Globe first-half core profit slips 2% despite record service revenue

Insider Spotlight

• Mynt is becoming more important to Globe’s earnings even as its equity contribution has started to level off.
• Enterprise is emerging as Globe’s next growth engine, overtaking its larger consumer businesses in growth.
• Globe’s operating business continues to strengthen, with record service revenues supporting margins despite weaker earnings.

Globe Telecom posted record first-half service revenues, but core net income slipped 2 percent as its share of earnings from Mynt, the parent of GCash, edged lower from a year earlier.

Core net income reached P10.2 billion, while service revenues rose 6 percent to an all-time high of P85.4 billion and earnings before interest, taxes, depreciation and amortization increased 6 percent to P44.9 billion, keeping the EBITDA margin at a healthy 52.6 percent.

Core earnings exclude on-off items. 

In terms of reported net income, Globe posted an 11 percent decline to P11 billion after booking a smaller gain from the dilution of its Mynt stake than a year earlier, along with higher non-operating charges.

Management’s view

“Our first-half results demonstrate the strength of our core business and the solid contribution of our digital ecosystem to Globe’s overall performance," Globe president and CEO Carl Raymond Cruz said in a stock exchange filing on Wednesday.

“These results reflect disciplined execution, the resilience of our business model, and our unwavering focus on creating sustainable long-term value for our customers and shareholders,” he added.

Carl Cruz 

Globe president, CEO 

GCash remains a key profit engine

Globe’s share in Mynt’s equity earnings stood at P3.7 billion, slightly below the P3.8 billion booked in the same period last year, even as the fintech company continued to expand its business and posted record quarterly revenues.

Globe owns about 33.8 percent of Mynt, whose business was weighed down by the delinking of mobile casino apps from e-wallets in the third quarter of 2025.

Although Globe’s share of Mynt’s earnings eased slightly from a year ago, the fintech business became an even bigger contributor to the group’s profitability as the market leader gears up for an initial public offering that could raise up to P92 billion in October.

Mynt first-half review

• Globe booked P3.7 billion in equity earnings from Mynt, down slightly from P3.8 billion a year earlier.
• Mynt accounted for 28 percent of Globe’s pre-tax income, up from 26 percent last year.
• Mynt’s business continued to expand, with second-quarter revenues reaching a record P22.4 billion.
• Mynt is expanding GCash into lending, investments, insurance and wealth management, deepening customer engagement beyond its mobile wallet business.
• GCash now supports payments in more than 220 countries and territories, while Filipinos in 145 countries can use the app through GCash Overseas as Mynt expands its international footprint.

Globe segment breakdown

Corporate data remained Globe’s fastest-growing major business, with revenues rising 15 percent to a record P11 billion as companies increased spending on connectivity, digital services and AI-enabled solutions.

Mobile, Globe’s largest business, grew 6 percent to P60.4 billion, driven by a 10 percent increase in mobile data revenues to P53.9 billion, which now account for 89 percent of the segment.

Home broadband revenues also rose 6 percent to P12.4 billion as fiber adoption accelerated, with wired subscribers surpassing 2 million and GFiber Prepaid reaching 1.1 million.

Dividends, capital spending

Separately, Globe declared a regular third-quarter cash dividend of P25 per common share. The dividend will be paid on Sept. 3 to shareholders on record as of Aug. 18.

Globe raised capital spending 39 percent to P26.3 billion to expand its fiber and 5G network, while remaining on track to keep full-year capital expenditures below $1 billion.

—Edited by Miguel R. Camus