Ayala-led Globe Telecom Inc. saw its net income expand in the first quarter of the year as its equity stake in Mynt, the holding company of popular e-wallet GCash, continued to pay off even after the dilution of its share.

In a regulatory filing published on its website, Globe reported that its net income reached ₱6.96 billion by the end of March, a three percent increase from ₱6.77 billion during the first three months of 2024.

Globe attributed the increase to higher contributions from its affiliates, particularly Mynt, which recorded a ₱1.8 billion in equity earnings, a substantial 86 percent jump from the previous year.

Mynt now accounts for 22 percent of the telecommunications giant’s pre-tax net income, up from 11 percent. 

Globe said high profits in the first quarter were likewise driven by the ₱2.6 billion gross gain on the deemed disposal of its stake in Mynt.

In February, Globe announced that Japanese bank Mitsubishi UFJ Financial Group (MUFG) had acquired an eight percent stake in Mynt, reducing Globe’s ownership in the GCash operator to 34 percent. The deal boosted Mynt’s valuation to $5 billion.

“These gains helped offset the impact of higher depreciation, increased interest expenses and other non-operating charges,” it said.

However, excluding one-time gains that also include the sale and leaseback of towers, as well as foreign exchange and mark-to-market adjustments, net income in the quarter would have stood at ₱4.54 billion. This would be a 22-percent decline from ₱5.79 billion in the prior year.

Globe said the decline was mainly due to higher financing costs, which likewise led to a three percent dip in its consolidated gross service revenues for the quarter, reaching ₱39.85 billion compared to ₱41 billion in the first quarter of last year.

Despite this, the company said total data revenues continue to grow, now accounting for 87 percent of the revenues versus 85 percent last year.

In particular, its mobile business generated ₱28.30 billion by the end of March, with mobile data revenues standing at ₱24.1 billion.

The home broadband business, which is at the core of Globe’s digital expansion strategy, recorded ₱5.8 billion for the period as GFiber Prepaid (GFP) solidifies itself as the fastest-growing prepaid fiber brand in the country.

“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,” said Globe President and Chief Executive Officer (CEO) Carl Cruz.

Meanwhile, the corporate data business saw revenues slightly decline to ₱4.89 billion from ₱4.96 billion due to a slowdown in core data services.

On the other hand, non-telco revenues remained steady at ₱567 million.

Cruz said the company is committed to reaching greater heights by the year-end, with a focus on greater operational efficiency.

“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,” Cruz said.

“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," he added.

Globe’s capital expenditures (capex) in the first quarter totaled ₱8.5 billion, down 38 percent from ₱13.7 billion as the firm seeks to optimize capital allocation while maintaining strong network investments.

The company intends to keep its 2025 capex budget below $1 billion.

Mynt raises stake

In another development disclosed in the regulatory filing, Globe announced that Mynt has now secured a 24.5 percent stake in AB Capital Securities Inc. (ABSCI), the stock broking arm of investment house AB Capital and Investment Corp.

Mynt entered into a definitive agreement with the AB Capital Group in 2023 to acquire a 50 percent stake in ABSCI.

In September of the same year, Globe said Mynt had closed the first investment tranche for an initial 7.5 percent, amounting to ₱37.50 million.

By the end of 2024, Mynt has sealed the second investment tranche to boost its stake to 16 percent.

As of March 31, the third investment tranche has been closed, with Mynt now owning 24.5 percent of ABSCI.

Based on Mynt’s initial purchase, ABSCI’s full valuation stands at approximately ₱500 million.

Mynt’s GCash previously launched GStocks PH, an in-app stock trading platform powered by ABSCI.