PLDT Turns to Data Centers and Maya as Core Telco Growth Slows

 

PLDT Inc. is increasingly relying on its data center operations and digital banking business to sustain growth as its traditional mobile and broadband segments face a more difficult operating environment.

The telecommunications company posted P16.45 billion in net income for the first half of 2026, down 6% from P17.47 billion recorded during the same period last year. Core income also slipped 2% to P16.6 billion, underscoring the pressure confronting its established telecommunications businesses.

Despite the profit decline, PLDT managed to lift consolidated revenue by 2% to P112.01 billion. The gain, however, was absorbed by a 4% increase in expenses, which reached P84.88 billion.

Its core consumer businesses provided little momentum. Mobile revenue remained virtually unchanged at P42.1 billion, while broadband revenue declined to P30 billion. The results highlight the challenge of extracting stronger growth from mature connectivity markets.

Data Centers Emerge as a Major Growth Engine

PLDT's enterprise segment offered a more encouraging picture, with revenue rising 5% to P24.8 billion. A significant contributor was VITRO Inc., the group's data center subsidiary, which increased revenue by 13%.

VITRO already commands roughly one-third of the Philippine data center market, giving PLDT a strong position in an industry benefiting from accelerating demand for cloud computing, artificial intelligence and digital services.

The company intends to expand that advantage by increasing VITRO's operational capacity to 44 megawatts in 2026 and 62.4 MW by 2027, according to VITRO president and CEO Victor Genuino.

The expansion comes as the Philippines strengthens its position as a destination for large-scale digital infrastructure investments. Among the developments supporting the sector is Amazon Web Services' $5-billion investment commitment in the country.

Government policy could provide another catalyst. Executive Order 119, which requires certain top secret and secret government information to be stored within the Philippines, is expected to strengthen demand for domestic data storage facilities. For operators such as VITRO, data residency requirements could translate into additional opportunities for capacity expansion.

Maya Strengthens Its Contribution

PLDT's digital banking exposure is also becoming increasingly significant through Maya. The digital bank contributed P559 million to PLDT during the first half of the year, continuing a run of profitable quarters.

Maya's balance sheet has expanded alongside its profitability. Its deposits reached P86 billion by June, while its loan portfolio stood at P39 billion.

The bank also retained its leading position in merchant acquisition, accounting for 53% of point-of-sale terminals in the market. Its recent rollout of additional business services and credit card offerings is expected to create further revenue opportunities during the rest of 2026.

For PLDT, Maya represents more than an adjacent business. Its growing deposits, lending operations and merchant network provide the group with another avenue for expansion beyond conventional telecommunications.

Cost Discipline Remains Critical

PLDT also generated approximately P300 million from disposing of idle properties, including an aviation-related asset and unused office facilities.

Still, management is keeping a close watch on cash generation. Chairman, president and CEO Manuel V. Pangilinan said the company intends to preserve positive cash flow for the year, with tighter cost controls expected during the second half.

The first-half figures therefore point to a broader strategic shift. While mobile and broadband remain the foundation of PLDT's business, the company's next phase of growth increasingly depends on higher-value digital infrastructure and financial technology. Data centers provide the infrastructure play, while Maya offers exposure to the rapidly expanding digital finance market.