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, reflecting the digitalization strategy and strong mobile data adoption.

• Mynt (GCash) contributed 26% of pre-tax net income in H1, with equity earnings up 78% year-on-year and user base expanding.

• Core net income for H1 2025 reached PHP 10.4 billion, with Q2 recovery offsetting a soft Q1.

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

Financial highlights

• H1 2025 gross service revenues were PHP 80.2 billion, down 2% year-on-year; Q2 up 1% quarter-on-quarter.

• Q2 EBITDA grew 3% quarter-on-quarter to PHP 21.4 billion, margin at 53%, above guidance.

• H1 EBITDA reached 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.

• Cash capex for H1 was PHP 18.9 billion, down 33% year-on-year, improving capex-to-revenue ratio to 24%.

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.