<SEC-DOCUMENT>0001564590-18-023534.txt : 20181026
<SEC-HEADER>0001564590-18-023534.hdr.sgml : 20181026
<ACCEPTANCE-DATETIME>20180925060422
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001564590-18-023534
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20180925

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PLDT Inc.
		CENTRAL INDEX KEY:			0000078150
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		RAMON CONJUANGCO BLDG
		STREET 2:		MAKATI AVE
		CITY:			MAKATI METRO MANILA
		STATE:			R6
		ZIP:			0721
		BUSINESS PHONE:		0116328168553

	MAIL ADDRESS:	
		STREET 1:		RAMON CONJUANGCO BLDG
		STREET 2:		MAKATI AVE
		CITY:			MAKATI METRO MANILA
		STATE:			R6
		ZIP:			0721

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPPINE LONG DISTANCE TELEPHONE CO
		DATE OF NAME CHANGE:	19940303
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:48pt;margin-bottom:48pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:80.27%;"><a name="ziRedlineTmp"></a>September 25, 2018</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Via EDGAR</font></p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Division of Corporation Finance<br />U.S. Securities and Exchange Commission <br />100 F Street, NE<br />Washington, D.C. 20549<br />United States of America&nbsp;&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:5.1%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Re:<font style="margin-left:21pt;">PLDT Inc. </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:5.1%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:4.76%;">Annual Report on Form 20-F for the Fiscal Year Ended December 31, 2017<font style="text-decoration:underline;"> </font></p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:5.1%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:4.76%;">Filed April 5, 2018</p>
<p style="margin-bottom:12pt;margin-top:0pt;margin-left:5.1%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:4.76%;"><font style="text-decoration:underline;">File No. 001-03006</font><font style="text-decoration:underline;margin-left:21pt;">&nbsp;&nbsp;</font><font style="text-decoration:underline;margin-left:43pt;"></font><font style="text-decoration:underline;margin-left:64pt;"></font><font style="text-decoration:underline;margin-left:86pt;"></font><font style="text-decoration:underline;margin-left:108pt;"></font><font style="text-decoration:underline;margin-left:129pt;"></font><font style="text-decoration:underline;margin-left:151pt;"></font><font style="text-decoration:underline;margin-left:172pt;"></font><font style="text-decoration:underline;margin-left:36pt;"></font></p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Dear Sir/Madam:</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:8.16%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">This is in response to the comment letter from the staff (the &#8220;Staff&#8221;) of the United States Securities and Exchange Commission (the &#8220;Commission&#8221;), dated September 12, 2018, relating to the annual report on Form 20-F of PLDT Inc. (the &#8220;Company&#8221;) for the fiscal year ended December 31, 2017 (the &#8220;2017 Form 20-F&#8221;). </p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:8.16%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For your convenience, the Company has included the Staff comments in this response letter in italicized form and keyed its responses accordingly.&nbsp;&nbsp;The Company&#8217;s responses to the Staff comments are as follows.&nbsp;&nbsp;Capitalized terms used and not defined in the 2017 Form 20-F have the meanings ascribed to them in the 2017 Form 20-F.</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Form 20-F for the Year Ended December 31, 2017 </font></p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Management&#8217;s Financial Review, page 48</font></p>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;;font-style:italic;font-weight:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;;font-style:italic;font-size:12pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;"><font style="font-style:italic;font-size:12pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">1.</font></p></td>
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<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;;font-style:italic;font-weight:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Please revise your non-GAAP reconciliations to begin with the IFRS financial measure versus the non-IFRS measure.&nbsp;&nbsp;We refer to Question 102.10 of the updated Compliance and Disclosure Interpretation Guidance on non-GAAP measures.</p></td></tr></table></div>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:8.16%;;font-style:normal;font-size:12pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">The Company respectfully advises that going forward it will change the presentation of its non-GAAP reconciliations so that the reconciliations begin with the IFRS financial measure.&nbsp;&nbsp;Specifically, the reconciliations of the Company&#8217;s adjusted EBITDA to its consolidated net income and the Company&#8217;s consolidated core income to its consolidated net income will each begin with consolidated net income.&nbsp;&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-size:10pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:1pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:12pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU2"></a><font style="text-decoration:underline;">Item 5. Operating and Financial Review and Prospects (Expenses, page 63)</font></p>
