Globe Telecom Inc

Good morning, everyone, and welcome to the second quarter 2026 analysts briefing of Globe Telecom. So we will begin with a video presentation of our performance and a few updates on the digital platform businesses to be followed by the Q&A session.

Welcome, everyone, and thank you for joining us for Globe's second quarter 2026 analysts briefing. To begin the presentation, we are pleased to report that notwithstanding external headwinds, Globe sustained its growth momentum and achieved a record-breaking quarter. Consolidated growth service revenues climbed to a new all-time high of 85.4 billion pesos for the first six months of 2026, growing by 6% year-on-year. Data-driven revenues accounted for 91% of consolidated service revenues, reinforcing Globe's continued transformation toward a more diversified, higher-quality, and sustainable revenue base. The robust first-half results were further supported by Globe's highest quarterly service revenues on record. Consolidated GSR amounted to 43.4 billion pesos in the second quarter, up 3% quarter-on-quarter and exceeding the previous record set during the seasonally strong fourth quarter of 2025. The quarter's performance was driven by broad-based growth across Globe's core connectivity businesses. Globe's EBITDA reached 44.9 billion pesos in the first six months, increasing 6% year-on-year, while EBITDA margin remained resilient at 52.6%, well above the company's full-year guidance. Top-line growth more than offset the increase in operating expenses and subsidy, generating operating leverage that enabled Globe to invest in its network and digital infrastructure. In the second quarter, EBITDA increased 2% from the previous quarter to 22.7 billion pesos. Lastly, core net income stood at 10.2 billion pesos for the first half, while on a sequential basis, core net income grew by 7% to 5.3 billion pesos as the higher EBITDA offset the non-operating charges for the period. This further highlights the improving trajectory of the company's underlying earnings. With that, we turn to some developments within Globe and its digital platform businesses, each of which we will be discussing in greater detail later in the presentation. Firstly, STT GDC Philippines is on track to hit projected total capacity of over 30 megawatts by year-end. Secondly, the company continues to reach strong contributions from Mint, which accounted for 28% of Globe's net income before tax in the first half. And finally, as a result of the resilient performance in the first six months, the board has approved a quarterly cash dividend of 25 pesos per share. Key dates for this declaration are the payment date of September 3rd, 2026 to shareholders on record as of August 18th. Moving on to the company's operating performance. Mobile data accounted for 89% of total segment revenues on the back of essential usage, deeper habituation, and a growing user base. Total mobile revenues for the first six months stood at 60.4 billion pesos, up 6% from the same period last year. Second quarter mobile service revenues increased 2% quarter on quarter to 30.4 billion pesos, representing the second highest quarterly mobile revenues on record. Mobile data continued to power the segment, with first half revenues amounting to 53.9 billion pesos, up 10% year on year. As of end June 2026, Globe's mobile subscriber base stood at around 67.7 million, supported by accelerating digital adoption, network quality improvements, and customer engagement initiatives, while the company's mobile data user base expanded by 5% year-on-year to 39.6 million. We'd like to highlight that this first half performance demonstrates Globe's ability to effectively monetize data while making sure it continues to equip its customers with with best-in-class services amidst a more cautious consumer sending environment. As such, mobile data traffic increased to 3,723 petabytes, while average monthly data usage per subscriber rose to approximately 17 gigabytes. At a more granular level, usage remained stable despite periods of economic drag, with 5G adoption accelerating. Average daily mobile top-ups and daily wireless traffic remained elevated throughout the first half of 2026. reinforcing connectivity as the Filipino's fifth utility, with Globe being the biggest enabler. Meanwhile, Globe's 5G customer base continues to deliver higher value per user versus non-5G subscribers, supported by rising 5G traffic and at-poo, and further fueled by Globe having the widest 5G network coverage across the country. This indicates improving habituation and monetization as 5G adoption scales. Moving on to the wired segment. Broadband revenue growth extended to a fifth straight quarter on sustained operating momentum. The broadband business generated 12.4 billion pesos in revenues during the first six months of 2026, representing 6% year-on-year growth. Second quarter revenues totaled 6.3 billion pesos, up 1% quarter on quarter, marking the fifth consecutive quarter of sequential revenue growth and cementing the segment's solid growth momentum. Fiber made up 93% of total segment revenues, primarily due to the 9% increase in fiber revenues and 33% growth in fiber subscribers. Total broadband subscribers grew to 2.4 million as of end June 2026, driven by migration to fiber and broader household adoption. Out of this total broadband base, Globe's disciplined execution propelled G-Fiber prepaid