PLDT Inc. (TEL)

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1. Company Information
Company Name	PLDT Inc. (TEL)
Sector	Services		Incorporation Date	Nov 28, 1928
Subsector	Telecommunications		Number of employees	18,038
Board of Directors	Chairman : Manuel V. Pangilinan Directors: Helen Y. Dee (YGC), James L. Go (JGS), Manuel B. Zamora, Jr.(NIKL)
Website / E-mail	www.pldt.com / Pldt_ir_center@pldt.com.ph
2. Stock Information
Total Assets	452,392,000,000	Market Capitalization		355,411,749,875.00
Total Liabilities	333,508,000,000	Outstanding Shares		216,055,775
Retained Earnings	9,214,000,000	Listed Shares		233,926,212
Listing Date	Sep 17, 1953	Issued Shares		218,779,886
Board Lot	5	Free Float Level (%)		53.81%
Par Value	5.00	Foreign Ownership Limit		40%
3. Major Stock Holders
Philippine telecommunications investment corp. Metro pacific resources, inc J.P. Morgan Hongkong Nominees Limited NTT Communications corp. NTT DOCOMO, inc. JG Summit Holdings, Inc. Social Security System Public (Filipino) Public (Non-Filipino)				12.05 % 09.98 % 12.99 % 05.85 % 10.5 % 07.96 % 03.86% 14.00% 20.00%
4. Company Descriptions and Business Development
Notes 1. Related companies: MPI, MER 2. Stiff competition is expected     ● The Philippines government wants the third telco player besides TEL and GLO.     ● TransCo (country’s power transmission asset owner) wants to join using their nationwide fiber-optic infra. 3. Sold remaining Beacon Electric Asset Holdings Incorporated stake to MPIC in 2017.     ● MPIC (Metro Pacific Investment Corp.) is the sister company of PLDT.     ● Beacon holds 35% interest in Meralco (Manila Electric Company) and 56% interest in Global Business Power Corporation. MPIC holds 100% of Beacon stake. 4. Bought frequency band (700MHz) from SMC(San Miguel Corp.) together with Globe Telecom to improve speed and coverage. PCC (Philippines Competition Committee) is still trying to tackle it but the Court held it legal. 5. Setting up Cell Sites is quite difficult in some areas because of the permit/right issue.
Overview PLDT is one of the leading telecommunications service providers in the fixed line, wireless and broadband markets in the Philippines, in terms of both subscribers and revenues. Fixed line service accounts for approximately 65% of the total reported fixed line subscribers nationwide as at December 31, 2016. Smart and DMPI, the PLDT Group’s mobile service providers, collectively, account for approximately 50% of the total reported mobile subscribers nationwide as at December 31, 2016. Business Groups Revenue contribution in 2016 (in million pesos) Wireless Fixed Line Others 104,914 72,728 20 59.05% 40.94% 0.01% The business activities are categorized into three business units: Wireless, Fixed Line and Others. Wireless While the legacy business of voice and SMS still provides the majority of the revenues, data, whether mobile internet or broadband, is the fastest-growing and therefore, the focus areas of the business today. PLDT provides (a) mobile services, (b) home broadband services, (c) digital platforms and mobile financial services, and (d) MVNO and other services. Smart and DMPI with 62,763,209 total subscribers as at December 31, 2016 representing a combined market share of approximately 50%. PLDT utilizes 3G high-speed packet access (HSPA), 4G HSPA+ or LTE technology and are currently upgrading the wireless broadband facilities. Fixed Line PLDT had 2,438,473 fixed line subscribers and revenues from the fixed line business were 41% of the total revenues for the years ended December 31, 2016. PLDT’s 11,893-kilometer long DFON is complemented by an extensive digital microwave backbone network operated by Smart. This microwave network complements the higher capacity fiber optic networks and is vital in delivering reliable services to areas not covered by fixed terrestrial transport network. PLDT’s network offers the country’s most extensive connections to international networks through two international gateway switching exchanges and various regional submarine cable systems in which we have economic interests. Others PLDT’s other business consists primarily of PCEV, an investment holding company, which owns an 8.74% effective interest in Meralco(MER), as at December 31, 2016  through its 25% equity interest in Beacon Electric Asset Holdings, Inc. PLDT Global Investments Corporation owns an 18.32% economic interest in Asia Outsourcing Beta Limited.  