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The Ayala Group-backed telecommunications giant reported a 7 percent decline in net income to P16.5 billion from P17.7 billion, even as service revenues climbed 6 percent to P129 billion and operating earnings reached a record P68 billion.
Core net income, which excludes one-time gains and other exceptional items, was virtually unchanged at P15.5 billion.
Management's view
"As we enter the final quarter, we are mindful of the persistent inflationary pressures and tighter household budgets, which could weigh on consumer spending and Globe's overall performance," Globe CEO Carl Cruz said in a statement on Tuesday.
"Nevertheless, connectivity remains an essential household expenditure, and we are encouraged by the prospect of stronger seasonal demand in the fourth quarter, which could help mitigate these pressures and support our growth momentum," he said.
"Ultimately, our priority is to deliver best-in-class customer experiences while driving sustainable growth and shareholder returns, ensuring that Globe remains well-positioned to meet the country's evolving digital needs," he added.
Connectivity holds up
Globe reported growth across its three main businesses:
The gains lifted earnings before interest, taxes, depreciation and amortization (EBITDA) by 6 percent to P68 billion, although operating profit grew just 2 percent to P24.8 billion after accounting for network depreciation.
GCash and data centers
Beyond connectivity, GCash parent Mynt remained a major earnings contributor, accounting for 28 percent of Globe's pretax income during the nine-month period.
Globe is also expanding its data center business through STT GDC Philippines, with the first two levels of its Fairview facility fully contracted and the first phase of its Cavite facility ready for service.
The venture is targeting 30 megawatts of data center capacity before year-end as it positions itself to capture growing demand for cloud computing and artificial intelligence infrastructure.
Costs take their toll
Globe's total debt climbed to P272.1 billion at the end of September from P256.3 billion at the close of 2025, adding to the financial pressures facing the telecommunications giant as it continued investing in its network.
Interest expenses rose 14 percent to P13.5 billion, while foreign exchange losses reached P4.2 billion, pushing total financing costs up 51 percent to P18.2 billion, although gains from financial hedges partly offset the impact.
Depreciation, which reflects the cost of network investments spread over their useful lives, increased 8 percent to P43.3 billion, further limiting the gains from Globe's growing revenues.
The decline in reported profit also reflected the absence of one-time gains recorded last year from tower transactions and changes in Globe's ownership interest in GCash parent Mynt.
Meanwhile, Globe increased capital spending 14 percent to P35.8 billion, with most of the investment directed toward expanding and improving its data network.
—Edited by Miguel R. Camus