further as it reached 1.1 million subscribers as of end June 2026. This highlights the growing trust of Filipino households in flexible, affordable, and reliable home internet. Globe's strategy ultimately boils down to scaling sustainably. The company aims to deliver rapid growth while ensuring high long-term customer value and without sacrificing profitability. Meanwhile, Globe Business advanced its growth trajectory as demand for core connectivity and ICT-related services continued to push revenues higher. Corporate data revenues posted all-time high, first-half revenues of 11 billion pesos, up 15% year-on-year. On a sequential basis, corporate data revenues grew 15%, driven by higher core data revenues, led by domestic Internet services, alongside continued strength in ICT, primarily from business application solutions. Globe's core adjacent businesses also sustained significant contribution, effectively unlocking greater value within the Globe ecosystem. While non-telco revenues declined to 0.8 billion pesos in the first six months, this was primarily due to the deconsolidation of the Yondu Group, following the completion of Globe's partnership with NCS, partly offset by strong showing from Asticom. Excluding Yondu's contribution in the prior year period, non-Telco revenues would have increased by 17% year-on-year. Complementing the strength of our core business, Globe also benefited from the steady performance of Mint, which accounted for 28% of the company's net income before tax in the first six months, underscoring its growing importance in diversifying Globe's earnings base and supporting long-term value creation. Moving on to our capital expenditures, total spending stood at 26.3 billion pesos, higher on a year-on-year basis as Globe continued to pursue strategic investment opportunities during the first six months. These include targeted investments in network expansion and capacity enhancements, consistent with Globe's disciplined capital allocation strategy and full-year guidance of below $1 billion. Capital expenditures during the quarter represented 31% of service revenues, as the company continues to maintain financial flexibility to support its long-term priorities. Approximately 91% of this spending was allocated to data-related initiatives, demonstrating the company's commitment to enhancing network capacity, improving service quality and helping shape the future of connectivity in the Philippines. During the first six months of the year, Globe also accelerated the rollout of its 5G network, adding 878 new sites during the period to further strengthen coverage and capacity. The company also expanded its fiber footprint by deploying 80,052 new fiber-to-the-home lines, extending high-speed broadband access to more households nationwide. Globe's investments in network infrastructure are translating into tangible improvements in customer experience. Based on UCLA speed test intelligence data for Q1 to Q2 2026, Globe has been recognized as the most consistent mobile and fixed network in the Philippines and the widest 5G coverage in the Philippines. This recognition reinforces Globe's network leadership and its commitment to delivering a reliable and consistent connectivity experience for customers nationwide. Globe also continues to drive nationwide digital inclusion by achieving 100% completion of all 180 applications. geographically isolated and disadvantaged area sites awarded under DICT's Bayanihan SIM project. By bringing connectivity to these areas nationwide, we contribute to bridging the digital divide for underserved Filipinos. This expansion provides remote communities with reliable access to essential digital resources, including online education, government services, and vital livelihood opportunities. Meanwhile, our sustainability journey continues to support Globe's operational resilience and long-term value creation. On the environmental front, Globe is maintaining momentum toward its S-B-T-I approved net zero ambition. During the second quarter of 2026, the company established a partnership agreement with the First Gen Group to supply renewable energy to power key facilities across Mindanao and Caloocan City. In parallel, Globe transitioned approximately 700 cell sites to renewable energy through the retail aggregation program, strengthening both our green energy mix and network resilience. Moving to our social pillar, we continue to focus on online safety and community empowerment. In online safety and digital literacy, our digital thumbprint program reached over 1,800 participants across various executions nationwide, engaging students, youth groups, and local leaders. Furthermore, we intensified our proactive fight against cyber threats by hosting a technical deep dive session for NTC, CICC, PNP, CIDG, and NBI, equipping them with the operational skills needed to utilize IMSI catcher detectors to locate and disrupt unauthorized mobile signal activities. On disaster response and community assistance, GLOBE distributed over 4,000 relief packs to families affected by the volcanic unrest of Mount Mayan and recent earthquakes in Mindanao. Globe also marked the first use of Starlink's satellite-to-mobile technology for disaster and emergency response across South Cotabato, Sultan Kudarat, and Sarangani following the magnitude 7.8 earthquake. To drive enterprise transformation, we are actively developing an AI-native workforce