DOWNLOAD
Bond: GLOPM 2.5 30
Globe Telecom
- Sector: TechnologyTechnology Media and Telecommunications
- Sub Sector: Telecommunications
- Country: Philippines
- Bond: GLOPM 2.5 30
- Indicative Yield-to-Maturity (YTM): 4.44%
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 19 Mar 2026Globe’s FY25 earnings were sluggish as expected though leverage disappointingly ticked up; we see a modestly improving FY26 credit outlook aided by low EBITDA growth, improving free cash flows from lower capex, and a concluded preference share issue to repay debt.
Price competition is likely to persist in the Philippine mobile and broadband space, posed notably by DITO.
Weakness in the broadband business has lessened since 3Q24 and could stabilize in the coming year.
While Globe earlier raised the upper end of its dividend policy, we expect dividend payouts to remain stable.
Business Description
AS OF 19 Mar 2026- Globe is a leading telecom operator in the Philippines, competing alongside its main rival PLDT in a duopoly setting.
- Globe provides 2G/3G/4G mobile, fixed-line, broadband, enterprise data, and other digital services to retail and corporate customers.
- Globe operates through 2 main business segments – “Mobile Services” and “Fixed Line and Home Broadband Services”.
- Its “Mobile Services” segment offers mobile voice, mobile SMS and mobile data services to retail customers in the Philippines. These services are marketed under the “Globe Postpaid”, “Globe Prepaid” and “TM” brands.
- Its “Fixed Line and Home Broadband Services” segment provides fixed line voice, corporate data and home broadband services to retail and corporate customers in the Philippines.
- Globe commercially launched 5G services on a small-scale basis in Jun-2019. It currently maintains 5G coverage of 96% of the National Capital Region, with over 2,000 5G sites nationwide.
- Globe maintains dominant market shares in the mobile data, voice and SMS space (FY22 revenue market share [RMS] of 52% vs PLDT 40%), but loses out to PLDT in the home broadband space (FY22 RMS of 28%-30% vs PLDT 48%-50%).
- Globe is largely owned by two established corporate groups – Ayala Corporation (~47 stake) and Singtel (~43% stake).
Risk & Catalysts
AS OF 19 Mar 2026Globe faces mounting competitive pressures from new mobile entrant DITO and incumbent broadband competitor PLDT.
Aggressive price competition by new entrant DITO could chew away at Globe’s market share and restrain ARPU recovery.
Debt-funded capex in data centers and AI applications and sticky dividend payouts could restrain improvements in free cash flows. Globe recently raised the upper end of its dividend policy from 75% to 90% of net income, suggesting an increased skew to shareholder-friendly actions.
Key Metric
AS OF 19 Mar 2026| PHP bn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Debt to Book Cap | 69.4% | 67.5% | 69.7% | 70.2% | 70.4% |
| Net Debt to Book Cap | 63.0% | 63.7% | 66.6% | 66.4% | 66.2% |
| Debt/Total Equity | 227.2% | 208.1% | 230.5% | 235.8% | 238.1% |
| Debt/Total Assets | 56.7% | 57.1% | 60.3% | 62.4% | 63.3% |
| Gross Leverage | 3.3x | 3.9x | 4.3x | 4.4x | 4.6x |
| Net Leverage | 3.0x | 3.7x | 4.1x | 4.2x | 4.3x |
| Interest Coverage | 7.6x | 5.9x | 4.6x | 4.3x | 4.1x |
| EBITDA Margin | 46.7% | 46.7% | 47.7% | 49.7% | 50.8% |
CreditSights View
AS OF 19 Mar 2026We have a Market perform recommendation on Globe with a preference for its c.2026 perp. Globe 2030 trades about 10-20 bp wider than S&SEA telcos including PLDT, Axiata, Bharti, and AIS that we view as fair. Globe c.2026 perp trades at G+159 bp that we view as attractive for short-dated “IG” paper. We anticipate a modestly improving credit outlook as lower capex and a preference share issue to repay debt are offset by persisting tight price competition and sticky dividends. Globe also recently revised its dividend policy to 60%-90% of PAT from 60%-75% previously, suggesting an increased skew towards shareholder-friendly actions, though this has not happened yet.
Recommendation Reviewed: March 19, 2026
Recommendation Changed: June 18, 2024
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
