Danny Yu: Well, I think the targets really for us is higher in the second half. As we expect a lot of the long-cycle contracts, for example, contracts with enterprise, we expect that to happen in the second half. We are also seeing positive trend in wireless that has grown from first quarter to second quarter by 3%, and we could – I believe that that growth will continue in the second half. And I think for Home, showing 11% growth in fiber, that remain to be the focus on revenues for Home. So, just a bit of catch-up for Home on installation as we are able to roll out more parts in greenfield, and that’s also supposed to happen in the second half.
Melissa Vergel De Dios: There is a raised hand from GP of JPMorgan. You may un-mute your mic.
Unidentified Analyst: Hi.
Melissa Vergel De Dios: We can hear you.
Unidentified Analyst: Yes. So, my first question is on the increase in finance costs year-on-year of around 20%. So, what is really driving this?
Danny Yu: Fully on the accretion of lease liabilities arising from our sales.
Unidentified Analyst: Okay. Got it. And the other thing is, are there any one-off costs that are impacting the EBITDA? And also if you could share the accelerated depreciation that’s recorded in second quarter?
Melissa Vergel De Dios: Could you repeat your question? You were saying were there any one-off costs impacting EBITDA after that…
Unidentified Analyst: Yes, the second part was, is there any accelerated depreciation that is recorded in the second quarter?
Danny Yu: For the second quarter, there is none. There is no absolute depreciation for the second quarter. What was your first question again? Sorry, I didn’t get it.
Melissa Vergel De Dios: Any one-off…?
Unidentified Analyst: Yes.
Danny Yu: Well, the only non-recurring items, I think I mentioned earlier is the gain on the sale of stratosphere. That’s around PHP3 billion, then partly offset by the MRP costs of around PHP1.8 billion. There was also a gain on ForEx hedging and derivatives of around PHP1.2 billion. That’s for the first semester.
Unidentified Analyst: Okay. But with the gain on sale of stratosphere, impact the EBITDA?
Danny Yu: Yes, in the sense that with stratosphere there will be a reduction in depreciation online. But there is also an increase in financing costs arising from the accretion of these liabilities. Is that your question?
Unidentified Analyst: No, actually, I meant if anything that is impacting the operating expenses.
Melissa Vergel De Dios: Whether stratosphere impacts operating expenses, the sale of towers impacts operating expenses? Is that your question?
Unidentified Analyst: Yes.
Danny Yu: Yes.
Melissa Vergel De Dios: Do you have any other follow-up questions?
Unidentified Analyst: No, that’s it. Thank you.
Melissa Vergel De Dios: Thank you. Hussaini, you have your handy raised?
Hussaini Saifee: Yes. Okay. Hi. Good afternoon, and thanks for the call and thanks for the opportunity. Several questions from me, first is on guidance. Now as the revenue – sorry, the EBITDA growth guidance is lowered from mid to low-single digit. Just wanted to understand what is driving then the lift in Telco Core net income guidance? The second question is on the mobile side. I see that the guidance for the mobile in the second half is – or the outlook in second half is better than the first half. So, what is driving that? Are we seeing any price increase efforts in the market? And how are your competitors, especially the new players responding to that? And on the enterprise side, I read in the press release, PLDT is going for the 12th data center. So, just wanted to understand that, are we already seeing customer traction for the 11th data center? And are there any plans to monetize data center in the coming years. Thank you.