by equipping our employees with AI capabilities. We have launched persona-based learning pathways to build skills from foundational AI literacy to advanced solution development. We also delivered targeted enablement programs, including design thinking workshops, tool consultations, and hands-on technical sessions to accelerate practical AI adoption across the organization. Globe has also achieved the ISO 27001-2022 certification for our information security management system. This milestone expands our coverage to include corporate governance, information security implementation, and core data center management, building upon our existing ISO 27,001 certification for internet data centers. Furthermore, Globe was once again recognized in the Fortune Southeast Asia 500 List and Time World's Most Sustainable Companies, 2026. Globe maintained its status as a supplier engagement leader in the CDP supplier engagement assessment. We were also honored in the 2026 Standard Insights Consumer Choice Awards as the most sustainable mobile network, most active mobile network for the environment, and for excellence in digital literacy and safety. Turning to globe's digital platform businesses, starting with STTGDC Philippines. Three months ago, the company shared that it is no longer just building for the present. It is actively architecting the future of the Philippine digital economy. Today, as we review our progress, we are proud to show you that we are delivering on that exact promise to meet global demand. However, while we are incredibly proud of our execution, we remain grounded. We understand that in the context of the global AI revolution, we are just at the starting line. The foundation is set, but our real journey begins now. Execution remains our primary currency. At STT Fairview 1, Level 1 is officially 100% sold out. With Level 2 commissioning underway, strong customer pool has already pushed us into the design phases for Levels 3 and 4. Over at STT Cavite 2, Phase 1 is fully ready for service with active customer deployment, prompting us to initiate design for Phase 2. Across all sites, this keeps us squarely on track to surpass 30 megawatts of total capacity by the end of this year. Crucially, we are scaling this physical footprint sustainably and securely. With major regulatory catalysts like Executive Order 119, the National Data Sovereignty Directive, enforcing strict local data residency rules, we anticipate accelerated demand from government and enterprise partners who must keep critical workloads on Philippine soil. To power these high-density AI workloads cleanly, Our Fairview and Cavite campuses are backed by long-term renewable energy partnerships, paired with incorporating close-loop water recycling systems, effectively moving the company towards a carbon-neutral operation by 2030. Having capacity ready is only half the equation. We must also help our local market prepare to adopt and leverage it. This commitment to responsible, state-of-the-art infrastructure directly shapes how we engage and lead our local market. And being an industry leader means doing more than just pouring concrete and deploying servers. In April, we hosted our Mind the Gap media briefing right in our Makati site. We recognized that to truly enable Philippine organizations to become AI ready, we have a responsibility to accelerate local market understanding and adoption. Through deep conversations with business leaders, a clear theme emerged. The biggest barriers to realizing AI ambitions are talent availability and infrastructure readiness. More importantly, we learned that though cost will always be a factor, The true priority of businesses revolves around strict compliance in line with sovereignty regulations, which fundamentally shapes where and how their AI models must be deployed. We are positioning ourselves not just as a vendor, but as their partner. This localized consultative approach is perfectly matched by our growing global credibility. Building on our momentum from NVIDIA GTC, our team traveled to Taiwan in June for Computex 2026. There, we engaged in rich discussions with industry leaders and global innovators who are actively looking to expand their AI workloads into the Southeast Asian region. We successfully spotlighted the Philippines as a strong, highly viable market for their deployment roadmap. Perhaps most validating of all, STTGDC Global Data Centers was proudly highlighted as a key infrastructure partner within the NVIDIA ecosystem, effectively acknowledged today as an AI-ready infrastructure provider. To close, we are delivering the capacity we promised We are powering that capacity sustainably. We are actively educating and enabling our local market. And through our global shareholders in STTGDC, we are also recognized on the global stage by the biggest technology players in the world. STTGDC Philippines has successfully established its base. But we approach the coming quarters with grounded ambition, fully aware that building the digital backbone of a nation is a marathon, not a sprint. The digital economy is moving fast. And while we are proud of our milestones, We know this is just the beginning of the impact we will make. Moving on to Mint. Before we proceed with the usual highlights, let us turn our attention to this short video detailing how GCash grew from an SMS money transfer service of Globe Telecom to the super app it is today.

