Operating Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

Disclosure Of Operating Segments [Abstract]

Summary of Operating Segments

The segment revenues, net income, and other segment information of our reportable operating segments for the years ended December 31, 2021, 2020 and 2019, and as at December 31, 2021 and 2020 are as follows:

	Wireless			Fixed Line			Others			Inter- segment Transactions			Consolidated
	(in million pesos, except for Adjusted EBITDA margin)
December 31, 2021
Revenues
External customers		105,492			87,765			—			—			193,257
Service revenues		98,512			87,239			—			—			185,751
Non-service revenues		6,980			526			—			—			7,506
Inter-segment transactions		1,127			29,298			—			(30,425	)		—
Service revenues		1,127			29,290			—			(30,417	)		—
Non-service revenues		—			8			—			(8	)		—
Total revenues		106,619			117,063			—			(30,425	)		193,257
Results
Depreciation and amortization		40,459			22,139			—			(10,429	)		52,169
Asset impairment		1,241			3,743			1			—			4,985
Interest income		355			275			26			—			656
Equity share in net earnings (losses) of associates and joint    ventures		—			103			(1,204	)		—			(1,101	)
Financing costs – net		7,551			6,029			—			(3,166	)		10,414
Provision for (benefit from) income tax		3,366			4,103			(270	)		279			7,478
Net income (loss) / Segment profit (loss)		9,434			26,146			384			(9,288	)		26,676
Adjusted EBITDA		60,876			45,832			(7	)		(10,801	)		95,900
Adjusted EBITDA margin		61	%		39	%		—			—			52	%
Core income (loss)		13,645			26,298			(666	)		(9,340	)		29,937
Telco core income (loss)		13,645			25,736			192			(9,340	)		30,233
Assets and liabilities
Operating assets		299,513			285,083			7,351			(32,368	)		559,579
Investments in associates and joint ventures		39			43,519			9,806			—			53,364
Deferred income tax assets – net		4,695			8,433			(81	)		338			13,385
Total assets		304,247			337,035			17,076			(32,030	)		626,328
Operating liabilities		213,219			293,162			1,023			(8,710	)		498,694
Deferred income tax liabilities		—			169			—			—			169
Total liabilities		213,219			293,331			1,023			(8,710	)		498,863
Other segment information
Capital expenditures, including capitalized interest (Note 9)		36,898			52,085			—			—			88,983
December 31, 2020
Revenues
External customers		101,789			79,215			—			—			181,004
Service revenues		95,748			77,886			—			—			173,634
Non-service revenues		6,041			1,329			—			—			7,370
Inter-segment transactions		2,422			19,524			—			(21,946	)		—
Service revenues		2,422			19,524			—			(21,946	)		—
Non-service revenues		—			—			—			—			—
Total revenues		104,211			98,739			—			(21,946	)		181,004
Results
Depreciation and amortization		35,134			19,383			—			(7,037	)		47,480
Asset impairment		2,196			5,490			1			(41	)		7,646
Interest income		537			636			92			(55	)		1,210
Equity share in net earnings (losses) of associates and joint    ventures		—			50			(2,378	)		—			(2,328	)
Financing costs – net		6,886			6,059			55			(2,914	)		10,086
Provision for (benefit from) income tax		4,536			3,734			(617	)		788			8,441
Net income (loss) / Segment profit (loss)		15,166			14,509			(318	)		(4,777	)		24,580
Adjusted EBITDA		60,272			33,405			(12	)		(7,507	)		86,158
Adjusted EBITDA margin		61	%		34	%		—			—			50	%
Core income (loss)		16,440			15,463			193			(4,967	)		27,129
Telco core income (loss)		17,217			13,649			2,188			(4,967	)		28,087
Assets and liabilities
Operating assets		219,412			319,384			6,371			(41,000	)		504,167
Investments in associates and joint ventures		40			43,690			8,393			—			52,123
Deferred income tax assets – net		6,943			11,628			(350	)		1,335			19,556

