Globe banks on GCash for profit hike in Q1

MANILA, Philippines — Network giant Globe Telecom Inc. relied on its non-telco ventures, particularly GCash, to grow its profit in the first quarter of the year, as the company suffered revenue declines across its core services.

Based on its financial report, Globe’s net income increased by two percent to P6.98 billion in the first quarter, from P6.81 billion a year ago, in spite of lower revenue and higher expenses.

Globe sustained a three-percent dip in revenue to P43.76 billion and also hiked spending by two percent to P40.54 billion.

In particular, Globe said mobile earnings declined by three percent to P28.3 billion, as broadband revenues also dropped by five percent to P5.8 billion. Globe’s corporate business also slipped by two percent to P4.9 billion on the demand slowdown for core data.

Globe president and CEO Carl Raymond Cruz said the decline in telco revenues underscored the maturity of the connectivity industry in the Philippines. Still, the newly minted Globe chief finds hope in the company’s e-wallet segment and low-cost products.

Globe’s share in the equity earnings of Mynt, the parent of GCash, jumped to P1.8 billion in the first quarter, from P968 million a year ago, on the e-wallet’s dominance in digital finance.

As of March, Mynt accounts for 22 percent of Globe’s pre-tax profit, up from 11 percent during the same period in 2024.

Moreover, Globe booked P2.56 billion in gains from the sale of an eight-percent share in Mynt to Mitsubishi UFJ Financial Group, a transaction that was closed in February.

Likewise, Globe is incubating another growth driver in its retail broadband GFiber Prepaid. The service has taken in more than 400,000 subscribers since launch, with 70 percent reloading on a regular basis, the highest among prepaid brands.

The telco decreased its capital expenditures in the first quarter to P8.5 billion as part of efforts to maximize existing assets. For 2025, Globe is planning to spend below $1 billion for capex, as the company shoots to become cash flow positive.