Big things don't always start big. Sometimes they start with a text carrying support, opportunity, a way forward. One simple patala and possibility moves. One text became a transaction. A transaction became a network. And the network became part of everyday life. One place to pay, save, borrow, invest. Different needs moving as one. When the world stood still, GCash kept moving. Across homes, across islands. From one Filipino to another. What began here now reaches the world. Connecting millions of people. And possibilities still grow. And it still begins with one small signal. Ready to become something bigger. The next possibility starts now.

With that, we are pleased to share the following development. In the second quarter of 2026, Mint made a significant step to support its next phase of growth. On July 2nd, a registration statement was filed with the Philippine Securities and Exchange Commission on behalf of Mint for its shares to be listed and traded on the main board of the Philippine Stock Exchange. Subject to receipt of regulatory and other applicable approval and other market conditions, Mint's proposed offering is expected to consist of a base offering of up to approximately 8 billion common shares. For purposes of the submission of the registration statement to the SEC, the offer shares have an offer price of up to Ten pesos per common share. The final offer price will be determined through a book building process at the appropriate stage of the offer. A draft preliminary prospectus has also been submitted to the SEC and uploaded to Mint's corporate website. The draft preliminary prospectus contains a snapshot of our performance, including, but not limited to, the following highlights. We have recorded 40.4 million monthly active users for the first quarter of 2026, roughly equivalent to 55% of the Philippine adult penetration, a testament to the ubiquity of the GCash app. 79.7 billion pesos of adjusted revenues for the full year 2025, reflecting a two-year CAGR of 54%, and further complemented by growth in our total comprehensive income, which saw a two-year CAGR of 64.3% for the same period. Both of our business units, Payment Solutions and Digital Financial Services, have also scaled significantly. For the full year 2025, our Payment Solutions business unit, which houses our payments and transfers and digital solutions products, processed approximately 17 trillion pesos in gross transaction value. Meanwhile, our total loan portfolio under our credit tech business subunit, which houses our lending products, has already reached approximately 64.1 billion pesos as of March 2026. In the past quarter, GCash reinforced its position as the number one finance super app in the Philippines, based on third-party analytics from SensorTower. Further underscoring our leadership, Mint received the honor of being the only Philippine fintech named in CNBC's list of the top fintechs in the world. Behind these achievements We continue to create meaningful impact in Filipinos' everyday lives through exciting innovations. We launched Commute QR in LRT2, following its initial success in MRT3. Now, commuters have more convenient ways to pay their train fare. Meanwhile, we are giving BTS fans a more exciting and rewarding way to pay with the exclusive BTS GCash Visa Card. Beyond our market leadership, we continue to expand financial inclusion to millions and help create more opportunities for Filipinos. Through lending, we have loaned out 451 billion pesos life to date, growing 57% from last year to over 11.5 million unique borrowers. Through G-Insurer, we have sold 255 million policies life to date to 21.8 million users, giving them affordable coverage for various emergencies. In wealth management, we are giving our users more options to grow their wealth. G-Save now enables 17.9 million users easy access to the diverse portfolio of our partner banks. G-Stocks now has 2 million registered users who now benefit from easily investing in local stocks. G-Funds now allows 9.2 million users to easily invest in a varied lineup of funds. Meanwhile, G-Crypto enables 5.2 million users to trade different cryptocurrencies. Recently, we launched a partnership between Fuse and the SEC to work together in promoting financial literacy and educating the public on responsible borrowing and the dangers of dealing with unlicensed and predatory lenders. Further highlighting our impact in lending, we also launched the GCash story of attorney Sheila Gomez, who was able to fulfill her dream of becoming a lawyer after availing a G loan for her bar exam review. We also continue to strengthen our partnerships with the public and private sectors who support us in our pursuit of finance for all. In May, GCash joined the presidential state visit in Japan and signed memorandum of agreements with Ayala Corporation, Mitsubishi Corporation, and MUSG Bank. These PACs are directed at scaling GCash user growth, enhancing cross-border capabilities, and expanding advanced financial services. GCash also served as an official partner in the ASEAN Leaders Summit held in Cebu, enabling cashless transactions, supporting local MSMEs, and promoting digital financial inclusion. Recently, we also hosted the fifth annual Ignite Innovation Summit at the SMX Convention Center, Aura. The event covered AI, advanced cybersecurity, and inclusive