GLOBE Telecom, Inc. posted a 0.37% increase in second-quarter net income to P5.48 billion on record revenues, but higher costs weighed on its first-half earnings despite continued growth in its mobile and digital businesses.
For the three months ended June, the listed telecommunications company posted gross revenue of P46.95 billion, up 8% from P43.47 billion a year earlier, the company said in a disclosure on Wednesday.
Total expenses rose 10.4% to P43.41 billion from P39.32 billion.
“Our first-half results demonstrate the strength of our core business and the solid contribution of our digital ecosystem to Globe’s overall performance. We delivered record service revenues and maintained an EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 52.6%, despite a challenging macroeconomic environment,” Globe President and Chief Executive Officer Carl Raymond R. Cruz said.
For the first six months, Globe’s attributable net income declined 11.25% to P11.04 billion from P12.44 billion a year earlier as expenses outpaced revenue growth.
Total revenues for the January-to-June period rose 6.22% to P92.66 billion from P87.23 billion, while gross expenses increased 7.5% to P85.85 billion from P79.86 billion.
Service revenues, which accounted for the bulk of total revenues, climbed 6.46% to P85.37 billion, while non-service revenues reached P7.29 billion.
The mobile business remained Globe’s biggest revenue contributor, generating P60.39 billion during the period. Home broadband contributed P12.44 billion, while corporate data and fixed-line voice generated P11.05 billion and P623 million, respectively.
The company attributed the growth of its mobile business to continued portfolio monetization and optimization initiatives, adding that rising demand for video streaming, social media, gaming, and artificial intelligence (AI) applications supported higher data consumption.
Mobile traffic increased to 3,723 petabytes from 3,187 petabytes a year earlier, while average monthly data usage per subscriber rose to about 17 gigabytes (GB) from 15 GB. Globe’s mobile data user base grew 5% to more than 39.6 million as of end-June.
The company also said average daily mobile top-ups and wireless traffic continued to increase.
“These results reflect disciplined execution, the resilience of our business model, and our unwavering focus on creating sustainable long-term value for our customers and shareholders,” Mr. Cruz said.
Globe attributed the decline in first-half earnings to a lower net gain from the dilution of its stake in Mynt, Inc., the financial technology company behind the GCash e-wallet platform.
Core income, which excludes the effects of foreign exchange and mark-to-market adjustments, slipped 2% to P10.2 billion.
Globe said it would continue investing in its network, technology platforms, and AI-enabled capabilities to improve customer experience, strengthen operations, and support future growth.
“We will invest in our network, technology platforms, and AI-enabled capabilities to improve customer experience, operate more efficiently, accelerate innovation, and help build a more connected and digitally inclusive Philippines,” Mr. Cruz said.
Capital expenditures (capex) reached P26.3 billion during the first half, up 39% from a year earlier, primarily for network expansion and digital infrastructure.
For the year, Globe has earmarked a capex budget of below $1 billion. During the first half, it deployed 80,052 new fiber-to-the-home (FTTH) lines and added 878 fifth-generation (5G) sites.
The company also settled the remaining $174 million aggregate principal of its senior perpetual capital securities.
At the local bourse, shares in the company closed P59, or 3.25% lower, at P1,755 apiece. — Ashley Erika O. Jose
