Globe says mobile still 'very strong'; posts record net income, revenue in Q1

Jekki Pascual, ABS-CBN News

Posted at May 06 2022 04:44 PM

MANILA - Data consumption remains the driver of growth for telco giant Globe, it said Friday, as it reported record net income and service revenue for the first quarter of 2022.

Globe's net income for the period rose "significantly" to P13 billion, registering an 86 percent improvement compared to the same period last year, Globe President and CEO Ernest Cu said during a virtual briefing.

Meanwhile, consolidated service revenue hit an "all-time" high of P39.2 billion, which is 4 percent higher compared to the previous year.

The bulk of the revenue is attributed to the continued growth of data in mobile, broadband and corporate, the telco said.

Total data revenue accounts for 81 percent of the service revenue of the company. Mobile data alone has breached the P20 billion-mark in revenue for the first time.

"Mobile business of Globe remains very strong and dominant. With a bit of opening of the economy, lowered alert levels, our mobile business rebound quite strongly," Cu said.

Globe spent P21 billion in capital expenditure for the period, up by 10 percent from same period last year. A total of 82 percent of the capex went to data-related requirements to handle the surge in demand for digital services.

Its Home Broadband division, however, fell 4 percent to P7 billion from P7.4 billion due to the transition and migration of Home Prepaid Wifi (HPW) users to fiber. 

Despite a decline in the Home Broadband business, non-telco companies of Globe are up by 252 percent to about P800 million in the first quarter. 

These non-telco businesses include ECPay, AdSpark, Yondu, and Asticom. 

"Growth continues to be driven by data, but is now complimented by the improving performance of our non-telco services. This is a testament to a strategic push of going beyond telco to cultivate a robust digital ecosystem," Cu added.

GCash is also contributing big to Globe's portfolio with 60 million registered users. 

New comer Kroma Enertainment is expected to launch its new Pinoy Interactive Entertainment (PIE) on May 23. PIE is in partnership with ABS-CBN and Beam.

"We saw a gap in the market in terms of broadcast, that's why Kroma was launched. Kroma will hopefully change the way broadcast TV is consumed in the Philippines with the interactivity component that they will be injecting," Cu said.