Globe spends P35.8B in first 9 months of 2026 to improve network

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Ayala-led Globe Telecom Inc. spent P35.8 billion on capital expenditures (capex) in the first nine months of 2026, ramping up investments to strengthen its network infrastructure and expand its digital capabilities nationwide.

In a disclosure to the Philippine Stock Exchange, Globe said its capex spending from January to September was 14% higher than the amount recorded in the same period last year.

The nine-month spending was equivalent to 28% of the telecommunications company's service revenues.

Globe said 89% of its capital outlays went to data-related requirements, focusing on improving network performance, accommodating rising data consumption and expanding capacity to meet the evolving digital needs of consumers and businesses.

The higher investments coincided with growth in Globe's top line, driven by sustained demand across its mobile, home broadband and corporate data businesses.

Globe posted consolidated service revenues of P128.99 billion, up 6% from P121.68 billion a year earlier. Nonservice revenues reached P10.35 billion, bringing total gross revenues to P139.34 billion.

Mobile services remained the company's biggest revenue contributor at P91.37 billion, buoyed by a 10% increase in mobile data revenues to P81.22 billion.

Mobile data traffic also rose to 5,705 petabytes from 4,846 petabytes, while average monthly data consumption per subscriber increased to about 17 gigabytes from 15 gigabytes.

Despite the revenue growth, Globe's attributable net income for the first nine months fell 6.9% to P16.47 billion from P17.69 billion a year earlier.

The company attributed the decline to higher net interest expenses and the absence of nonrecurring gains booked in the previous year from tower sales and the dilution of its investment in Mynt Inc., the parent company of GCash.

On a quarterly basis, however, Globe's net income rose 3.6% to P5.44 billion in the July-to-September period from P5.25 billion a year earlier.

Third-quarter gross revenues increased 5.2% to P46.68 billion, supported by stronger business performance and gains from the disposal of property and equipment, which helped cushion rising expenses.

Gross expenses for the quarter also climbed 7.7% to P43.31 billion, driven by higher general, selling and administrative expenses, depreciation and finance costs.

Looking ahead, Globe president and CEO Carl Raymond Cruz said the company was maintaining a cautious outlook amid persistent economic pressures.

“As we enter the final quarter, we are mindful of the persistent inflationary pressures and tighter household budgets, which could weigh on consumer spending and Globe’s overall performance,” Cruz said.

“Nevertheless, connectivity remains an essential household expenditure, and we are encouraged by the prospect of stronger seasonal demand in the fourth quarter, which could help mitigate these pressures and support our growth momentum,” he added.— MCG, GMA News

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