Income and Expenses

12 Months Ended

Dec. 31, 2024

Analysis of income and expense [abstract]

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, 2024, 2023 and 2022:


Revenue Streams	Wireless		Fixed Line		Others		Inter- segment Transactions			Consolidated
	(in million pesos)
December 31, 2024
Type of good or service
Service revenue		97,779		125,994		—		(15,391	)		208,382
Non-service revenue		7,955		496		—		—			8,451
Total revenues from contracts with customers		105,734		126,490		—		(15,391	)		216,833

Timing of revenue recognition
Transferred over time		97,779		125,994		—		(15,391	)		208,382
Transferred at a point time		7,955		496		—		—			8,451
Total revenues from contracts with customers		105,734		126,490		—		(15,391	)		216,833

December 31, 2023
Type of good or service
Service revenue		95,677		120,336		—		(14,181	)		201,832
Non-service revenue		8,724		398		—		(1	)		9,121
Total revenues from contracts with customers		104,401		120,734		—		(14,182	)		210,953

Timing of revenue recognition
Transferred over time		95,677		120,336		—		(14,181	)		201,832
Transferred at a point time		8,724		398		—		(1	)		9,121
Total revenues from contracts with customers		104,401		120,734		—		(14,182	)		210,953

December 31, 2022
Type of good or service
Service revenue		95,852		127,214		—		(27,722	)		195,344
Non-service revenue		8,422		596		—		—			9,018
Total revenues from contracts with customers		104,274		127,810		—		(27,722	)		204,362

Timing of revenue recognition
Transferred over time		95,852		127,214		—		(27,722	)		195,344
Transferred at a point time		8,422		596		—		—			9,018
Total revenues from contracts with customers		104,274		127,810		—		(27,722	)		204,362

Remaining performance obligations are associated with our wireless and fixed line subscription contracts. As at December 31, 2024, excluding the performance obligations for contracts with original expected duration of less than one year, the aggregate amount of the transaction price allocated to remaining performance obligations was Php45,868 million, of which we expect to recognize approximately 51% in 2025 and 49% in 2026 and onwards. As at December 31, 2023, excluding the performance obligations for contracts with original expected duration of less than one year, the aggregate amount of the transaction price allocated to remaining performance obligations was Php40,487 million, of which we recognized approximately 56% in 2024 and expect to recognize 44% in 2025 and onwards.

Contract Balances

Contract balances as at December 31, 2024 and 2023 consists of the following:


	2024		2023
	(in million pesos)
Trade and other receivables (Note 16)		48,808		43,301
Contract assets		1,953		1,960
Contract liabilities and unearned revenues (Notes 21 and 23)		16,067		18,895

Set out below is the movement in the allowance for expected credit losses of contracts assets as at December 31, 2024 and 2023.


	2024		2023
	(in million pesos)
Balances at beginning of the year		42		45
Provisions		—		—
Reversals and reclassification		25		(3	)
Balances at end of the year		67		42

Changes in the contract liabilities and unearned revenues accounts for the years ended December 31, 2024 and 2023 are as follows:


	2024			2023
	(in million pesos)
Balances at beginning of the year		18,895			17,114
Deferred during the year		123,975			135,982
Recognized as revenue during the year		(126,803	)		(134,201	)
Balances at end of the year		16,067			18,895

The contract liabilities and unearned revenues accounts as at December 31, 2024 and 2023 are as follows:


	2024		2023
	(in million pesos)
Unearned revenues from prepaid contracts		6,543		6,864
Short-term advances for installation services		2,773		5,004
Leased facilities		4,630		4,851
Advance monthly service fees		2,098		2,152
Long-term advances from equipment		23		24
Total contract liabilities and unearned revenues		16,067		18,895

Contract liabilities:
Noncurrent (Note 21)		256		300
Current (Note 23)		17		16

Unearned revenues:
Noncurrent (Note 21)		5,369		7,906
Current (Note 23)		10,425		10,673

