Globe Telecom Q2 2025 slides: Data-driven recovery with 30% core income growth

Globe Telecom (OTC:GTMEY) showcased a strong sequential recovery in its second quarter performance during its Q2/1H 2025 Analysts’ Briefing held on August 6, 2025. The Philippine telecommunications giant reported significant growth in core net income and maintained a robust EBITDA margin, driven by sustained data usage and cost optimization initiatives.

Quarterly Performance Highlights

Globe Telecom reported consolidated gross service revenues of PHP 40.3 billion in Q2 2025, representing a 1% increase from the previous quarter. The company’s EBITDA reached PHP 21.4 billion with an expanded margin of 53%, while core net income surged by 30% quarter-on-quarter to PHP 5.9 billion.

The company’s performance was primarily driven by data-related services, which now account for 88% of total revenues. This reflects the ongoing digital transformation in the Philippines and Globe’s strategic focus on high-growth segments.

As shown in the following performance overview:

Ernest Cu, Globe Telecom’s President and CEO, emphasized the company’s resilience: "Our second quarter results demonstrate our ability to adapt to changing market conditions while maintaining our focus on operational efficiency and customer experience."

Detailed Financial Analysis

For the first half of 2025, Globe reported consolidated gross service revenues of PHP 80.2 billion, a 2% year-on-year decline. However, the company’s EBITDA margin remained strong at 52.6%, supporting a core net income of PHP 10.4 billion for the period.

Mobile business continues to be Globe’s largest revenue contributor, with mobile data now representing 86% of total mobile revenues. Mobile subscribers grew to 62.5 million, up 5% year-on-year, while mobile data traffic increased by 7% quarter-on-quarter to 3,187 petabytes.

The following chart illustrates the dominance of mobile data in the company’s revenue mix:

In the broadband segment, fiber has emerged as the key growth driver, now accounting for 90% of broadband revenues. Fiber subscribers increased by 35% year-on-year, offsetting the 29% decline in fixed wireless subscribers.

The company’s broadband business performance is detailed below:

Globe’s balance sheet remains robust with gross debt of PHP 247.9 billion and a gross debt to EBITDA ratio of 2.65x, well within the bank covenant maximum of 3.5x. The company’s financial position is further strengthened by its disciplined capital expenditure approach.

Strategic Initiatives

Globe has significantly reduced its capital expenditure to PHP 18.9 billion in the first half of 2025, down 33% year-on-year. Despite this reduction, the company continues to expand its network infrastructure with 937 new cell sites built and 4,512 mobile sites upgraded during the period.

The following chart shows the company’s capital expenditure trend:

A key strategic initiative is Globe’s tower sale and leaseback program, which has transferred 6,945 towers to date, generating PHP 89.3 billion in gross proceeds. This initiative has allowed Globe to optimize its asset portfolio while maintaining network quality.

Globe is also expanding its digital ecosystem beyond telecommunications. Its fintech arm, Mynt (the operator of GCash), contributed 26% of Globe’s first-half net income before tax, up from 12% in the previous year. GCash continues to scale its financial services, with loan disbursements reaching PHP 287 billion (up 85%) and 9.5 million unique borrowers (up 77%).

The company is strengthening its regional connectivity through participation in the AUG East submarine cable system, an 8,900-kilometer cable linking Singapore and Japan with landing points in the Philippines, Brunei, Malaysia, South Korea, and Taiwan.

Forward-Looking Statements

Globe Telecom has maintained its full-year guidance for 2025, projecting low to mid-single digit percentage growth in revenues and an EBITDA margin of approximately 50%. The company expects cash capital expenditure to remain below USD 1.0 billion and aims to generate positive free cash flow by the end of 2025.

The company also announced a third-quarter cash dividend of PHP 25 per share, with a payment date of September 4, 2025, and a record date of August 19, 2025. This reflects Globe’s commitment to delivering sustainable returns to shareholders, supported by its improving financial performance.

Globe Telecom’s stock closed at PHP 1,730 on August 6, 2025, down 0.69% or PHP 12 from the previous session. Despite this slight decline, the company maintains an impressive dividend yield of 11.11%, making it an attractive option for income-focused investors.

As Globe continues to navigate the competitive telecommunications landscape in the Philippines, its strategic focus on data-driven services, fiber expansion, and diversification into financial technology positions the company for sustainable growth in the coming quarters.

Full presentation:

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