1Q26 review: Core telco showing improvements

Research evidence excerpt

1Q26 review: Core telco showing improvements

Macquarie Equity Research Globe Telecom

Key Risks to Investment Thesis Company Description

• Regulatory and government risk can return, similar to what

happened in 2016-2022 when telecom incumbents faced Globe Telecom is the second-largest telecom company in the

extra pressure in addition to constant criticism. Philippines. The company originally focused on the postpaid

• Aside from a sudden economic slowdown, the rates market and therefore is the market leader in postpaid

revenues. It has both cellular and fixed line operations. It is environment being sharply higher may result in a weakening

currently investing heavily in its data network as the market of profitability seen in ROE erosion.

shifts from traditional services such as SMS and Voice to data.

• Threat of new competition, which can come not only within Among its most valuable investments is Mynt, an affiliate that

the traditional telecom business but also from the fintech operates the Philippines' largest digital wallets company in

side of things. GCash.

Figure 1 - Revenue growth guided at low-/mid-single Figure 2 - Mynt (GCash) continues to be the source

digit for FY26 of outperformance for GLO

(PHP b) (PHP b)

250 50.0 0.8 0.6

40.0 0.6 200 0.4 0.6 23 2.4 3.8 23 12.0 22 30.0 20 21 18 31 10.4 29 150 17 6.1 26 24 25 24 8.5 27 20.0 43.0

100 10.0 30.2 26.4 23.2 19.1 22.1 26.3

50 124 130 132 130 135 137 141 0.0

0 -10.0

2022 2023 2024 2025 2026E 2027E 2028E 2022 2023 2024 2025 2026E 2027E 2028E

Mobile Home Broadband Corporate Data Fixed Line Voice Others Telecommunications Mynt STT-GDC Other assoc / JV

Source: Company data, Macquarie Research, May 2026 Source: Company data, Macquarie Research, May 2026

Globe Telecom (GLO PM) PHP/(bn) unless otherwise noted