Globe tipped for revaluation on tech expansion

Globe Telecom Inc. could see its market valuation rise as it expands into artificial intelligence (AI), cloud computing and enterprise technology, opening new sources of earnings beyond its traditional telecommunications business.

Joel De la Pena of H.E. Bennett Securities Inc. said Sunday that Globe’s growing technology portfolio could attract more investors as demand for digital services accelerates across Southeast Asia.

“Re-rate Globe from a legacy utility to a high-value technology holding company,” De la Pena said.

Driving this shift is NCS Philippines, a joint venture between Globe and Singapore-based NCS, a subsidiary of Singtel Group.

The venture, valued at approximately P1.87 billion on an enterprise basis, gives NCS a 51 percent stake and Globe the remaining 49 percent.

De la Pena said the partnership allows Globe to expand into high-growth technology services without heavy capital spending. It also gives the company a share in future earnings, dividends, and potential valuation gains.

The venture combines Globe’s technology subsidiary Yondu with NCS’s regional network of about 14,000 technology professionals.

NCS Philippines will offer cybersecurity, cloud computing, AI, automation, data analytics and private 5G network solutions to businesses and government agencies.

De la Pena cited strong growth potential in the Philippine market, where 92 percent of organizations have adopted some form of AI but 65 percent remain in the pilot stage.

Government policies promoting digital services and data infrastructure are also expected to drive demand for enterprise technology.

For Globe, the expansion could provide another source of earnings while its core telecommunications business continues to generate cash and support dividend payments.

De la Pena said this combination of stable telecom income and higher-growth technology investments could strengthen Globe’s investment appeal and support a higher market valuation.