The Globe Group has reported a landmark achievement for the first nine months of 2023, with consolidated service revenues reaching an all-time high of ₱121.1 billion.
This robust 3% increase from the previous year comes despite persistent economic headwinds buffeting the industry.
Fueling this exceptional growth, the group’s mobile, corporate data, and non-telecom services have shone brightly, fully compensating for a predicted dip in home broadband revenues.
Notably, the non-telecom segment has soared by 44% year-over-year, now comprising 3.4% of total service revenues, up from 2.4% last year.
Data revenues continue to be a stronghold for the company, contributing 82% to the top line, a 1% increase from the previous year, amounting to ₱99.6 billion.
The mobile business segment, in particular, demonstrated formidable performance with revenues climbing to ₱83.2 billion, a 3% rise from the previous year.
This growth is attributed to the company’s data-centric value propositions, which have proven relevant even amid rising inflation, ensuring customers continue to enjoy high-quality network services.
The company’s mobile data segment saw a substantial 7% revenue increase to ₱67.0 billion, bolstered by an impressive jump in mobile data traffic to 4,360 petabytes.
This surge is driven by the growing consumption of online videos and social media over smartphones. In contrast, traditional mobile voice and SMS revenues faced a downtrend.
The home broadband sector faced challenges with a 7% revenue decline to ₱19.0 billion, influenced mainly by the decrease in fixed wireless products. However, a silver lining appears with the postpaid fiber segment showing positive momentum, suggesting a bottoming out of business normalization.
In line with its techco strategy, the Globe Group has diversified its portfolio, venturing into various digital solutions sectors, leading to a significant increase in non-telecom revenues. These strategic moves are reflected in the impressive growth of subsidiaries such as ECPay, Adspark, Asticom, and Yondu.
Despite a 5% increase in operating expenses, the group’s EBITDA reached a new high of ₱60.7 billion, maintaining a 50% margin as per the company’s annual projections. Globe’s fintech arm, Mynt, has also seen remarkable growth, contributing significantly to the Group’s net income before tax.
Ernest L. Cu, President, and CEO of Globe Telecom Inc., remarked on the company’s steadfast commitment to innovation and excellence, underpinning their efforts towards fostering a digitally inclusive Philippines.
The company’s capital expenditure for the period stood at ₱54.0 billion, reflecting a strategic reduction from the previous year, aligning with the company’s long-term objectives.
With these results, the Globe Group demonstrates resilience and strategic agility, navigating through economic adversities while laying down a roadmap for sustained growth and digital inclusivity in the Philippines.
BusinessNewsAsia