PLDT Digital Investments Pte. Ltd. owns a 6.1% equity interest in Rocket Internet AG, through its wholly-owned subsidiary, PLDT Online Investments Pte. Ltd. Historical Background PLDT was incorporated under the old Corporation Law of the Philippines (Act 1459, as amended) on November 28, 1928 as Philippine Long Distance Telephone Company, following the merger of four telephone companies under common U.S. ownership. PLDT’s franchise covers the business of providing basic and enhanced telecommunications services in and between the provinces, cities and municipalities in the Philippines and between the Philippines and other countries and territories including mobile, wired or wireless telecommunications systems. PLDT’s subsidiaries, including Smart and DMPI, maintain their own franchises with a different range of services and periods of legal effectiveness for their licenses. Recent Developments ● Extension of Smart’s Congressional Franchise: Smart’s franchise expired on April 15, 2017 but extended another 25 years in 2017. ● 40% Foreign ownership limit dispute: SC (Supreme Court) upheld that PLDT is 60% Filipino owned company. ● Transfer of DMPI’s Sun Postpaid Mobile and Broadband Subscription Assets to Smart ● Sale of SPi CRM, Inc and Infocom Technologies, Inc to Relia Inc. ● Sale of PCEV’s Beacon Shares to Metro Pacific Investment Corporation, or MPIC: MPIC and Beacon holds 49% of Meralco shares. ● PCEV’s Additional Investment in Beacon Class “B” Preferred Shares: The fund used in purchasing Global Business Power Corporaton from GT Capital. ● Beacon’s Acquisition of 56% of Global Business Power Corporation ● Investments of PLDT in Vega Telecom, Inc. or VTI, Bow Arken Holdings Company, or Bow Arken, and Brightshare Holdings, Inc., or Brightshare: It was mainly for the radio frequencies, especially 700MHz band. ● PLDT Online’s Investment in iflix Limited, or iflix, an internet TV service provider Subsidiaries / Associates / Affiliates / Joint Ventures Smart Smart was incorporated in the Philippines in 1991 and given provisional authorities to install, operate and maintain a mobile telephone system (CMTS). In March 2000, PLDT acquired Smart in an all stock transaction to further strengthen the PLDT Group’s market leadership in the telecommunications sector. The following are the major subsidiaries of Smart: Smart Broadband, Inc. construct, install, establish, maintain, lease and operate wire and/or wireless telecommunications systems throughout the Philippines. Voyager Innovations, Inc. primarily engages in the development and sale of software, digital technologies, systems, devices and applications. PayMaya Philippines, Inc. (PayMaya) primarily engages in the business of electronic money (e-money) and other services and/or activities related or incidental to the business of e-money. It has around 8 million active users. PLDT Communications and Energy Ventures, Inc. (PCEV) was incorporated on July 18, 1968. Until 1991, PCEV’s sole business was providing fixed line telecommunications services in eight cities and municipalities in the Philippines. In April 2000, PCEV launched a digital prepaid mobile service, under the TNT brand, using the GSM platform of Smart. PCEV transferred its fixed line business to PLDT, mobile to Smart. DMPI provides wireless telecommunications services in the country. DMPI has operated its wireless services under the Sun Mobile brand since March 29, 2003. Digitel was established to provide wireline services in the country. PLDT bought stake from JGSHI (JG Summit Holdings Incorporated) and certain other seller-parties’ ownership interest in Digitel. Digitel operates a fixed line business in certain parts of the country and is the 100% owner of DMPI, which is engaged in the mobile telecommunications business. ClarkTel PLDT Clark Telecom, Inc. provides basic and enhanced telecommunications services within the Clark Special Economic Zone, PLDT Global was incorporated in the British Virgin Islands to position PLDT as a full service global telecommunications player through a strategy of establishing presence in key countries with substantial Overseas Filipino Professionals or Workers. PLDT Online, Inc. is incorporated in the British Virgin Islands and specializes in selling wholesale and retail products and services through an online portal. PLDT Global Investments Corporation was incorporated in the British Virgin Islands and specializes as an investment holding company. ePLDT is engaged in information and communications technology businesses. ePLDT operates an internet data centers under the brand name VITRO. ePLDT also currently holds equity interests in the following entities:  a 100% interest in IP Converge Data Services, Inc., IPCDSI, which owns and operates three internet data centers in the country and provides enterprises with managed data services and cloud-based business solutions across a wide range of industries. IPCDSI is also the country’s premier Google Enterprise Partner. MediaQuest Holdings, Inc. is a media conglomerate owned by the Beneficial Trust Fund of the PLDT. It owns most of the media establishments such as TV5 Network (TV5), Nation Broadcasting corporation (NBC), Cignal, 51% interest in The Philippine Star, 70% interest in Business World Publishing Corporation (BusinessWorld), 30% in Unitel Group and 80% minority interest in AKTV.