Globe Telecom Earnings in Q1 2025 Rose 3% to P7.0 Billion

Globe Telecom delivered P39.9 billion in consolidated gross service revenues for the first three months of 2025, reflecting a 3% decline year-on-year amid a challenging market environment. Despite the soft topline, the company’s digital services remained a strong pillar of growth, with combined mobile and corporate data revenues rising to 83.2% of total consolidated gross service revenues, a slight improvement from 82.8% in the same period last year. This strengthened digital contribution underscores Globe’s continued success in addressing the evolving needs of consumers and businesses, solidifying its leadership in the rapidly expanding digital economy. Further reinforcing this trend, total data revenues, which include mobile data, broadband and corporate data, rose to 87% of total gross service revenues, up from 85% in 2024.

​Globe’s mobile business generated P28.3 billion in revenues as of end-March 2025, compared to P29.1 billion in the same period last year. While mobile revenues saw a 3% year-on-year decrease, the segment remained a key driver of Globe’s overall topline, maintaining a steady 71% contribution to total consolidated gross service revenues. The mobile business continued to demonstrate resilience, supported by ongoing network investments that enhanced competitiveness and improved customer experience. Globe’s mobile customer base also expanded to 61.6 million subscribers by end-March 2025, up 5% from 58.8 million a year earlier.

Breaking down the mobile segment, mobile data revenues stood at P24.1 billion for the period ending March 31 this year, or up 1% from the same period in 2024. This continued expansion was attributed to the widespread adoption of mobile applications for essential online activities, including communication, entertainment, and financial transactions. This revenue growth occurred despite a 5% dip in mobile data traffic, which fell to 1,537 petabytes from 1,610 petabytes in the same period last year. However, on a quarter-on-quarter basis, mobile data traffic grew by 2%. Mobile data performance was also partly impacted by limited mobility due to work and class suspensions triggered by dangerously high heat index levels and a transport strike, which likely redirected data usage from mobile to fixed broadband networks. At the same time, sustained high consumer prices continued to strain household budgets, potentially reducing discretionary spending on mobile data. Notably, the number of mobile data users increased by 3% year-on-year, affirming Globe’s expanding digital reach and customer base. As a result, mobile data now accounts for 85% of total mobile revenues, up from 82% a year ago.

Meanwhile, average daily mobile top-ups held steady through the quarter, while daily wireless traffic trended upward in the latter half. These improving usage patterns signal recovery and support Globe’s targeted monetization strategy. In contrast, traditional mobile voice and SMS services weakened further, with revenues down 17% and 28%, respectively, as customers increasingly adopted data-based alternatives.

The home broadband business remained at the core of Globe’s digital expansion strategy as the company refined its service offerings to address shifting market demands and ensure sustainable growth. For the first three months of 2025, home broadband revenues reached P5.8 billion, marking a 5% drop year-on-year, mainly due to the decreasing contribution of fixed wireless services as customers migrated to fiber. Fiber services upheld its strong momentum, growing to 89.7% of total broadband revenues, compared to 85.0% in the previous year. This improvement highlights Globe’s success in accelerating fiber adoption, supported by a 26% expansion in its fiber subscriber base and the growing popularity of GFiber Prepaid (GFP). These developments highlight Globe’s commitment to delivering reliable, affordable and high-quality connectivity to Filipino households. This transition also resulted in a 23% growth in fixed-wired subscribers rising to 1.4 million from 1.2 million during the same period.

Furthermore, GFiber Prepaid (GFP) continues its rapid expansion, solidifying its position as the fastest-growing prepaid fiber brand. Subscriber count surged to 400 thousand, marking an impressive 53% quarter-on-quarter increase as more households embrace the flexibility and affordability of prepaid fiber services. GFP’s strong market traction is further reflected in its high customer engagement and retention, with reload rates reaching 70%, the highest among prepaid fiber brands. This sustained demand underscores the effectiveness of Globe’s strategic approach to expanding its fiber footprint, ensuring seamless and cost-effective internet access for more Filipinos.

Globe's home broadband subscriber base was 1.83 million as of the end of March this year, compared to 1.72 million subscribers at the end of March last year.

