Globe Telecom sees 27% profit drop

Globe Telecom sees 27% profit drop

Globe Telecom hailed revenue growth in its mobile business but the Philippines operator also revealed a drop in profits in the first nine months of the financial year. 

In a statement, the operator revealed profits dropped by 27% from PHP26.46 billon (US$474 million) to PHP19.29 billion (US$345 million) mainly due to increased depreciation expense, a non-operating charge, and the same period last year seeing a boost from the partial sale of Globe’s data centre business. Excluding the gain, net profit loss would have been down by 11% year-on-year to PHP14.8 billion. 

Total revenue increased by 3% to PHP133.8 billion as mobile service grew by the same rate to PHP83.2 billion, offsetting a 2% decline in fixed line and home broadband sales to PHP33.8 billion. 

Mobile voice revenue dropped by 11% to PHP10.2 billion and SMS by 10% to PHP6 billion. Prepaid ARPU grew by 25% to PHP121, meanwhile post-paid was flat at PHP848. Capex was cut by 27% to PHP54 billion as the operator minimises its spend. 

The operator rolled out 833 new base stations, and noted 716 were 5G sites. It also upgraded 5,395 sites to LTE. Globe recorded 5.2 million 5G devices on its network in September. 

Globe Telecom CEO Ernest Cu said: “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. 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.”

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