Globe’s attributable income down by 27% in Q3

GLOBE TELECOM, INC. posted an attributable comprehensive net income of P4.97 billion in the third quarter (Q3), down by 27% from P6.81 billion a year ago, amid higher non-operating charges for the period, it said on Sunday.

Globe recorded consolidated revenues of P44.27 billion in the quarter, a 3.2% increase from P42.88 billion a year ago, amid strong service revenues, its financial statement showed.

Service revenues, totaling P40.66 billion, accounted for the majority of the company’s third-quarter top line, rising by 4% year on year from P39.1 billion.

Meanwhile, its non-service revenues declined by 5% to P3.61 billion from P3.80 billion previously.

“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,” Ernest L. Cu, president and chief executive officer of Globe, said in a statement.

Higher expenses pulled down the company’s bottom line in the period. Costs and expenses climbed by 4.2% to P38.87 billion in the third quarter, up from P37.30 billion a year ago.

“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,” Mr. Cu said.

For the first nine months, Globe’s attributable comprehensive net profit fell by 27.1% to P19.29 billion from P26.46 billion in the same period last year.

Its consolidated revenues stood at P133.79 billion in the period, 2.8% higher than the previous year’s P130.20 billion.

Services revenues made up bulk of the total at P121.1 billion, up by 2.7% from P117.96 billion last year and an “all-time high,” Globe said.

“This remarkable performance was mainly fueled by the strong contributions from its mobile, corporate data and non-telco services, which fully offset the anticipated decline in home broadband,” it added.

Non-service revenues increased by 4% to P12.73 billion in the nine-month period from P12.24 billion previously.

Meanwhile, the company invested about P54 billion in capital expenditures (capex) in the first nine months, down 27% year on year.

Most of its capex was used for data requirements to ensure reliable connectivity access, Globe said.

“Moreover, Globe built 833 new cell sites, and upgraded 5,395 mobile sites to LTE as of September 2023, to ensure seamless connectivity, high-speed data transmission, and consistent service availability across the country. The company also deployed around 175 thousand fiber-to-the-home lines, notably lower than last year’s rollout to maximize the utilization of its existing fiber inventory and this year’s reduction in capex,” it said.

“With Globe’s relentless pursuit of expanding its 5G technology nationwide, the Company has deployed 716 new 5G sites across the Philippines, increasing its 5G outdoor coverage to 97.67% of the National Capital Region and 92.06% of key cities in Visayas and Mindanao. Globe likewise logged 5.2 million 5G devices in its 5G network for the month of September 2023,” the company added.

Globe’s shares went up by P2 or 0.11% to close at P1,762 apiece on Friday. — A.E.O. Jose

Neil Banzuelo

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