Globe Telecom (GLO) Q2 2025 earnings summary

Executive summary

• Achieved strong sequential recovery in Q2 2025, reversing earlier softness, with gross service revenues up 1% quarter-on-quarter to PHP 40.3 billion, driven by robust data usage and digital platform growth; data-related revenues comprised 88% of Q2 topline.

• Mynt (GCash) contributed 26% of pre-tax net income in H1, with user base and profitability expanding significantly; equity earnings surged 78% year-on-year to PHP 3.8 billion.

• Board approved a third quarterly cash dividend of PHP 25 per share, reinforcing commitment to sustainable shareholder returns.

• Tower sale and leaseback program nearing completion, with 6,945 towers transferred and PHP 89.3 billion raised.

• Capex for H1 2025 was PHP 18.9 billion, down 33% year-on-year, with 91% allocated to data infrastructure.

Financial highlights

• H1 2025 gross service revenues were PHP 80.2 billion, down 2% year-on-year due to macroeconomic headwinds and evolving consumer behavior; Q2 revenues up 1% sequentially.

• Q2 EBITDA grew 3% quarter-on-quarter to PHP 21.4 billion, with a margin of 53%, above guidance; H1 EBITDA at PHP 42.1 billion, down 2% year-on-year, margin at 52.6%.

• Net income for H1 was PHP 12.4 billion, down 14% year-on-year; core net income was PHP 10.4 billion.

• Operating expenses and subsidy declined 3% year-on-year to PHP 38 billion in H1, supporting margin improvement.

• Earnings per share: Basic EPS at PHP 81.33 for H1 2025, down from PHP 95.99 last year.

Outlook and guidance

• Maintains low to mid single-digit growth guidance for service revenues in 2025, supported by digitalization and data habituation trends.

• EBITDA margin guidance reaffirmed at 50%; free cash flow to be shored up by optimized capital deployment, targeting less than $1 billion capex for the year.

• Dividend policy revised to 60%-90% of prior year's core net income, providing flexibility for future payouts.