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<p style="margin-bottom:12pt;margin-top:0pt;;font-style:italic;font-weight:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;;font-style:italic;font-size:12pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;"><font style="font-style:italic;font-size:12pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">2.</font></p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;;font-style:italic;font-weight:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Please explain the underlying reasons why the provisions for doubtful accounts and inventory obsolescence decrease by 73% or Php 6,004.</p></td></tr></table></div>
<p style="text-align:justify;margin-bottom:12pt;margin-top:0pt;text-indent:8.16%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">While the Company takes into account multiple inputs when determining its provisions, the decrease in the Company&#8217;s provisions for doubtful accounts and inventory obsolescence from the year end 2016 to the year end 2017 by 73%, or Php 6,004 million, was primarily driven by a 16% year-on-year decline in our postpaid services revenue and an improvement of our year-on-year collection efficiency from 89% to 96%, both of which resulted in the decrease of our billed subscribers receivable for postpaid services and in turn a decline in our provisions for doubtful accounts, and a one-time provision taken in 2016 relating to the migration of our billing system for postpaid accounts for our Sun Cellular brand to Smart&#8217;s billing system and the resulting alignment of provisioning policies related to receivables and inventories.</p>
<p style="text-align:center;margin-bottom:12pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">*&nbsp;&nbsp;*&nbsp;&nbsp;*&nbsp;&nbsp;*</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><br /></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">-2</a>-</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:1pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:8.16%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU3"></a><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In connection with responding to the Staff comm</font><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ents, the Company hereby acknowledges that: </font></p>
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<p style="margin-bottom:12pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</font></p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">the Company is responsible for the adequacy and accuracy of the disclosure in the filing;&nbsp;&nbsp;</p></td></tr></table></div>
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<p style="margin-bottom:12pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</font></p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">the Staff comments or changes to disclosure in response to the Staff comments do not foreclose the Commission from taking any action with respect to the filing; and&nbsp;&nbsp;</p></td></tr></table></div>
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<p style="margin-bottom:12pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">&nbsp;</p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8226;</font></p></td>
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<p style="margin-bottom:12pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">the Company may not assert the Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.&nbsp;&nbsp;</p></td></tr></table></div>
<p style="margin-bottom:12pt;margin-top:0pt;text-indent:8.16%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thank you again for your time.  Please feel free to contact Michael G. DeSombre of Sullivan &amp; Cromwell (tel: (+852) 2826 8696; fax: (+852) 2826 1774; e-mail: desombrem@sullcrom.com), or the undersigned by phone at (+632) 888 0188 or by e&#8209;mail at lrchan@pldt.com.ph, with any questions you may have. </p>
<p style="margin-bottom:36pt;margin-top:0pt;margin-left:65.31%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Very truly yours,</p>
<p style="margin-bottom:12pt;margin-top:0pt;margin-left:65.31%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">/s/ Ma. Lourdes C. Rausa-Chan<br /></font>Ma. Lourdes C. Rausa-Chan<br />Senior Vice President and Corporate Secretary</p>
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<p style="margin-bottom:0pt;margin-top:0pt;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cc:</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:12pt;">Anabelle Lim-Chua, Senior Vice President and PLDT Chief Financial Officer</p></td></tr></table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:11.22%;text-indent:-3.06%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">June Cheryl A. Cabal-Revilla, Senior Vice President, PLDT Group Controller and Smart and DMPI Chief Financial Officer</p>
<p style="margin-bottom:12pt;margin-top:0pt;margin-left:8.16%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> (PLDT Inc.)</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:8.16%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><br />Michael G. DeSombre<br />Joonkeun Yoo</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:8.16%;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> (Sullivan &amp; Cromwell)</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-size:12pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">-3</a>-</p></body>
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