XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.19.1

Income and Expenses | 12 Months Ended
--- | ---
Dec. 31, 2018
Analysis Of Income And Expense [Abstract] |
Income and Expenses |
5. | Income and Expenses
Revenue from Contracts with Customers Disaggregation of Revenue We derived our revenue from the transfer of goods and services over time and at a point in time in the following major product lines. This is consistent with the revenue information that is disclosed for each reportable segments under IFRS 8, Operating Segments. See Note 4 – Operating Segment Information. 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 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 |
The decrease in trade and other receivables of Php7,703 million in 2018 was primarily due to decline in wireless postpaid subscriber base. The decrease of Php481 million in contract assets in 2018 compared to the balance as at January 1, 2018 is the result of fewer postpaid new connections during the year. The decrease of Php1,181 million in contract liabilities and unearned revenues compared to the beginning balance in 2018 is due to lower amortization for handsets bundled in certain postpaid plans and lower realized revenues, net of new advance payments from customer contracts. Set out below is the movement in the allowance for expected credit losses of contracts assets.
|  |  |  | 2018 |
|  |  |  | (in million pesos) |
Balance at beginning of the year |  |  |  |  | 114 |
Provisions during the year |  |  |  |  | 17 |
Balance at end of the year |  |  |  |  | 131 |
Changes in the contract liabilities and unearned revenues accounts for the year ended December 31, 2018 are as follows:
|  |  |  | 2018 |
|  |  |  | (in million pesos) |
Balances as at January 1, 2018, as restated |  |  |  |  | 8,541 |
Deferred during the year |  |  |  |  | 102,288 |
Recognized as revenue during the year |  |  |  |  | (103,647 | )
Balance at end of the year |  |  |  |  | 7,182 |
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 |
Contract liabilities and unearned revenues account pertains to long-term advances for equipment included in certain postpaid bundled plans. As at December 31, 2018, the current and noncurrent portion of contract liabilities and unearned revenues amounted to Php6,650 million and Php532 million, respectively. Selling, General and Administrative Expenses 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 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 |
Over the past several years, we have been implementing the MRP in line with our continuing efforts to reduce the cost base of our businesses. The decision to implement the MRP was a result of challenges faced by our businesses as significant changes in technology, increasing competition, and shifting market preferences have reshaped the future of our businesses. The MRP is being implemented in compliance with the Labor Code of the Philippines and all other relevant labor laws and regulations in the Philippines. Cost of Sales and Services 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 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 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 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 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 |

X
- References No definition available. + Details
Name: | ifrs-full_AnalysisOfIncomeAndExpenseAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of Income and Expenses. + References No definition available. + Details
Name: | phi_DisclosureOfIncomeAndExpensesExplanatory
Namespace Prefix: | phi_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration