Globe said mobile revenues grew 5 percent to P87.7 billion, while total service revenues hit P124 billion, up 2 percent. Removing the impact of tower sales, Globe said core net income after tax soared 20 percent to P17.8 billion.
GCash provides profit boost
The telco giant also owns a third of GCash operator Mynt, which recently received fresh investments from Japanese corporate giants Mitsubishi Corp. and Mitsubishi UFJ Financial, valuing the payments leader at about $5 billion.
Mynt contributed P3.5 billion to Globe’s earnings during the nine-month period. This represented a 14-percent contribution to Globe’s pre-tax net income, up from 6 percent the previous year. Mynt’s equity earnings also outperformed last year’s by a strong 114 percent.
Management’s view
“Our unwavering resilience and agility have propelled us forward, leading us to extraordinary accomplishments. The robustness of our business model is evident in the impressive Ebitda we’ve achieved, along with a notable increase in core net income after tax during the first nine months of the year,” said Ernest L. Cu, president and CEO of Globe Telecom Inc.
“With our country’s digital economy poised for expansive growth, Globe is committed to empowering Filipinos across all economic segments. Our focus remains on unlocking value as a hyper-focused digital company, winning customers through network improvement and digital innovations while strengthening our core telco business,” he added.
Other revenues, healthy margins
Globe said the corporate data segment also posted impressive gains, with core data services and ICT driving a 14 percent revenue increase while home broadband revenues fell 6 percent due to a shift from fixed wireless to fiber services.
Operating costs also eased 2 percent while earnings before interest, taxes, depreciation, and amortization grew 7 percent to P64.9 billion, allowing the company to maintain a margin of 52 percent.
Capital spending eases
Globe’s capital expenditures dropped 24 percent year-on-year to P41 billion in the first nine months of 2024, with 91 percent dedicated to data infrastructure.
“This reduction is also in line with Globe’s strategy to optimize capital utilization and achieve positive free cash flows by 2025,” the company said in a statement.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
