Globe reaffirms organic network expansion

From AB Capital's The Opening Bell: Three Moves

Event

Globe said it will deepen its fiber footprint while continuing to expand its 5G network to support long-term growth and improve customer experience. During 1Q26, the company deployed 408 new 5G sites, bringing 5G coverage to nearly 100% of Metro Manila and other key cities in the Visayas and Mindanao.

View

We think this reinforces Globe's conviction that network quality remains a competitive differentiator. While competitors have increasingly highlighted capital optimization initiatives, Globe continues to invest behind its own network, suggesting management still sees attractive returns from organic expansion despite a more competitive environment.

Catalyst

Key catalysts for the name include continued network execution, telecom operating trends, implementation of the Konektadong Pinoy Act, and further value realization from Mynt.

Action

Maintain OUTPERFORM. While the announcement is largely a reiteration of strategy, it signals management's confidence in the core telecom business. We continue to see improving telecom execution and Mynt as the primary drivers of Globe's medium-term upside.

Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.