Globe rides mobile, fintech wave to higher profits


Ayala-led Globe Telecom Inc. reported a six percent increase in net income for the first nine months of the year to P20.6 billion from P19.4 billion in the same period last year, driven by higher earnings before interest, tax, depreciation, and amortization (EBITDA).

In a regulatory filing, Globe said EBITDA reached P64.9 billion, a seven percent increase year-on-year. This was attributed to a two percent rise in consolidated gross service revenues and a two percent decrease in operating expenses.

Gross service revenues increased by two percent to P124 billion, with strong performance from mobile and corporate data businesses, which accounted for 83 percent of consolidated revenues.

Mobile revenues grew by five percent to P87.7 billion, driven by strategic market initiatives and ongoing network enhancements. Corporate data revenues showed a significant 14 percent increase to P15.5 billion, fueled by growth in Information and Communications Technology (ICT) and core data services.

Mynt, Globe's fintech arm and operator of GCash, contributed significantly to the nine-month performance. Net earnings from Mynt soared by 14 percent to P3.5 billion, compared to a six percent contribution in the same period last year.

However, in the third quarter alone, Globe's net income declined by 22 percent to P6.02 billion, while EBITDA edged up by one percent to P21.9 billion.

Third-quarter gross service revenues increased by two percent to P41.78 billion. Mobile revenues remained flat at P29 billion, while corporate data revenues jumped by 18 percent to P5.69 billion.

Globe's balance sheet remained healthy, with total debt at P240.9 billion, down from P250 billion at the end of 2023.

“Our unwavering resilience and agility have propelled us forward, leading us to extraordinary accomplishments. The robustness of our business model is evident in the impressive EBITDA we've achieved, along with a notable increase in Core NIAT during the first nine months of the year,”  said Globe President and Chief Executive Officer Ernest Cu.