PLDT reported a 6 percent year-on-year drop in core earnings to ₱8 billion for the third quarter, squeezed by higher depreciation and finance costs. While its data and broadband businesses grew, rising debt and capital expenditures have eroded margins.
The company has invested heavily in network upgrades and digital transformation, but analysts say the returns have been slower than expected. Competition from Globe and DITO has intensified, keeping price pressure high even as demand for data expands.
The bright spot is Maya, PLDT’s fintech arm, which turned profitable this year after sustained growth in payments and lending. However, Maya’s success has yet to offset losses in traditional telecom services.
For consumers, the slowdown could mean fewer promotional offers and slower rollout of new technologies like 5G. For investors, the results highlight the tough economics of a mature telecom market where growth is incremental and capital costs are heavy.
BDO Securities said PLDT remains fundamentally sound but needs to control spending to protect dividends. Its experience mirrors a broader industry challenge: balancing innovation with profitability.