Globe service revenues hit PHP 121.7B in Q3 2025

Globe Telecom Inc. posted PHP 121.7 billion in consolidated gross service revenues for the first nine months of 2025, slightly lower than the PHP 124.0 billion recorded in the same period last year.

The company reported a third-quarter revenue of PHP 41.5 billion, a 3% sequential increase that marked the fastest quarterly growth in 13 quarters.

This rebound reflected operational resilience despite challenges including sustained competition in the telco industry and the lingering localized economic effects of typhoons earlier in the year.

Mobile and corporate data services continued to drive the topline, accounting for 83% of total consolidated service revenues — unchanged from the prior year.

Data-centric services covering mobile data, home broadband, and enterprise solutions grew to 88% of total service revenues, up from 86% in the same period in 2024.

Globe’s mobile business remained its core revenue source, contributing PHP 86.2 billion for the nine-month period ending September 2025.

This figure was 2% lower than the PHP 87.7 billion posted during the same timeframe last year, although sequential quarterly growth signaled a recovery.

Mobile service revenues reached PHP 29.1 billion in the third quarter, a 1% increase from PHP 28.8 billion in the second quarter.

The telco attributed this momentum to improved consumer activity, strong demand, and continued investment in its mobile network.

The company’s mobile subscriber base grew 5% year-on-year to 63.1 million, up from 60.2 million in 2024.

Mobile data revenues hit an all-time high of PHP 25.2 billion in Q3 2025, boosting total mobile data earnings for the nine-month period to PHP 74.0 billion.

This marked a 2% increase over the previous year’s PHP 72.9 billion, reflecting sustained app-based engagement in messaging, entertainment, and digital payments.

Despite flat year-on-year data traffic at 4,846 petabytes, Globe managed to extract higher value per gigabyte, reflecting efficient data monetization.

Mobile data traffic rose by 8% from 1,537 petabytes in Q1 to 1,659 petabytes in Q3 2025, while average data usage per subscriber held steady at approximately 15 GB monthly.

The company reported 37.8 million mobile data users as of September 2025, a 2% rise year-on-year.

Mobile data now makes up 86% of all mobile service revenues, up from 83% in the previous year, further emphasizing the shift toward digital connectivity.

Traditional voice and SMS services continued their structural decline, mirroring the industry-wide pivot to data services.

Nevertheless, prepaid mobile reloads steadily increased quarter-on-quarter, with the third quarter showing the highest daily reload levels for the year.

The home broadband segment generated PHP 17.8 billion in revenues for the first nine months of 2025, relatively unchanged from the same period last year.

However, third-quarter revenues rose 4% sequentially to PHP 6.1 billion, suggesting a stabilizing trend as more subscribers migrated to fiber plans.

Globe’s GFiber Prepaid brand emerged as a strong performer, with subscribers reaching 700,000 by September 2025 — a 28% jump from the previous quarter and more than 3.7 times higher year-on-year.

Daily reload activity for GFiber Prepaid surged more than 4.2 times the 2024 average, pushing average revenue per user (ARPU) upward.

The company said this reflected strong market interest in flexible and affordable fiber options.

Fiber services now contribute 91% of Globe’s home broadband revenues, up from 86% last year.

Total fiber revenues rose 5% year-on-year, while the fiber subscriber base expanded by 44% to 2.1 million as of September 2025.

To strengthen its broadband portfolio, Globe launched the Globe At Home 5G Loop in September.

The device provides fiber-like speeds with unlimited mobile and home internet, a plug-and-play setup, and a touchscreen Android interface with high-quality speakers and extended battery life.

Globe described the 5G Loop as a world-first innovation aimed at serving consumers with flexible digital lifestyles.

The product is currently available in select Globe stores and has received positive early market response.

In the enterprise space, corporate data revenues reached PHP 15.0 billion for the nine-month period, down 3% year-on-year.

This decline was driven by a 13% drop in core data services due to cautious enterprise spending.

However, this was partly offset by a 14% increase in ICT-related services, which includes cybersecurity, IoT, data center services, and Big Data analytics.

