Globe profit dips 11% on higher operating costs despite record revenues

MANILA, Philippines — Globe Telecom Inc. booked another record first half in revenues but saw its earnings decline as higher operating costs and lower gains from the dilution of its stake in Mynt weighed down on its bottom line. On Wednesday, the Ayala-led telecommunications (telco) reported an 11-percent decline in net income after tax to P11 billion from P12.4 billion a year earlier. Core net income, meanwhile, slipped 2 percent to P10.2 billion. On the other hand, consolidated gross service revenues climbed 6 percent to a record P85.4 billion in the first six months of 2026, surpassing the previous high of P82.8 billion recorded in 2024. Globe Business also delivered a record P11 billion in first-half revenues. Mobile remained Globe’s biggest business, generating P60.4 billion in revenues, up 6 percent from a year ago. Its subscriber base reached 67.7 million by end-June, with mobile data accounting for 89 percent of mobile revenues. Contributions from Mynt, the parent company of GCash, continued to grow. It accounted for 28 percent of Globe’s pre-tax income in the first half, up from 26 percent a year ago. Globe’s equity share in Mynt’s earnings reached P3.7 billion. Mynt itself generated a record P22.4 billion in quarterly revenues ahead of its planned initial public offering. Outside its telco operations, however, Globe’s revenues fell to P863 million from P1.2 billion. This was largely due to the deconsolidation of its ICT arm Yondu following its partnership with Singapore-based NCS. Excluding Yondu, Globe said nontelco revenues would have risen 17 percent year-on-year. Globe said its first-half results showed it remained resilient despite a challenging operating environment marked by elevated inflation, higher oil prices and heightened geopolitical tensions. “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 Cruz said. “These results reflect disciplined execution, the resilience of our business model.” Globe’s cash flow, as measured by earnings before interest, taxes, depreciation and amortization, rose 6 percent to P44.9 billion, while its margin remained at 52.6 percent, above its full-year guidance of around 50 percent. In terms of costs, Globe attributed the 6-percent increase in operating expenses and subsidy to a “more volatile macroeconomic backdrop,” with expenses rising to P40.5 billion in the first half. That increase was partly offset by a 25-percent decline in provisions. Globe’s debt, meanwhile, stood at P261.7 billion, which it said shows it remains in a “healthy financial position.” Its capital spending also remained on track to stay below its full-year target of $1 billion, with expenditures reaching P26.3 billion in the first six months as it continued expanding its network and digital infrastructure.