XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.22.1

Income and Expenses | 12 Months Ended
--- | ---
Dec. 31, 2021
Analysis Of Income And Expense [Abstract] |
Income and Expenses |
5. | Income and Expenses
Revenues 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 segment under IFRS 8, Operating Segments. See Note 4 – Operating Segment Information. Set out is the disaggregation of PLDT Group’s revenues from contracts with customers for the years ended December 31, 2021, 2020 and 2019:
Revenue Streams |  | Wireless |  |  | Fixed Line |  |  | Others |  |  | Inter- segment Transactions |  |  | Consolidated |
|  | (in million pesos) |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Type of good or service |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service revenue |  |  | 99,639 |  |  |  | 116,529 |  |  |  | — |  |  |  | (30,417 | ) |  |  | 185,751 |
Non-service revenue |  |  | 6,980 |  |  |  | 534 |  |  |  | — |  |  |  | (8 | ) |  |  | 7,506 |
Total revenues from contracts with customers |  |  | 106,619 |  |  |  | 117,063 |  |  |  | — |  |  |  | (30,425 | ) |  |  | 193,257 |
Timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Transferred over time |  |  | 99,639 |  |  |  | 116,529 |  |  |  | — |  |  |  | (30,417 | ) |  |  | 185,751 |
Transferred at a point time |  |  | 6,980 |  |  |  | 534 |  |  |  | — |  |  |  | (8 | ) |  |  | 7,506 |
Total revenues from contracts with customers |  |  | 106,619 |  |  |  | 117,063 |  |  |  | — |  |  |  | (30,425 | ) |  |  | 193,257 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Type of good or service |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service revenue |  |  | 98,170 |  |  |  | 97,410 |  |  |  | — |  |  |  | (21,946 | ) |  |  | 173,634 |
Non-service revenue |  |  | 6,041 |  |  |  | 1,329 |  |  |  | — |  |  |  | — |  |  |  | 7,370 |
Total revenues from contracts with customers |  |  | 104,211 |  |  |  | 98,739 |  |  |  | — |  |  |  | (21,946 | ) |  |  | 181,004 |
Timing of revenue recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Transferred over time |  |  | 98,170 |  |  |  | 97,410 |  |  |  | — |  |  |  | (21,946 | ) |  |  | 173,634 |
Transferred at a point time |  |  | 6,041 |  |  |  | 1,329 |  |  |  | — |  |  |  | — |  |  |  | 7,370 |
Total revenues from contracts with customers |  |  | 104,211 |  |  |  | 98,739 |  |  |  | — |  |  |  | (21,946 | ) |  |  | 181,004 |
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 revenues 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 revenues from contracts with customers |  |  | 96,906 |  |  |  | 89,406 |  |  |  | — |  |  |  | (17,125 | ) |  |  | 169,187 |
Contract Balances Contract balances as at December 31, 2021 and 2020 consists of the following:
|  | 2021 |  |  | 2020 |
|  | (in million pesos) |
Trade and other receivables (Note 17) |  |  | 35,625 |  |  |  | 38,304 |
Contract assets |  |  | 2,306 |  |  |  | 2,559 |
Contract liabilities and unearned revenues (Notes 22 and 24) |  |  | 13,621 |  |  |  | 9,571 |
The decrease in gross trade and other receivables of Php2,679 million as at December 31, 2021 was primarily due to accounts written-off. The decrease of Php253 million in contract assets as at December 31, 2021 was due to lower device plan activations. The increase of Php4,050 million in contract liabilities and unearned revenues as at December 31, 2021 is related to the overall higher revenues from postpaid and prepaid subscribers due to the increase in demand as more people are doing their activities online due to the COVID-19 restrictions. Set out below is the movement in the allowance for expected credit losses of contracts assets for the years ended December 31, 2021, 2020 and 2019.
