Globe Telecom Inc. announced that its net income dropped by 27 percent to P19.4 billion in the first nine months of the year from P26.5 billion in the same period in 2022 due to “increased depreciation expense" as well as non-operating charges compared to last year's non-operating income and partial sale of its data center business.
Mynt, the fintech arm of Globe Group which operates online payment platform GCash, notably contributed six percent of Globe Group’s net income before tax.
“Globe Group’s share in Mynt’s equity earnings amounted to ₱1.6 billion, which now accounts to 6% of this period’s net income before tax. Compared to the same period last year, Mynt’s equity earnings grew by 149 percent,” said the firm.
The company recorded a three percent increase in its consolidated service revenues to P121.1 billion in this year’s nine-month period from P118 billion last year.
The high revenues were attributed to strong contributions of its mobile, corporate data, and non-telco services, “which fully offset the anticipated decline in home broadband.”
Globe’s total mobile revenues contributed 69 percent of its service revenues, with a total mobile customer base at 54.7 million for the first nine months of the year. The mobile business revenue increased three percent to P83.2 billion by the end of September this year from P80.6 billion last year primarily driven by the strong performance of its prepaid brands.
Mobile data revenues also increased seven percent to P67 billion this year from P62.5 billion in 2022, while traditional mobile voice and SMS revenues decreased by 11 percent to P10.2 billion and 10 percent to P6 billion respectively.
Corporate data revenues also grew eight percent to P13.6 billion this year from P12.5 billion due to a 20 percent increase in its information and communication technology (ICT) services.
The firm’s non-telco services accounted for 3.4 percent of the service revenues this year, compared to 2.4 percent last year, as it ventures into sectors including fintech, virtual healthcare, e-commerce, business outsourcing, adtech, edutech, climatetech, media, and entertainment.
Non-telco revenues surged by 44 percent at P4.1 billion in the first nine months of 2023 from 2.8 billion last year driven by improved revenues across Globe subsidiaries led by ECPay, Adspark, Asticom and Yondu.
Meanwhile, home broadband business declined by seven percent to P19 billion revenues this year from P20.5 billion from 2022 due to the drop in fixed wireless products. The number of home broadband subscribers also dropped 35 percent to P1.7 million compared to P2.7 million subscribers recorded last year.
Globe’s total operating expenses in 2023’s nine-month period amounted to P60.4 billion compared to P57.6 billion reported in 2022.
Globe Group’s consolidated EBITDA inched up by one percent to P60.7 billion this year from P60.3 billion last year, “as the 3% topline expansion was partly cushioned by the 5% surge in operating expenses (including subsidy).”
“Our third quarter results show that our telecom business performance is very much aligned to the guidance we have set. On the other hand, our pivot to a techco business is showing signs of momentum. We are happy that more of the non-telco businesses are contributing to the Group's overall business growth and resilience,” said Globe President and CEO Ernest L. Cu.
“We will continue to look for opportunities to thrive amidst the macroeconomic challenges and competition. We believe that our renewed focus on innovation, collaboration, sustainability and service, backed by our unwavering commitment to network excellence are the imperatives that will keep us ahead and will pave the way for a digitally inclusive and prosperous Philippines,” he added.