digital finance, with Senator Bama Keynote providing the keynote to over 3,000 participants. We remain the trusted digital partner of LG Youth in their digital transformation initiatives. In Victoria's, we launched the VisCitizen card project in partnership with Visa to streamline financial aid, verification, and cashless local payments. In Ormoc, we launched the GCash Citizen Card, integrating government collections, online payment options, digital disbursements, MSME support, and financial literacy. And with that, we end the updates on Globe's digital platform businesses. Moving on to the financial portion of the presentation. To reiterate the earlier points made, Globe's consolidated gross service revenues climbed to a new all-time high of 85.4 billion pesos for the six months ended June 2026. growing 6% year on year and surpassing the previous record of 82.8 billion pesos achieved in the latter half of 2024. Total operating expenses and subsidy amounted to 40.5 billion pesos in the first six months, up 6% year on year. With top-line growth more than offsetting this uptick, EBITDA improved to 44.9 billion pesos, higher by 6% compared to the same period last year. Total depreciation expenses reached 28.7 billion pesos as of end June 2026, up 8% year-on-year, driven by Globe's continued capital investments, leading to an EBIT of 16.2 billion pesos, up by 3%. Non-operating charges for the period stood at 3.1 billion pesos in the first six months. primarily due to the lower net gain from the dilution of Globe's stake in Mint compared to the prior year, together with higher financing costs arising from increased foreign exchange losses and higher interest expense. Reported net income for the first half declined to 11 billion pesos, primarily due to the lower net gain from the dilution of Globe's stake in Mint, as well as higher non-operating charges. Excluding these factors, Globe's underlying operating performance remained healthy, supported by record service revenues and higher EBITDA. As a result, core net income stood at 10.2 billion pesos. On a sequential basis, Globe's consolidated gross service revenues were also at an all-time high of 43.4 billion pesos, which is an improvement of 3%. Total operating expenses and subsidy increased by 5% quarter-on-quarter to 20.7 billion pesos. But EBITDA still expanded by 2% to 22.7 billion pesos. EBITDA margin, as such, remained healthy at 52.3%. Depreciation for the second quarter stood at 14.3 billion pesos, relatively flat compared to the prior period, while EBIT grew by 7% quarter-on-quarter to 8.4 billion pesos. Non-operating charges during the second quarter increased to 1.8 billion pesos, mainly due to lower gains on derivative instruments and softer equity earnings from affiliates. Reported net income nevertheless remained broadly stable at 5.5 billion pesos, while core net income improved by 7% quarter-on-quarter to 5.3 billion pesos, highlighting the improving trajectory of the company's underlying earnings. Looking at our costs for the first half, interconnect charges increased 23% year-on-year, primarily driven by higher data roaming and A2P domestic SMS payouts. Staff costs grew by 656 million pesos on higher headcount. Marketing and subsidy expenses increased by 288 million pesos due to higher mobile subsidies and increased advertising spend on rewards, merchandise, and online placements, partially offset by lower commissions. Network costs grew by 1 billion pesos, mostly due to higher utilities costs Inc. Inc. Inc. Inc. The 5.2 billion peso growth in total consolidated growth service revenues allowed for a 6% year-on-year expansion in first half EBITDA to 44.9 billion pesos. On a quarter-on-quarter basis, the 30 million peso growth in interconnect charges, 308 million peso increase in staff costs, 315 million peso uptick in network costs, and 473 million peso increase in services and other OPEX were more than offset by the decrease in provisions, marketing, and subsidies As such, EBITDA for the second quarter improved by 2% sequentially to 22.7 billion pesos. Globe continues to provide consistent and sustainable returns to shareholders, enabled by the company's robust balance sheet. The Board of Directors has approved the payout of 25 pesos per share, reflecting Globe's commitment to competitive returns while navigating increasingly complex macroeconomic conditions. Key dates for this declaration are the payment date of September 3, 2026 to shareholders on record as of August 18, 2026. This payout is enabled by our strong financial position, with all ratios remaining well within bank covenants. Finally, as we close the presentation, we are pleased to share that our full-year consolidated outlook is holding steady following the company's record-breaking results. Transcription by CastingWords Investing only where it matters most to further strengthen our financial position. Our strategy remains anchored on disciplined execution and minimal disruption to Globe's best-in-class customer experience. We will continue expanding 5G coverage, deepening our fiber footprint, and scaling our digital platforms to better serve the evolving needs of our customers. Through focused execution and more efficient capital allocation, we are strengthening the foundation for sustainable long-term value. That ends the presentation. Thank you all for listening.

