Income and Expenses (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021:

Revenue Streams	Wireless		Fixed Line		Others		Inter- segment Transactions			Consolidated
	(in million pesos)
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
December 31, 2021
Type of good or service
Service revenue		99,639		115,458		—		(30,417	)		184,680
Non-service revenue		6,980		534		—		(8	)		7,506
Total revenues from contracts with customers		106,619		115,992		—		(30,425	)		192,186
Timing of revenue recognition
Transferred over time		99,639		115,458		—		(30,417	)		184,680
Transferred at a point time		6,980		534		—		(8	)		7,506
Total revenues from contracts with customers		106,619		115,992		—		(30,425	)		192,186

Remaining performance obligations are associated with our wireless and fixed line subscription contracts. 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 expect to recognize approximately 56% in 2024 and 44% in 2025 and onwards. As at December 31, 2022, 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 Php47,049 million, of which we recognized approximately 55% in 2023 and expect to recognize 45% in 2024 and onwards.

Summary of Contract Balances

Contract balances as at December 31, 2023 and 2022 consists of the following:

	2023			2022
			(in million pesos)
Trade and other receivables (Note 16)		43,301			39,916
Contract assets		1,960			2,278
Contract liabilities and unearned revenues (Notes 21 and 23)		18,895			17,114

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, 2023, 2022 and 2021.

	2023				2022			2021
				(in million pesos)
Balances at beginning of the year		45				55			92
Provisions		(3	)			4			32
Reclassification		—				(14	)		(69	)
Balances at end of the year		42				45			55

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, 2023, 2022 and 2021 are as follows:

	2023				2022			2021
				(in million pesos)
Balances at beginning of the year		17,114				13,621			9,571
Deferred during the year		135,982				123,218			138,346
Recognized as revenue during the year		(134,201	)			(119,725	)		(134,296	)
Balances at end of the year		18,895				17,114			13,621

Summary of Contract Liabilities and Unearned Revenues Account

The contract liabilities and unearned revenues accounts as at December 31, 2023 and 2022 are as follows:

	2023			2022
			(in million pesos)
Unearned revenues from prepaid contracts		6,864			5,842
Leased facilities		4,851			4,938
Short-term advances for installation services		5,004			4,180
Advance monthly service fees		2,152			2,136
Long-term advances from equipment		24			18
Total contract liabilities and unearned revenues		18,895			17,114
Contract liabilities:
Noncurrent (Note 21)		300			204
Current (Note 23)		16			5
Unearned revenues:
Noncurrent (Note 21)		7,906			7,411
Current (Note 23)		10,673			9,494

Summary of Selling, General and Administrative Expenses

Selling, general and administrative expenses for the years ended December 31, 2023, 2022 and 2021 consist of the following:

	2023			2022		2021
			(in million pesos)
Repairs and maintenance (Notes 13, 17 and 24)		30,186			28,923		24,569
Compensation and employee benefits		24,644			29,256		24,884
Professional and other contracted services (Note 24)		9,077			8,828		8,352
Selling and promotions (Notes 18 and 24)		8,037			6,558		6,704
Taxes and licenses		5,215			4,044		4,314
Rent (Notes 10 and 24)		1,372			2,031		2,240
Insurance and security services (Note 24)		1,344			1,576		1,730
Communication, training and travel (Note 24)		1,229			1,467		963
Amortization of intangible assets (Note 14)		221			228		2,822
Other expenses		551			1,565		1,108
Total selling, general and administrative expenses		81,876			84,476		77,686

Summary of Compensation and Employee Benefits

Compensation and employee benefits for the years ended December 31, 2023, 2022 and 2021 consist of the following:

	2023			2022		2021
			(in million pesos)
Salaries and other employee benefits		20,358			21,213		21,216
MRP		2,021			5,028		269
Pension benefit costs (Note 25)		1,426			1,743		2,213
Incentive plan (Note 25)		839			1,272		1,186
Total compensation and employee benefits		24,644			29,256		24,884

Summary of Cost of Sales and Services

Cost of sales and services for the years ended December 31, 2023, 2022 and 2021 consist of the following:

	2023			2022		2021
			(in million pesos)
Cost of mobile handsets, broadband data modems and devices		10,509			9,775		8,286
Cost of services		4,144			3,143		3,068
Cost of point-product-sales		439			1,254		1,563
Total cost of sales and services		15,092			14,172		12,917

Summary of Asset Impairment

Asset impairment for the years ended December 31, 2023, 2022 and 2021 consist of the following:

	2023			2022		2021
			(in million pesos)
Trade and other receivables (Note 16)		4,119			5,126		3,694
Contract assets		224			227		253
Inventories and supplies (Note 17)		89			408		847
Property and equipment (Note 9)		—			282		148
Prepayments and other nonfinancial assets		—			1		—
Total asset impairment		4,432			6,044		4,942

Summary of Other Income (Expenses) - Net

Other income (expenses) – net for the years ended December 31, 2023, 2022 and 2021 consist of the following:

	2023				2022			2021
				(in million pesos)
Gain on sale and leaseback of telecom towers – gross of expenses (Note 9)		7,777				25,852			—
Gains on derivative financial instruments – net (Note 27)		1,198				2,322			1,400
Foreign exchange gains (losses) – net		1,149				(4,687	)		(3,899	)
Interest income		1,016				653			655
Gain on sale of property and equipment		468				148			884
Income from prescription of preferred shares redemption liability (Note 19)		—				7,839			—
Gain on dilution of shares in MIH (Note 11)		—				660			826
Loss on debt modification(1)		—				295			1,372
Reversal of prior-year provisions		—				—			2,594
Gain on change in fair value of Phunware, Inc., or Phunware		—				—			306
Gain on sale of Phunware		—				—			115
Equity share in net losses of associates and joint ventures (Note 11)		(2,806	)			(3,304	)		(1,101	)
Financing costs – net		(13,755	)			(11,759	)		(10,402	)
Others – net		736				1,078			635
Total other income (expenses) – net		(4,217	)			19,097			(6,615	)

(1) PLDT and Smart re-negotiated terms of selected outstanding Philippine Peso loans in 2022 and 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, 2023, 2022 and 2021 consist of the following:

	2023			2022		2021
			(in million pesos)
Interest income on cash and cash equivalents - continuing operation (Note 15)		469			255		268
Interest income arising from revenue contracts with customers		467			294		299
Interest income on financial instruments at amortized cost (Note 12)		54			59		13
Interest income on financial instruments at FVPL		12			12		23
Interest income on financial instruments at FVOCI		—			—		2
Interest income – others		14			33		50
Total interest income		1,016			653		655

Summary of Financing Costs - Net

Financing costs – net for the years ended December 31, 2023, 2022 and 2021 consist of the following:

	2023				2022			2021
				(in million pesos)
Interest on loans and other related items (Notes 20 and 27)		12,159				10,860			10,482
Accretion on lease liabilities (Note 10)		3,266				2,057			1,158
Accretion on financial liabilities		409				375			239
Financing charges		90				215			105
Capitalized interest (Notes 9 and 28)		(2,169	)			(1,748	)		(1,582	)
Total financing costs – net		13,755				11,759			10,402