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the years ended December 31, 2024, 2023 and 2022 consist of the following:


	2024		2023		2022
	(in million pesos)
Repairs and maintenance		30,653		30,186		28,923
Compensation and employee benefits		24,479		24,644		29,256
Professional and other contracted services		7,878		9,077		8,828
Selling and promotions		5,427		8,037		6,558
Taxes and licenses		5,156		5,215		4,044
Insurance and security services		1,408		1,344		1,576
Rent		1,398		1,372		2,031
Communication, training and travel		1,165		1,229		1,467
Amortization of intangible assets (Note 14)		240		221		228
Other expenses		504		551		1,565
Total selling, general and administrative expenses		78,308		81,876		84,476

Compensation and Employee Benefits

Compensation and employee benefits for the years ended December 31, 2024, 2023 and 2022 consist of the following:


	2024		2023		2022
	(in million pesos)
Salaries and other employee benefits		20,214		20,358		21,213
Manpower Rightsizing Program (MRP)		1,688		2,021		5,028
Pension benefit costs (Note 25)		1,441		1,426		1,743
Incentive plan (Note 25)		1,136		839		1,272
Total compensation and employee benefits		24,479		24,644		29,256

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, 2024, 2023 and 2022 consist of the following:


	2024		2023		2022
	(in million pesos)
Cost of mobile handsets, phone units, broadband data modems and devices		10,046		10,948		11,029
Cost of services		3,965		4,144		3,143
Total cost of sales and services		14,011		15,092		14,172

Asset Impairment

Asset impairment for the years ended December 31, 2024, 2023 and 2022 consist of the following:


	2024		2023		2022
	(in million pesos)
Trade and other receivables (Note 16)		3,875		4,119		5,126
Inventories and supplies (Note 17)		196		89		408
Contract assets		181		224	227
Property and equipment		67		—	282
Prepayments and other nonfinancial assets		2		—	1
Total asset impairment		4,321		4,432		6,044

Other Income (Expenses) – Net

Other income (expenses) – net for the years ended December 31, 2024, 2023 and 2022 consist of the following:


	2024			2023			2022
	(in million pesos)
Gains on derivative financial instruments – net (Note 27)		4,023			1,198			2,322
Gain on sale and leaseback of telecom towers – gross of expenses (Note 9)		1,442			7,777			25,852
Interest income		916			1,016			653
Income from prescription of preferred shares redemption liability (Note 19)		71			—			7,839
Gain on disposal of property and equipment		85			468			148
Gain on dilution of shares in MIH (Note 11)		—			—			660
Gain on debt modification(1)		—			—			295
Foreign exchange gains (losses) – net		(36	)		1,149			(4,687	)
Equity share in net losses of associates and joint ventures (Note 11)		(990	)		(2,806	)		(3,304	)
Financing costs – net		(15,500	)		(13,755	)		(11,759	)
Others – net		2,195			736			1,078
Total other income (expenses) – net		(7,794	)		(4,217	)		19,097

(1) PLDT and Smart re-negotiated terms of selected outstanding Philippine Peso loans in 2022. 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, 2024, 2023 and 2022 consist of the following:


	2024		2023		2022
	(in million pesos)
Interest income arising from revenue contracts with customers		574		467	294
Interest income on cash and cash equivalents (Note 15)		267		469	255
Interest income on financial instruments at amortized cost		47		54	59
Interest income on financial instruments at FVPL		8		12	12
Interest income – others		20		14	33
Total interest income		916		1,016		653

Financing Costs – Net

Financing costs – net for the years ended December 31, 2024, 2023 and 2022 consist of the following:


	2024			2023			2022
	(in million pesos)
Interest on loans and other related items		13,620			12,159			10,860
Accretion on lease liabilities (Note 10)		3,935			3,266			2,057
Accretion on financial liabilities		455			409			375
Financing charges		79			90			215
Capitalized interest (Note 9)		(2,589	)		(2,169	)		(1,748	)
Total financing costs – net		15,500			13,755			11,759