Globe Telecom Inc. continues to strengthen its financial fundamentals through improved capital efficiency, expanding cash flows, and steady core business expansion as it transitions from a traditional carrier into a broader technology ecosystem.
However, market analysts highlight that the Ayala-led telecommunications giant remains traded at a noticeable discount despite these solid operational results.
Jofer Gaite, Vice President for Sales at B.A. Securities Inc., noted that underlying metrics showcase a resilient investment profile, pointing out a clear gap between Globe’s depressed stock valuation and its robust operational performance.
During the first half of the year, Globe logged a record consolidated gross service revenue of ₱85.4 billion, reflecting a 6% increase year-on-year. Data services driven by mobile video, social media usage, and digital finance platforms generated ₱77.46 billion, contributing 91% of top-line revenue, while total mobile revenues reached ₱60.4 billion over the six-month period.
Operational margins also surged, with Globe’s EBITDA margin rising to 52.6%—outperforming management targets of around 50%—and producing an annualized ₱44.9 billion in core earnings.
While net income fell 11% to ₱11 billion, market strategist Joel de la Peña of H.E. Bennett Securities Inc. clarified that the drop reflects accounting factors rather than operational weakness, citing reduced one-time dilution gains from GCash parent Mynt alongside higher depreciation and financing expenses.
To fund network expansion, Globe deployed ₱26.3 billion in capital expenditures during the first half, raising its total debt-to-equity ratio to 225.1%. With a current ratio of 0.5762, elevated leverage and near-term refinancing obligations have kept equity investors cautious, keeping the stock’s price-to-earnings multiple at 12.7 times.
Despite these liquidity pressures, analysts see strong upside potential ahead. De la Peña places Globe’s fair value at ₱2,544.27 using a Discounted Cash Flow model, with intrinsic valuation estimates reaching up to ₱3,620.80—representing a potential undervaluation margin of up to 52%.
Both brokerages pointed to the prospective initial public offering of Mynt as a major catalyst for unlocking value, while shareholders continue to receive a ₱25 quarterly dividend, providing an annualized yield of roughly 6%.