Total assets	226,395		374,702		14,414		(39,665	)	575,846
Operating liabilities	227,687		274,614		1,457		(48,303	)	455,455
Deferred income tax liabilities	23		330		—		373		726
Total liabilities	227,710		274,944		1,457		(47,930	)	456,181
Other segment information
Capital expenditures, including capitalized interest (Note 9)	33,118		38,786		—		—		71,904
December 31, 2019
Revenues
External customers	94,488		74,699		—		—		169,187
Service revenues	88,243		73,112		—		—		161,355
Non-service revenues	6,245		1,587		—		—		7,832
Inter-segment transactions	2,418		14,707		—		(17,125	)	—
Service revenues	2,418		14,707		—		(17,125	)	—
Non-service revenues	—		—		—		—		—
Total revenues	96,906		89,406		—		(17,125	)	169,187
Results
Depreciation and amortization	29,484		16,141		—		(5,969	)	39,656
Asset impairment	1,133		3,699		1		—		4,833
Interest income	703		680		362		—		1,745
Equity share in net earnings (losses) of associates and joint    ventures	—		568		(2,103	)	—		(1,535	)
Financing costs – net	6,422		5,078		—		(2,947	)	8,553
Provision for (benefit from) income tax	4,423		5,341		(444	)	230		9,550
Net income (loss) / Segment profit (loss)	13,101		11,421		(1,769	)	33		22,786
Adjusted EBITDA	52,789		33,162		(101	)	(6,035	)	79,815
Adjusted EBITDA margin	58	%	38	%	—		—		49	%
Core income (loss)	13,685		12,531		(1,151	)	46		25,111
Telco core income	14,063		12,531		440		46		27,080
Assets and liabilities
Operating assets	287,059		198,468		7,943		(45,929	)	447,541
Investments in associates and joint ventures	10		73,386		9,897		(29,430	)	53,863
Deferred income tax assets – net	13,102		11,791		(711	)	(559	)	23,623
Total assets	300,171		283,645		17,129		(75,918	)	525,027
Operating liabilities	221,755		229,855		833		(46,289	)	406,154
Deferred income tax liabilities	1,986		384		252		(39	)	2,583
Total liabilities	223,741		230,239		1,085		(46,328	)	408,737
Other segment information
Capital expenditures, including capitalized interest (Note 9)	30,718		42,153		—		—		72,871

Summary of Reconciliation of Consolidated Net Income to Consolidated Adjusted EBITDA

The following table shows the reconciliation of our consolidated net income to our consolidated Adjusted EBITDA for the years ended December 31, 2021, 2020 and 2019:

	2021			2020			2019
	(in million pesos)
Consolidated net income		26,676			24,580			22,786
Add (deduct) adjustments:
Depreciation and amortization (Notes 9 and 10)		52,169			47,480			39,656
Financing costs – net (Note 5)		10,414			10,086			8,553
Provision for income tax (Note 7)		7,478			8,441			9,550
Foreign exchange gains (losses) – net (Notes 5 and 28)		3,890			(1,488	)		(424	)
Amortization of intangible assets (Note 15)		2,822			2,496			758
Equity share in net losses of associates and joint ventures (Note 11)		1,101			2,328			1,535
Impairment of property and equipment (Notes 5 and 9)		148			—			—
Interest income (Note 5)		(656	)		(1,210	)		(1,745	)
Losses (gains) on derivative financial instruments – net (Note 28)		(1,400	)		378			284
Other income – net		(6,742	)		(6,933	)		(1,138	)
Gain on dilution of shares (Notes 5 and 11)		(826	)		(394	)		—
Gains on sale of property and equipment (Note 5)		(884	)		(3,369	)		(88	)
Gain on debt modification (Note 5)		(1,372	)		—			—
Reversal of provisions (Note 5)		(2,594	)		(2,679	)		(999	)
Others		(1,066	)		(491	)		(51	)
Total adjustments		69,224			61,578			57,029
Consolidated Adjusted EBITDA		95,900			86,158			79,815

Summary of Reconciliation of Consolidated Net Income to Consolidated Core Income

The following table shows the reconciliation of our consolidated net income to our consolidated core income and telco core income for the years ended December 31, 2021, 2020 and 2019:

