Globe Telecom Inc. posted an 11 percent decline in first-half net income to P11 billion despite delivering record service revenues, as higher non-operating charges and the absence of last year's one-off earnings gains offset stronger operating performance. 

The listed telecommunications company disclosed on Wednesday that net income after tax fell from P12.4 billion a year earlier, primarily due to a lower gain from the dilution of its stake in Mynt compared with the prior year, as well as higher non-operating charges. 

Excluding these factors, Globe said its underlying business remained healthy, supported by record service revenues and higher earnings before interest, taxes, depreciation and amortization (EBITDA). 

Core net income, which excludes foreign exchange and mark-to-market adjustments, slipped 2 percent to P10.2 billion from a year ago. 

EBITDA rose 6 percent to P44.9 billion as revenue growth outpaced higher operating expenses, allowing Globe to maintain an EBITDA margin of 52.6 percent, above its full-year guidance of around 50 percent. 

“Our first-half results demonstrate the strength of our core business and the solid contribution of our digital ecosystem to Globe's overall performance.

We delivered record service revenues and maintained an EBITDA margin of 52.6 percent, despite a challenging macroeconomic environment,” Globe president and chief executive Carl Raymond R. Cruz said. 

Service revenues climbed 6 percent to an all-time high of P85.4 billion from P80.2 billion last year, driven by sustained demand for mobile data, improving broadband monetization, accelerating enterprise digitalization and contributions from its digital businesses. Data services accounted for 91 percent of total service revenues. 

Mobile remained Globe's largest business, with revenues increasing 6 percent to P60.4 billion as mobile data revenues grew 10 percent to P53.9 billion.

Home broadband revenues also rose 6 percent to P12.4 billion, while Globe Business posted a record P11 billion in corporate data revenues, up 15 percent year-on-year. 

Operating expenses and subsidy increased 6 percent to P40.5 billion, mainly due to higher interconnection charges, lease-related costs, marketing and subsidy expenses, services, utilities and staff costs. The increase was partly offset by a 25 percent decline in provisions. 

Globe's digital ecosystem also continued to support earnings, with its equity share in Mynt's net income reaching P3.7 billion in the first half, equivalent to 28 percent of the company's net income before tax, up from 26 percent a year earlier. 

From January to June,  Globe increased capital expenditures by 39 percent to P26.3 billion, with about 91 percent allocated to data-related initiatives, including the expansion of its fiber and 5G networks. 

The company said it remains on track to keep full-year capital spending below $1 billion while maintaining financial flexibility. 

“We will invest in our network, technology platforms, and AI-enabled capabilities to improve customer experience, operate more efficiently, accelerate innovation, and help build a more connected and digitally inclusive Philippines,” Cruz said.