MVP and connectivity

The business of the group of companies under Wharton-educated Manuel V. Pangilinan is connectivity.

The biggest electricity utility, with 55 percent market share and now on its 122nd year, Meralco, retails power so over eight million people and businesses are connected to electricity, a basic need in the class of food, water and clothing, in 39 cities and 72 towns in an area covering 9,685 sq kms.

By the way, MVP also retails water, through his Maynilad Water System, the west zone of the Metro Manila water concession, 1.55 million water connections servicing up to 10 million people.

Largest telco PLDT’s landlines and Smart’s cellular phones connect people, governments and businesses, between and among themselves.

PLDT/Smart subscribers (60 million cellular, 3.7 million landline, 3.9 million broadband) connect using the PLDT-Smart system’s WiFi, internet and data services.

MVP’s Metro Pacific tollways connect people, towns and cities, businesses, their suppliers and customers, between and among themselves. MVP is probably the biggest tollways operator in Asia.

Connectivity is health. mWell, the digital health care arm of Metro Pacific Investments Corporation, is a fully integrated health and wellness platform that makes health and wellness accessible, affordable and available to anyone, anytime, anywhere.

Under CEO Chaye Cabal Revilla, mWell won the much coveted Oscar of digital apps, the Best Mobile Innovation for Digital Life Award, Digital Everything Category, in the 2023 Global Mobile Awards (GLOMO) in Spain.

The latest MVP connectivity foray is food. He has begun producing food big time.

Access to food, after all, is the ultimate inclusion.

So combine quality yet affordable water, electricity, telephone and cellular connections, tollways and food supply and you have what is called a good life and a lifestyle to die for.

If you own or provide those services, you create what is called long-term value for your stockholders.

PLDT is helping the government’s Broadband sa Masa program intended to digitalize all the poor regions of the country. “Access to digital services is vital for inclusive economic growth,” MVP points out.

In 2024, Meralco expects record earnings, exceeding P43 billion.

“We look forward to another profitable year in 2025 from organic growth and contributions from our new investments, some of which are awaiting approval from the Philippine Competition Commission,” says Meralco CEO MVP.

“We remain optimistic about the continued expansion of the country’s economy under the leadership and tutelage of President Ferdinand Marcos Jr., with full-year economic growth forecasts hovering around six percent, and the potential to outpace other Southeast Asian nations,” says Pangilinan, adding, “Easing inflation pressures and sustained spending on major infrastructure projects which Meralco actively supports and would help. Our recent partnerships with reputable South Korean firms to explore nuclear energy projects in the Philippines also reflect our commitment to the government’s emphasis on sustainability.”

In the first nine months of 2024, Meralco revenues grew 17 percent to P35.1 billion from P30.0 billion in the same nine months in 2023, owing to consistent increase in sales volumes of the distribution utility and higher contributions from the power generation and retail electricity supply businesses. Revenues were P355.4 billion, up seven percent from P335.2 billion.

Net income rose 19 percent to P33.8 billion from P28.4 billion. Core EPS was P31.137, up 17 percent versus 2023; EPS increased 19 percent to P29.948.

In the first nine months of 2024, PLDT Inc. revenues grew four percent or P5.2 billion to P155.0 billion. Income was P28.1 billion in the first nine months of 2024, up one percent year-on- year. Telco Core EPS was at P123; Reported EPS reached P130.

Consolidated Service Revenues (net of interconnect costs) grew by two percent or P2.6 billion to P144.9 billion in the first nine months of 2024. Data and broadband, which grew by three percent or P3.5 billion to P120.4 billion, contributed 83 percent to Consolidated Service Revenues. Excluding the drag from legacy revenues, Consolidated Service Revenues were higher by five percent.

“As we seek growth in a rapidly evolving digital landscape, we must take on an insurgent’s attitude to not simply embrace change but lead it,” said Pangilinan, PLDT and Smart chairman and CEO. “We must challenge the wisdom we have acquired over the years, to consistently rise to meet and exceed the constantly growing demands and expectations of our customers, in order to stay on track toward achieving escape velocity.”

EBITDA grew by three percent, or P2.4 billion, year-on-year to P80.7 billion in the first nine months of 2024. EBITDA margin was at 52 percent for the period.

PLDT’s Individual Wireless segment posted revenues of P62.1 billion in the first nine months of the year, up two percent or by P1.5 billion.

Mobile data revenues, which now account for 89 percent of total Individual Wireless revenues, grew five percent to P55.2 billion from P52.4 billion.

Active data users stood at 41.2 million, with average data usage per subscriber at 11.6 GB, up seven percent versus 10.8 GB in the same period last year. Mobile data traffic increased by 10 percent year-on-year to 3,989 Petabytes, primarily supported by the rollout of new sites and expansion of LTE sites.

At end-September 2024, Smart had registered 60.3 million mobile subscribers.

Total fiber subscribers at end-September 2024 was 3.3 million, driven by PLDT’s Fiber expansion.

PLDT’s Fiber network now covers at least 20,744 barangays nationwide, making it the largest in the country. PLDT will continue leveraging on its fiber/mobile network and wider PLDT group assets to grow PLDT Home through continued Fiber expansion in new and existing areas.

The PLDT Group’s fiber footprint remains unparalleled and the most extensive in the Philippines. Homes passed reached 18.3 million in 72 percent of the country’s towns and 91 percent of total provinces. Smart’s combined 5G/4G network covers around 97 percent of the population.

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