Thank you, Ira. Good morning once again. We would like to introduce the management panel for today's briefing who will be joining us shortly here in front. Starting off, of course, with our present and chief executive officer, Mr. Carl Cruz, Mr. Carlo Puno, our chief finance officer, Mr. Darius Delgado, our chief commercial officer, Courtney Freuland-Castello, general counsel, Mr. Eric Tanbauco, Vice President, Consumer Mobile Business Mr. Danny Teixeira, Senior Advisor, Broadband Business Mr. Joel Agustin, Senior Vice President for Network Planning and Engineering and Mr. Carlo Malana, President and Chief Executive Officer, SEPGDC Philippines We'd also like to acknowledge the presence of Ms. Eileen Saraspi, Vice President for Corporate Finance and Strategy and Ms. Bernice Olivas, Vice President and Head of the Treasury Division. We'll now begin the Q&A session similar to last quarter. We'll first have questions regarding core business before the platform businesses. Our first question comes from Brian Chiam-Shim of FYAP Securities. The question reads, I would like to seek clarification regarding Globes first half 2026 financial results While service revenues remained resilient, net income declined 11% during the year to 11 billion pesos. Could you kindly share the key factors that drove the decline in net income during the period? Carlo, can we answer the question?

Thanks for the question. Predominantly, the delta in the year-on-year on the first half net income is a function of the lower dilution gains that we got for Globes mint stake versus the prior year. There are also some higher operating charges related to our relatively larger network build-up, which we do intend to monetize over the next few quarters.

Thank you, Carlo. The next few questions are for corporate data, B2B, so this is for Darius. The questions come from Rod Vahilidad of MetroBank. Congratulations on the significant growth in corporate data in the second quarter. Can you share more details on products or deals driving the performance? Was growth driven by cloud, DC, cybersecurity, managed service, AI slash digital platforms? And will this continue into Q3 and Q4?

Thank you for that question. It is indeed a good quarter and a good first half for the enterprise segment. And with corporate data actually grew 15% year-on-year and quarter-on-quarter as well, driven by huge demand for domestic internet services, as well as ICT services such as business application solutions. Of course, the usual cloud and cybersecurity offerings with unabated momentum and to a certain extent, data center-related transactions. For the second half, as we view our pipeline moving forward, we expect growth to continue on these services on the back of continuous market adoption.

Thank you, Darius. The second question is, what is the split of your connectivity versus ICT revenue under corporate data?

Unfortunately, we cannot disclose the split. But suffice it to say that connectivity takes up the lion's share of corporate data. Both ICT and connectivity services or categories, though, have posted relatively healthy growth quarter and quarter and year and year in keeping with our sustained focus on monetizing before and adjacent services.

Thank you, Darius. The third and final question is, how do you treat data center revenues reported? You mentioned Globe Data Center as an item under corporate data. Is this the same as STT data centers?

Okay, so two things. First one, for the most part, data center revenues are reported under STT GDC, which is our joint venture with Ayala and STT Telemedia. However, on a consolidated P&L basis, Globe's equity share in STT is reported as part of non-operating income. but share in the reselling of capacity or DC products by Globis included in corporate data alongside adjacent services such as cross-connect services and other SDT services that we offer.

Thank you, Darius. The next few questions are also on corporate data slash B2B from Katrina Yap of Inc. But going through these questions, it appears that this has already been addressed earlier. Katrina, we'll just share the Replies given earlier by email. Thank you very much. We'll now proceed to the platform businesses questions. And the first question is on Mint, coming from Ryle Munkal of PEP. and Carlo, I believe, will be taking care of these questions. Would you be able to give any color on why Mint's earnings were down Q and Q? And likely something, is this likely something on the cost side?

I think it's, if you look at the quarter and quarter performance, it's a little hard to look too much into and read too much into the performance simply because there are a lot of nuances per quarter. There are certain opportunities, certain spend that do increase on a quarter-in-quarter basis. If you look at the first quarter performance of GCash, the net income margin, if I'm not mistaken, is around 27%, when full-year net income margin of GCash was at 20% for 2025. And so there is some natural I would say normalization of the margin. So I wouldn't read too much into the quarter-in-quarter performance, but would advise the analysts to look at a longer-term view in terms of the GCash performance.

