Globe H1 revenue rises 2%, driven by mobile data

Globe Telecom Inc. posted a robust financial performance for the first half of 2024, with consolidated gross service revenues rising by 2% to ₱82.2 billion.

The growth was primarily fueled by its mobile and corporate data businesses, which collectively accounted for 83% of total revenues, up from 79% in the same period last year.

Mobile revenues reached an all-time high of ₱58.4 billion, marking a 7% increase from ₱54.8 billion in the previous year.

“Our effective market repair initiatives and sustained network quality have driven customer preference for Globe’s products and services,” said Ernest L. Cu, President and CEO of Globe Telecom Inc.

Mobile data revenues hit a record ₱48.0 billion for the first half, reflecting a 9% growth from ₱44.0 billion last year. This surge was driven by Filipinos’ increasing reliance on mobile apps for activities such as e-commerce, media streaming, and social networking.

Mobile data now constitutes 82% of mobile revenues, up from 80% last year. Mobile data traffic also saw a significant increase, reaching 3,256 petabytes, compared to 2,814 petabytes in the same period of 2023.

The corporate data business also showed a solid performance with an 8% year-on-year growth, generating approximately ₱9.8 billion as of end-June 2024. This was largely due to increased contributions from information and communication technology (ICT) and core data services.

“We continue to support the digital transformation of our enterprise clients with innovative solutions,” Cu added.

Despite these gains, home broadband revenues fell by 6% year-on-year, from ₱12.8 billion to ₱12.1 billion, primarily due to a decline in fixed wireless services.

However, postpaid fiber services showed a 3% increase in subscribers and revenues, mitigating some of the overall decline.

Globe’s non-telco revenues experienced a significant 58% drop year-on-year, largely due to the deconsolidation of ECPay following the sale of a 77% stake to Mynt in September 2023.

Operating expenses, including subsidies, dropped by 2% to ₱39.3 billion, driven by ongoing cost-saving measures.

The company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 6% to nearly ₱43.0 billion, with an EBITDA margin improving to 52% from 50% last year.

Net income posted a modest 1% growth, reaching ₱14.5 billion, while core net income, excluding non-recurring charges, expanded by 18% year-on-year to ₱11.7 billion.

Globe’s fintech arm, Mynt, continued its growth trajectory, with GCash cementing its status as the leading cashless ecosystem in the Philippines.

Globe’s share in Mynt’s equity earnings surged to ₱2.1 billion, contributing 12% to the company’s pre-tax net income.

“We are happy that our financial performance for the first half of the year remained robust,” Cu said. “With innovation and customer-centricity at the core of our business strategy, we remain optimistic about the future.”

Globe’s balance sheet remained healthy, with total debt improving from ₱250.0 billion as of end-December 2023 to ₱248.7 billion this period.

The company’s key gearing ratios for this period include Gross debt to EBITDA of 2.68x, Net debt to EBITDA of 2.48x, and a debt service coverage ratio of 1.60x.

Cu highlighted the nearing completion of Globe’s landmark tower deal, with 88% of the covered towers transferred to tower companies as of July.

“This strategic move will enhance our ability to meet the changing connectivity needs of our customers and solidify our position as an industry leader,” Cu said.