PLDT 9M2016 Results: Consolidated revenues for the first 9 months of 2016, At php125.4 billion, 2% less than previous year; Consolidated core income for the period at php21.7 billion, 20% lower than 2015; EBITDA for the period at Php45.7 billion, down 15%; 3Q 2016 EBITDA improved vs 2Q 2016 for fixed and wireless; Data, broadband and digital platform service revenues reach, Php44.6 billion, up 19% from previous year and now 40% of total service revenues (net of interconnection costs); Network improvements f

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 14th November 2016 - PLDT Inc. ("PLDT") (PSE: TEL) (NYSE: PHI) today announced its unaudited financial and operating results for the first three (3) quarters of 2016 with Consolidated Revenues at Php125.4 billion, 2% less than the same period in 2015. Excluding international and national long distance (ILD and NLD), and interconnection costs, consolidated service revenues totaled Php101 billion, stable versus the same period last year. On the same basis, fixed line revenues grew by 9% to Php42.2 billion while wireless revenues declined by 6% to Php64.7 billion.

Consolidated Core Income in this period amounted to Php21.7 billion, 20% lower year on year largely due to lower EBITDA, and increased depreciation and financing costs - both arising from higher capital expenditures.

Consolidated EBITDA declined 15% to Php45.7 billion on account of lower wireless service revenues, a rise in product subsidies, content costs, and, higher provisions. EBITDA margin stood at 38% for the first nine (9) months of the year. However, 3Q2016 EBITDA margin improved to 39% versus 35% in 2Q2016.

As of end September, the Group's Consolidated Net Debt amounted to US$2.8 billion while Net Debt to EBITDA was 2.16x. Gross Debt amounted to US$3.3 billion, 37% of which is denominated in U.S. dollars (about US$1.2 billion). Of this sum, only 11% is unhedged.

Of the US$669 million debt maturities in 2017, about US$470 million of committed refinancing facilities have already been signed while the balance of US$199 million is expected to be finalized by December this year. One third of total Gross Debt will mature from 2022 onwards.

As of end September, PLDT's investment grade ratings remained unchanged from year-end 2015.

"This year has been a particularly challenging period for PLDT, as we grappled with both intense price competition and the continuing shift from voice/SMS services to data demand impacting adversely our wireless revenues; as well as internal adjustments in our senior ranks and in our processes which we are undertaking. All that said, our digital transformation remains on track. We remain focused on the critical initiatives that will definitively shape our businesses to the new direction where growth is driven by data and digital innovation," said Manuel V. Pangilinan, Chairman and CEO of PLDT and Smart Communications.

Data gains in service revenue mix

The continuing shift to digital services is evident in the changing service revenue mix. Data/broadband/digital services and platforms set the pace for growth, posting Php44.6 billion in service revenues* in the first nine (9) months of this year, up 19% from 2015. This has raised its share of total service revenues to 40%, from 33% a year ago. Conversely, the share of SMS/Domestic Voice/and Others declined to 50% from 56%, while that of International Voice slipped from 11% to 10%.

And the march of data raising its share of our total service revenues continued inexorably in the third quarter; for this quarter, data accounted for 60% and 32% of fixed line and wireless service revenues, net of interconnection costs.

Fixed Line and Wireless

PLDT's fixed line business continued on its steady growth path, generating Php46.8 billion of revenues in this period - up 7% from a year ago. The increase was driven by data and broadband which grew by 12%, generating incremental revenues of Php2.9 billion and accounting for 59% of total fixed line revenues, up from 57% in the same period last year.

Wireless services revenues declined by 8% to Php71 billion, as the 22% increase in wireless data and digital platform revenues could not fully compensate for the reductions in SMS and cellular domestic (less 15%) and international voice revenues (24% lower). Data, broadband revenues and digital platform services made up 30% of wireless revenues, up from 23% last year.

Revenues by business units

Viewed in terms of the contributions of the various business units, revenues of PLDT Home registered a 9% increase to Php24.5 billion, due largely to an 11% rise in data revenues and a 25% increase in revenues from digital services such as entertainment and home security services. Revenue growth was driven by a 16% upswing in service subscriptions while ARPU was up 4%.

The Enterprise Group comprised of PLDT Alpha and SME Nation maintained its double-digit growth, gaining revenues of Php24.4 billion during this period, up by 10%. This was due to advances in corporate data and enterprise wireless (both up 15%), ICT solutions (up 12%) and in services overseas via PLDT Global (48%).

The Consumer Wireless Business Group comprised of the mobile services of Smart and Sun posted service revenues of Php55.8 billion, or 5% lower than the previous year. Mobile internet revenues jumped 37% while wireless broadband increased 13%. However, revenues from voice and SMS services declined 15% and 14% respectively. This stemmed from a 5% reduction in subscribers count due to aggressive unlimited voice and SMS offers from competition.

Voyager Innovation, PLDT's digital platform and services unit, generated P912 million in service revenues (including Php503 million of deconsolidated service revenues), largely on the back of its digital financial platform services.

Network Initiatives: Better coverage, higher internet speeds

Laying the foundation for its digital pivot, the Group made steady progress in rolling out its enhanced network infrastructure over the past quarter.

Smart completed the bulk of network improvement activities in the Metro Davao area which involved boosting the coverage and capacity of its mobile network, particularly its LTE or 4G and 3G wireless data services.

This was done through a combination of programs which included the installation of more base station facilities (particularly for LTE and 3G) in the integrated networks of Smart and Sun, and the deployment of low-band radio frequencies for use in LTE and 3G. Low-band frequencies such as 850 MHz cover a larger area and provides better indoor coverage than high-band frequencies. Smart is also in the process of deploying

LTE using the 700 MHz frequency that it has gained access to through a co-use arrangement following the purchase of the telco business of San Miguel Corporation.

As a result, there have been major improvements in the coverage and capacity of the Smart network, leading to better quality of voice and data services in Metro Davao.