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Balances at beginning of the year |  |  | 92 |  |  |  | 70 |  |  |  | 131 |
Provisions |  |  | 32 |  |  |  | — |  |  |  | — |
Reclassification |  |  | (69 | ) |  |  | 22 |  |  |  | (61 | )
Balances at end of the year |  |  | 55 |  |  |  | 92 |  |  |  | 70 |
Changes in the contract liabilities and unearned revenues accounts for the years ended December 31, 2021, 2020 and 2019 are as follows:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Balances at beginning of the year |  |  | 9,571 |  |  |  | 8,483 |  |  |  | 7,182 |
Deferred during the year |  |  | 138,346 |  |  |  | 127,160 |  |  |  | 111,084 |
Recognized as revenue during the year |  |  | (134,296 | ) |  |  | (126,072 | ) |  |  | (109,783 | )
Balances at end of the year |  |  | 13,621 |  |  |  | 9,571 |  |  |  | 8,483 |
The contract liabilities and unearned revenues accounts as at December 31, 2021 and 2020 are as follows:
|  | 2021 |  |  | 2020 |
|  | (in million pesos) |
Unearned revenues from prepaid contracts |  |  | 6,716 |  |  |  | 6,185 |
Advance monthly service fees |  |  | 2,476 |  |  |  | 1,747 |
Short-term advances for installation services |  |  | 2,355 |  |  |  | 1,167 |
Leased facilities |  |  | 2,045 |  |  |  | 446 |
Long-term advances from equipment |  |  | 29 |  |  |  | 26 |
Total contract liabilities and unearned revenues |  |  | 13,621 |  |  |  | 9,571 |
Contract liabilities: |  |  |  |  |  |  |  |
Noncurrent (Note 22) |  |  | 223 |  |  |  | 4 |
Current (Note 24) |  |  | 21 |  |  |  | 12 |
Unearned revenues: |  |  |  |  |  |  |  |
Noncurrent (Note 22) |  |  | 3,335 |  |  |  | 972 |
Current (Note 24) |  |  | 10,042 |  |  |  | 8,583 |
Unearned revenues on leased circuits pertain to prepayments for various leased circuit contracts. See Note 24 – Related Party Transactions. As at December 31, 2021, the noncurrent and current portion of contract liabilities and unearned revenues amounted to Php3,558 million and Php10,063 million, respectively, while as at December 31, 2020, the noncurrent and current portion of contract liabilities and unearned revenues amounted to Php976 million and Php8,595 million, respectively. Selling, General and Administrative Expenses Selling, general and administrative expenses for the years ended December 31, 2021, 2020 and 2019 consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Compensation and employee benefits |  |  | 25,344 |  |  |  | 26,833 |  |  |  | 24,883 |
Repairs and maintenance (Notes 14, 18 and 25) |  |  | 24,653 |  |  |  | 21,555 |  |  |  | 20,007 |
Professional and other contracted services (Note 25) |  |  | 8,371 |  |  |  | 7,307 |  |  |  | 7,408 |
Selling and promotions (Note 25) |  |  | 6,716 |  |  |  | 6,542 |  |  |  | 5,395 |
Taxes and licenses |  |  | 4,331 |  |  |  | 5,495 |  |  |  | 4,570 |
Amortization of intangible assets (Note 15) |  |  | 2,822 |  |  |  | 2,496 |  |  |  | 758 |
Rent (Notes 10 and 25) |  |  | 2,231 |  |  |  | 1,384 |  |  |  | 1,290 |
Insurance and security services (Note 25) |  |  | 1,739 |  |  |  | 1,699 |  |  |  | 1,671 |
Communication, training and travel (Note 25) |  |  | 977 |  |  |  | 903 |  |  |  | 1,203 |
Other expenses |  |  | 1,119 |  |  |  | 1,041 |  |  |  | 1,045 |
Total selling, general and administrative expenses |  |  | 78,303 |  |  |  | 75,255 |  |  |  | 68,230 |
Compensation and Employee Benefits Compensation and employee benefits for the years ended December 31, 2021, 2020 and 2019 consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Salaries and other employee benefits |  |  | 21,676 |  |  |  | 20,856 |  |  |  | 19,931 |
Pension benefit costs (Note 26) |  |  | 2,213 |  |  |  | 2,218 |  |  |  | 1,018 |
Incentive plan (Note 26) |  |  | 1,186 |  |  |  | 1,134 |  |  |  | 638 |
MRP |  |  | 269 |  |  |  | 2,625 |  |  |  | 3,296 |
Total compensation and employee benefits |  |  | 25,344 |  |  |  | 26,833 |  |  |  | 24,883 |
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 December 31, 2021, 2020 and 2019 consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Cost of computers, mobile handsets and broadband data modems (Note 18) |  |  | 8,286 |  |  |  | 8,275 |  |  |  | 9,402 |
