Globe Stays Firm on 2025 Growth Target

Globe Telecom’s Leadership Shift: Can a New CEO Steer Through Financial Headwinds?
Change is brewing at Globe Telecom Inc., the Philippines’ telecommunications powerhouse, as it ushers in a new era under CEO Carl Raymond R. Cruz. The transition comes at a make-or-break moment: Globe’s Q1 2025 earnings revealed a 22% nosedive in core net income, thanks to rising interest costs and sluggish revenue. Yet Cruz—handpicked by parent company Ayala Group—is betting on fintech fireworks, 5G expansion, and a customer-obsessed overhaul to turn the tide. But can this ex-fintech strategist outmaneuver the ghosts of Black Friday-esque financial chaos? Let’s dissect the clues.

The Cruz Gambit: A Fintech Maverick Takes the Wheel

Ernest Cu’s 15-year reign transformed Globe from a dial-up relic into a digital titan, but Cruz’s resume reads like a disruption playbook. His stints in Nigeria’s cutthroat telecom market and India’s fintech boom taught him one thing: adapt or flatline. Now, he’s doubling down on Mynt, Globe’s golden goose (operator of GCash), which already chips in 5% of pre-tax income. The upcoming GCash IPO—targeting a $1.5 billion jackpot—could bankroll Cruz’s ambitions, but skeptics whisper: *What if the fintech bubble burps?*
Cruz isn’t sweating. He’s rebranding Globe as a “digital lifestyle enabler,” pushing GCash beyond payments into loans and investments. “Think of it as squeezing blood from the mobile wallet stone,” quips a Manila-based analyst. Yet with competitors like PayMaya sharpening their knives, Cruz’s fintech endgame needs more than hype—it needs ruthless execution.

5G or Bust: The Infrastructure Arms Race

While Cruz talks up “digital inclusion,” Globe’s 5G rollout feels more like a high-stakes poker game. The company’s sunk $1.2 billion into towers and spectrum licenses, but coverage remains patchy outside Metro Manila. Rival PLDT, meanwhile, is gobbling up enterprise clients with private 5G networks for factories and ports.
Cruz’s countermove? A “smart cities” blitz, partnering with local governments to embed 5G in traffic grids and hospitals. “It’s not just about faster TikTok streams,” he told investors last quarter. But with capex bleeding profits (Q1’s interest expenses ballooned by 30%), Globe’s balance sheet is tighter than a hipster’s skinny jeans. Cruz’s challenge: Prove that 5G can monetize faster than debt piles up.

Customer Centricity or Corporate Lip Service?

Here’s where Cruz’s retail roots show. The new CEO’s mantra—“Globe exists to solve customer pain points”—sounds noble, until you remember that 42% of Filipino users still complain about dropped calls. His fix? A “brutal audit” of service quality, including AI-driven complaint tracking and a “no-robots” customer service pledge.
But critics call it a PR Band-Aid. “You can’t UX-design your way out of infrastructure gaps,” grumbles a tech blogger. Cruz’s retort: Globe’s new app (with one-click billing disputes) and free public Wi-Fi hotspots aim to “democratize connectivity.” Translation: Happy customers might forgive the occasional buffering—if the perks feel generous enough.

The Verdict: A High-Wire Act With No Safety Net

Globe’s plot twist under Cruz hinges on three gambles: that GCash’s IPO cash will offset debt, that 5G will pay off before creditors come knocking, and that customers will trade rage for rewards. Cu’s legacy—a fintech gem wrapped in spotty service—sets a high bar.
Cruz’s ace? His nomadic career taught him to pivot on a peso. If he can turn Globe’s digital bets into tangible profits while keeping the Ayala Group’s patience intact, this leadership shuffle might just avoid becoming a cautionary tale. But as any mall mole knows: In telecoms, the house always wins—unless you’re holding the right cards.