Globe Telecom Inc. reported a net income of ₱7.0 billion for the first quarter of 2025, up 3% from the same period last year, as strong contributions from its digital financial services arm and disciplined capital spending helped offset weaker mobile and corporate data revenues.
Despite a 3% year-on-year dip in consolidated gross service revenues to ₱39.9 billion, the Ayala-led telco delivered solid profitability through cost efficiency and operational discipline.
Globe’s EBITDA stood at ₱20.8 billion, with a margin of 52.1%, reflecting its continued focus on sustainable digital growth amid economic headwinds.
Mobile services remained the primary revenue driver, generating ₱28.3 billion or 71% of total revenues. Mobile data, which now makes up 85% of the mobile business, grew 1% to ₱24.1 billion despite a slight decline in traffic.
Globe attributed this to improved monetization and growing digital adoption, even as heat-related mobility disruptions and a transport strike reduced usage.
Home broadband revenues fell 5% to ₱5.8 billion, weighed down by declines in fixed wireless, although fiber continued to grow.
GFiber Prepaid subscribers surged 53% quarter-on-quarter to 400,000, reinforcing Globe’s dominance in affordable fiber connectivity and lifting its total fixed-wired base to 1.4 million.
Corporate data revenues dropped 2% to ₱4.9 billion, reflecting a 15% contraction in core services, partly offset by continued gains in cybersecurity, IoT, and enterprise tech solutions.
Notably, Globe’s fintech unit Mynt, which operates GCash, saw its contribution to pre-tax net income rise to 22%, nearly double the 11% share in Q1 2024.
Equity earnings from Mynt jumped 86% year-on-year to ₱1.8 billion, supported by strong user growth and a ₱2.6 billion gain on the dilution of Globe’s stake following Mitsubishi UFJ Financial Group’s 8% acquisition.
Core net income, excluding one-time gains and forex adjustments, declined 22% to ₱4.5 billion, as higher financing costs and depreciation impacted normalized earnings.
Capital expenditures were sharply curtailed, falling 38% to ₱8.5 billion, as Globe continues to prioritize cash efficiency while investing heavily in network modernization.
About 92% of capex was funneled to data-related initiatives. The telco deployed 4,871 new cell sites and upgraded nearly 4,000 existing ones with LTE, while expanding its 5G footprint to cover nearly 98.7% of Metro Manila and 98% of major Visayas and Mindanao cities. Globe’s 5G network now supports 9.5 million devices.
Internationally, Globe enhanced roaming coverage with 168 inbound and 183 outbound partners across 99 countries.
Globe’s digital leadership was recognized at the Mobile World Congress in Barcelona, where it received accolades for network consistency and AI-enabling infrastructure.
“Our first-quarter performance reflects our steadfast execution and evolving digital strategy,” said Globe President and CEO Ernest Cu. “While telecom matures, new verticals—especially fintech and fiber—present compelling growth opportunities.”
The company’s balance sheet remained strong, with total debt down to ₱242 billion and Net Debt to EBITDA at 2.34x, affirming Globe’s financial health and ability to fund long-term digital expansion.
Business News Asia