Globe achieved positive free cash flow (FCF) prior to dividends by 1H 2025, earlier than expected. In prior disclosures, the company committed to achieve free cash flow positive status by the end of 2025. Globe delivered on its commitment by focusing on financial discipline, optimizing capital deployment, and strong operational momentum.
The achievement comes as the company posted a quarter-on-quarter topline recovery and sustained improvements in its broadband and mobile businesses. Gross service revenues grew 1% from the previous quarter, driven by improving mobility and stronger digital engagement across segments.
“We’re very pleased with our performance in the second quarter. If one takes a look at a quarter-on-quarter perspective, gross service revenue is now back in the growth area. This turnaround really indicates stability and solid footing for the company, with which we can build upon for better growth in the second half of the year,” said Globe President and CEO Carl Cruz during its recent financial media briefing.
The company also emphasized operational efficiency and capital optimization. “We’re ensuring that we have the right amount of capital for all our initiatives,” said Chief Finance Officer Carlo Puno. “This is part of our broader effort to diversify funding sources and optimize our capital structure, so we can manage the cost of funding while supporting strategic programs.”
Consumer demand also showed resilience in the second quarter, especially in mobile data usage and fiber broadband adoption. “The Q2 results indicated momentum after two consecutive quarters of decline. Our sharpened pricing strategies, segmented offers, and consistent network experience helped offset spending fatigue, particularly among prepaid users,” said Chief Commercial Officer Darius Delgado.
Globe’s mobile business remained the largest contributor to topline, while Home Broadband posted a 1% quarter-on-quarter growth in service revenues amid increasing demand for fiber.
During the period, Globe sustained its network expansion with 937 new cell sites, 4,512 LTE upgrades, and over 35,800 new fiber-to-the-home (FTTH) lines. The company also rolled out 444 new 5G sites, extending outdoor coverage to 98.71% in Metro Manila and 98.19% in key VisMin cities. It continued migrating over 600 towns to full fiber, fully phasing out legacy copper lines.
Alongside its network expansion, Globe is also optimizing its infrastructure assets to support long-term operational and financial resilience.
Globe is approaching the final phase of its tower sale and leaseback program, having turned over 6,945 to date, and generating approximately ₱89.3 billion in proceeds, including the latest transaction in July involving 96 towers sold to MIDC and PhilTower for over ₱1.3 billion.
The company said it remains focused on achieving sustainable growth while preparing the business for long-term value creation. This includes disciplined capex planning, monetization of non-core assets, and improved efficiencies across network and commercial operations.
“We are optimistic that in the next quarters or balance of the year, this momentum shall continue,” Delgado added.