Cost of services (Note 18) |  |  | 3,492 |  |  |  | 2,991 |  |  |  | 3,680 |
Cost of point-product-sales (Note 18) |  |  | 1,563 |  |  |  | 1,029 |  |  |  | 347 |
Total cost of sales and services |  |  | 13,341 |  |  |  | 12,295 |  |  |  | 13,429 |
Asset Impairment Asset impairment for the years ended December 31, 2021, 2020 and 2019 consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Trade and other receivables (Note 17) |  |  | 3,737 |  |  |  | 6,446 |  |  |  | 4,071 |
Inventories and supplies (Note 18) |  |  | 847 |  |  |  | 934 |  |  |  | 471 |
Contract assets (Note 3) |  |  | 253 |  |  |  | 266 |  |  |  | 291 |
Property and equipment (Note 9) |  |  | 148 |  |  |  | — |  |  |  | — |
Total asset impairment |  |  | 4,985 |  |  |  | 7,646 |  |  |  | 4,833 |
Other Income (Expenses) – Net Other income (expenses) – net for the years ended December 31, 2021, 2020 and 2019 consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Reversal of provisions |  |  | 2,594 |  |  |  | 2,679 |  |  |  | 999 |
Gains (losses) on derivative financial instruments – net (Note 28) |  |  | 1,400 |  |  |  | (378 | ) |  |  | (284 | )
Gain on debt modification(1) |  |  | 1,372 |  |  |  | — |  |  |  | — |
Gains on sale of property and equipment (Note 9) |  |  | 884 |  |  |  | 3,369 |  |  |  | 88 |
Gain on dilution of shares (Note 11) |  |  | 826 |  |  |  | 394 |  |  |  | — |
Interest income |  |  | 656 |  |  |  | 1,210 |  |  |  | 1,745 |
Gain on change in fair value of Phunware, Inc., or Phunware (Note 12) |  |  | 306 |  |  |  | — |  |  |  | — |
Gain on sale of Phunware (Note 12) |  |  | 115 |  |  |  | — |  |  |  | — |
Equity share in net losses of associates and joint ventures (Note 11) |  |  | (1,101 | ) |  |  | (2,328 | ) |  |  | (1,535 | )
Foreign exchange gains (losses) – net (Note 28) |  |  | (3,890 | ) |  |  | 1,488 |  |  |  | 424 |
Financing costs – net |  |  | (10,414 | ) |  |  | (10,086 | ) |  |  | (8,553 | )
Others – net (Notes 11, 12 and 14) |  |  | 645 |  |  |  | 491 |  |  |  | 51 |
Total other expenses – net |  |  | (6,607 | ) |  |  | (3,161 | ) |  |  | (7,065 | )
| (1) | PLDT and Smart re-negoiateted certain terms of selected outstanding Philippine Peso loans in 2021. Under IFRS 9, the difference of the current carrying value and the present value of the modified cash flows of the loan should be recognized as a gain or loss on debt modification.
Interest Income Interest income for the years ended December 31, 2021, 2020 and 2019 consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Interest income arising from revenue contracts with customers |  |  | 299 |  |  |  | 414 |  |  |  | 431 |
Interest income on cash and cash equivalents (Note 16) |  |  | 269 |  |  |  | 560 |  |  |  | 1,022 |
Interest income on financial instruments at FVPL |  |  | 23 |  |  |  | 8 |  |  |  | — |
Interest income on financial instruments at amortized cost (Note 13) |  |  | 13 |  |  |  | 143 |  |  |  | 45 |
Interest income on financial instruments at FVOCI |  |  | 2 |  |  |  | 70 |  |  |  | 239 |
Interest income – others |  |  | 50 |  |  |  | 15 |  |  |  | 8 |
Total interest income |  |  | 656 |  |  |  | 1,210 |  |  |  | 1,745 |
Financing Costs – Net Financing costs – net for the years ended December 31, 2021, 2020 and 2019 consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (in million pesos) |
Interest on loans and other related items (Notes 21 and 28) |  |  | 10,482 |  |  |  | 10,333 |  |  |  | 8,730 |
Accretion on lease liabilities (Note 10) |  |  | 1,170 |  |  |  | 1,125 |  |  |  | 1,061 |
Accretion on financial liabilities (Note 21) |  |  | 239 |  |  |  | 146 |  |  |  | 122 |
Financing charges |  |  | 105 |  |  |  | 79 |  |  |  | 95 |
Capitalized interest (Notes 9 and 29) |  |  | (1,582 | ) |  |  | (1,597 | ) |  |  | (1,455 | )
Total financing costs – net |  |  | 10,414 |  |  |  | 10,086 |  |  |  | 8,553 |

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: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration