Globe Telecom, Inc. reported a net income of P7.0 billion in the first quarter of the year, up 3 percent from P6.8 billion a year earlier, despite a 3 percent decline in consolidated gross service revenues to P39.9 billion.

In a report released over the weekend, the Ayala-backed telco said the slight profit increase was mainly driven by higher equity earnings from affiliates and a one-time gain from the deemed disposal of its stake in Mynt, the operator of the mobile e-wallet GCash.

“Notwithstanding our first-quarter results, we remain steadfast in driving our strategic agenda forward and unlocking greater operational efficiency across the business,” Globe President and CEO Carl Raymond R. Cruz said.

“The growth in net income, healthy margins, and rising contributions from Mynt are a testament to our disciplined and effective execution. These results reflect the solid foundation we’ve built as we continue to transform into a digital solutions partner of choice for Filipinos,” he added.

The company booked a P2.6 billion gross gain from the dilution of its ownership in Mynt, following Mitsubishi UFJ Financial Group’s acquisition of an 8 percent stake in the digital finance firm.

Globe’s share in Mynt’s equity earnings surged 86 percent to P1.8 billion, now accounting for 22 percent of its pre-tax net income, up from 11 percent a year ago.

Excluding non-recurring items, such as the Mynt gain and past tower sale-and-leaseback transactions, Globe’s core net income would have fallen 22 percent to P4.5 billion from P5.8 billion, weighed down by higher interest expenses and non-operating charges.

Operating expenses dropped 4 percent to P19.1 billion as Globe pursued cost-efficiency measures. EBITDA stood at P20.8 billion, down 3 percent year-on-year, but the company maintained a healthy EBITDA margin of 52.1 percent, exceeding its full-year target of 50 percent.

Globe spent around P8.5 billion in capital expenditures from January to March, down 38 percent from P13.7 billion last year, as it continued to optimize spending while maintaining strong network investments.

As of the end of March, the company had built 4,871 new cell sites and upgraded 3,940 existing ones with LTE to boost network reliability.

It also rolled out 17,502 new fiber-to-the-home lines and added 235 new 5G sites, expanding 5G coverage to 98.71 percent of Metro Manila and 97.97 percent of key cities in the Visayas and Mindanao. About 9.5 million devices were connected to Globe’s 5G network during the quarter.

Internationally, Globe expanded its roaming services to 99 destinations through 168 inbound and 183 outbound roaming partners.