{"id":323309,"date":"2023-05-23T00:53:13","date_gmt":"2023-05-22T16:53:13","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323309"},"modified":"2023-05-23T00:53:15","modified_gmt":"2023-05-22T16:53:15","slug":"stock-in-focus-pldt-inc-tel-23-may-2023-by-regina-capital-devt-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-pldt-inc-tel-23-may-2023-by-regina-capital-devt-corp\/","title":{"rendered":"Stock in Focus: PLDT, Inc. (TEL) – 23 May 2023 by Regina Capital Dev’t Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>TEL<\/td><\/tr>
Company Name<\/strong><\/td>PLDT, Inc. (TEL)<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Dev’t Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>23 May 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1,608.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Overall, we are revising our Target Price to P1,608 with an upside of +27.8% as the company continues to register growth in its fiber-based business.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

PLDT Inc. (TEL) Telco Core Income in 1Q 2023 is up +5% year-on-year (y\/y) to P4.3 billion. Bottomline improved on higher EBITDA and on lower depreciation. Fiber-
based revenues provided uplifts while the mobile segment saw decline on lower non-data revenue. Prepaid customers especially TnT continue to see a decline in numbers due to economic headwinds.<\/p>\n\n\n\n

Fixed wireless is on the decline. High base due to the pandemic as people rushed for connectivity. As we approach the post-pandemic era, demand under this segment continues to decline. Management says that fixed wireless will be focusing on areas which do not have access to fiber connectivity and will be highlighted as its prepaid offering. The company will not be offering a prepaid service under its fixed-line broadband unlike its competitors who would be releasing an offering in the next couple of months.<\/p>\n\n\n\n

The quarter continues to see a decline in non-data revenues. Non-data revenues decline -1.36% y\/y, while data-related services are up +6.13% y\/y to P38.6 billion. EBITDA is up primarily on performance under the fixed line segment. Consolidated EBITDA increased +17% y\/y to P24.38 billion. Churn rates on a q\/q basis are lower for Fixed broadband, leading to net adds of 33k, an increase compared to 4Q 2022 net adds of 6k.<\/p>\n\n\n\n

Mobile subscriber base under prepaid plans continues its decline. Total mobile subscribers are down -7% y\/y. Postpaid subscribers under Smart increased +25% y\/y as Sun Postpaid subscribers rebrand under Smart Postpaid. Total postpaid subscribers, however, decline slightly.<\/p>\n\n\n\n

Mobile service revenues are down primarily on the decline of SMS and voice. SMS revenues decline -15% y\/y to P1.25 billion, while voice decreased -20% y\/y to P3.05 billion. Adoption of alternative messaging and VoIP programs shift subscribers\u2019 use towards application-based form of communications. Roaming revenues however soared +70% y\/y to P440 million for the quarter, as travel picks up.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>