Income and Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Analysis Of Income And Expense [Abstract]

Summary of Revenue from Contracts with Customers

Set out is the disaggregation of PLDT Group’s revenue from contracts with customers for the years ended December 31, 2019 and 2018:

Revenue Streams	Wireless		Fixed Line		Others		Inter- segment Transactions			Consolidated
	(in million pesos)
December 31, 2019
Type of good or service
Service revenue		90,661		87,819		—		(17,125	)		161,355
Non-service revenue		6,245		1,587		—		—			7,832
Total revenue from contracts with customers		96,906		89,406		—		(17,125	)		169,187
Timing of revenue recognition
Transferred over time		90,661		87,819		—		(17,125	)		161,355
Transferred at a point time		6,245		1,587		—		—			7,832
Total revenue from contracts with customers		96,906		89,406		—		(17,125	)		169,187
December 31, 2018
Type of good or service
Service revenue		83,001		81,648		1,094		(13,374	)		152,369
Non-service revenue		6,928		3,574		44		(1	)		10,545
Total revenue from contracts with customers		89,929		85,222		1,138		(13,375	)		162,914
Timing of revenue recognition
Transferred over time		83,001		81,648		1,094		(13,374	)		152,369
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		(13,375	)		162,914

Summary of Contract Balances

Contract balances as at December 31, 2019 and 2018 consists of the following:

	2019		2018
	(in million pesos)
Trade and other receivables (Note 17)		39,340		40,559
Contract assets		2,817		3,399
Contract liabilities and unearned revenues (Notes 22 and 24)		8,483		7,182

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, 2019 and 2018.

	2019			2018
	(in million pesos)
Balances at beginning of the year		131			114
Reclassification		(61	)		—
Provisions		—			17
Balances at end of the year		70			131

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, 2019 and 2018 are as follows:

	2019			2018
	(in million pesos)
Balances at beginning of the year		7,182			8,541
Deferred during the year		111,084			102,288
Recognized as revenue during the year		(109,783	)		(103,647	)
Balances at end of the year		8,483			7,182

Summary of Contract Liabilities and Unearned Revenues Account

The contract liabilities and unearned revenues accounts as at December 31, 2019 and 2018 are as follows:

	2019		2018
	(in million pesos)
Unearned revenues from prepaid contracts		5,454		4,059
Advance monthly service fees		1,777		2,386
Short-term advances for installation services		726		558
Leased facilities		469		34
Long-term advances from equipment		57		145
Total contract liabilities and unearned revenues		8,483		7,182
Contract liabilities:
Noncurrent (Note 22)		13		58
Current (Note 24)		44		87
Unearned revenues:
Noncurrent (Note 22)		591		474
Current (Note 24)		7,835		6,563

Summary of Selling, General and Administrative Expenses

Selling, general and administrative expenses for the years ended December 31, 2019, 2018 and 2017 consist of the following:

	2019		2018		2017
	(in million pesos)
Compensation and employee benefits		24,883		23,543		22,782
Repairs and maintenance (Notes 14, 18 and 25)		15,337		14,331		12,744
Professional and other contracted services (Note 25)		12,078		12,809		12,168
Selling and promotions (Note 25)		5,395		6,340		5,908
Taxes and licenses		4,570		4,974		3,970
Insurance and security services (Note 25)		1,671		1,499		1,519
Rent (Note 25)		1,290		7,321		7,016
Communication, training and travel (Note 25)		1,203		1,069		1,166
Amortization of intangible assets (Note 15)		758		892		835
Other expenses		1,045		1,138		882
Total selling, general and administrative expenses		68,230		73,916		68,990

Summary of Compensation and Employee Benefits

Compensation and employee benefits for the years ended December 31, 2019, 2018 and 2017 consist of the following:

	2019		2018		2017
	(in million pesos)
Salaries and other employee benefits		19,931		19,777		18,598
MRP		3,296		1,703		1,747
Pension benefit costs (Note 26)		1,018		1,855		1,610
Incentive plan (Note 26)		638		208		827
Total compensation and employee benefits		24,883		23,543		22,782

Summary of Cost of Sales and Services

Cost of sales and services for the years ended December 31, 2019, 2018 and 2017 consist of the following:

	2019		2018		2017
	(in million pesos)
Cost of computers, mobile handsets and broadband data modems (Note 18)		9,402		10,513		10,277
Cost of services (Note 18)		3,680		3,429		2,572
Cost of point-product-sales (Note 18)		347		485		784
Total cost of sales and services		13,429		14,427		13,633

Summary of Asset Impairment

Asset impairment for the years ended December 31, 2019, 2018 and 2017 consist of the following:

	2019		2018		2017
	(in million pesos)
Trade and other receivables (Note 17)		4,071		4,192		3,438
Inventories and supplies (Note 18)		471		1,528		907
Contract assets		291		223		—
Property and equipment (Note 9)		—		1,958		3,913
Other assets		—		164		—
Total asset impairment		4,833		8,065		8,258

Summary of Other Income (Expenses) - Net

Other income (expenses) – net for the years ended December 31, 2019, 2018 and 2017 consist of the following:

	2019			2018			2017
	(in million pesos)
Interest income		1,745			1,943			1,412
Foreign exchange gains (losses) – net (Note 9)		424			(771	)		(411	)
Gain on deconsolidation of VIH (Note 11)		—			12,054			—
Gains (losses) on derivative financial instruments – net (Note 28)		(284	)		1,086			533
Equity share in net earnings (losses) of associates and joint ventures    (Note 11)		(1,535	)		(87	)		2,906
Financing costs – net		(8,553	)		(7,067	)		(7,370	)
Others – net (Notes 11, 12 and 14)		1,138			1,884			7,988
Total other income (expenses) – net		(7,065	)		9,042			5,058

Summary of Interest Income

Interest income for the years ended December 31, 2019, 2018 and 2017 consist of the following:

	2019		2018		2017
	(in million pesos)
Interest income on cash and cash equivalents (Note 16)		1,022		957		612
Interest income arising from revenue contracts with customers		430		340		—
Interest income on financial instruments at FVOCI		239		—		—
Interest income on financial instruments at amortized cost (Note 13)		6		6		8
Interest income – others		48		640		792
Total interest income		1,745		1,943		1,412

Summary of Financing Costs - Net

Financing costs – net for the years ended December 31, 2019, 2018 and 2017 consist of the following:

	2019			2018			2017
	(in million pesos)
Interest on loans and other related items (Notes 21 and 28)		8,730			8,307			7,830
Accretion on lease liabilities (Notes 2 and 10)		1,061			—			—
Accretion on financial liabilities (Note 21)		122			145			219
Financing charges		95			139			137
Capitalized interest (Note 9)		(1,455	)		(1,524	)		(816	)
Total financing costs – net		8,553			7,067			7,370