Strong data demand lifts Globe Q1 revenues; profit slips on base effects, higher financing costs

GLOBE TELECOM, Inc. posted a 20% decline in first-quarter (Q1) attributable net income to P5.55 billion from P6.98 billion a year earlier, as the absence of one-off gains booked in 2025 and higher financing costs offset growth in revenues and core earnings driven by strong data demand.

In a regulatory filing on Tuesday, the Ayala-led telecommunications company said core net income rose 9% year on year to P4.93 billion, while consolidated gross service revenues climbed 5% to P41.97 billion.

“For the three months ended March 2026, Globe posted a net income after tax of P5.6 billion, down by 20% from P7.0 billion in 1Q25, primarily due to last year’s one-off gains from the dilution of Globe’s stake in Mynt following the MUFG (Mitsubishi UFJ Financial Group) investment, as well as tower sale gains, and higher net interest expense,” the company said.

The company said revenue growth was supported by sustained mobile data demand, continued fiber adoption, and resilient enterprise information and communications technology (ICT) activity.

“This comes amid another challenging macroeconomic backdrop, which the company continues to navigate,” Globe said.

Mobile revenues rose 6% to P29.97 billion, led by an 11% increase in mobile data revenues to P26.78 billion.

Globe said mobile data traffic rose 18% to 1,810 petabytes during the quarter, while average monthly data consumption per subscriber increased 12% to around 16 gigabytes.

Home broadband revenues also increased 6% to P6.18 billion as fiber adoption continued to grow, while corporate data revenues climbed 6% to P5.14 billion, driven by business application solutions, cloud, and cybersecurity services.

Globe said data-driven services, including mobile internet, fiber broadband, and enterprise solutions, now account for 91% of consolidated service revenues, up from 87% a year ago.

“Data-driven services, spanning mobile internet, fiber broadband, and enterprise solutions now account for 91% of consolidated service revenues,” the company said.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 7% to P22.17 billion, while EBITDA margin improved to 52.8% from 52.1% a year earlier.

Meanwhile, Globe’s equity earnings from fintech affiliate Mynt, the parent company of GCash, increased 8% to P1.9 billion during the quarter.

Globe said Mynt now accounts for 30% of its net income before tax.

“Mynt’s growing contribution underscores its role as a key earnings driver, complementing Globe’s sustained investments in digital infrastructure and connectivity,” Globe said.

Capital expenditures (capex) surged 51% to P12.74 billion in the first quarter as Globe accelerated investments in network expansion and capacity enhancements. About 91% of capex was allocated to data-related initiatives.

The company maintained its full-year capital expenditure guidance of below $1 billion.

“Globe remains focused on sustaining positive free cash flow and maintaining a prudent balance sheet,” it said.

Globe also continued to expand its fiber and 5G initiatives during the quarter. The company said GFiber Prepaid subscribers reached one million by end-March, while fiber now accounts for about 93% of total home broadband revenues.

Globe said it deployed 408 new 5G sites during the quarter, bringing outdoor 5G coverage to over 98% in Metro Manila and key cities in Visayas and Mindanao.

“Moving forward, in the face of a challenging macroeconomic environment posed by the ongoing Middle East crisis, our priority is execution — delivering a best-in-class customer experience, operating with focus, and investing where it matters most,” Globe President and Chief Executive Officer Carl Raymond R. Cruz said.

“We will continue to expand our 5G network, deepen our fiber footprint, and scale our digital platforms,” he added.

Globe also said ST Telemedia Global Data Centres Philippines is on track to exceed 30 megawatts of capacity this year following developments at its STT Cavite facility.

The company added that it continues to strengthen enterprise capabilities through artificial intelligence-driven solutions and digital infrastructure investments.

On Tuesday, shares in Globe rose 1.8% or P30 to close at P1,700 apiece. — Ashley Erika O. Jose