Additionally, the corporate data business reported P4.9 billion in revenues for the first three months of the year, a 2% dip from the same period last year. This was primarily due to the slowdown in core data services, which declined by 15% from a year ago, after a strong run of consistent growth. Helping cushion the shortfall, was the sustained momentum in ICT services, particularly in Business Application Solutions (BAS), cybersecurity, data center services, Big Data, and Internet of Things (IoT) offerings. The resilience of these high-growth areas proves Globe’s strategic shift toward digital enterprise solutions, providing stability to the overall corporate data portfolio.

Non-telco revenues held steady year-on-year at P567 million in the first quarter of 2025. The flat performance reflects strong growth from Asticom and a solid uptick from Yondu, which together helped counterbalance the decline in AdSpark’s contribution.

Globe’s ongoing cost-efficiency initiatives led to a 4% year-on-year reduction in total operating expenses (including subsidy), declining from P19.8 billion in the same period of 2024 to P19.1 billion this period. This reduction was achieved through disciplined spending across nearly all expense line items, except for interconnect costs and repairs and maintenance.

Consolidated EBITDA stood at P20.8 billion for the first three months of 2025, down 3% from P21.4 billion in the similar period of 2024. The decrease was primarily attributed to lower revenues during this period. Despite this, Globe maintained a strong EBITDA margin of 52.1%, exceeding its full-year guidance of 50%, underscoring the company’s ongoing commitment to operational efficiency and strategic cost management.

Mynt, the holding company of GCash, continued to deliver robust results, further reinforcing its position as the country’s leading digital financial ecosystem. Mynt expanded both its user base and profitability, providing more Filipinos with accessible and inclusive financial services through continuous innovation. Globe’s share in Mynt’s equity earnings for the first three months of 2025 rose to P1.8 billion, an 86% increase from P962 million in the same period the year earlier. This now accounts for 22% of Globe’s pre-tax net income, up from 11% in the first quarter of 2024.

Globe reported a net income of P7.0 billion as of end-March of 2025, a 3% increase from P6.8 billion in the same period of 2024. The growth was mainly fueled by higher equity earnings from affiliates, particularly Mynt, and a P2.6 billion gross gain on the deemed disposal of Mynt, arising from the dilution of Globe's Mynt ownership. This dilution occurred after Mitsubishi UFJ Financial Group (MUFG) acquired an 8% stake in Mynt. These gains helped offset the impact of higher depreciation, increased interest expenses and other non-operating charges. Excluding the one-time gains, normalized net income would have stood at P4.6 billion, or a 21% year-on-year decline, mainly due to higher financing costs.

Excluding non-recurring items such as the one-time gain on the deemed disposal of Mynt and gain on sale and leaseback of towers, as well as foreign exchange and mark-to-market adjustments, Globe’s core net income reached P4.5 billion for the first three months of 2025, 22% lower than the P5.8 billion recorded in the comparable period of 2024.

Globe maintained a strong and stable balance sheet, comfortably meeting all bank covenants. Total debt declined by 3%, from P249.5 billion as of end-December 2024 to P242.0 billion as of end-March 2025. The company’s key gearing ratios held strong, with Gross Debt to EBITDA at 2.54x, Net Debt to EBITDA at 2.34x, and a Debt Service Coverage Ratio of 3.11x, affirming Globe’s solid financial position and sound financial strategy.

"Notwithstanding our first-quarter results, we remain steadfast in driving our strategic agenda forward and unlocking greater operational efficiency across the business. The growth in net income, healthy margins, and rising contributions from Mynt are a testament to our disciplined and effective execution. These results reflect the solid foundation we’ve built as we continue to transform into a digital solutions partner of choice for Filipinos,” said Carl Raymond R. Cruz, President and CEO of Globe Telecom Inc.

“While acknowledging the maturity of the telecommunications industry, we are particularly encouraged by the opportunities for growth in other significant verticals, notably the enterprise sector and the strong growth momentum of our GFiber Prepaid, all while maintaining our position as the number one mobile network in the Philippines. With a customer-first mindset, a strong sense of purpose, and a drive for operational excellence, we are confident in our ability to create long-term value and lead in this dynamic digital landscape." Mr. Cruz added.