	2021			2020			2019
	(in million pesos)
Consolidated net income		26,676			24,580			22,786
Add (deduct) adjustments:
Foreign exchange losses (gains) – net (Notes 5 and 28)		3,890			(1,488	)		(424	)
Sun Trademark amortization (Note 15)		2,628			1,877			—
Accelerated depreciation		1,110			—			—
Manpower rightsizing program, or MRP (Note 5)		269			2,625			3,296
Losses from changes in fair value of financial assets at FVPL		174			—			675
Impairment/derecognition of investments (Notes 11 and 12)		60			659			34
Core income adjustment on equity share in net income    of associates and joint ventures		(7	)		(6	)		(226	)
Net income attributable to noncontrolling interests		(309	)		(296	)		(265	)
CREATE Act impact on deferred income taxes – net		(355	)		—			—
Net tax effect of aforementioned adjustments		(1,209	)		(1,106	)		(998	)
Gain on debt modification – net of amortization of debt discount		(1,339	)		—			—
Losses (gains) on derivative financial instruments – net,    excluding hedge costs (Note 28)		(1,651	)		284			233
Total adjustments		3,261			2,549			2,325
Consolidated core income		29,937			27,129			25,111
Add (deduct) adjustments:
Share in VIH losses		1,981			1,954			1,776
Accelerated depreciation		—			1,496			378
Loss (gain) on sale of Rocket Internet SE, or Rocket Internet, shares		—			364			(185	)
Gain from condonation of debt		—			(240	)		—
Gain on sale and leaseback of Smart Headquarters – net of tax		—			(2,293	)		—
VIH gain on dilution – net of tax		(702	)		(323	)		—
Gain on asset sales – net of tax (Note 5)		(983	)		—			—
Total adjustments		296			958			1,969
Telco core income		30,233			28,087			27,080

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, 2021, 2020 and 2019:

	2021						2020						2019
	Basic			Diluted			Basic			Diluted			Basic			Diluted
Consolidated core EPS		138.29			138.29			125.29			125.29			115.95			115.95
Add (deduct) adjustments:
Gains (losses) on derivative financial instruments –    net, excluding hedge costs		5.73			5.73			(0.92	)		(0.92	)		(0.75	)		(0.75	)
Gain on debt modification		4.65			4.65			—			—			—			—
CREATE Act impact on deferred taxes – net		1.64			1.64			—			—			—			—
Core income adjustment on equity share in net    earnings of associates and joint ventures		0.03			0.03			0.03			0.03			1.05			1.05
Impairment/derecognition of investments		(0.28	)		(0.28	)		(3.05	)		(3.05	)		(0.16	)		(0.16	)
Losses from changes in fair value of financial    assets at FVPL		(0.81	)		(0.81	)		—			—			—			—
MRP		(1.02	)		(1.02	)		(8.51	)		(8.51	)		(10.73	)		(10.73	)
Accelerated depreciation		(3.85	)		(3.85	)		—			—			—			—
Sun Trademark amortization		(9.12	)		(9.12	)		(6.08	)		(6.08	)		—			—
Foreign exchange gains (losses) – net		(13.50	)		(13.50	)		5.36			5.36			1.73			1.73
Unrealized losses in fair value of investments		—			—			—			—			(3.12	)		(3.12	)
Total adjustments		(16.53	)		(16.53	)		(13.17	)		(13.17	)		(11.98	)		(11.98	)
Consolidated EPS attributable to common equity    holders of PLDT (Note 8)		121.76			121.76			112.12			112.12			103.97			103.97

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, 2021, 2020 and 2019:

	2021		2020		2019
	(in million pesos)
Wireless services
Service revenues:
Mobile		95,619		95,589		87,823
Home broadband		2,889		40		85
MVNO and others		4		119		335
		98,512		95,748		88,243
Non-service revenues:
Sale of mobile handsets and broadband data modems		6,980		6,041		6,245
Total wireless revenues		105,492		101,789		94,488
Fixed line services
Service revenues:
Voice		20,222		19,484		19,890
Data		66,624		58,064		52,787
Miscellaneous		393		338		435
		87,239		77,886		73,112
Non-service revenues:
Sale of computers, phone units and SIM cards		454		1,140		1,193
Point-product-sales		72		189		394
		526		1,329		1,587
Total fixed line revenues		87,765		79,215		74,699
Total revenues		193,257		181,004		169,187