PLDT 1Q2017 Results: Home and Enterprise set pace for revenue growth, up 12% and 13% respectively year-on-year and ahead of industry growth; Home subscribers rose 10% year-on-year, net adds at 340,000; both voice and data revenues up significantly; FTTH homes passed at 3.0 million; roll-out on target towards 4.4 million homes passed by end 2017; Home business launched ‘PLDT SmartCity’, to bring the best broadband experience to homes nationwide; Enterprise data and ICT revenues up 24%, faster tha

第一太平有限公司

(Incorporated with limited liability under the laws of Bermuda)

Press Release

The attached press release was distributed today in Manila by PLDT Inc. ("PLDT"), in which First Pacific Group holds an economic interest of approximately 25.6%.

PLDT is the leading telecommunications provider in the Philippines. Its shares are listed on the Philippine Stock Exchange and its American Depositary Receipts are listed on the New York Stock Exchange. It has one of the largest market capitalizations among Philippine listed companies. Through its principal business groups - fixed line and wireless - PLDT offers a wide range of telecommunications services across the Philippines' most extensive fiber optic backbone and fixed line, and cellular network.

Further information on PLDT can be found at www.pldt.com

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John Ryan Tel: +852 2842 4355

Head of Investor Relations Mobile: +852 6336 1411 Executive Vice President

Group Corporate Communications

Sara Cheung Tel: +852 2842 4336

Vice President

Group Corporate Communications

MANILA, Philippines 12th May 2017 - PLDT Inc. ("PLDT") (PSE: TEL) (NYSE: PHI)

today announced its unaudited financial and operating results for the first quarter of 2017 with Consolidated Service Revenues (net of interconnection costs) at Php35.6 billion. This is 7% less than the services revenues year on year but only 1% lower than

service revenues in the fourth quarter of 2016, in line with the objective to arrest the negative momentum of the topline.

Fixed service revenues (net of interconnection costs) amounted to Php16.9 billion, up 10% year on year, while Wireless service revenues (net of interconnection costs) reached Php20.8 billion, 16% lower than the previous year. Quarter on quarter, fixed service revenues increased by 4% while wireless revenues declined 4%.

Consolidated Core Income, excluding the gain from asset sales and EBITDA adjustments in the Q1 2016 (subsidies and provisions), reached Php5.3 billion, 26% less than a year ago. However, compared to the previous quarter, Recurring Core Income in Q1 2017 rose by Php1.7 billion, or 46%, because of higher EBITDA.

Consolidated EBITDA amounted to Php16.5 billion, 1% less than Q1 2016, but 7% higher than Q4 2016, marking three consecutive quarters of improvement in EBITDA. This was due primarily to lower provisions and lower subsidies that compensated for lower revenues.

EBITDA margin was 44%, an improvement from 41% a year ago and 40% in the previous quarter.

As of end-March 2017, Consolidated Net Debt stood at US$2.7 billion while Net Debt to EBITDA was 2.2x. Gross Debt reached US$3.5 billion, only 25% of which are denominated in US$ compared to 32% as of end-2016 following the refinancing in pesos of the 8.35% US$ bond which matured in March 2017. Taking into account available US$ cash and hedges, only 9% of total debt is unhedged, while 91% of our debt are fixed-rate loans, post-interest rate swaps.

"As we indicated earlier, our focus since the latter part of 2016 has been to stabilize the overall business, which involves stemming the decline of revenues and profitability in the wireless consumer segment, sustaining the upward momentum in the Home and Enterprise businesses and laying the ground for recovery through the digital transformation of our businesses. We've produced encouraging results in the first quarter this year, thanks to the continued strong growth posted by our Home and Enterprise businesses, whilst our Wireless Consumer Group re-doubled efforts to break the negative momentum and hold the line," said Manuel V. Pangilinan, Chairman and CEO of PLDT and Smart Communications.

Home and Enterprise take the lead

PLDT's Home and Enterprise Business units led the way in the first quarter of 2017, posting double-digit revenue increases year-on-year. Home service revenues (net of interconnection costs) reached Php7.8 billion, up 12%, while Enterprise service revenues (net of interconnection costs) rose to Php8.5 billion, climbing 13% versus Q1 2016.

The combined revenues of Home and Enterprise Groups, now make up 46% of consolidated service revenues, higher than the 41% contribution of the Wireless Consumer business of Smart, TNT and Sun.

The Wireless Consumer Group posted service revenues of Php14.7 billion, 18% lower than the same period last year largely due to declines in SMS and voice revenues. On a quarter on quarter basis, however, the rate of decline of Wireless Consumer revenues slowed down to 2%, the difference between the two quarters stemming from the first quarter having two days less than the fourth.

Moreover, the combined subscriber base of Smart, TNT and Sun rose by about 400,000 in the first quarter of 2017 from end-2016.

Data powers growth

Data has powered revenue growth across all the major business units, with Enterprise and Home providing the fulcrum for PLDT's digital pivot.

In the first quarter of 2017, data and broadband revenues grew 10% year on year to Php15.9 billion and comprised 44% of consolidated revenues. On segment basis, data and broadband accounted for 62% and 33% of fixed and wireless service revenues, respectively. Mobile internet revenues grew 20% year on year to Php4.6 billion. Corporate data and data center revenues increased 17% to Php4.9 billion while Home broadband revenues rose 15% to Php4.7 billion.

In terms of their share of revenues per major business group, data and broadband accounted for 66%, 61% and 37% of the first quarter 2017 revenues of Enterprise, Home and Wireless Consumer Businesses, respectively.

"In pursuing digital transformation, we are building on our strengths as the country's leading integrated communications and digital services group with the most extensive and resilient wired and wireless networks and digital infrastructure. Through those platforms, we are offering a growing range of services and solutions that go beyond access and meet the increasingly digital needs of our customers," said Ernesto R. Alberto, PLDT Group Chief Revenue Officer.

"Our advantages in the fixed line business - particularly our brand strength and extensive network reach - is providing us a significant competitive edge since there is much more headroom for growth in fixed moving forward," he added.

Wired and Wireless Network Roll-out

Underpinning its revenue growth is PLDT's extensive roll out of both wired and wireless networks.