Globe Telecom reports mixed financial results amid non-telco revenue drop

By Francis Allan L. Angelo

Globe Telecom’s second quarter and first half of 2024 financial and operating results reflect a complex landscape, marked by a sharp decline in non-telco revenues but a notable increase in equity earnings from affiliates.

According to the company’s latest financial disclosure, non-telco revenues witnessed a significant 58% year-over-year decline, signaling challenges in diversifying beyond traditional telecom services.

Despite this, Globe’s share in equity earnings from affiliates surged by 147% YoY, offering a silver lining in the company’s financial performance.

One of the key contributors to Globe’s positive equity earnings is Mynt, the parent company of GCash, the leading finance super-app in the Philippines.

GCash has maintained its dominance in the digital finance ecosystem, with an active user base five times larger than its nearest competitor, according to data from third-party provider data.ai.

GCash’s growth is bolstered by its extensive network of over 6 million online and offline merchants and its comprehensive suite of digital financial services, including savings, investments, and insurance products.

Martha Sazon, CEO of GCash, highlighted the importance of financial inclusion in their strategy.

“Our commitment to ‘Finance for All’ is more than a slogan; it’s a driving force behind our continuous innovation. We are proud to provide access to credit for over 5.4 million Filipinos, many of whom come from lower socio-economic classes,” Sazon said.

GCash’s global expansion has also been a key growth driver. The platform now offers payment services in 47 countries and allows overseas Filipinos in 16 countries to manage their finances using GCash Overseas.

Furthermore, the company’s venture builder, 917Ventures, has seen success with KonsultaMD, a telehealth platform that has rapidly grown its user base by offering 24/7 online doctor consultations and a full range of healthcare services.

KonsultaMD’s SuperApp aims to provide universal access to healthcare across the country, making strides in a sector that has become increasingly vital post-pandemic.

Globe’s corporate venture builder has also invested in sustainable transportation through a partnership with Ayala Corporation and Gogoro Inc., introducing smart scooters and battery-swapping technology in the Philippines, aligning with the global push toward greener urban mobility.

As the company navigates a challenging market, Globe Telecom’s strategy appears focused on leveraging its investments in digital services and sustainable technologies to offset declines in traditional revenue streams.

Ernest Cu, President and CEO of Globe Telecom, expressed cautious optimism: “While we face headwinds in certain segments, our strategic investments in affiliates and digital ventures are beginning to pay off. We are confident in our long-term growth trajectory as we continue to innovate and expand our offerings both locally and internationally.”