Quarterly corporate data revenues grew 13% to PHP 5.4 billion in Q3, signaling renewed enterprise interest in digital solutions.

Globe said this rebound aligned with its long-term strategy of evolving from a connectivity provider into a technology solutions partner for businesses.

Non-telco revenues amounted to PHP 1.7 billion, down 4% from the prior year.

Weaker performance from AdSpark was partly cushioned by stronger results from Yondu and Asticom.

On a quarterly basis, non-telco revenues dipped 3% compared to the second quarter, driven primarily by Yondu’s performance.

Globe’s cost containment efforts delivered PHP 57.5 billion in operating expenses and subsidies for the first three quarters, representing a 3% decline year-on-year.

Marketing and subsidy expenses were cut by 29%, staff costs fell 7%, and services dropped 4%, while utilities and administrative expenses remained flat with a 1% increase.

These savings helped offset higher interconnect costs (+16%), lease expenses (+8%), and provisions (+6%).

Operating expenses and subsidy spending rose 3% sequentially in Q3 to PHP 19.4 billion, attributed to higher costs across several categories.

EBITDA reached PHP 64.2 billion for the period, down 1% year-on-year, but the company maintained a strong EBITDA margin of 52.8%.

Globe’s financial technology arm, Mynt — the parent company of GCash — contributed PHP 5.3 billion in equity earnings, up 52% from PHP 3.5 billion last year.

This figure now accounts for 25% of Globe’s net income before tax, up sharply from 14% in 2024, highlighting the rising significance of its digital finance ecosystem.

GCash continued to scale both its user base and profitability, extending access to inclusive financial services through its digital platform.

Net income for the nine months ended September 2025 stood at PHP 17.7 billion, a 14% decline from PHP 20.6 billion in the same period last year.

This figure includes non-recurring items such as gains from Mynt’s share disposal and higher equity earnings from affiliates.

Excluding one-off items, normalized net income reached PHP 15.2 billion, down 15% year-on-year.

Quarterly net income slipped 4% to PHP 5.3 billion from PHP 5.5 billion in Q2, as increased revenues were offset by higher depreciation and non-operating charges.

Core net income, which excludes non-recurring items, fell to PHP 15.5 billion, from PHP 17.6 billion a year earlier.

On a quarter-on-quarter basis, core earnings declined to PHP 5.0 billion in Q3 from PHP 5.9 billion in Q2, driven by higher financing costs and lower equity income from affiliates.

As of September 2025, Globe’s total debt stood at PHP 253.5 billion, up 2% from PHP 249.5 billion at the end of 2024, due to funding activities tied to its capital investments.

Despite the increase, leverage ratios remained healthy — with gross debt to EBITDA at 2.69x, net debt to EBITDA at 2.40x, and a debt service coverage ratio of 3.74x.

These metrics indicate that Globe continues to operate within comfortable financial thresholds.

“Our third-quarter results underscore Globe’s consistent performance and our ability to create impact beyond connectivity for more Filipino families and businesses,” said Carl Raymond R. Cruz, President and CEO of Globe Telecom Inc.

“Mobile and broadband sustained their growth momentum in Q3, while Corporate Data revenues rose 13% quarter-on-quarter, signaling an emerging rebound in enterprise digitalization efforts, and EBITDA margins remained above target, highlighting the strength of our core operations. Mynt continued to be a key contributor to earnings, reaffirming the expanding role of our digital platforms. Together, these pillars demonstrate how Globe continues to drive sustainable growth and long-term value through innovation, disciplined execution, and a deep commitment to the communities we serve.”

“Looking ahead, our focus remains firmly on our customers, with our key differentiator being the ability to elevate their experience and strengthen loyalty,” Mr. Cruz added.

“We view the accelerated B2B growth as the next engine of Globe’s sustainable expansion. We remain steadfast in our vision of becoming the most valuable, trusted, and admired operator in the country in the medium term, by investing in world-class connectivity and driving innovations that help build a more inclusive and digitally empowered Philippines.”