Globe Telecom Inc reported a sequential recovery in second-quarter revenues, driven by improving mobile data usage and growing fiber broadband adoption, though first-half results remained below year-ago levels amid challenging economic conditions.
The Philippines’ second-largest telecommunications company posted consolidated service revenues of 40.3 billion pesos ($723 million) for the April-June period, up 1% from the first quarter but part of a 2.5% decline to 80.2 billion pesos for the first half versus the same period in 2024.
“Our second quarter performance underscores the growing impact of our cost and operational efficiency efforts,” Chief Executive Carl Raymond Cruz said in a statement, citing sequential growth in revenues and core earnings despite market maturity and competition.
Mobile business revenues, which account for the bulk of Globe’s operations, rose 2% quarter-on-quarter to 28.8 billion pesos in Q2, though six-month revenues of 57.1 billion pesos remained below last year’s 58.4 billion pesos.
The company’s mobile subscriber base expanded to 62.5 million users, up 5% year-on-year.
Globe’s prepaid fiber service, GFiber Prepaid, emerged as a bright spot with subscribers surging 37% to 544,000 in the second quarter.
The affordable fiber option saw average daily top-ups multiply 4.5 times compared to 2024 averages, signaling strong customer engagement.
Digital financial services subsidiary Mynt, which operates GCash, contributed significantly to profitability. Globe’s share of Mynt’s equity earnings jumped 78% to 3.8 billion pesos in the first half, now representing 26% of the parent company’s pre-tax income.
Core net income, excluding one-time items, reached 10.4 billion pesos for the first half, down 11% year-on-year. However, second-quarter core earnings jumped 30% sequentially to 5.9 billion pesos.
The company reduced capital expenditures by 33% to 18.9 billion pesos while maintaining network expansion, deploying 937 new cell sites and 444 5G sites during the period.
Business News Asia
