Income and Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Analysis Of Income And Expense [Abstract]

Summary of Revenues from Contracts with Customers

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

Summary of 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

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, 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

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, 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

Summary of Contract Liabilities and Unearned Revenues Account

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

Summary of 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

Summary of 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

Summary of 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

Summary of 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

Summary of 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.

Summary of 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

Summary of 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