Globe Telecom's Core Earnings Dip Amid Weaker Mynt Contribution

Globe Telecom (GLO) 2Q26 revenue rose 8% YoY to P43.5 billion and EBITDA was up 6% YoY to P22.7 billion, bringing 1H26 to 49% of our FY26E forecasts. However, 2Q26 core net income fell 11% YoY to P5.3 billion, with 1H26 core earnings of P10.2 billion (-2% YoY) reaching 47% of our FY26E (44% of consensus), as higher financing costs, depreciation and weaker associate income weighed on earnings. Core telco trends remained healthy. Wireline grew 14% YoY, supported by 23% corporate data growth and 6% broadband revenue growth on 129,000 net adds, while wireless rose 6% YoY as 10% mobile data growth despite continued decline in data yields. The key disappointment, in our view, was Mynt, whose earnings contribution declined 12% YoY and 8% QoQ. We would monitor: (1) 2Q26 earnings briefing (Aug. 10), (2) peers' results for read-through on competitive dynamics and market position, and (3) Mynt IPO and guidance following this quarter's weaker contribution. Maintain OUTPERFORM. The results reinforce our positive view on GLO's resilient core telco business, with broadband and mobile data continuing to deliver healthy growth despite a challenging consumer environment. While Mynt's softer contribution is a key near-term watchpoint, we expect earnings growth to improve from 3Q26 as the high-base effects from last year's gaming-related uplift begin to roll off. Source: Philstar Business