Globe Telecom Inc., one of the Philippines’ leading telecommunications companies, has announced its second-quarter and first-half 2023 financial results, showcasing healthy growth across its diverse business segments.
Steady Top-Line Expansion Driven by Data Consumption Surge
In an era marked by unprecedented digital transformation, Globe Group’s consolidated service revenues for the first half of 2023 reached an impressive ?80.4 billion, showcasing a stable 2% year-on-year growth. The burgeoning data revenue across its mobile and corporate data businesses was a significant contributor to this expansion. This growth was further bolstered by the robust performance of non-telco services, which now comprise 3.5% of total gross service revenues. Data revenues surged to ?65.9 billion, accounting for 82% of the company’s total income, a marked increase from last year’s 81%.
Mobile Business Resilience and Data Habituation
The mobile business remained resilient, registering revenues of ?54.8 billion, a 1% rise compared to the previous year. This growth came despite inflationary pressures that were absent in the same period of the prior year. The growth was attributed to increased public mobility, reflecting the return to pre-pandemic levels. The company experienced a 2% sequential increase in revenues due to the growing data habituation among Filipinos.
Mobile data revenues reached a record ?44.0 billion, marking a 5% YoY increase, driven by the growing popularity of streaming and user-generated content through social media. This segment now accounts for 80% of mobile revenues, up from 77% last year. However, traditional mobile voice and SMS revenues dipped, resulting in a 13% and 10% YoY decline, respectively.
Innovative Solutions and Expansion into Non-Telco Sectors
Globe’s transformation from a telecommunications company to a technology-driven enterprise has fueled its expansion into various sectors. The company’s shift towards digital marketing solutions, venture capital funding for startups, virtual healthcare, e-commerce, business outsourcing, adtech, edutech, media, and entertainment has significantly contributed to its robust non-telco revenue growth. In the first half of 2023, non-telco revenues surged to ?2.8 billion from ?1.9 billion in the same period the previous year, showcasing a remarkable increase.
Strong Focus on Infrastructure Development
Globe’s commitment to providing the best connectivity to its customers was underscored by its significant investment in infrastructure development. With a focus on meeting the growing demand for data, the company invested ?37.7 billion in capital expenditure (capex) during the first half of the year, a 25% decline compared to the same period in 2022. A substantial portion of this investment, approximately 90%, was allocated to data requirements, aligning with the surge in online activities driven by telework, online learning, social media, entertainment, and e-commerce.
Leadership in Connectivity and Network Expansion
Globe’s continued emphasis on technological innovation has solidified its position as a leader in connectivity. The company’s 5G wireless technology deployment has been particularly noteworthy, with the expansion of its 5G network to cover a significant portion of the Philippines. The introduction of 5G roaming in multiple countries and territories has further cemented its reputation as a forward-looking telecommunications provider.
The company’s commitment to delivering reliable connectivity has been recognized globally, with Ookla® naming Globe as the “Most Reliable Mobile Network in the Philippines” for five consecutive times. Additionally, Globe earned the title of “Most Consistent Fixed Broadband” in various areas within Metro Manila and across the country.
Sustainable Growth and Recognition
Globe’s financial stability and strategic initiatives have led to impressive financial growth, underpinning its commitment to the United Nations Sustainable Development Goals. Its solid balance sheet and continued investment in innovation position it well for sustained success in an evolving digital landscape. Furthermore, Globe’s recognition as the Philippines’ strongest brand by Brand Finance underscores its exceptional performance and contribution to the nation’s digital transformation.
As Globe Telecom Inc. looks to the future, it is poised to maintain its leadership in the mobile sector and capitalize on its innovative digital solutions, ensuring that Filipinos continue to benefit from life-enabling services and cutting-edge connectivity.