Globe Telecom, Incorporated, the largest mobile network in the Philippines, has posted P41 billion gross service revenues in the first three months of 2024 or up to three percent as compared to the same period last year following the robust growth of its major telecommunication services particularly, mobile and corporate data businesses.
In the latest financial and operating results, Tuesday, May 24, the country’s leading fixed-line and broadband networks disclosed that the ongoing strong performance is fueled by the business's commitment to providing cutting-edge solutions that support digital transformation and meet the demands of its enterprise clients.
Corporate data revenues increased by 10%, while mobile revenues increased by 8% while Globe's data revenues increased significantly from 82% of total consolidated gross service revenues last 2022 to 85% in the first quarter of 2024.
Meanwhile, Globe's consolidated EBITDA for the first three months of this year was 21.4 billion, a significant increase of 4% over the same period last year. This was mostly caused by a 3% rise in topline revenue, which was somewhat countered by a 2% increase in operating expenses (including subsidies).
On the other hand, the company's EBITDA margin grew year over year, from 51% to 52%, surpassing the 50% full-year guidance. The company's commitment to optimizing operational effectiveness and guaranteeing ongoing development is demonstrated by this expansion.
“Our financial performance for the first quarter exceeded expectations, with an impressive 52% EBITDA margin, indicating a positive start of the year and building momentum going into the coming quarters,” Ernest L. Cu, President and CEO of Globe Telecom Inc. said.
The official added that the latest positive financial report is attributed to their clear strategic focus on innovation and customer-centricity to create a brighter and more connected future for the Philippines
“We are also pleased with the progress of our landmark tower deal with the successful transfer of a significant portion of the towers, reaching nearly 70%. We have put in place plans to ensure that the majority of the proceeds will come in by the first half of the year. This move puts us in a solid position to meet the dynamic connectivity demands of our customers and stay at the forefront of the industry,” Cu maintained.
Currently, despite the decline in home broadband and non-telco services, Globe has developed into a more robust digital ecosystem of goods and services that cater to the underserved areas of financial inclusion, healthcare, education, the environment, business enablement, and more. Globe has moved beyond its core telco business. With forays into financial technology, healthcare, edutech, climatech, entertainment, adtech, e-commerce, workforce, information technology services, and investments, Globe has expanded its portfolio outside its core telco business.
Globe's total operating costs, including subsidies, increased from 19.5 billion to 19.8 billion in the first three months of 2024. Reduced marketing and subsidies as well as provisions were among the company's cost-cutting measures, but they were outweighed by increases in leasing, maintenance and repairs, personnel costs, and administrative expenditures.
