Globe Q1 profit falls on higher interest costs, lower gains

Globe Telecom Inc.’s first-quarter net income fell 20 percent year-on-year to P5.6 billion from P7 billion, due to higher net interest expenses and the absence of one-off gains recorded last year, despite continued core business growth.

The Ayala-led telecommunications company said Tuesday the decline in net income after tax was primarily due to last year’s gains from the dilution of Globe’s stake in Mynt following the MUFG investment, as well as tower sale gains. However, these were partly offset by stronger equity earnings from affiliates.

Core net income, which excludes foreign exchange and mark-to-market movements, rose 9 percent year-on-year to P4.9 billion.

Consolidated gross service revenues also grew 5 percent to P42 billion, driven by sustained mobile data demand, continued fiber adoption, and resilient enterprise ICT activity.

EBITDA, meanwhile, increased 7 percent year-on-year to P22.2 billion, while EBITDA margin improved to 52.8 percent from 52.1 percent previously.

Globe’s mobile business generated P30 billion in service revenues during the quarter, up 6 percent year-on-year, while mobile data revenues climbed 11 percent to P26.8 billion, driven by continued 5G adoption and higher data usage.

Supporting Globe’s overall performance was the continued growth of Mynt, the parent company of GCash, which emerged as a major earnings driver during the quarter.

Globe’s equity share in Mynt rose to P1.9 billion, up 8 percent year-on-year and 120 percent higher than the previous quarter.

Mynt now accounts for 30 percent of Globe’s total net income before tax, up from 22 percent in 2025 as GCash continues to expand beyond digital payments through lending and wealth management services.

“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 to better serve the evolving needs of our customers. Through focused execution and more efficient capital allocation, we are strengthening our foundation to deliver sustainable long-term value,” he added.

Globe’s cash capital expenditures during the quarter rose 51 percent year-on-year to P12.7 billion, largely allocated for network expansion and capacity enhancements. About 91 percent of capex went on data-related initiatives.