Listed telecommunication firms poised for growth

By Ashley Erika O. Jose, Reporter

LISTED telecommunication and information and communications technology (ICT) companies are expected to post growth in 2026, backed by sustained demand for fiber data services and expanding opportunities in nontelecommunication businesses such as digital finance and data centers, analysts said.

“We see growth from both Maya and GCash amid greater adoption and shift to digital transactions,” Peter Louise D. Garnace, an equity research analyst at Unicapital Securities, Inc., said in a Viber message.

He said the telecommunication sector is likely to remain resilient this year, with nontelecommunication segments emerging as key growth drivers. These include digital wallets and data center operations, which are gaining traction alongside rising data usage.

“The growth in data centers will be driven by increased local data consumption, increased use of artificial intelligence (AI) and the government’s strategic push to position the Philippines as a regional hyperscaler hub,” Mr. Garnace said.

In the nine months to September 2025, listed telecommunication and ICT firms posted mixed financial results, largely due to higher operating expenses.

Globe Telecom, Inc. posted a 14.04% decline in attributable net income to P17.69 billion from a year earlier, while revenue slipped to P131.59 billion from P134.74 billion. PLDT Inc.’s attributable net income fell 10.69% to P25.07 billion, while revenue rose 1.45% to P163.28 billion.

Both companies said their digital banking operations continued to support earnings. PLDT’s Maya sustained profits, with deposit balances reaching P57 billion as of end-September and cumulative loan disbursements since launch hitting P187 billion.

Globe, meanwhile, said GCash is expanding its user base to support its push for financial inclusion. GCash has 94 million registered users across at least 16 markets worldwide.

Other listed players posted stronger results. Converge ICT Solutions, Inc.’s net income rose 8.4% to P8.9 billion in January to September, while revenue climbed 10.12% to P32.97 billion. DITO CME Holdings Corp. narrowed its attributable net loss to P9.65 billion from P11.05 billion, as gross revenue rose 25.28% to P14.92 billion.

Mr. Garnace said the Konektadong Pinoy Act, which liberalizes data transmission, is expected to reshape the industry landscape.

“We view the regulation not necessarily as a pure headwind,” he said. “Rather, it represents a structural shift that may challenge legacy business models while creating opportunities through wholesale and digital inclusion plays.”

The law, which lapsed into effect in August, streamlines licensing for new players. The Department of Information and Communications Technology (DICT) said seven companies have signified interest in operating locally.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said continued investments in data centers and AI are key growth drivers.

“New technologies and innovation could lead to potential game-changers and market disrupters in their respective industries,” he said.

The DICT expects the country’s data center capacity to reach 1.5 gigawatts by 2028, supporting longer-term prospects for the sector.