Globe Telecom Posts Strong Performance Fuelled by Non-Telco Revenues

Globe Telecom, a leading telecommunications company in the Philippines, has announced a remarkable financial performance for the first half of 2023, marked by a 2 percent increase in service revenues to a record ₱80.4 billion. The consistent growth in revenues year-on-year can be attributed to the substantial expansion in data revenue across its mobile and corporate data businesses.
Globe Telecom network campaignGlobe Group’s non-telco services, which account for 3.5 percent of total gross service revenues, have been a significant contributor to this success. In particular, the data revenue segment has witnessed remarkable growth. The total data revenues for the first semester reached ₱65.9 billion, making up 82 percent of the company’s total revenues, up from 81 percent the previous year.

In the mobile business sector, revenues for the first half of 2023 stood at ₱54.8 billion, marking a 1 percent increase compared to ₱54.0 billion reported in the same period last year. Notably, this growth was driven by the company’s prepaid brands. The mobile revenues accounted for 68 percent of the total consolidated service revenues, with the company’s customer base reaching 82.9 million for the first six months of the year.

Mobile data revenues soared to a record ₱44.0 billion for the first half of 2023, reflecting a significant 5 percent increase from the ₱41.8 billion recorded a year ago. The surge in mobile data traffic, which reached 2,814 petabytes by the end of June 2023, was largely fueled by the popularity of streaming and user-generated content on social media platforms. Mobile data now contributes 80 percent of mobile revenues, up from 77 percent the previous year. Conversely, traditional mobile voice and SMS revenues experienced a decline of 13 percent and 10 percent year-on-year, amounting to ₱6.8 billion and ₱4.0 billion respectively.

In the Home Broadband business sector, revenues for the first half of the year were ₱12.8 billion, down from ₱13.8 billion reported in the same period last year. This decrease was partially offset by the growth in postpaid fiber subscribers and revenues, which experienced a 10 percent and 23 percent increase, respectively. The decline in Home Broadband subscribers was aligned with the market’s shift towards more reliable wired connectivity, stabilizing with the expiration of sim card registration. Home Broadband subscribers currently stand at 2.2 million, indicating a 31 percent decrease from the previous year.

Globe’s shift from being a telecommunications company to a technology-driven enterprise has led to diversification and expansion into various digital solutions, including digital marketing, venture capital funding for startups, virtual healthcare, e-commerce, and more. Non-telco revenues surged to ₱2.8 billion in the first half of the year, up from ₱1.9 billion in the same period of 2022. This remarkable growth was attributed to substantial contributions from ECPay, Asticom, and Adspark.

Globe has been focused on enhancing its infrastructure to meet growing demands. The company invested ₱37.7 billion in capital expenditure, with 90 percent allocated for data requirements, reflecting the increasing reliance of Filipinos on the internet for various purposes. Notably, the deployment of 542 new cell sites and the upgrade of 5,087 mobile sites to LTE have greatly improved network coverage.

Furthermore, Globe has demonstrated its commitment to 5G technology with the establishment of 356 new 5G sites across the Philippines. This expansion has led to a 97.44 percent 5G outdoor coverage in the National Capital Region and a 91 percent coverage in key cities in Visayas and Mindanao. The company has also achieved a significant milestone of 5.2 million 5G devices on its network by the end of June 2023.

Globe Group’s strong performance in the first half of 2023 underscores its resilience, adaptability, and commitment to providing cutting-edge digital solutions to its customers. The company’s strategic focus on data-driven services and expansion into non-telco sectors positions it as a leader in the evolving landscape of telecommunications and technology in the Philippines.