated
	(in million pesos)
December 31, 2018
Type of good or service
Service revenue		83,001		81,648		1,094		(11,536	)		154,207
Non-service revenue		6,928		3,574		44		(1	)		10,545
Total revenue from contracts with customers		89,929		85,222		1,138		(11,537	)		164,752

Timing of revenue recognition
Transferred over time		83,001		81,648		1,094		(11,536	)		154,207
Transferred at a point time		6,928		3,574		44		(1	)		10,545
Total revenue from contracts with customers		89,929		85,222		1,138		(11,537	)		164,752

Contract balances as at December 31, 2018 and 2017 consists of the following:

	2018			2017
			(in million pesos)
Trade and other receivables (Note 16)		40,559			48,262
Contract assets		3,399			—
Contract liabilities and unearned revenues		7,182			8,363

Set out below is the movement in the allowance for expected credit losses of contracts assets.

Changes in the contract liabilities and unearned revenues accounts for the year ended December 31, 2018 are as follows:

The contract liabilities and unearned revenues accounts as at December 31, 2018 are as follows:

	2018
	(in million pesos)
Long-term advances from postpaid subscribers		145
Short-term advances for installatin services		558
Leased facilities		34
Advance monthly service fees		2,386
Unearned revenues from prepaid contracts		4,059
Total contract liabilities and unearned revenues		7,182

Contract liabilities:
Current		87
Noncurrent		58

Unearned revenues:
Current		6,563
Noncurrent		474

Selling, general and administrative expenses for the year sended December 31, 2018, 2017 and 2016 consist of the following:

	2018		2017		2016
			(in million pesos)
Compensation and employee benefits		23,543		22,782		19,928
Repairs and maintenance (Notes 13, 17 and 24)		14,331		12,744		14,706
Professional and other contracted services (Note 24)		12,809		12,168		9,386
Rent (Note 24)		7,321		7,016		6,632
Selling and promotions (Note 24)		6,340		5,908		7,687
Taxes and licenses (Note 26)		4,974		3,970		3,782
Insurance and security services (Note 24)		1,499		1,519		1,736
Communication, training and travel (Note 24)		1,069		1,166		1,249
Amortization of intangible assets (Note 14)		892		835		929
Other expenses		1,138		882		1,161
Total selling, general and administrative expenses		73,916		68,990		67,196

Compensation and employee benefits for the year ended December 31, 2018, 2017 and 2016 consist of the following:

	2018		2017		2016
			(in million pesos)
Salaries and other employee benefits		19,777		18,598		17,734
Pension benefit costs (Note 25)		1,855		1,610		1,775
MRP		1,703		1,747		419
Incentive plan (Note 25)		208		827		—
Total compensation and employee benefits		23,543		22,782		19,928

Cost of sales and services for the years ended Decemeber 31, 2018, 2017 and 2016 consist of the following:

	2018		2017		2016
			(in million pesos)
Cost of computers, mobile handsets and broadband data modems (Note 17)		10,513		10,277		16,053
Cost of services (Note 17)		3,429		2,572		1,540
Cost of point-product-sales (Note 17)		485		784		700
Total cost of sales and services		14,427		13,633		18,293

Asset impairment for the years ended December 31, 2018, 2017 and 2016 consist of the following:

	2018		2017		2016
			(in million pesos)
Trade and other receivables (Note 16)		4,192		3,438		8,027
Property and equipment (Note 9)		1,958		3,913		—
Inventories and supplies (Note 17)		1,528		907		1,941
Contract assets		223		—		—
Goodwill and intangible assets (Note 14)		—		—		1,038
Other assets		164		—		36
Total asset impairment		8,065		8,258		11,042

Other income (expenses) – net for the years ended December 31, 2018, 2017 and 2016 consist of the following:

	2018			2017			2016
				(in million pesos)
Gain on deconsolidation of VIH (Note 2)		12,054			—			—
Interest income		1,943			1,412			1,046
Gains on derivative financial instruments – net (Note 27)		1,086			533			996
Equity share in net earnings (losses) of associates and joint ventures (Note 10)		(87	)		2,906			1,181
Foreign exchange losses – net (Note 9 )		(771	)		(411	)		(2,785	)
Financing costs		(7,067	)		(7,370	)		(7,354	)
Others – net (Notes 10, 11 and 13)		1,884			7,988			4,284
Total other income (expenses) – net		9,042			5,058			(2,632	)

Interest income for the years ended December 31, 2018, 2017 and 2016 consist of the following:

	2018		2017		2016
			(in million pesos)
Interest income on financial instruments at amortized cost (Notes 12 and 15)		1,486		—		—
Interest income arising from revenue contracts with customers		457		—		—
Interest income on loans and receivables (Notes 15 and 16)		—		1,404		980
Interest income on HTM investments (Note 12)		—		8		36
Interest income on financial instruments at FVPL		—		—		30
Total interest income		1,943		1,412		1,046

Financing costs for the years ended December 31, 2018, 2017 and 2016 consist of the following:

	2018			2017			2016
				(in million pesos)
Interest on loans and other related items (Notes 20 and 27)		8,307			7,830			7,522
Accretion on financial liabilities (Note 20)		145			219			230
Financing charges		139			137			168
Capitalized interest (Note 9)		(1,524	)		(816	)		(566	)
Total financing costs		7,067			7,370			7,354

(in million pesos)

Balance at beginning of the year

Provisions during the year

Balance at end of the year