Data centers, digital bank new PLDT growth drivers

MANILA, Philippines — Telco giant PLDT Inc. has found new growth drivers in its data centers and digital bank as its broadband and mobile segments struggle to overcome consumer challenges.

Based on its financial report, PLDT’s net income declined by six percent to P16.45 billion in the six months to June, from P17.47 billion a year ago, mirroring industry trend of profit slowdown.

PLDT’s core income, measured as profit from flagship services, also went down by two percent to P16.6 billion, pushing the telco to turn to its other revenue streams.

PLDT grew its revenue by two percent to P112.01 billion, but this was offset by a four-percent hike in expenses to P84.88 billion. PLDT’s core businesses also recorded flat results, with mobile revenues steady at P42.1 billion and broadband income dipping to P30 billion.

However, PLDT’s enterprise revenues jumped by five percent to P24.8 billion, lifted by higher gains from the data center business through VITRO Inc. The unit hiked its revenue by 13 percent, as it currently corners the largest market share, or about a third, of the data center industry.

VITRO president and CEO Victor Genuino said the company is keen on improving market share by raising operational capacity to 44 megawatts this year and to 62.4 MW by 2027.

Genuino said VITRO would capitalize on recent developments that favor data center expansion: the $5-billion investment pledge from Amazon Web Services and the issuance of an executive order (EO) pushing for data residency.

EO 119 requires top secret and secret information to be stored domestically, which is expected to drive up demand for data centers and benefit VITRO.

Moreover, digital bank Maya increased its contribution to PLDT to P559 million in the first half, exhibiting its capability to string together consecutive quarters of profit. Maya’s deposit balance has reached P86 billion as of June, with its loan book hitting P39 billion.

Maya kept its market leadership in merchant acquisition, as 53 percent of point-of-sale terminals belong to the bank to date. Recently, Maya introduced new services for businesses and credit card users, and these efforts are expected to bear fruits for the remainder of 2026.

PLDT also raised about P300 million from the sale of idle properties, including an aviation asset and inactive offices.

PLDT chairman, president and CEO Manuel V. Pangilinan said the telco is focused on sustaining positive cash flow this year, which would entail cost controls in the second half.