Thank you, Carlo. Next question is, again, on GCash from Misha Nang of Papa Securities. Actually, it's definitely the same question as the one earlier. However, she just wants more clarity in terms of the difference on a year-on-year basis.

On a year-on-year basis, there are a couple of, I guess, considerations. First, there is still that base effect. Recall back in 2025, we did tell the market to expect some... pressure on the bottom line for GCash because of the de-linking that happened in August 2025. I think we are still at that period and we should expect some pressures on the bottom line. I think that's the first factor. The second factor is there were also a lot more investments into the business done by GCash on user and merchant acquisition as well as tech investments. for the year to be able to actually enable the core services of GCash for future products as well.

Thank you, Carlo. The next two questions are from Marco Maulion of BDO Securities. So the first question, again, is on the net income decline in Mint. So we'll just share the answer you gave earlier with Marco. The second question from Marco is, what is the estimated revenue impact of reduced transfer fees on mint revenues?

We don't disclose it, but it is part of the diverse set of revenues that GCash has. So it is part of the diversity in revenues. I think there are a couple of things. I would say four things to keep in mind. The first one is this relates to revenues of GCash for subscribers that transfer their money out of the GCash wallet. So the second one is we need to also remember that GCash to GCash transfers are already free. So it does not impact that side. Third, because it is the revenues related to cashing out from the GCash wallet, we could potentially see this as a net positive on the GCash side because GCash is a net receiver wallet. So what this is doing is creating less friction for subscribers, for users to actually cash into the GCash wallet. which is potentially beneficial for GCash. Finally, the directive is not necessarily eliminating the fees, the transfer fees. The directive is requesting a lot of these financial institutions to look at it from a cost approach in terms of pricing. And there's a very different set of considerations when you talk about traditional financial institutions or banking institutions versus e-money issuers. Structural difference that do need to be considered when we do look into how to comply to these directives.

Thank you, Carlo. The next question is from Paolo Manansalov called me financial and his question is again regarding Mint's decline in contributions to global net income before tax. So we'll just share the question, I mean the answer given earlier with Paolo. So far there are currently no more questions in the queue and we'll now take questions from the floor. May we request you to go to the mic in front and state your name and company before asking your question. Thank you. Going once. Going twice. Sold. Anyway. As there are no further questions, this includes the Q&A portion. Before we adjourn, we will now turn over the floor to Carl for his closing remarks.

Thank you, John-Marie. Well, first of all, thank you for coming across despite the inclement weather that we do have. So for Globe, we're definitely very pleased with the resilient first half performance. Despite a challenging micro-environment, the business delivered excellently. records service revenues, healthy margins, and continued momentum across our businesses. In mobile, which is a key contributor for RevenueBase, in the first half, we delivered 6% year-on-year growth, and data grew by 10%. Broadband now continues to be a key growth driver as well, delivering, again, 6% year-on-year revenue growth for the business. And B2B... which we did say last year will be the fastest growing segment of the business, is living up to that particular statement and promise by delivering 15% year-on-year growth. FDTGDC, you would have seen in the presentation a while back, is already taking up quite a lot of orders, and the build can barely catch up with the demand at this point in time. Mint, with the various questions, obviously doing very well and the much-awaited IPO obviously is hopefully going to happen within the next couple of months. So for all of us, as we move into the second half, our priorities at Globe remain very, very clear. First, strengthen monetization. We will always ensure that our capital expenditure delivers monetization much ahead of the industry. Second, we will deepen customer engagement. And third, we will continue to expand the reach and quality of our network and digital platforms such that the commitment to always have the best in class experience on the network will continue to happen. Second half as well, we will continue to be disciplined in capital allocation, continue a massive focus in brand execution, and we will continue to be committed to delivering sustainable long-term value for our customers shareholders, and of course the communities that we serve. Thank you. And once again, good morning and thank you for coming.

Thank you, Carl. And on that note, we conclude the second quarter 2026 Analyst Briefing Globe Telecom. We wish to thank again all of you who joined us here in the call. We hope you'll join us again for our third quarter 2026 Analyst Briefing November. Again, we wish everyone a pleasant good morning. Stay safe and dry, everyone.